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Report Date : |
13.07.2012 |
IDENTIFICATION DETAILS
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Name : |
B.B. DIAM |
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Registered Office : |
Room G, 7/F., |
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Country : |
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Date of Incorporation : |
25.01.2008 |
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Com. Reg. No.: |
38887648-000-01 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds, etc. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – September 30, 2011
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
B.B. DIAM
Room G, 7/F., Kim Hing Mansion, 49, 49A & 51 Kimberley Road,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 4900; 6386 0100 (Mobile)
E-MAIL: bbdiam2009@gmail.com
Manager: Mr. Paresh Babubhai
Vaghani
Establishment: 25th January, 2008.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employees: Nil.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
B.B. DIAM
Head Office:-
Room G, 7/F., Kim Hing Mansion, 49, 49A & 51 Kimberley Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated/Affiliated Companies:-
B. B. Creation Co., India
B. B. Diam (HK) Ltd., Hong Kong.
B. B. Diam Co. Ltd., Thailand.
B.B. Diam Ltd., India.
Vaghani Bros., India.
38887648-000-01
Manager: Mr. Paresh Babubhai
Vaghani
Name: Mr. Paresh Babubhai VAGHANI
Residential Address: 8
Arogyadham, 3/F., Dattatray Road, Santacruz West, Mumbai-400054, India.
Name: Mr. Manjibhai Bhagwanbhai
VAGHANI
Residential Address: 7 India
House, Tagore Road, Santacruz West, Mumbai‑400054, India.
The subject was established on 25th January, 2008 as a sole
proprietorship concern owned by Mr. Arvind Bhagvan Bhai Vaghani under the Hong
Kong Business Registration Regulations.
The subject become a partnership as Mr. Paresh Babubhai Vaghani joined
in as a partner on 7th March, 2008 and Mr. Manjibhai Bhagwanbhai Vaghani on
19th June, 2009.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Arvind Bhagvan Bhai VAGHANI |
25-01-2008 |
19-06-2009 |
|
Paresh Babubhai VAGHANI |
07-03-2008 |
- |
|
Manjibhai Bhagwanbhai VAGHANI |
19-06-2009 |
- |
Initially the subject was located at “Flat B, 6/F., Kimley Building, 1‑3 Kimberly
Street, Tsimshatsui, Kowloon, Hong Kong”, moved to “Flat C, 5/F., Dor Fu Court,
5-6 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.” in May 2010, and
further to the present address in April 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds, etc.
Brand Name: B B
Employees: Nil.
Commodities Imported: India,
Thailand, other Asian countries, etc.
Markets: Asian
countries, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc
Capital: Not
disclosed.
Profit or Loss: Keeping
a balance account.
Condition: Business
is fairly active.
Facilities: Making
fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
B.B. Diam is a partnership jointly owned by Mr. Paresh Babubhai Vaghani
and Mr. Manjibhai Bhagwanbhai Vaghani.
The two partners are India passport holders and do not have the right to
reside in Hong Kong permanently. They
belong to the Vaghani family of India.
The subject commenced business in January 2008. Its registered address is located at “Room G,
7/F., Kim Hing Mansion, 49, 49A & 51 Kimberley Road, Tsimshatsui, Kowloon,
Hong Kong.” This office is not in a
commercial building but a residential building.
The subject moved to this new address in April 2011. It is likely that this is the latest
residential address of the partners when they are in Hong Kong. The residential building is not trespassed by
outsiders.
The subject is a diamond importer, exporter and wholesaler. It is trading in single‑cut diamond,
fullcut loose diamond, carat size diamonds, etc. Commodities are chiefly imported from India
and Thailand.
Currently, the subject’s old partner Mr. Arvind Bhagvan Bhai Vaghani who
retired on 19th June, 2009 is residing in Bangkok, Thailand. He is responsible for supplying the subject
with rough diamonds and related products.
Bearing the brand name of “B B”, the subject’s polished and cut
diamonds are marketed in Hong Kong, exported to Thailand, other Asian countries
and Europe. Business keeps on improving.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong. For instance, it is going to take part in
“HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2013.
The subject has had associated companies “B. B. Diam (HK) Ltd.” in
Hong Kong and “B.B. Diam Ltd.” [India B.B. Diam] in India.
India B.B. Diam was set up by Mr. Babubhai B. Vaghani in 1972 in Surat,
India. In 1981, he started a factory
employing about 100 persons. The factory
is known as “B. B. Creation Co.” In
1990, India B.B. Diam set up a sales office in Surat which has become the head
office. Besides, India B.B. Diam set up
a sales office in Mumbai named Vaghani Bros. with Mr. Damjibhai
Bhagwanbhai Vaghani joined in as a partner.
India B.B. Diam started importing rough diamonds from Belgium and Israel
in 1994. In 2007, India B.B. Diam set up
a marketing office in Bangkok, Thailand which is the 30% interests holder of
the subject. Now, India B.B. Diam has
had about 550 workers in India.
The subject is just a two-man company.
History in Hong Kong is over four years.
On the whole, since the registered office of the subject is in a
residential building, consider it good for normal business engagements on L/C
basis.
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.
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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.
-
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
|
|
1 |
Rs.86.28 |
|
Euro |
1 |
Rs.68.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.