MIRA INFORM REPORT

 

 

Report Date :

13.04.2012

 

IDENTIFICATION DETAILS

 

Name :

VRAMS  IMPEX  (HK)  LTD.

 

 

Registered Office :

Unit J2, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

23.02.2006

 

 

Com. Reg. No.:

36489608

 

 

Legal Form :

Private Limited Company.

 

 

LINE OF BUSINESS :

IMPORTER AND EXPORTER OF JEWELLERY, FANCY CUT DIAMONDS, ETC.

 

 

No. of Employees :

7

 

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

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 and address

 

VRAMS  IMPEX  (HK)  LTD.

 

 

ADDRESS:       Unit J2, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong.

 

PHONE:            2311 4136,  2363 4123

 

FAX:                 2366 1147,  2366 4123

 

E-MAIL:            info@vramsimpex.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Vithal Dhanjibhai Vaghasia

 

 

SUMMARY

 

Incorporated on:             23rd February, 2006.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$20,000,000.00

Issued:              HK$7,000,000.00

 

Business Category:        Diamond Trader.

 

Annual Turnover:            US$12~17 million.

 

Employees:                   7.

 

Main Dealing Banker:     Wing Lung Bank Ltd., Hong Kong.

 

Banking Relation:            Satisfactory.


ADDRESS

 

Registered Head Office:-

Unit J2, 8/F., Kaiser Estate, Phase II, 51 Man Yue Street, Hunghom, Kowloon, Hong Kong.

 

Associated Companies:-

Baguette Diam Inc., USA.

G. Diam BVBA, Belgium.

Vallbhabhai Dhanjibhai & Co., India.

Vrams Diamonds LLC, UAE.

 

 

BUSINESS REGISTRATION NUMBER

 

36489608

 

 

COMPANY FILE NUMBER

 

1025968

 

 

MANAGEMENT

 

Managing Director:  Mr. Vithal Dhanjibhai Vaghasia

Contact Person:  Mr. Vithal Patel

 

 

CAPITAL

 

Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$7,000,000.00

 

 

SHAREHOLDER

(As per registry dated 23-02-2012)

 

Name

 

No. of shares

Vithal Dhanjibhai VAGHASIA

 

7,000,000

=======

 

DIRECTOR    

(As per registry dated 23-02-2012)

 

Name

(Nationality)

 

Address

Vithal Dhanjibhai VAGHASIA

Flat B, 13/F., Ocean View Court, 27-27A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

SECRETARY

(As per registry dated 23-02-2012)

 

Name

Address

Co. No.

City Light Accountancy Consultants Ltd.

Room 1321, 13/F., Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong.

0330495

 

 

HISTORY

 

The subject was incorporated on 23rd February, 2006 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 and Exporter.

 

Lines:                           Jewellery, fancy cut diamonds, etc.

 

Employees:                   7.

 

Commodities Imported:   India, Belgium, Africa, Russia, etc.

 

Markets:                       Middle East, US, Europe, Southeast Asia, etc.

 

Annual Turnover:            US$12~17 million.

 

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

 

Terms/Buying:               L/C, T/T, D/A, 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$7,000,000.00

 

Alternation of Capital:-

Initially

paid up

HK$      200.00

12-04-2010

paid up

HK$      6,999,800.00

 

 

–––––––––––––––

Total:

paid up

HK$      7,000,000.00

==============

 

Increase of Nominal Capital:-

From

HK$10,000.00

to

HK$20,000,000.00

on

12-04-2010

 

Mortgage or Charge:       (See attachment)

 

Profit or Loss:                Business is rather profitable.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Wing Lung Bank Ltd., Hong Kong.

Bank of China (Hong Kong) Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Normal.

 

 

GENERAL

 

Formerly had issued 200 ordinary shares of HK$1.00 each, Vrams Impex (HK) Ltd. was equally owned by Mr. Vithal Dhanjibhai Vaghasia and Mr. Ghanshyam Dhanjibhai Vaghasia.  Both of whom are Indian.  The former is residing in Hong Kong while the latter, in India.  On 26th September, 2008, the latter transferred all his shares to the former.  In April 2010, the issued share capital was increased to HK$7,000,000.00 for further expansion.  Now, the subject is wholly-owned by Mr. Vithal Dhanjibhai Vaghasia.  Mr. Vithal Dhanjibhai Vaghasia is also the only director of the subject.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject is specialized in manufacturing fancy cut diamonds.  Most of the products are loose diamonds and diamond jewellery such as diamond earrings.  Raw materials are imported from India, Belgium, Africa, Russia, etc.

The followings are the subject’s main products:-

Finished Jewellery

1.       Diamond Jewellery

·         White Diamond Jewellery

2.       Pearl Jewellery

·         Pearl Simulant Jewellery

Materials

3.       Diamond

·         Polished White Diamond

·         Polished Colour Diamond

After processing or cut in Hong Kong, finished products are exported to the Middle East, the United States, Europe, Southeast Asia, etc.  Currently, it has got the following associated firms:-

Baguette Diam Inc., New York, USA

G. Diam BVBA, Belgium

Vallbhabhai Dhanjibhai & Co., India

Vrams Diamonds LLC, Dubai, UAE

The above firms are responsible for marketing the subject’s products in the local country.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong.  For instance, the subject usually takes part in Hong Kong International Jewellery Show.  It is going to take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.

The subject’s business is chiefly handled by Vithal Dhanjibhai Vaghasia himself.  Its annual sales turnover ranges from US$12 to 17 million, making a small profit every year.  Business keeps on improving.

The history of the subject in Hong Kong is over six years and a month.

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

            Property information of the company:-

1.         Property Location:          Unit C on 13/F., Yun Fat Commercial Building, 70-74 Wuhu Street, Kowloon, Hong Kong.

Owner:  Vrams Impex (HK) Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

15-08-2008

-

Wing Lung Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

2.         Property Location:          Workshop Unit No. 1 on 9/F., Guardforce Centre,
3 Hok Yuen Street East, Kowloon, Hong Kong.

Owner:  Vrams Impex (HK) Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

20-10-2010

-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

15-08-2008

Instrument:        Mortgage

Property:

65/2,674th parts or shares of and in Hung Hom Inland Lot No. 404, 355 & 342 (Unit C on 13/F. of Yun Fat Commercial Building, 70-74 Wuhu Street, Kowloon, Hong Kong.)

Mortgagee:        Wing Lung Bank Ltd., Hong Kong.

All moneys

07-10-2010

Instrument:        Debenture constituting a fixed and/or floating charge over all the assets of the Company

Property:

1)         By way of first fixed charge: (i) all chattels as at the date of the Debenture; (ii) all book debts and other debts and monetary claims; (iii) any credit balance on any account of the Company; (iv) all goodwill and uncalled capital for the time being of the Company; (v) all stocks shares debentures bonds loan capital and other securities; (vi) all letters patent trademarks service marks designs utility models copyrights design rights and applications for registration; (vii) all present and future contracts or policies of insurance; and (viii) the proceeds of sale of any property

b)         By way of floating charge all the undertaking of the Company and all its property whatsoever and wheresoever both present and future

Mortgagee:        The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All monies and liabilities

20-10-2010

Instrument:        Mortgage

Property:

5/718th parts or shares of and in Section E of Kowloon Marine Lot No. 113 (Workshop Unit No. 1 on 9/F. of Guardforce Centre, 3 Hok Yuen Street East, Kowloon, Hong Kong.)

Mortgagee:        The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

 


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.51.44

UK Pound

1

Rs.81.96

Euro

1

Rs.67.60

 

 

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.