MIRA INFORM
REPORT
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Report Date : |
21.04.2012 |
IDENTIFICATION DETAILS
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Name : |
ELEMENTS
LTD. |
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Registered Office : |
Flat D, 22/F., |
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Country : |
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Date of Incorporation : |
22.05.2002 |
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Com. Reg. No.: |
32668216 |
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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. |
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No. of Employees
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03 |
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 : |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
ELEMENTS LTD.
Flat D, 22/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2369 5200
FAX: 2369 5300, 2369 6400
Managing Director: Mr. Avinash Pandya
Incorporated on: 22nd May, 2002.
Organization: Private Limited Company.
Capital: Nominal: HK$500,000.00
Issued: HK$300,000.00
Business Category: Importer, Exporter, and Wholesaler.
Annual Turnover: US$7~8 million.
Employees: 3.
Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation: Satisfactory
Registered Head Office:-
Flat D, 22/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Blue Stone Investments S.A., Luxembourg.
Associated/Affiliated Companies:-
Revashanker Gems Ltd., India.
Revashanker Group, India.
Shankar Jewels Ltd., India.
32668216
0798977
Vice President: Mr. Rajeev Selot
Managing Director: Mr. Avinash Pandya
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$300,000.00
(As per registry
dated 22-05-2011)
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Name |
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No. of shares |
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Blue Stone Investments S.A. 9B, BD Prince Henri, L1724, Luxembourg. |
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300,000 ====== |
(As per registry
dated 01-09-2011)
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Name (Nationality) |
Address |
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Mukund Krishna JOSHI |
Ferdlnand Verblestlaan 1, 2650 Edegem, Belgium. |
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Avinash PANDYA |
Flat B, 29/F., Block 2, The Grand Panorama, 10 Robinson Road, Hong Kong. |
(As per registry
dated 22-05-2011)
|
Name |
Address |
Co.
No. |
|
East (Nominees) Ltd. |
11/F., Kundamal House, 2-4 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong. |
0327797 |
The subject was incorporated on 22nd May, 2002 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.
Activities: Importer, Exporter, and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 3.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, other Asian countries, Europe, etc.
Annual Turnover: US$7~8 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)
Issued Share Capital: HK$300,000.00
Mortgage or
Charge:-
Date of Debenture: 27-09-2005
Amount: General banking facilities
Property: All the Company’s undertaking and property and assets whatsoever and wheresoever
both present and future including all book and other debts revenues and claims
Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch.
Profit & Loss: Making a small profit every year.
Condition: Keeping in a rather active state.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Standing: Normal.
Having issued 300,000 ordinary shares of HK$1.00 each, Elements Ltd. is a wholly-owned subsidiary of Blue Stone Investments S.A. which is a Luxembourg-based firm.
The subject is a loose diamond importer, exporter and wholesaler.
The subject is part of the Revashanker Group, which has been a leading manufacturer and supplier of diamonds since 1935. The Group, which is headquartered in Mumbai, also has representative office in New York, Antwerp and Hong Kong. The subject is the representative office of the Group. Being a customer of Rio Tinto diamonds, Revashanker Group usually receives direct allocation from Diavik mines from Canada on time.
The subject is trading in white diamonds mainly below 15 pts, fine make from VVS ideal cut to I. Raw materials are chiefly imported from Belgium and India. Rough diamonds are polished and cut in Hong Kong or China. Finished products are marketed in Hong Kong, exported to Japan, South Korea, and other Asian countries.
The subject has got a main affiliated company in Mumbai, India known as Shankar Jewels Ltd. which is also a member of the Revashanker Group.
Most of the time, Mr. Mukund Krishna Joshi, the director of the subject who is an Indian passport holder, is in Belgium responsible for sourcing raw materials. Mr. Rajeev Selot, also an Indian who was the old director of the subject, is stationing in Mumbai, India handling his business concerns in the countries.
The annual sales turnover of the subject ranges from US$7 to 8 million. Making a small profit every year. Its business keeps on improving.
The subject’s business is handled by an Indian who can be reached at his mobile phone number 852-9746 7100 in Hong Kong.
Since the history of the subject in Hong Kong is about ten years, consider it good for normal business engagements.
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.51.99 |
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UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.63.40 |
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.