MIRA INFORM REPORT

 

 

Report Date :

22.06.2012

 

IDENTIFICATION DETAILS

 

Name :

RADIANT  EXPORTS

 

 

Registered Office :

C/o HKBSS Ltd.

Room 1B, 20/F., Far East Consortium Building, 121 Des Voeux Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

05.05.2008

 

 

Com. Reg. No.:

39244207-000-05

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts. 

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating Office in Hong Kong

Payment Behaviour :

Unknown

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 and address

 

RADIANT  EXPORTS

 

 

Address:           c/o HKBSS Ltd.

Room 1B, 20/F., Far East Consortium Building,

121 Des Voeux Road Central,

Hong Kong.

 

 

(Formerly located at:

c/o Fung, Yu & Co., Certified Public Accountants

7/F., Hong Kong Trade Centre,

161-167 Des Voeux Road Central,

Hong Kong.       )

 

 

 [Tel: 2541 6632;  Fax: 2541 9339]

 

 

BUSINESS REGISTRATION NUMBER

 

39244207-000-05

 

 

ESTABLISHMENT

 

5th May, 2008.

 

 

SOLE PROPRIETOR

 

Name:  Mr. Jigar Prakashchandra VIDANI

Residential Address:      403, Panchratna, Apartment A Lines, Surat 395007, India.

 

 

GENERAL

 

Radiant Exports is a sole proprietorship set up on 5th May, 2008 and owned by Mr. Jigar Prakashchandra Vidani under the Hong Kong Business Registration Regulations.  Vidani is an India passport holder and does not have the right to reside in Hong Kong permanently.  He is also manager of the subject.

The subject does not have its own operating office.  Its registered office is in a secretarial firm located at Room 1B, 20/F., Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong known as HKBSS Ltd. which is handling its correspondences and documents.

Formerly the subject’s registered address was in the operating office of an accountant firm located at 7/F., Hong Kong Trade Centre, 161-167 Des Voeux Road Central, Hong Kong known as Fung, Yu & Co., Certified Public Accountants which had handled its correspondences and documents, moved to the present address in early June 2012.  The subject changed its registered address as it has changed its commercial service provider since then.

The subject has no employees in Hong Kong.

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts.  Commodities are chiefly imported from India, Belgium, etc.  Prime markets are Hong Kong and the other Asian countries.

Being a one-man company, the subject’s business is chiefly operated by Jigar Prakashchandra Vidani himself.

Vidani has had an associated company in Surat, India.

The history of the subject in Hong Kong is just over four years.

On the whole, since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for 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.

-          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.56.42

UK Pound

1

Rs.88.45

Euro

1

Rs.71.52

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.