MIRA INFORM REPORT
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Report Date : |
05.10.2011 |
IDENTIFICATION DETAILS
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Name : |
FOREVER
LUCKY DIAMOND LTD. |
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Registered Office : |
Flat A, 10/F., Tung Fai Building, 27A Cameron Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.11.2007 |
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Com. Reg. No.: |
38613788 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, precious stones, 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 : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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
FOREVER LUCKY DIAMOND LTD.
Company ADDRESS
Flat A, 10/F., Tung Fai Building, 27A Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 3116 0455, 6622 7151
FAX: 3116 4405
MANAGEMENT
Managing Director: Mr. Jatin Champaklal Magiya
SUMMARY
Incorporated on: 8th November, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head Office:-
Flat A, 10/F., Tung Fai Building, 27A Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
BUSINESS REGISTRATION NUMBER
38613788
COMPANY FILE NUMBER
1183312
MANAGEMENT
Managing Director: Mr. Jatin Champaklal Magiya
CAPITAL
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
SHAREHOLDERS
(As per registry
dated 08-11-2010)
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Name |
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No. of shares |
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Jatin Champaklal MAGIYA |
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5,000 |
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Hema Jatin MAGIYA |
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5,000 |
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–––––– |
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Total: |
10,000 ===== |
DIRECTORS
(As per registry
dated 08-11-2010)
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Name (Nationality) |
Address |
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Jatin Champaklal MAGIYA |
Room A, 13/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong. |
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Hema Jatin MAGIYA |
Room A, 13/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 08-11-2010)
|
Name |
Address |
Co.
No. |
|
SME Corporate Services Ltd. |
Room 305, 3/F., Carpo Commercial Building, 18-20 Lyndhurst Terrace, Central, Hong Kong. |
0952029 |
HISTORY
The subject was incorporated on 8th November, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat A, 13/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in November 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, precious stones, etc.
Employees: Nil.
Commodities Imported: India, other Asian countries, etc.
Markets: Japan, other Asian countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Indebtedness: HK$2,198,686.66
(Total amount outstanding on all mortgages and charges as per last Annual Return dated
08-11-2010)
Mortgage or Charge:-
Date of Mortgage: 15-06-2010
Amount: To secure all monies in respect of general banking facilities
Property: 2/51st parts or shares of and in Kowloon Inland Lot No. 8435 (10/F. of Tung Fai Building,
27A Cameron Road, Kowloon, Hong Kong.)
Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Profit or Loss: Keeping a balance account in 2010.
Condition: Business is fairly active.
Facilities: Making fairly 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
Having issued 10,000 ordinary shares of HK$1.00 each, Forever Lucky Diamond Ltd. is equally owned by Hema Jatin Magiya and Jatin Champaklal Magiya. The two Magiyas are Indian and acting as the directors of the subject. Both are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
Incorporated in November 2007, the subject’s registered address is located at Flat A, 10/F., Tung Fai Building, 27A Cameron Road, Tsimshatsui, Kowloon, Hong Kong. The subject moved to this new address in November 2010. Tung Fai Building is a residential building. It is likely the two shareholders also have move to this new address. However, their registered residential address is still located at Flat A, 13/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
The subject has no employees in Hong Kong.
The subject is a diamond and jewellery product trader. It is trading in diamond jewellery, fine jewellery, antique products, watches, jewellery boxes, other accessories, etc.
Rough diamonds, loose, polished and cut diamonds are chiefly imported from India. The subject has got regular suppliers in India. Some of the rough diamonds are polished or processed in Hong Kong. Finished products and polished diamonds are exported or re-exported to Taiwan, South Korea, Japan, India, other Asian countries, the Middle East, North America, Eastern and Western Europe, etc. Business is improving.
The subject’s business is chiefly handled by the two Magiyas. History in Hong Kong is just over three years and ten months.
Hema Jatin Magiya can be reached at his mobile phone number 66227151.
Since the registered office of the subject is in a residential building, consider it good for normal credit requirements on secured basis for the time being.
REMARKS:
Property
information of the company:-
Property Location: 10/F., Tung Fai Building, 27A Cameron Road, Kowloon, Hong Kong.
Owner: Forever Lucky Diamond Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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15-06-2010 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.23 |
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UK Pound |
1 |
Rs.76.07 |
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Euro |
1 |
Rs.65.06 |
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.