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Report Date : |
09.03.2012 |
IDENTIFICATION DETAILS
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Name : |
LOYAL GRAND TRADING LTD. |
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Registered Office : |
C/o Global Associates Ltd. Unit L, 10/F., 48 Gilman Street, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.12.2011 |
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Com. Reg. No.: |
59290979 |
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Legal Form : |
Private Limited Liability Company |
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LINE OF BUSINESS : |
TRADING IN ALL KINDS OF LOOSE DIAMONDS SUCH AS MARQUISE, PEARS,
TAPPERS, BUGGETS AND ROSE CUT DIAMONDS.
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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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 (30.06.2011) |
Current Rating (30.09.2011) |
|
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 |
LOYAL GRAND TRADING
LTD.
ADDRESS:
Registered Office:-
c/o Global Associates Ltd.
Unit L, 10/F., 48 Gilman Street, Central, Hong Kong.
[Tel: 6485 6981; Fax: 2345 6116]
Associated Company:-
Smart Zone Corporation Ltd., Hong Kong.
59290979
1693769
23rd December, 2011.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 04-01-2012)
|
Name |
|
No. of shares |
|
GNL11 Ltd., Hong Kong. |
|
1 |
|
Manish JAIN |
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9,999 |
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|
|
–––––– |
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Total: |
10,000 ===== |
(As per registry dated 04-01-2012)
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Name (Nationality) |
Address |
|
Manish JAIN |
156/17, Purani Mandi, Ajmer, Rajasthan, India. |
(As per registry dated 04-01-2012)
|
Name |
Address |
Co. No. |
|
Global Associates Ltd. |
10/F., 48 Gilman Street, Central, Hong Kong. |
1695695 |
Loyal Grand Trading Ltd. was incorporated on 23rd December, 2011 as a private
limited liability company under the Hong Kong Companies Ordinance.
The subject does not have its own operating office. Its registered office is in a commercial
service firm located at Unit L, 10/F., 48 Gilman Street, Central, Hong Kong
known as Global Associates Ltd. which is handling its correspondences and
documents. This firm is also the
corporate secretary of the subject.
Formerly the subject’s registered address was located at Room
1001-1004A, 10/F., Champion Building, 287-291 Des Voeux Road Central, Sheung
Wan, Hong Kong where was the operating address of a secretarial firm known as
GNL11 Ltd. The subject changed its
registered address to the present one with effect from 4th January, 2012 as it
has changed its commercial service provider since then. The subject has no employees in Hong Kong.
According to the Companies Registry of Hong Kong, the subject has issued
10,000 ordinary shares of HK$1.00 each which are wholly owned by
Mr. Manish Jain who is an Indian.
He is an India passport holder and does not have the right to reside in
Hong Kong permanently. Currently, Jain
is in Hong Kong. He can be reached at
his mobile phone number 852-6485 6981.
The subject’s fax number is 8522345 6116.
According to Jain, his firm is trading in all kinds of loose diamonds
such as marquise, pears, tappers, buggets and rose cut diamonds. Commodities are chiefly imported from
India. It also provides other products
as required by customers. The subject’s
prime market is Hong Kong. It will
expand its business to the other Asian countires in the immediate future. Business is under development.
Besides operating the subject, Jain is operating another firm known as
Smart Zone Corporation Ltd. [Smart Zone] which is also a Hong Kong-registered
firm. Incorporated on the same date as
the subject, Smart Zone is also located at the same floor and same
building. The subject and Smart Zone are
engaged in the same lines of business.
The subject may have got an associated company in India which is also
operated by Jain. It is likely that the
India firm deals with foreign parties under the name of the subject and let
foreign firms correspond with the subject’s registered address in Hong
Kong. The India firm also exports
commodities to foreign markets under the name of the subject and its registered
address in Hong Kong.
The history of the subject in Hong Kong is just over two months.
Since the subject does not have its own operating office, history is
short 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.
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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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.57 |
|
|
1 |
Rs.79.57 |
|
Euro |
1 |
Rs.66.49 |
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.