MIRA INFORM REPORT

 

 

Report Date :

03.05.2012

 

IDENTIFICATION DETAILS

 

Name :

LOTUS DIAM (HK) LTD

 

 

Registered Office :

Room 1602, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.10.2008

 

 

Com. Reg. No.:

39882657

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of All kinds of diamonds and jewellery.

 

 

No. of Employees :

2

 

 

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 – September 30, 2011

 

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

 

LOTUS DIAM (HK)  LTD

 

 

Company Address

 

Room 1602, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            2368 0510, 2368 0511

 

FAX:                 2368 0398

 

 

MANAGEMENT

 

Managing Director:  Mr. Ankurkumar Anandlal Shah

 

 

SUMMARY

 

Incorporated on:             9th October, 2008

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

Issued:                          HK$2.00

 

Business Category:        Diamond Trader.

 

Employees:                   2.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


 

Company name

 

LOTUS DIAM (HK) LTD

 

 

ADDRESS

 

Registered Head Office:-

Room 1602, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Main Affiliated Company:-

Suresh Brothers (HK) Ltd., Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER 

 

39882657

 

 

COMPANY FILE NUMBER 

 

1278371

 

 

MANAGEMENT

 

Managing Director:  Mr. Ankurkumar Anandlal Shah

 

 

CAPITAL

 

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

 

Issued Share Capital:   HK$2.00

 

 

SHAREHOLDERS

 

(As per registry dated 09-10-2011)

Name

 

No. of shares

Ankurkumar Anandlal SHAH

 

1

Mital Ankur Kumar SHAH

 

1

 

 

––

 

Total:

2

=

 

 

DIRECTORS

 

(As per registry dated 01-03-2012)

Name

(Nationality)

 

Address

Ankurkumar Anandlal SHAH

602 Chandanbala Apts., R/R Thaker Marg, Walkeshwar, Mumbai-400006, India.

 

Mital Ankur Kumar SHAH

602 Chandanbala Apts., R/R Thaker Marg, Walkeshwar, Mumbai-400006, India.

 

 

SECRETARY

 

(As per registry dated 09-10-2011)

Name

Address

Co. No.

Billion Smooth Ltd.

Unit 706, 7/F., Sunbeam Plaza, 1155 Canton Road, Mongkok, Kowloon, Hong Kong.

1446987

 

 

HISTORY

 

The subject was incorporated on 9th October, 2008 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, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and jewellery.

 

Employees:                   2.

 

Commodities Imported:   India, Europe, etc.

 

Markets:                       Hong Kong, Japan, other Asian countries, 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$2.00

 

Profit or Loss:                Kept a balance account in 2011.

 

Condition:                      Business is improving.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments on time.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

           

Standing:                      Small.

 

 

GENERAL

 

Having issued 2 ordinary shares of HK$1.00 each, Lotus Diam (HK) Ltd. was equally owned by Dipak Dinkarlal Shah and Dipti Deepak Shah.  Both of them were India passport holders.  Now, the shareholders have been changed to Ankurkumar Anandlal Shah and Mital Ankur Kumar Shah.  Each of them is holding a single share of the subject.  They are India passport holders and currently residing in Mumbai, India.  They are also directors of the subject.

The old managing director of the subject Dipak Dinkarlal Shah has retired.

The subject is a diamond trader.  It is a diamond importer, exporter and wholesaler.  It is the supplier of a versatile range of diamonds such as rose cut diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose cut marquise, etc.  Commodities such as cut and polished diamonds are chiefly imported from India.  Products are marketed in Hong Kong, exported to Japan and other Asian countries.  Business is improving.

The subject has had a main affiliated company Suresh Brothers (HK) Ltd. [Suresh Brothers] which is also a diamond trader.  The head office of Suresh Brothers is in Mumbai, India.  It is a Diamond Trading Company Sightholder.  It is one of the suppliers of the subject.

On the whole, since the history of the subject is over three years and six months in Hong Kong, consider it good for normal business engagements in small credit amounts.

 


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.52.93

UK Pound

1

Rs.85.85

Euro

1

Rs.69.94

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.