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Report Date : |
02.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
GOLD COINS
GROUP |
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Registered Office : |
Flat B, 12/F., |
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Country : |
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Date of Incorporation : |
15.05.1989 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, etc |
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No. of Employees : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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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
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
GOLD COINS
GROUP
Room 502, 5/F.,
Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong
Kong.
PHONE: 2367 6584
FAX: 2894 8414
Manager: Mr. Harshit Jitendra Shah
Establishment: 15th May, 1989.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: Indian Overseas Bank, Hong Kong Branch.
Banking Relation: Satisfactory.
GOLD COINS
GROUP
Registered
Office:-
Flat B, 12/F.,
Golden Mansion, 83-85A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Head
Office:-
Room 502, 5/F.,
Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong
Kong.
Associated
Company:-
Far East Trade,
Hong Kong. (Same address)
12751437-000-05
Manager: Mr. Harshit Jitendra Shah
Name: Mr. Harshit Jitendra SHAH
Residential Address:
22/24 Anantwadi, 1/F., R. No. 34, Bhvleshwar, Mumbai-400002, India.
The
subject was established on 15th May, 1989 as a sole proprietorship concern
owned by Mr. Nilesh Manharlal Chauhan under the Hong Kong Business Registration
Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Nilesh Manharlal CHAUHAN |
15-05-1989 |
31-03-2010 |
|
Harshit Jitendra SHAH |
19-03-2010 |
- |
Initially
the subject was located at 4L, Chee On Building, 24 East Point Road, Causeway
Bay, Hong Kong, moved to Room 1, 17/F., Star Mansion, 3‑5 Minden
Avenue, Tsimshatsui, Kowloon, Hong Kong in March 1999; to Room 1, 9/F., Block
B, Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in
November 2003; to Flat H, 13/F., Windsor Mansion, 29-31 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong in January 2005; and further moved to the
present address in August 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, etc.
Employees: 4.
Commodities Imported: India, other Asian countries, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, Scandinavia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Indian Overseas Bank, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Gold
Coins Group is a sole proprietorship set up in May 1989 and formerly owned by
Mr. Nilesh Manharlal Chauhan who was an Indian.
He was a Hong Kong ID Card holder and had got the right to reside
in Hong Kong permanently. However
Chauhan retired on 31st March, 2010 while Mr. Harshit Jitendra Shah joined
in as a partner on 19th March, 2010.
Now, the subject is solely managed and owned by H. J. Shah.
The
subject’s registered address is in a private building. The subject moved its registered address to
the private building in August 2009.
However, its operating address is located at Room 502, 5/F., Hang Seng
Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
The
subject is a diamond importer, exporter and wholesaler. Raw materials are chiefly imported from
India, Thailand, Belgium, etc. Processed
diamonds are marketed in Hong Kong and exported to the United States, Europe or
the Middle East. Business is steady as
regular suppliers and customers have been maintained.
The
subject’s business is chiefly handled by H. J. Shah himself.
Another
firm Far East Trade is also located at the registered address of the
subject. Established in January 2009, Far
East Trade is a sole proprietorship set up and owned by Mr. Sanket Bharat Shah
who is also an Indian. S. B. Shah is an
India passport holder and does not have the right to reside in Hong Kong
permanently. Far East Trade is also a
diamond trader.
The
history of the subject in Hong Kong is about twenty-three years.
On the whole,
consider it good for normal business engagements.
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.
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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.
-
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.
-
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.51.15 |
|
|
1 |
Rs.81.79 |
|
Euro |
1 |
Rs.68.34 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.