MIRA INFORM REPORT
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Report Date : |
28.02.2012 |
IDENTIFICATION DETAILS
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Name : |
WONG
TAI (H.K.) CO. |
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Registered Office : |
Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.02.1997 |
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Com. Reg. No.: |
20675465-000-02 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery |
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No. of Employee: |
4. (Including affiliates) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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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 : |
Small Company |
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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, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 |
WONG TAI (H.K.)
CO.
Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2376 0641
FAX: 2376 0361
E-MAIL: infini@biznetvigator.com
Manager: Mr. Hemang Jasvantbhai Kantrodia
Establishment: 14th February, 1997.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Jewellery Trader.
Employees: 4. (Including affiliates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 904, 9/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Affiliated Companies:- (Same
address)
· 4C Diamonds Manufacturing Co., Hong Kong.
· Gilberto Jewelry Ltd., Hong Kong.
· Infinity Diamonds Manufacturing Ltd., Hong Kong.
20675465-000-02
Manager: Mr. Hemang Jasvantbhai Kantrodia
Contact Person: Mr. Deen
Name: Hemang Jasvantbhai KANTRODIA
Residential Address: B/2 Panchkutir Apt. Panchvati, 2nd Lane, 17-Giriraj Collony, Ambavadi Ahmedabd Guj,
India.
Name: Hardik Pankaj VIRANI
Residential Address: Suite 301, 30 Hoveniersstraat, 2018
Antwerpen, Belgium.
The subject was established on 14th February, 1997 as a sole proprietorship concern owned by Mr. Jignesh Navinchandra Sanghavi under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
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Name |
Incoming Date |
Outgoing Date |
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Jignesh Navinchandra SANGHAVI |
14-02-1997 |
01-10-2003 |
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Akshit Kirankumar VASANI |
01-08-2003 |
15-12-2008 |
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Hemang Jasvantbhai KANTRODIA |
01-09-2008 |
- |
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Hardik Pankaj VIRANI |
13-07-2011 |
- |
Initially the subject was located at 13/F., Tung Shun Hing Commercial Centre, 20-22A Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1301, 13/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong in September 1998; and further moved to the present address in October 2005.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery.
Employees: 4. (Including affiliates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Asian countries, Thailand, Middle East, US, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, D/P, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Wong Tai (H.K.) Co. was a sole proprietorship operated and owned by Mr. Hemang Jasvantbhai Kantrodia who is an Indian. It became a partnership as a new partner Hardik Pankaj Virani joined in on 13th July, 2011. Virani is a Belgium passport holder and currently residing in Antwerpen, Belgium.
Business commenced in February 1997, the subject is a diamond trader and a commission agent. It has got three affiliated companies located at its operating office, namely, 4C Diamonds Manufacturing Co., Infinity Diamonds Manufacturing Ltd. [Infinity Diamonds] and Gilberto Jewelry Ltd. All these firms are diamond and jewellery traders which all were set up in Hong Kong. They are also business partners of the subject.
The subject is trading in loose diamonds, polished diamonds, single cut diamonds, tapper cut diamonds, full cut diamonds, etc. Rough diamonds are imported from India, Belgium and other European countries. However, India is its main supplying country. Some of the rough diamonds are polished or processed in Hong Kong or China. Finished products and polished diamonds are marketed in Hong Kong or exported to India, the other Asian countries, Europe, the Middle East, the United States, etc. The subject is also a commission agent.
All the affiliated companies are operated by Mr. Jayesh B. Patel and his family members all of whom are also Indian. Infinity Diamonds was incorporated on 27th March, 2003 while Giberto Jewelry Ltd. was incorporated on 23rd August, 2002. The former firm is a member of Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
The contact person of the subject is a Mr. Deen who is also an Indian. He is also an accountant.
Infinity Diamonds trades in diamond jewellery, gold jewellery (14K, 18K, 21K and 22K), platinum jewellery (Pt 750, Pt 850, Pt 900, Pt 950 and Pt 990), etc. The subject also trades in the same kinds of products, more or less.
The subject’s business is chiefly handled by Kantrodia himself who is in India most of the time.
The history of the subject in Hong Kong is over fourteen years and seven months. Overall business is rather active, making a small profit every year. Regular suppliers and customers have been maintained, especially those in Belgium.
It is likely that the subject has had an associated company in Belgium which is operated by Virani who is the new partner.
On the whole, consider the subject 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.05 |
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UK Pound |
1 |
Rs.77.78 |
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Euro |
1 |
Rs.65.89 |
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.