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Report Date : |
20.07.2012 |
IDENTIFICATION DETAILS
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Name : |
JAVA TRADING LTD. |
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Registered Office : |
Room 1605, 16/F., Wing Kwok Centre, |
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Country : |
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Date of Incorporation : |
24.03.2004 |
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Com. Reg. No.: |
34407553 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products, etc. |
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No. of Employees : |
4. (Including associates) |
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 – 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 |
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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 |
JAVA TRADING
LTD.
ADDRESS: Room 1605, 16/F., Wing Kwok Centre,
182 Woosung Street, Jordan, Kowloon, Hong Kong.
PHONE: 2367 9893; 2770 1607
FAX: 2770 5121
Managing Director: Mr. Abhay
Suresh Parikh (Mobile: 9580 6110)
Incorporated on: 24th
March, 2004.
Organization: Private
Limited Company.
Capital: Nominal: US$10,000.00
Issued: US$10,000.00
Business Category: Diamond Trader.
Employees:
4. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1605, 16/F., Wing Kwok Centre, 182 Woosung Street, Jordan, Kowloon,
Hong Kong.
Holding Company:-
Paras Diamonds Pvt. Ltd.
Nagin Mahal, 6th Floor, 82, Veer Nariman Road, Churchgate, Mumbai-400020, Maharashtra, India.
[Tel: 91-22-2204 6537; 2204 2776
Fax: 91-22-2204 1807
E-mail: pdpl@bom5.vsnl.net.in]
Associated Companies:-
China Development International Ltd., Hong Kong. [Dissolved]
Yetfar Trading (HK) Ltd., Hong Kong.
(Same address)
Yetfar Trading Co. Ltd., Hong Kong.
(Same address)
34407553
0891315
Managing Director: Mr. Abhay
Suresh Parikh
Nominal Share Capital: US$10,000.00 (Divided into 10,000 shares of
US$1.00 each)
Issued Share Capital: US$10,000.00
(As per registry dated 24-03-2012)
|
Name |
|
No. of shares |
|
Paras Diamonds Pvt. Ltd. Nagin Mahal, 6th Floor, 82, Vir Nariman Road, Churchgate, Mumbai-400020, Maharashtra, India. |
|
10,000 ===== |
(As per registry dated 24-03-2012)
|
Name (Nationality) |
Address |
|
Abhay Suresh PARIKH |
19-Nagin Mahal, 82, Veer Nariman Road, Churchgate, Mumbai-400020,
Maharashtra, India. |
|
Atul Kirtilal PARIKH |
19-Nagin Mahal, 82, Veer Nariman Road, Churchgate, Mumbai-400020,
Maharashtra, India. |
(As per registry dated 24-03-2012)
|
Name |
Address |
|
Standard Authorised Associates |
Room 2808-2810, 28/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong
Kong. |
The subject was incorporated on 24th March, 2004 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at “Flat A, 9/F., Hanley House, 68‑80 Canton
Road, Tsimshatsui, Kowloon, Hong Kong”, moved to the present office with effect
from 1st May, 2008.
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 products, etc.
Employees: 4. (Including associates)
Commodities Imported: India, Belgium, Thailand, etc.
Markets: Asia,
Europe, North America, Middle East, etc.
Terms/Sales:
L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: US$10,000.00 (Divided into 10,000 shares of
US$1.00 each)
Issued Share Capital: US$10,000.00
Profit or Loss: Business is rather profitable.
Condition: Keeping
in an active and steady condition.
Facilities: Making
active use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Normal.
Having issued 10,000 ordinary shares of US$1.00 each, Java Trading Ltd.
is a wholly-owned subsidiary of “Paras Diamonds Pvt. Ltd.” [Paras] which is an
India-based firm. Paras, located in
Mumbai, is owned by the Indian Parikh family.
Besides the subject, the following two firms are also located at the
operating office of the subject:-
Yetfar Trading (HK) Ltd.
Yetfar Trading Co. Ltd.
Trading in jewellery and diamonds, the above-mentioned two firms are
Hong Kong-registered companies.
They are business partners of the subject. Formerly a firm known as “Excel Victor
Trading Ltd.” was also located at the subject’s operating address, however, it
has moved out in recent years. Another
firm known as “China Development International Ltd.” which has been dissolved
was also located at the subject’s operating address.
The subject is a buying and marketing office of Paras in Hong Kong.
The subject is engaged in the same lines of business as Paras. Paras is a diamond and jewellery product
trader and so does the subject. Paras is
trading in the following products:-
Loose and cut diamonds;
White diamonds; &
Blue diamonds (rings, ear-rings, necklaces, bangles, etc.)
Raw materials, mainly rough diamonds, are imported from India, Thailand,
Belgium and other European countries, etc.
Finished products and polished diamonds are marketed in Hong Kong,
exported to Japan, India, other Asian countries, Europe, North America, the
Middle East, etc. Business is
active. It also exports and distributes
Paras’ products.
Paras in India is also engaged in importing rough diamonds.
The subject’s directors Mr. Abhay Suresh Parikh and Mr. Atul Kirtilal
Parikh are also the directors of Paras.
Holding India passports, the two Parikhs are residing in Mumbai, India
administering the business of Paras.
Paras has had a diamond factory in Mumbai, India. According to Paras, it is specialised in
white diamonds, blue diamond and other colour diamonds. Business is active.
The subject is fully supported by Paras.
As the history of the subject is over eight years in Hong Kong, 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.
-
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.38 |
|
|
1 |
Rs.86.75 |
|
Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.