MIRA INFORM REPORT

 

 

Report Date :           

11.05.2012

 

IDENTIFICATION DETAILS

 

Name :

VRITI  DIAM  (HK)  LTD.

 

 

Registered Office :

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

27.03.2008

 

 

Com. Reg. No.:

39087350

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds, precious stones, and jewellery products

 

 

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 – March 31st, 2012

 

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

 

VRITI  DIAM  (HK)  LTD.

 

 

Company ADDRESS

 

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            3116 7601

FAX:                 3116 7602

 

 

MANAGEMENT

 

Managing Director:  Mr. Bhavesh Narasi Patel  (Mobile: 6629 4412)

 

 

SUMMARY

 

Incorporated on:                         27th March, 2008.

 

Organization:                             Private Limited Company.

 

Capital: Nominal:                       HK$100,000.00

Issued:                                      HK$100,000.00

 

Business Category:                    Loose Diamond Trader.

 

Turnover of 2011:                        HK$99,795,143.83

 

Employees:                               2.

 

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

 

Banking Relation:                       Satisfactory.


Company ADDRESS

 

Registered Head Office:-

Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Company:-

Vriti Diam, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

39087350

 

 

COMPANY FILE NUMBER

 

1220672

 

 

MANAGEMENT

 

Managing Director:  Mr. Bhavesh Narasi Patel

 

 

CAPITAL

 

Nominal Share Capital:   HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$100,000.00

 

 

SHAREHOLDER

(As per registry dated 27-03-2011)

 

Name

 

No. of shares

Bhavesh Narasi PATEL

 

100,000

======

 


 

DIRECTORS

(As per registry dated 27-03-2011)

 

Name

(Nationality)

 

Address

Bhavesh Narasi PATEL

Flat A, 6/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

 

Maheshkumar Bhavanbhai GAJERA

5, Nandan Villa, Model Town Chs. B-11, Gulmohar Cross Road No. 7, Vile Parle West, Mumbai 400056, India.

 

 

SECRETARY

(As per registry dated 27-03-2011)

 

Name

Address

Bayani Divino Bautista PONCE

13/F., 5 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 27th March, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at M29, 2/F., Phase 3, Kaiser Estate, 9‑11A Hok Yuen Street, Hunghom, Kowloon, Hong Kong, moved to Room 404, 4/F., Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong in March 2009, to Flat B, 12/F., Granville House, 41C & 41D Granville Road, Tsimshatsui, Kowloon, Hong Kong in 2010, to Room 1711, 17/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong Kong with effect from 1st April, 2011.  It moved back to Granville House in late 2011.

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

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

           

Employees:                   3.

 

Commodities Imported:   India, Belgium and other European countries, etc.

 

Markets:                       Hong Kong, India, other Asian countries, etc.

 

Turnover of 2011:            HK$99,795,143.83

 

Terms/Sales:                 COD, L/C, T/T, D/A, or 150 days, etc.

 

Terms/Buying:               L/C, T/T, or 120 to 150 days, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$100,000.00

 

Mortgage or Charge:-

Date of  Mortgage:  30-08-2011

Amount:            All moneys

Property:           2/94th parts or shares of and in Section A of Kowloon Inland Lot No. 7603 and The Remaining Portion of Kowloon Inland Lot No. 7603 (Flat B on 12/F. of Granville House,
41C & 41D Granville Road, Kowloon, Hong Kong.)

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

 

Net Profit of 2011:          HK$518,185.59

 

Profit or Loss:                Making a small profit in past two years.

 

Condition:                      Business is improving.

 

Facilities:                      Adequate for current running.

 

Payment:                       Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 100,000 ordinary shares of HK$1.00 each, Vriti Diam (HK) Ltd. is wholly-owned by Mr. Bhavesh Narasi Patel [B. N. Patel] who is an Indian.  B. N. Patel resided in Mumbai, India and now he has moved to Hong Kong.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  B. N. Patel can be reached at his mobile phone number 852-6629 4412.

The subject moved back to the former address in late 2011.  It has had an associated company Vriti Diam, a Hong Kong-registered firm, located at its operating address.

Besides, the subject has got the following affiliated firms:-

Raha Impex H.K., Hong Kong

Rio Star, Hong Kong

Zenia, Hong Kong

All these firms are controlled by the Patel family.  Zenia was established in Hong Kong on 24th September, 2004.

The subject’s director B. N. Patel is the sole proprietor of Vriti Diam.  The subject and Vriti Diam are engaged in the same lines of business.

The subject is a diamond trader.  It is trading in white, LC and all size of diamonds form 0.01 cts to 1.00 cts.  Raw materials, polished and cut diamonds are imported from India, Belgium and other European countries, etc.  Some of the raw diamonds are polished or processed in Hong Kong.  Finished products and polished diamonds are exported to India, other Asian countries, etc.  The subject’s business is improving.

B. N. Patel is also a diamond businessman.  In India, he has got business ties with a number of diamond manufacturers and traders.

The history of the subject is about four years in Hong Kong.

Supported by the Patel family, on the whole, consider it 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.53.34

UK Pound

1

Rs.86.11

Euro

1

Rs.69.07

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.