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Report Date : |
14.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
HINI STAR DIAMONDS LLC |
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|
|
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Registered Office : |
Gold Land Building,
Mezzanine Floor, Suite M-20, Al Khor Street, Al Daghaya, Deira, P O Box 57954,
Dubai |
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|
|
|
Country : |
United Arab Emirates |
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|
|
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Financials (as on) : |
31.12.2011 |
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|
|
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Date of Incorporation : |
05.02.2003 |
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Com. Reg. No.: |
61649, Dubai |
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|
|
Legal Form : |
Limited Liability Company |
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|
|
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Line of Business : |
Wholesale and retail of jewellery, loose diamonds, gold and precious stones |
|
|
|
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No. of Employees : |
05 |
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) |
|
United Arab
Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company Name : HINI STAR DIAMONDS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 5th February 2003
Commercial Registration Number : 61649, Dubai
Trade Licence Number : 541741
Chamber Membership Number : 75187
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 5
Activities : Wholesale and retail of jewellery, loose diamonds, gold and precious
stones
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Kukadia Vijay Kumar Dahyalal, Managing Director
HINI STAR DIAMONDS
LLC
Registered &
Physical Address
Building : Gold Land Building, Mezzanine
Floor, Suite M-20
Street : Al Khor
Street
Area : Al Daghaya,
Deira
PO Box : 57954
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2295492
Facsimile : (971-4) 2295493
Mobile : (971-50) 5523120
Email : vijay58@emirates.net.ae / hinidubai@karpgroup.com
Please note that subject’s
previous address was, Gold Land Building, Mezzanine Floor, Suite M-6, Al Khor Street, Al Daghaya, Deira, Dubai.
Premises
Subject operates
from a small suite of offices and a showroom that are rented and located in the
Central Business Area of Dubai.
Name Nationality Position
·
Kukadia Vijay
Kumar Dahyalal Indian Managing
Director
·
Mohamed
Ali Rashed Sowalem Al Agtobe Emirati Director
·
Khatri Hiren - Sales
Manager
Date of Establishment : 5th
February 2003
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 61649, Dubai
Trade Licence No. : 541741 (Expires 31/01/2013)
Chamber Member No. : 75187
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
·
Mohamed
Ali Rashed Sowalem Al Agtobe 51%
·
Kukadia Vijay
Kumar Dahyalal 48%
·
Karp Impex HK Limited 1%
Hong Kong
·
KARP Impex Ltd
Mumbai
India
·
KARP
Diamonds Pvt Ltd
Jasdan
India
·
KARP Jewellery Pvt Ltd
Surat
India
·
KARP
Suisse
Geneva
Switzerland
·
KARP Impex NV
Belgium
·
KARP Jewellery Mfg HK Ltd
Hong Kong
·
Hini Star Ltd
Hong Kong
·
KARP Jewellery Mfg China Ltd
China
·
Hini Star
(Bangkok) Ltd
Bangkok
Thailand
·
Hini Star
(Taiwan) Ltd
Taiwan
Activities: Engaged in the wholesale and retail of jewellery, loose diamonds, gold and precious stones as well
as
crystal products and
giftware.
Import
Countries: India, Singapore,
Hong Kong, South Africa and Europe
Operating Trend: Steady
Subject has a
workforce of 5 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/10: Year
Ending 31/12/11:
Total Sales UAE Dh
28,700,000 UAE Dh
30,000,000
Local sources
consider subject’s financial condition to be Fair.
The above figures
were provided by Mr Kukadia
Vijay Kumar Dahyalal, Managing Director
·
Emirates
Bank International Ltd
Beniyas Road
Deira
PO Box: 2923
Dubai
Tel: (971-4) 2256256 / 2256900
Fax: (971-4) 2268005 / 2267718
No complaints
regarding subject’s payments have been reported.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
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.55.42 |
|
UK Pound |
1 |
Rs.86.78 |
|
Euro |
1 |
Rs.68.03 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.