MIRA INFORM REPORT
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Report Date : |
28.11.2011 |
IDENTIFICATION DETAILS
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Name : |
YAU
LEE INDUSTRIAL CO. |
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Registered Office : |
c/o Jumpstart Business Centre, Room 907-908, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
04.05.2010 |
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Com. Reg. No.: |
52193392-000-05 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
subject is a diamond and precious stone trader |
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No. of Employees
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Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
No Operating Office in Hong Kong |
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Payment
Behaviour : |
--- |
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Litigation : |
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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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
YAU LEE
INDUSTRIAL CO.
company ADDRESS
Registered
Office:-
c/o Jumpstart Business Centre
Room 907-908, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Weelex Trading Company
c/o Jumpstart Business Centre
Room 2512, 25/F., Langham Place, Office Tower, 8 Argyle Street, Mongkok, Kowloon, Hong Kong. [Same owner]
BUSINESS REGISTRATION NUMBER
52193392-000-05
ESTABLISHMENT
4th May, 2010.
SOLE PROPRIETOR
Name: Mr. Kirtikumar Dahyabhai ITALIYA
Residential Address: 64/39 - Thanon Pan, Silom Road, Khet Bangrak, Bangkok, Thailand 10500.
GENERAL
Yau Lee Industrial Co. was established on 4th May, 2010 as a sole proprietorship concern owned by Mr. Kirtikumar Dahyabhai Italiya under the Hong Kong Companies Ordinance. The manager of the subject Italiya is an India passport holder. Currently he is residing in Bangkok, Thailand. Italiya does not have the right to reside in Hong Kong permanently.
The subject does not have its own operating office. Its registered office is in a business centre located at Room 907-908, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong known as Jumpstart Business Centre [Jumpstart] which is handling its correspondences and documents.
The subject has no employees in Hong Kong. Its lines of business are unknow since the business centre declined to divulge any information about it. The manager of the subject cannot be reached as he is in Thailand.
It is likely that the subject is a diamond and precious stone trader. Polished and cut diamonds are sourced from India, other Asian countries and exported to Thailand.
Besides the subject, Italiya has set up another firm known as Weelex Trading Co. This firm is located at Room 2512, 25/F., Langham Place, Office Tower, 8 Argyle Street, Mongkok, Kowloon, Hong Kong where is the other operating address of Jumpstart.
It is likely that the subject has got an associated company in Thailand which is also operated by Italiya. The firm seems to be also a diamond trader.
The Thailand firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. The Thailand firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.
The subject’s business in Hong Kong is not active. History in Hong Kong is just over a year and six months.
On the whole, since the subject does not have its own operating office, history is short and has no employees in Hong Kong, consider it good for business engagements on secured basis.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.17 |
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UK Pound |
1 |
Rs.80.64 |
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Euro |
1 |
Rs.69.43 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.