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Report Date : |
11.05.2012 |
IDENTIFICATION DETAILS
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Name : |
ZENIA |
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Registered Office : |
Room 404, 4/F., Block B, Fu |
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Country : |
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Date of Incorporation : |
24.09.2004 |
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Com. Reg. No.: |
34938558-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, etc. |
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No. of Employees : |
3. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 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 |
ZENIA
ADDRESS: Room 404, 4/F., Block B, Fu Hang Industrial
Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2730 5088
FAX: 2730 5084
Manager: Mr. Praful Chandra Madhubhai Patel
Establishment: 24th September, 2004.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$70~80 million.
Employees: 3.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ZENIA
ADDRESS:
Head Office:-
Room
404, 4/F., Block B, Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Rio-Star
Flat
H, 13/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. [Solely owned by Mr. Lalit Jivraj Patel]
Vriti
Diam (HK) Ltd.
Flat B, 12/F., Granville House, 41C & 41D
Granville Circuit, Tsimshatsui, Kowloon, Hong Kong. [Wholly owned by Mr. Bhavesh Narasi
Patel. Directors are Mr. Bhavesh Narasi
Patel and Mr. Maheshkumar Bhavanbhai Gajera]
Vriti
Diam
Flat
A, 6/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon,
Hong Kong.
[Solely
owned by Mr. Bhavesh Narasi Patel]
34938558-000-09
Manager: Mr. Praful Chandra Madhubhai Patel
Name: Mr. Praful Chandra Madhubhai PATEL
Residential
Address:Room 5, 10/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui,
Kowloon, Hong Kong.
The subject was established on 24th September, 2004 as a sole
proprietorship concern owned by Mr. Praful Chandra Madhubhai Patel under the
Hong Kong Business Registration Regulations.
At the very beginning, the subject was located at Flat C, 10/F.,
Century House, 3-4 Hanoi Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat
29, 2/F., Block M, Kaiser Estate, Phase 3, 11 Hok Yuen Street, Hunghom,
Kowloon, Hong Kong in January 2006, and further to the present address in
October 2008.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, etc.
Employees: 3.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: India, other Asian countries, etc.
Annual Turnover: HK$70~80 million.
Terms/Sales: L/C and T/T.
Terms/Buying: L/C, T/T, D/A, etc.
Capital: Not disclosed.
Net Profit: HK$1,214,087.00 (Year ended 31-03-2011)
Profit or Loss: Making a profit every year.
Condition: Keeping in an active condition.
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: Normal.
Zenia is a sole proprietorship set up
on 24th September, 2004 and owned by Mr. Praful Chandra Madhubhai Patel [P C M
Patel] who is an Indian. He is a Hong
Kong ID Card holder and has got the right to reside in Hong Kong permanently. Mr. P C M Patel can be reached at the
subject’s phone number 2730 5088.
The subject is a diamond importer,
exporter and wholesaler. It has got
affiliated companies Vriti Diam (HK) Ltd. [Vriti] and Vriti Diam in
Hong Kong but located at a different address.
Having issued 100,000 ordinary shares
of HK$1.00 each, Vriti is wholly owned by Mr. Bhavesh Narasi Patel [B N Patel]
who is an India passport holder. Being
an Indian, Mr. B N Patel is residing in Hong Kong currently. Vriti Diam is also owned by Mr. B N Patel.
The subject and Vriti are engaged in
the same lines of business. Both are
trading in loose diamonds, fancy diamonds, and diamond for jewellery. Products are exported to Japan, Taiwan, South
Korea, China, other Asian countries, Europe, North America, etc. Most of the polished and cut diamonds are
imported from Mumbai, India.
Another affiliated firm Rio-Star is
owned by Mr. Lalit Jivraj Patel.
Rio-Star is also located at a different address. All the Patels belong to the same family.
The subject’s business is chiefly
handled by P. C. M. Patel himself. The
Patel family has had close business ties with some of the diamond suppliers and
manufacturers in Mumbai, India.
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.
According to the subject, the annual
sales turnover of the subject ranges from HK$70 to 80 million. Making a small profit every year.
For the year ended 31st March, 2011,
the net profit of the subject amounted to HK$1,214,087.00. B. N. Patel has paid an amount of
HK$134,674.00 in profits tax.
As the history of the subject in Hong
Kong is over seven years and seven months, 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.
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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.
-
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.53.33 |
|
|
1 |
Rs.86.10 |
|
Euro |
1 |
Rs.69.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.