MIRA INFORM
REPORT
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Report Date : |
24.04.2012 |
IDENTIFICATION DETAILS
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Name : |
APEX
DIAMONDS |
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Registered Office : |
Room 1505, 15/F., |
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Country : |
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Date of Incorporation : |
07.01.1991 |
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Com. Reg. No.: |
14192841-000-01 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, precious stones, jewellery, jewellery watches etc. |
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No. of Employees
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07 |
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 – September 30th, 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 |
APEX DIAMONDS
Room 1505, 15/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2314 4953, 2314 4954
FAX: 2314 4956
E-MAIL: apexdiam@hknet.com
Manager: Mr. Sunil Sumatilal Shah
Establishment: 7th January, 1991.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees: 7.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 1505, 15/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Associated
Company:-
Apex Diamonds Ltd., Hong Kong. (Same address)
14192841-000-01
Manager: Mr. Sunil Sumatilal Shah
Name: Mr. Sunil Sumatilal SHAH
Residential Address: Flat
G, 2/F., Union Mansion, 33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Nita Sunil SHAH
Residential Address: 7/F.,
Dragon House, 7A Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 7th January, 1991 as a sole proprietorship concern owned by Mr. Sunil Sumatilal Shah under the Hong Kong Business Registration Regulations. It became a partnership on 1st April, 2004 as Mr. Nita Sunil Shah was admitted as a partner.
At the very beginning, the subject was located at Flat G, 2/F., Union Mansion, 33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residential address of Mr. Sunil Sumatilal Shah, moved to 14/F., Chun Fook Mansion, 1 Hillwood Road, Tsimshatsui, Kowloon, Hong Kong in February 1995; to Room 1502, 15/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in July 1997; to Room 1407, 14/F. of the same building in May 2005; and further to the present address in May 2008.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, precious stones, jewellery, jewellery watches etc.
Employees: 7.
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong, US, other Asian countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
· The Federation of Hong Kong Watch Trades & Industries Ltd., Hong Kong.
· The Indian Chamber of Commerce Hong Kong, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a rather active condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met obligations as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
Apex Diamonds is a partnership concern jointly owned by Mr. Sunil Sumatilal Shah and Mr. Nita Sunil Shah. The two Shahs are Indian who have been in Hong Kong for a very long time. Belonging to the same family, they are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
The subject has had an associated company Apex Diamonds Ltd. [ADL], a Hong Kong-registered firm, located at its operating office. ADL was incorporated on 2nd December, 2008. ADL is also owned by the Shahs and engaged in the same lines of business as the subject.
The subject is a diamond and jewellery product trader. Rough diamonds, single cut diamonds, loose diamonds are imported from India and other European countries. Rough diamonds are processed or polished in Hong Kong. Polished and cut diamonds are wholesaled in Hong Kong and exported to the United States, Central and South America, Europe, the Middle East and other Asian countries. Business is rather active and steady.
In recent years, the subject also has been trading in jewellery watches, ladies’ analogue watches, men’s diamond watches, men’s tourbillion watches, ladies’ chronograph watches, etc. However, the subject is famous for its loose and single-cut diamonds.
The subject is a member of The Indian Chamber of Commerce Hong Kong, and The Federation of Hong Kong Watch Trades & Industries Ltd., Hong Kong, respectively.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it took part in “HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
It is going to take part in “Hong Kong Watch & Clock Fair 2012” which will be held in Wanchai, Hong Kong during the period of 5th to 9th September, 2012.
The subject’s business is chiefly handled by the two Shahs. Overall business is satisfactory. Regular suppliers and customers have been maintained.
Since the history of the subject in Hong Kong is over twenty-one years and three months, on the whole, 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
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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.51.16 |
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UK Pound |
1 |
Rs.81.79 |
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Euro |
1 |
Rs.68.34 |
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.