MIRA INFORM REPORT

 

 

Report Date :

20.03.2012

 

IDENTIFICATION DETAILS

 

Name :

FINE  DIAMOND  (HK)  LTD.

 

 

Registered Office :

Flat D, 12/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

19.02.1991

 

 

Com. Reg. No.:

14285783

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Re-exporter of all kinds of diamonds, jewellery and precious stones.

 

 

No. of Employees :

4

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – 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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

FINE  DIAMOND  (HK)  LTD.

 

 

ADDRESS:       Flat D, 12/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            2739 1022,  2739 1077

 

FAX:                 2311 3810

 

E-MAIL:            fineaj@netvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Alpesh Shantichand Jhaveri

 

 

SUMMARY

 

Incorporated on:             19th February, 1991.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$3,000,000.00

Issued:              HK$3,000,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   4.

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Flat D, 12/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

14285783

 

 

COMPANY FILE NUMBER

 

 0299955

 

 

MANAGEMENT

 

Managing Director:  Mr. Alpesh Shantichand Jhaveri

Contact Person:  Mr. Mohamed Noohu

 

 

CAPITAL

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 300,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$3,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 19-02-2011)

 

Name

 

No. of shares

Alpesh Shantichand JHAVERI

 

180,000

Poorvi Alpesh JHAVERI

 

120,000

 

 

–––––––

 

Total:

300,000

======

 


DIRECTORS

(As per registry dated 19-02-2011)

 

Name

(Nationality)

 

Address

Alpesh Shantichand JHAVERI

Flat 1203, 12/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Poorvi Alpesh JHAVERI

Flat 1203, 12/F., Kiu Fung Mansion, 18 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

SECRETARY

(As per registry dated 19-02-2011)

 

Name

Address

Co. No.

Buttar.HK Ltd.

1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.

0975326

 

 

HISTORY

 

The subject was incorporated on 19th February, 1991 as a private limited liability company under the Hong Kong Companies Ordinance.

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

 

 

OPERATIONS

 

Activities:                      Importer and Re-exporter.

 

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

 

Employees:                   4.

 

Commodities Imported:   Imported from Belgium, India, etc.

 

Markets:                       Southeast Asia, Europe, USA, Middle East, etc.

 

Terms/Sales:                  L/C or as per contracted.

 

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

 

 

MEMBERSHIP

 

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 300,000 shares of HK$10.00 each)

 

Issued Share Capital: HK$3,000,000.00

 

Alternation of Capital:-

Initially

paid up

HK$      100,000.00

26-10-2007

paid up

HK$      2,900,000.00

 

 

–––––––––––––––

Total:

paid up

HK$      3,000,000.00

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

 

Increase of Nominal Capital:-

From

HK$100,000.00

to

HK$3,000,000.00

on

26-10-2007

 

Mortgage or Charge:-

Date of Charge Over Deposits – CD 1 (09a):  07-01-2010

Amount:            To secure the payment or discharge of all moneys, obligations and liabilities, whether actual or contingent at the date of the Charge or at any time after the date thereof, due, owing or incurred by the Company to Standard Chartered Bank (Hong Kong) Ltd.

Property:           1)         By fixed Charge:  all the Company’s rights in respect of (i) the sum deposited by the Company; and (ii) all other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit whether alone or jointly with others, on any deposit account with the Bank or any other SCB Group Company including additions to or renewals or replacements of such sum; and all interest from time to time accruing or payable on the sums specified in (i) and (ii) above;

2)         By assignment:  all Deposits held with any SCB Group Company

Mortgagee:        Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Profit or Loss:    Business is profitable.

 

Condition:          Keeping in an active and satisfactory condition.

 

Facilities:          Making active use of general banking facilities.

 

Payment:          Met trade commitments as contracted.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

The Royal Bank of Scotland N.V., Hong Kong Branch.

 

Standing:          Good.

 

GENERAL

 

Having issued 300,000 ordinary shares of HK$10.00 each, Fine Diamond (HK) Ltd. is jointly owned by two Indian, Mr. Alpesh Shantichand Jhaveri, holding 60% interests; and Mr. Poorvi Alpesh Jhaveri, holding 40%.  Believed to be the members of the same family, the two Mr. Jhaveris have been in Hong Kong for a very long time and each of them has got a Hong Kong ID Card and has got the right to reside in Hong Kong permanently.

The subject is trading in loose, polished and cut diamonds, gemstones, etc.  These include carat size diamonds, fancy diamonds, etc.  Commodities, mostly fancy cut diamonds, are mainly imported from Belgium, Israel and India.  However, India is the principal supplying country.  The subject has had a number of suppliers in India.

The subject also trades in the following pearls: Akoya Pearl, South Sea Pearl, Tahitian Pearl, Black Pearl, etc.  It is specialized in round, princess, tapper, marques, emerald, pear, heart and single cut diamonds.  Imported products are re-exported to worldwide countries while the prime markets are the United States, Japan, Southeast Asia, other Asian countries, the Middle East, Europe, etc.  Main customers are diamond brokers, diamond wholesalers and jewellery manufacturers.  Size of diamonds supplied range from 0.005 carat to 5.000 carats.  It focuses on I to L, M, N colours including brown as well as treated colour diamonds.  Business has been active and steady.

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 took part in “HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.  Besides, 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 annual sales turnover of the subject is very significant.  Business is profitable.  Regular customers and suppliers have been maintained.

The contact person of the subject Mr. Mohamed Noohu is also an Indian.

On the whole, having a history of over twenty-one years and a month, the subject is considered good for normal business engagements.


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.50.12

UK Pound

1

Rs.79.37

Euro

1

Rs.66.00

 

 

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.