MIRA INFORM REPORT

 

 

Report Date :

03.08.2012

 

IDENTIFICATION DETAILS

 

Name :

BRILLIANT  DIAMONDS  LTD.

 

 

Registered Office :

Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

18.12.2002

 

 

Com. Reg. No.:

33232361

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds

 

 

No. of Employees :

03

 

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

 

BRILLIANT  DIAMONDS  LTD.

 

 

Company ADDRESS

 

Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central, Hong Kong.

PHONE:            2545 5886

FAX:                 2815 4568

 

 

MANAGEMENT

 

Managing Director:  Ms. Lau Tsui Yan

 

 

SUMMARY

 

Incorporated on:             18th December, 2002.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           US$3,000,000.00

Issued:              US$3,000,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   3.

 

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

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central, Hong Kong.

 

Holding Company:-

Pacific Regent Trading Ltd., British Virgin Islands.

 

 

BUSINESS REGISTRATION NUMBER

 

33232361

 

 

COMPANY FILE NUMBER

 

0826413

 

 

MANAGEMENT

 

Chief Executive Officer:  Mr. Ivan Wong

Managing Director:                     Ms. Lau Tsui Yan

 

 

CAPITAL

 

Nominal Share Capital:   US$3,000,000.00 (Divided into 3,000,000 shares of US$1.00 each)

Issued Share Capital:     US$3,000,000.00

 

 

SHAREHOLDER  

(As per registry dated 02-01-2012)

 

Name

 

No. of shares

Pacific Regent Trading Ltd.

Akara Building, 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

 

3,000,000

=======

 


 

DIRECTORS  

(As per registry dated 18-12-2011)

 

Name

(Nationality)

 

Address

Bhavik Jayesh SHAH

Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central, Hong Kong.

 

LAU Tsui Yan

Room 906-907, 9/F., Stag Building, 148-150 Queen’s Road Central, Hong Kong.

 

 

SECRETARY

(As per registry dated 18-12-2011)

 

Name

Address

Co. No.

Louis Lai Co. Secretarial Services Ltd.

9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

0686503

 

 

HISTORY

 

The subject was incorporated on 18th December, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the registered office of the subject is in a secretarial service firm located at 9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong known as Louis Lai Company Secretarial Services Ltd. [Louis Lai] which is handling its correspondences and documents.  Louis Lai is an affiliated company of Fung & Pang CPA Ltd. which is an accountant firm.  Louis Lai is also the corporate secretary of the subject.  With effect from 1st June, 2010, the subject moved to the present address.

 

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.

 

Employees:                   3.

 

Commodities Imported:   India, etc.

 

Markets:                       Hong Kong, India, Dubai, US, etc.

 

Terms/Sales:                 L/C, 60-120 days credit, etc.

 

Terms/Buying:               L/C, 90 days credit, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   US$3,000,000.00 (Divided into 3,000,000 shares of US$1.00 each)

 

Issued Share Capital:     US$3,000,000.00

 

Profit or Loss:                Operation conducted on a profitable basis.

 

Condition:                      Maintained in a normal manner.

 

Facilities:                      Is making use of general banking facilities.

 

Payment:                      Satisfactorily concluded.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

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

Industrial & Commercial Bank of China Ltd., Hong Kong Branch.

Standing:  Normal.

 

 

GENERAL

Brilliant Diamonds Ltd. [BDL] was incorporated in Hong Kong on 18th December, 2002 as a private limited liability company.  Since 2nd January, 2012, its nominal capital has been increased from US$100,000.00 to US$3,000,000.00; and issued capital from US$10,000.00 to US$3,000,000.00.

Presently, Pacific Regent Trading Ltd., a BVI-registered company owns 100% interest of BDL.  Directorate consists Ms. Lau Tsui Yan and Mr. Bhavik Jayesh Shah.  Ms. Lau is a Hong Kong businesswoman while Mr. Shah is an Indian of Hong Kong subject.

Louis Lai Company Secretarial Services Ltd. is registered as the corporate secretary of BDL.

BDL is dealing as a diamond trader and commission agent.  The principal activity is engaged in the import, export and sale of various kinds of polished diamonds.  Its diamonds are mainly sourced from India and partly from local dealers.  Prime markets cover Hong Kong, India, Dubai, the US, etc.  To cope with its expanding business, the company has increase its capital with sufficient fund.

Business is maintained in a progressive manner.  We have found no derogatory information about the subject in our database.

The CEO of BDL, Mr. Ivan Wong is now out of town for business trip.

May be considered good for its 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.55.78

UK Pound

1

Rs.86.75

Euro

1

Rs.68.32

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.