MIRA
INFORM REPORT
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Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
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Name : |
IN COLLECTION LTD. |
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Registered Office : |
Room 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.11.2005 |
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Com. Reg. No.: |
36196746 |
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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, EMERALD, PRECIOUS STONES, ETC. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30, 2011
|
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
IN COLLECTION
LTD.
ADDRESS: Room 901, 9/F., Harbour Centre, Tower 2,
8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 3011
FAX: 2311 1167
E-MAIL: info@incollectiondiam.com
info@inc-dimoni.com
MANAGEMENT
Managing Director: Mr. Kamlesh
Jivanbhai Shah
SUMMARY
Incorporated on: 15th
November, 2005.
Organization: Private
Limited Company.
Capital: Nominal: HK$20,000,000.00
Issued: HK$20,000,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$45~50
million.
Employees:
7. (Including associated company)
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation: Satisfactory.
ADDRESS
Registered Head Office:-
Room 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom,
Kowloon, Hong Kong.
Associated Company:-
In Collection, Hong Kong. (Same
address)
BUSINESS REGISTRATION NUMBER
36196746
COMPANY FILE NUMBER
1007854
MANAGEMENT
Managing Director: Mr. Kamlesh
Jivanbhai Shah
CAPITAL
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
SHAREHOLDER
(As per registry dated 30-09-2011)
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Name |
|
No. of shares |
|
Kamlesh Jivanbhai SHAH |
|
20,000,000 ======== |
DIRECTOR
(As per registry dated 15-11-2010)
|
Name (Nationality) |
Address |
|
Kamlesh Jivanbhai SHAH |
Flat 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hung
Hom, Kowloon, Hong Kong. |
SECRETARY
(As per registry dated 15-11-2010)
|
Name |
Address |
Co. No. |
|
World Link Business Services Ltd. |
5/F., Far East Consortium Building, 121 Des Voeux Road
Central, Hong Kong. |
0746596 |
HISTORY
The subject was incorporated on 15th November, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
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, emerald, precious stones, etc.
Employees: 7. (Including associated company)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong
Kong, other Asian countries, North America, Western Europe, etc.
Annual Turnover: HK$45~50 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P,
etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met trade commitments
as contracted.
Commercial Morality: Satisfactory.
Banker:
Bank of
India, Hong Kong Branch.
Standing:
Small.
GENERAl
Having issued 20 million ordinary shares of HK$1.00 each, In Collection
Ltd. is wholly owned by Mr. Kamlesh Jivanbhai Shah who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
He is also the only director of the subject.
The subject increased its issued share capital from HK$7 million to
HK$20 million in September 2011.
The subject has had an associated company In Collection located at its
operating address. In Collection is also
operated and owned by Shah.
Business commenced in June 2001, In Collection is a sole proprietorship.
The subject is a jewellery and diamond trader. It is engaged in manufacturing, importing and
exporting all kinds of jewellery products.
It mainly produces 14K and 18K gold jewellery accented with gemstones,
diamonds, sapphires, emeralds, pearls and semi-precious stones. It is trading in diamond bracelets, diamond
brooches, earrings, necklaces, diamond rings, pendants, etc. Rough diamonds, cut and polished diamonds are
imported from India, Belgium and other European countries. Finished products are marketed in Hong Kong,
exported to Japan, the United States, China, Singapore, Malaysia, the
Philippines, Indonesia, the United Arab Emirates, etc.
In order to penetrate the international market further, In Collection
has taken part in fairs and exhibitions held in Hong Kong and other foreign
large cities. For instance, In
Collection usually takes part in Hong Kong International Jewellery Show [HKIJS]
and Hong Kong Jewellery & Gem Fair.
The former is usually held in March while the latter, in September.
HKIJS is organized by Hong Kong Trade Development Council in
Hong Kong every year.
On the other hand, the subject 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.
In Collection is a member of The Indian Chamber of Commerce Hong Kong
and Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
It was reported that the subject had got an affiliated factory in
Southern China employing about 250 persons.
Business is rather active.
The annual sales turnover of the subject and In Collection ranges from
HK$45 to 50 million. Making a small
profit every year.
The subject’s business is chiefly handled by Shah himself.
As the history of the subject in Hong Kong is about six years, on the
whole, consider it good for normal business engagements.
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
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05-01-2011 |
Instrument: Letter of Lien Property: Date of Deposit: 10.01.2011 Mortgagee: Bank of India, Hong Kong Branch. |
HK$10,000,000 |
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05-01-2011 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents
representing or relating to goods. The
company agree that the same and all goods thereby represented or to which the
document relate shall be hypothecated by way of first charge as a continuing
security for all sums in which the company from time to time be actually or
contingently indebted or liable to bank on any account. Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank and the Company |
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.48.82 |
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|
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.28 |
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 |
|
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.