MIRA INFORM REPORT
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Report Date : |
03.10.2011 |
IDENTIFICATION DETAILS
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Name : |
JHALAK
DIAM |
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Registered Office : |
Room 512, 5/F., Block A, Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.03.2000 |
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Com. Reg. No.: |
30749135-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of gemstones, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Concern |
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Payment
Behaviour : |
Usually Correct |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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
JHALAK DIAM
Company ADDRESS
Room 512, 5/F., Block A, Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2367 3947
FAX: 2367 3916
E-MAIL: sunny@jhalakdiam.com.hk
MANAGEMENT
Manager: Mr. Sunil Dhanvantlal Shah
SUMMARY
Establishment: 8th March, 2000.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$15~20 million.
Employees: 3. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Room 512, 5/F., Block A, Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Associated Companies:- (Same address)
Jhalak Diam (Single Cut) Ltd., Hong Kong.
Jhalak Diam Ltd., Hong Kong.
BUSINESS REGISTRATION NUMBER
30749135-000-03
MANAGEMENT
Manager: Mr. Sunil Dhanvantlal Shah
SOLE PROPRIETOR
Name: Mr. Sunil Dhanvantlal SHAH
Residential Address: Flat
D, 6/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
HISTORY
The subject was established on 8th March, 2000 as a sole proprietorship concern owned by Mr. Sunil Dhanvantlal Shah under the Hong Kong Business Registration Regulations.
Initially the subject was located at Room 1702, 17/F., Hart Avenue Plaza, 5‑9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in January 2008.
Apart from these, neither material
change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of gemstones, etc.
Employees: 3. (Including associates)
Commodities Imported: India, Europe, Thailand, Middle East, etc.
Markets: Other Asian countries, North America, Western Europe, etc.
Annual Turnover: HK$15~20 million.
Terms/Sales: L/C, T/T, etc.
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 an active manner.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Jhalak Diam is a sole proprietorship set up and owned by Mr. Sunil Dhanvantlal Shah who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond importer, exporter and wholesaler. It has had two associated companies located at the same operating address: Jhalak Diam (Single Cut) Ltd. and Jhalak Diam Ltd. These two firms are also engaged in the same lines of business as the subject.
The subject is trading in princess cut loose diamonds, rose cut loose diamonds, diamond studded jewellery, loose taper diamonds, loose baguette diamonds and GIA stones. It also trades in the following precious stones:-
· Ruby (from Burma, Thailand)
· Sapphire (from Ceylon)
· Emeralds (from Columbus and Zambia)
· Fancy Sapphire
Most of the commodities are imported from India, other Asian countries, Africa, etc. Prime markets are Japan, other Asian countries, North America, Western Europe, etc. In recent years, its business has been expanded to the Middle East. Business is further improving.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it has been an exhibitor of the “Hong Kong International Jewellery Fair” which is held in Wanchai, Hong Kong annually.
The latest Show taken part by the subject was Hong Kong International Jewellery Show 2011 which was held in March, 2011.
Having a history of over eleven years and six months in Hong Kong, the subject’s business is chiefly handled by Mr. Sunil Dhanvantlal Shah himself.
Annual sales turnover of the subject ranges from HK$15 to 20 million. Making a small profit every year.
On the whole, consider the subject good for normal business engagements.
DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.93 |
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UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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.