MIRA INFORM REPORT

 

 

Report Date :           

07.10.2011

 

IDENTIFICATION DETAILS

 

Name :

K.  DIAM

 

 

Registered Office :

Flat F, 16/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.12.2003

 

 

Com. Reg. No.:

34128892-000-12

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

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

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company 

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

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

 

K.  DIAM

 

 

Company ADDRESS

 

Flat F, 16/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2369 5550

FAX:                 2369 1550

 

 

MANAGEMENT

 

Manager:  Mr. Rahul Bipin Varaiya

 

 

SUMMARY

 

Establishment:                          9th December, 2003.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   2.  (Including associate)

 

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

 

Banking Relation:           Satisfactory.

Company ADDRESS

 

Head Office:-

Flat F, 16/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.

 

China Representative Office:-

Room 525, Block 1, Gongyi Building, 55 Zhenhua Road, Shenzhen Special Economic Zone, China.

 

Associated Company:-

Renee Diam Ltd., Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

34128892-000-12

 

 

MANAGEMENT

 

Manager:  Mr. Rahul Bipin Varaiya

 

 

SOLE PROPRIETOR

 

Name:                           Mr. Rahul Bipin VARAIYA

Residential Address:      201 Shilp Apts, Opp Gokulam Dairy Athwalines Sorat 395001, India.

 

 

HISTORY

 

The subject was established on 9th December, 2003 as a sole proprietorship concern owned by Mr. Rajesh Kantilal Jogani under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Rajesh Kantilal Jogani

09-12-2003

31-03-2004

Vikal Prakash Varaiya

17-03-2004

01-05-2004

Rahul Bipin Varaiya

01-04-2004

-

Arpti Hashmukhbhai Shah

01-04-2004

01-05-2004

 

Initially the subject was located at 6/F., 15-17 Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 3, 16/F., Block B, Prat Mansion, 26‑36 Part Avenue, Tsimshatsui, Kowloon, Hong Kong in February 2004; and further to the present address in August 2009.

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, etc.

 

Employees:                   2.  (Including associate)

 

Commodities Imported:   India, other Asian countries, Europe, etc.

 

Markets:                       Hong Kong, Middle East, North America, Western Europe, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Made a small profit in the past years.

 

Condition:                      Keeping in a normal condition.

 

Facilities:                      Making rather 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

 

K. Diam is a sole proprietorship owned by Mr. Rahul Bipin Varaiya who is an Indian.  He is an India passport holder and does not have the right to reside in Hong Kong permanently.

Formerly the subject had got three more partners but all of them retired in 2004.

The subject commenced business in December 2003.  It is located at a residential building known as “Windsor Mansion”.  It is likely that Varaiya resides in the subject’s office when he is in Hong Kong.

The subject shares the same operating address with Renee Diam Ltd. [Renee Diam] which is operated by Mr. Bhautesh Shah who is also an Indian.  Renee Diam was incorporated in Hong Kong on 2nd May, 2006.

The subject is a diamond importer, exporter and wholesaler.  It is the supplier, importer and exporter of versatile range of diamonds in a wide variety like rose cut diamonds, rose cut heart, rose cut round, rose cut pears, loose diamonds and fancy diamonds etc.  In recent years, the subject also trades in jewellery watches.

Most of the diamonds are imported from India.  Prime markets are Hong Kong, the Middle East, North America, Western Europe, etc.  Business is satisfactory.

The subject’s business is chiefly handled by Mr. Rahul Bipin Varaiya himself.  He frequents to India for purchasing rough diamonds.

In recent years, the subject has set up a representative office in Shenzhen Special Economic Zone, China.  The contact person is Rahul Bipin Varaiya.  It is likely that the subject has had an affiliated factory in Shenzhen Special Economic Zone.

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 is going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period of 16th to 20th February, 2012.

The subject makes a very small profit every year.

The history of the subject in Hong Kong is over seven years and ten months.

On the whole, the subject is considered good for 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.49.19

UK Pound

1

Rs.75.92

Euro

1

Rs.65.44

 

 

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.