MIRA INFORM REPORT

 

 

Report Date :

27.06.2012

 

IDENTIFICATION DETAILS

 

Name :

DIAMOND  MINE  CORPORATION  LTD.

 

 

Registered Office :

Flat D, 13/F., Block 13, Site 11, Bauhinia Mansions, 6 Tak Hong Street, Whampoa Garden, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

02.10. 2003

 

 

Com. Reg. No.:

34086862

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

 

No. of Employees :

1.  (Including associate)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

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)

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 an address

 

DIAMOND  MINE  CORPORATION  LTD.

 

 

Address:           Flat D, 13/F., Block 13, Site 11, Bauhinia Mansions,

                        6 Tak Hong Street, Whampoa Garden, Hunghom,

                        Kowloon, Hong Kong.

 

 

(Formerly located at:

Room 1316, 13/F., Peninsula Square,

18 Sung On Street, Hunghom,

Kowloon, Hong Kong.     )

 

PHONE:            2739 1460

 

FAX:                 2739 9200

 

E-MAIL:                        hongkong@sheetalgroup.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Girish Vasharambhai Bagadia

 

 

SUMMARY

 

Incorporated on:             2nd October, 2003.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$10,000.00

Issued:              HK$10,000.00

 

Business Category:        Importer, Exporter and Wholesaler.

 

Employees:                   1.  (Including associate)

 

Main Dealing Banker:     Wing Lung Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Flat D, 13/F., Block 13, Site 11, Bauhinia Mansions, 6 Tak Hong Street, Whampoa Garden, Hunghom, Kowloon, Hong Kong.

 

Associated Company:-

Belmark Diam Co., Hong Kong.  (Same address)

 

Affiliated Companies:-

Sheetal (Far East) Ltd., Hong Kong.

Sheetal Europe B.V.B.A., Belgium.

Sheetal Manufacturing Co. Pvt. Ltd., India.

 

 

BUSINESS REGISTRATION NUMBER

 

 34086862

 

 

COMPANY FILE NUMBER

 

 0864105

 

 

MANAGEMENT

 

Managing Director:  Mr. Girish Vasharambhai Bagadia

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000.00

 

 

SHAREHOLDER  

(As per registry dated 02-10-2011)

 

Name

 

No. of shares

Shital Girish BAGADIA

 

10,000

=====

 


DIRECTORS

(As per registry dated 02-10-2011)

 

Name

(Nationality)

 

Address

Girish Vasharambhai BAGADIA

Flat C, 22/F., Tower 5, The Greenwood (Phase 1), Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

 

Shital Girish BAGADIA

Flat C, 22/F., Tower 5, The Greenwood (Phase 1), Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 02-10-2011)

 

Name

Address

Co. No.

Vinford Ltd.

Room 1707, 17/F., Wellborne Commercial Centre,
8 Java Road, North Point, Hong Kong.

0346328

 

 

HISTORY

 

The subject was incorporated on 2nd October, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room B-1, 9/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1316, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in August 2006 and further to the present address with effect from 27th February, 2012.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Employees:                   1.  (Including associate)

 

Commodities Imported:   India, Canada, Russia, Australia, Belgium, other European countries, etc.

 

Markets:                       Japan, other Asian countries, Europe, Middle East, US, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$10,000.00

 

Alternation of Capital:-

02-10-2003

paid up

HK$      2.00

17-06-2011

paid up

HK$      9,998.00

 

 

–––––––––––––

Total:

paid up

HK$      10,000.00

============

 

Indebtedness:                HK$2,720,054.00  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 02-10-2011)

 

Mortgage or Charge:-

Date of  Mortgage:  12-07-2006

Amount:            To secure general banking facilities

Property:           2,290/588,444th parts or shares of and in Kowloon Inland Lot No. 10985 (Unit 16 on 13/F. of West Wing of Peninsula Square, 18 Sung On Street, Kowloon, Hong Kong.)

Mortgagee:        Wing Lung Bank Ltd., Hong Kong.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Business is rather active.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                       Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Wing Lung Bank Ltd., Hong Kong.

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 10,000 ordinary shares of HK$1.00 each, Diamond Mine Corporation Ltd. is wholly-owned by Mr. Shital Girish Bagadia who is an Indian.  The directors of the subject are Shital Girish Bagadia and Girish Vasharambhai Bagadia.  Both are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.

The subject is a diamond importer, exporter and wholesaler.  The subject has got an associated company Belmark Diam Co. [Belmark] located at its operating address.  Belmark, established on 18th March, 2004, is owned and operated by Girish Vasharambhai Bagadia.

Indirectly, the subject also has had business ties with major diamond mining companies and is able to provide clients with rough diamonds, and loose diamonds with competitive prices.

The subject is trading in the following commodities: 3.12-carat diamond, 10.06-carat fancy diamond, diamond ring, etc.  Bearing the brand name of “DIAMOND MINE”, products are marketed in Hong Kong, China and exported to foreign countries.  The subject still has got business ties with Sheetal Group which is in India.  Annual sales turnover is rather steady and significant.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.  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 an affiliated company located at its old registered address known as Sheetal (Far East) Ltd. [Sheetal] which is a Hong Kong-based firm.

Also operated by the family of Bagadia, Sheetal is one of the leading manufacturers of polished diamonds in the world.  It procures diamonds from mining companies in Canada, Russia, Africa and Australia.  Currently, the Sheetal Group employs over 5,000 workers.

The subject is wholly-owned by the Bagadia family.  History in Hong Kong is over eight years.

On the whole, consider the subject good for normal business engagements.

 

 

REMARKS

 

            Property information of the company:-

            Property Location:          Unit 16 on 13/F. of West Wing, Peninsula Square,
18 Sung On Street, Kowloon, Hong Kong.

Owner:  Diamond Mine Corporation Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

12-07-2006

-

Wing Lung Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 


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.57.07

UK Pound

1

Rs.88.96

Euro

1

Rs.71.40

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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