MIRA
INFORM REPORT
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Report Date : |
17.10.2011 |
IDENTIFICATION DETAILS
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Name : |
KARAT EXIM |
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Registered Office : |
Unit E1, 3/F., Hang Fung Industrial Building, Phase 1, 2G Hok Yuen Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.09.2009 |
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Com. Reg. No.: |
51144902-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, 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 – September 30, 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 and address
KARAT EXIM
ADDRESS:
Unit E1, 3/F., Hang Fung Industrial Building, Phase 1, 2G Hok Yuen
Street, Hunghom, Kowloon, Hong Kong.
PHONE: 3927 9504, 3927 9405
FAX: 3927 9604
MANAGEMENT
Manager: Mr. Vikramdas Shankerdas
Vaishnav
SUMMARY
Establishment: 9th
September, 2009.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed
Business Category: Diamond Trader.
Employees: 4.
(Including affiliates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Unit E1, 3/F., Hang Fung Industrial Building, Phase 1, 2G Hok Yuen
Street, Hunghom, Kowloon, Hong Kong.
Affiliated Companies:- (Same
address)
Kay International, Hong Kong.
Kreators & Concepts, Hong Kong.
Kristal Designs, Hong Kong.
[Business ceased]
Smartstones Trading, Hong Kong.
BUSINESS REGISTRATION NUMBER
51144902-000-09
MANAGEMENT
Manager: Mr. Vikramdas Shankerdas
Vaishnav
SOLE PROPRIETOR
Name: Mr. Vikramdas Shankerdas
VAISHNAV
Residential Address: Room No.
2, 1/F., Gujder House, Colaba, Mumbai-5, India.
HISTORY
The subject was established on 9th September, 2009 as a sole
proprietorship concern owned by Mr. Vikramdas Shankerdas Vaishnav under the
Hong Kong Business Registration Regulations.
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: 4.
(Including affiliates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, Japan, other Asian
countries, 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: Kept a balance
account in 2010.
Condition: Business is improving.
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
Karat Exim is a is a sole proprietorship set up and owned by Mr.
Vikramdas Shankerdas Vaishnav who is an Indian.
He is an India passport holder and does not have the right to reside in
Hong Kong permanently.
The subject is a diamond trader.
Currently, it is sharing the same operating office with several firms in
Hong Kong. For instance, Smartstones
Trading and Kreators & Concepts are located at the same address. Both are Hong Kong-registered firms.
Smartstones Trading was established on 7th June, 2005 as a sole
proprietorship owned by Mr. Law Wah Chiu who is a Hong Kong merchant. Kreators & Concepts was set up on 9th
July, 2008. Smartstones Trading and
Kreators & Concepts are also a diamond trader.
Another firm Kristal Designs was also located at the subject’s operating
address, however, this firm has ceased business formally since
31st December, 2009.
The subject is a diamond importer, exporter and wholesaler. It is trading in the following commodities:
Single-cut diamond, fullcut loose diamond, carat size diamonds, blue
sapphire, etc.
Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and
the other Asian countries.
The subject is also a commission agent.
Business has been improving.
The subject’s business is chiefly handled by Vaishnav himself. Vaishnav has had close business ties with a
number of jewellery manufactures in Mumbai, India.
It is likely that the subject has got an associated company in India
which is also operated by Vaishnav.
The subject is just a one-man company in Hong Kong.
Since the history of the subject is just over two years and a month in
Hong Kong, on the whole, consider it good for normal business engagements
on L/C basis for the time being.
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 |
|
US Dollar |
1 |
Rs.49.07 |
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|
1 |
Rs.77.42 |
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Euro |
1 |
Rs.67.72 |
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.