MIRA INFORM REPORT
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Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
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Name : |
ETERNAL
DIAMONDS CORPORATION LTD. |
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Registered Office : |
Unit B, 16/F., World Trust Tower, 50 Stanley Street Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
33232303 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter, Wholesaler and Retailer of all kinds of diamonds and jewellery, etc. |
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No. of Employees
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15 persons |
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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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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 |
ETERNAL DIAMONDS CORPORATION
LTD.
Unit B, 16/F., World Trust Tower, 50 Stanley Street Central, Hong Kong
PHONE: 2333 5534
FAX: 2356 2680
E-MAIL: eternal.diamonds@yahoo.com.hk
General Manager: Mr. David Lee
Incorporated on: 18th December, 2002.
Organization: Private Limited Company.
Capital: Nominal: US$100,000.00
Issued: US$10,000.00
Business Category: Diamond Trader.
Annual Turnover: US$400~410 million.
Employees: 15.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered
Office:-
Unit B, 16/F., World Trust Tower, 50 Stanley Street Central, Hong Kong
Holding Company:-
Everstar Capital (Asia) Ltd., British Virgin Islands.
33232303
0826414
General Manager: Mr. David Lee
Nominal Share Capital: US$100,000.00 (Divided into 100,000 shares of US$1.00 each)
Issued Share Capital: US$10,000.00
(As per registry
dated 18-12-2010)
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Name |
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No. of shares |
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Everstar Capital (Asia) Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola, British Virgin Islands. |
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10,000 ===== |
(As per registry
dated 30-03-2011)
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Name (Nationality) |
Address |
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LI Hsuan Cheng |
Flat F2-27, 2/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong. |
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Ashish Bajranglal BAGARIA |
Flat F2-27, 2/F., Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 18-12-2010)
|
Name |
Address |
Co.
No. |
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Louis Lai Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 18th December, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly
the subject’s registered office was in an accountant firm located at 1/F., Xiu
Ping Commercial Building, 104 Jervois Street, Sheung Wan, Hong Kong known
as Fung & Pang CPA Ltd. which had handled its correspondences and
documents. The subject changed its registered address to the Flat F2-27, 2/F.,
Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon,
Hong Kong with effect from 10th June, 2010.
And again subject moved to the new
address located at Unit B, 16/F., World Trust Tower, 50 Stanley
Street Central, Hong Kong in early 2012.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter, Wholesaler and Retailer.
Lines: All kinds of diamonds and jewellery, etc.
Employees: 15.
Commodities Imported: India, Belgium, UAE, etc.
Markets: Hong Kong, US, UAE, India, other Asian countries, etc.
Annual Turnover: US$400~410 million.
Terms/Sales: 30, 60-90 days.
Terms/Buying: Credit of 90-120 days.
Nominal Share Capital: US$100,000.00 (Divided into 100,000 shares of US$1.00 each)
Issued Share Capital: US$10,000.00
Profit or Loss: Business is profitable.
Condition: Keeping in an active condition.
Facilities: Making very active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Good.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Good.
Having issued 10,000 ordinary shares of US$1.00 each, Eternal Diamonds Corporation Ltd. is a wholly-owned subsidiary of Everstar Capital (Asia) Ltd. which is a BVI-registered firm. The directors of the subject are Mr. Li Hsuan Cheng and Mr. Ashish Bajranglal Bagaria. The former seems to be a Taiwan merchant while the latter, an Indian merchant.
The subject is trading in diamonds and diamond jewellery. Commodities are chiefly imported from India, Belgium and the United Arab Emirates. Products are marketed in Hong Kong, exported to the United State, the United Arab Emirates, other Asian countries, etc. The subject is also a diamond wholesaler in Hong Kong. The operators of the subject are experienced.
According to the subject, its sales in 2009 was over US$180 million, in 2010 was over US$375 million. It is predicted that its sales in 2011 will be over US$400 million. It is predicted that the subject’s business will improve further in the years ahead.
The subject’s business is chiefly handled by Mr. David Lee who is the General Manager. Lee is a Hongkongnese.
The history of the subject in Hong Kong is about nine years.
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.
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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
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Indian Rupees |
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US Dollar |
1 |
Rs.50.31 |
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UK Pound |
1 |
Rs.79.04 |
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Euro |
1 |
Rs.65.82 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.