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Report Date : |
08.05.2012 |
IDENTIFICATION DETAILS
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Name : |
DANI’S
DIAM |
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Registered Office : |
Flat C, 11/F., |
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Country : |
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Date of Incorporation : |
03.06.2009 |
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Com. Reg. No.: |
50736902-000-06 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamond and jewellery products. |
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No. of Employees : |
02 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
DANI’S DIAM
Flat C, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2366 3298
FAX: 2366 3290, 2732 4338
Manager: Mr. Ketan
Vinodlal Dani (Mobile: 9467 5473)
Establishment: 3rd June, 2009.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat C, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Blue Diam Co., Hong Kong. [Operated by Worldata Investment Ltd.]
Worldata Investment Ltd.
Flat E2, 6/F., Kaiser Estate, Phase 1, 41 Man Yue Street, Hunghom, Kowloon, Hong Kong.
50736902-000-06
Manager: Mr. Ketan Vinodlal Dani
Name: Mr. Ketan Vinodlal DANI
Residential Address: Flat
J, 33/F., Block 2, Royal Peninsula, Hunghom Bay, Kowloon, Hong Kong.
The subject was established on 3rd June, 2009 as a sole proprietorship concern owned by Mr. Ketan Vinodlal Dani under the Hong Kong Business Registration Regulations.
At the very beginning, the subject was located at Flat J, 33/F., Block 2, Royal Peninsula, Hunghom Bay, Kowloon, Hong Kong, moved to 18/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in early 2010 and further to 11/F. of the same building in June of the same year.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamond and jewellery products.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, other Asian countries, Middle East, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Kept a balance account in 2011.
Condition: Business is improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Dani’s Diam is a sole proprietorship set up and owned by Mr. Ketan Vinodlal Dani who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. Dani is the manager of the subject who can be reached at his mobile phone number 9467 5473.
The subject is a diamond importer, exporter and wholesaler. It is trading in the following commodities: single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire, fancy diamonds, etc.
Rough, cut or polished diamonds are imported from India, Belgium or other European countries. After processing in Hong Kong or China, commodities are exported to Japan, other Asian countries, the Middle East, Central and South America, etc. Business is improving.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong. 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 subject has got an associated company Worldata Investment Ltd. [Worldata] which is located at a different address.
Worldata was incorporated on 2nd July, 1991 and jointly owned by Mr. Nareshkumar Maneklal Shah, holding 59.9% interests, and Mr. Naitik Mukesh Shah, holding 40.1%. Mr. Ketan Vinodlal Dani is the third shareholder holding an insignificant stake of Worldata. The first and second are India passport holders. The first is residing in Hong Kong while the second, residing in Dubai, the United Arab Emirates. Worldata is operating a firm known as Blue Diam Co. which is also a diamond trader.
The subject’s business is chiefly handled by Dani himself.
On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on secured basis for the time being.
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 |
|
US Dollar |
1 |
Rs.53.34 |
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UK Pound |
1 |
Rs.86.09 |
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Euro |
1 |
Rs.69.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.