MIRA INFORM REPORT

 

 

Report Date :           

21.11.2011

 

IDENTIFICATION DETAILS

 

Name :

AMBICA  DIAMONDS

 

 

Registered Office :

Front Portion, 4/F., Ocean View Court, 41 Mody Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

22.10.1984

 

 

Com. Reg. No.:

09283584-000-10

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds jewellery and diamonds, etc.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

AMBICA DIAMONDS

 

 

company ADDRESS    

 

Front Portion, 4/F., Ocean View Court, 41 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2369 9004

FAX:                 2367 1722,  2877 1658

 

 

MANAGEMENT

 

Manager:  Mr. Hemkapur Ramaslal Patel

 

 

SUMMARY

 

Establishment:             22nd October, 1984.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   Nil.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.

CompaNY ADDRESS

 

Head Office:-

·         Front Portion, 4/F., Ocean View Court, 41 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

·         P.O. Box 90183, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.

 

Sister Company:-

Neelkanths Diamonds, Hong Kong.  (Same address)
[Established on 18-04-2005 bearing BR No. 09283584-002-10]

 

 

BUSINESS REGISTRATION NUMBER

 

09283584-000-10

 

 

MANAGEMENT

 

Manager:                       Mr. Hemkapur Ramaslal Patel

Contact Person:             Mr. Nimisha Patel

 

 

PARTNERS

 

Name:                           Mr. Hemkapur Ramaslal PATEL

Residential Address:      Flat H, 5/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

 

Name:                           Mr. Bharti Hemkapur PATEL

Residential Address:      Flat H, 5/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

 

Name:                           Mr. Nimisha PATEL

Residential Address:      Front Portion, 4/F., Ocean View Centre, 41 Mody Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was established on 22nd October, 1984 as a partnership concern jointly owned by Mr. Hemkapur Ramaslal Patel and Mr. Bharti Hemkapur Patel under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Hemkapur Ramaslal PATEL

22-10-1984

-

Bharti Hemkapur PATEL

22-10-1984
01-04-1996

31-10-1987
-

Jaydevlal Ramanlal PATEL

10-10-1989
01-04-1998

01-04-1997
01-04-1999

Darshna Hemkapur PATEL

21-04-2002

17-10-2010

Nimisha PATEL

17-10-2010

-

 

Initially the subject was located at Flat H, 5/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 3, 6/F., Mirador Mansion, 54-64 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in December 1998; to Flat A1, 4/F., Friend’s House, 4B-6H Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in November 2000; to Flat A1, 14/F., Block A, Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in November 2002; and further moved to the present address in April 2004.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds jewellery and diamonds, etc.

 

Employees:                   Nil.

 

Commodities Imported:   India, other Asian countries, etc.

 

Markets:                       Hong Kong, Japan, South Korea, Taiwan, North America, Europe, etc.

 

Terms/Sales:                  L/C or as per contracted.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Ambica Diamonds is a partnership set up on 22nd October, 1984.  Now it is jointly owned by Mr. Hemkapur Ramaslal Patel, Mr. Bharti Hemkapur Patel and Mr. Nimisha Patel.  All of them belong to the Patel family.

Nimisha Patel is the contact person of the subject who joined in as a partner on 17th October, 2010.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject does not have its own operating office.  Its registered address is in a private building located at Front Portion, 4/F., Ocean View Centre, 41 Mody Road, Tsimshatsui, Kowloon, Hong Kong.  This is the residence of Nimisha Patel.  The residential building is not trespassed by outsiders.  The subject has no employees in Hong Kong.

The mailing address of the subject is P.O. Box 90183, Tsimshatsui, Kowloon, Hong Kong.

The subject has got a sister company Neelkanths Diamonds located at its operating address.  This firm commecned business on 18th April, 2005.  Being a diamond trader, this firm is also operated by the Patel family and bearing the same business registration number.

The subject is trading in the following commodities:-

·         Jewellery – Silver (From India)

·         Diamond (From India)

·         Cubic Zirconia – Simulated Diamond

Most of the products are exported to Japan, South Korea, Taiwan, North America, Europe, etc. and marketed in Hong Kong as well.

The manager of the subject is Mr. Hemkapur Ramaslal Patel who can be reached at his mobile phone number 9709 3437.

The subject has maintained regular suppliers and overseas customers.  It has had sufficient working capital to support the current running.  No derogatory data has been heard.  History in Hong Kong is over twenty-sevens years.

On the whole, consider the subject good for normal business engagements in small credit amounts.

DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.35

UK Pound

1

Rs.80.97

Euro

1

Rs.68.26

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.