MIRA INFORM REPORT

 

 

Report Date :

13.04.2012

 

IDENTIFICATION DETAILS

 

Name :

RAJ IMPEX

 

 

Registered Office :

Room 1027, 10/F., Tung Fai Building, 27 Cameron Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.02.1995

 

 

Com. Reg. No.:

18815576-000-02

 

 

Legal Form :

Partnership.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc

 

 

No. of Employees :

1

 

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 :

Moderate

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 – 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

Restricted

 

C2

Off-credit

 

D

 


Company name

 

RAJ IMPEX

 

 

Company ADDRESS

 

Room 1027, 10/F., Tung Fai Building, 27 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:                  2739 9687,  2739 9881

 

FAX:                       2739 9709

 

E-MAIL:                  sheryl@asiaonline.net

 

 

MANAGEMENT

 

Manager:  Mr. Morakhia Nalinkumar Jayantilal

 

 

SUMMARY

 

Establishment:              17th February, 1995.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Annual Turnover:            HK$12~15 million.

 

Employee:                     1.

 

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

 

Banking Relation:           Satisfactory.


Company name

 

RAJ IMPEX

 

 

Company ADDRESS

 

Head Office:-

Room 1027, 10/F., Tung Fai Building, 27 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

18815576-000-02

 

 

MANAGEMENT

 

Manager:  Mr. Morakhia Nalinkumar Jayantilal

 

 

PARTNERS

 

Name:  Mr. Morakhia Nalinkumar JAYANTILAL

Residential Address: Flat C, 10/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

Name:  Mr. Rajesh Popatlal SHAH

Residential Address: Flat C, 8/F., Camma Building, 16 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was established on 17th February, 1995 as a partnership concern jointly owned by Mr. Nalinkumar Jayantilal Morakhia and Mr. Rajesh Popatlal Shah under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

 

Name

Incoming Date

Outgoing Date

Morakhia Nalinkumar JAYANTILAL

17-02-1995

-

Rajesh Popatlal SHAH

17-02-1995
02-10-2003

31-01-1998
-

Sudipkumar Dahyalal SHAH

31-01-1998

01-04-2000

Pratikkumar Nemchad PARIKH

01-04-2000

02-10-2003

 

At the very beginning, the subject was located at Flat C, 10/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat C, 8/F., Camma Building, 16 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in April 1996; to Room 1104, 11/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in December 2000; and further moved to the present address in July 2010.

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.

 

Employee:                     1.

 

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

 

Markets:                       Hong Kong, Japan, Taiwan, South Korea, other Asian countries, etc.

 

Annual Turnover:            HK$12~15 million.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

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

 

Condition:                      Business is steady.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

 

Bankers:-

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

Bank of India, Hong Kong Branch.

 

Standing:  Small.

 

 

GENERAL

 

Raj Impex is a partnership jointly owned by Mr. Morakhia Nalinkumar Jayantilal and Mr. Rajesh Popatlal Shah while both are Indian.  The latter had retired for more than five years but joined in again as a partner on 2nd October, 2003.  Both of the partners have been in Hong Kong for a very long time.

The subject moved to the present new address located at Room 1027, 10/F., Tung Fai Building, 27 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in July 2010.  This office is in a residential building which is not trespassed by outsiders.

The subject is a gemstone, polished, cut and loose diamond importer, exporter and wholesaler.  It is trading in single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire, etc.  Products are chiefly imported from India, Belgium, other European and Asian countries.  Prime markets are Hong Kong, Japan, Taiwan, South Korea, other Asian countries, etc.  Business is rather active.

The subject has developed business ties with a number of regular suppliers in India and customers in Asia.  The annual sales turnover of the subject ranges from HK$12 to 15 million.  Making a small profit every year.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong.  For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.

The subject’s business is chiefly handled by the two partners.  History in Hong Kong is over sixteen years and eleven months.

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.

-          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.