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Report Date : |
12.05.2012 |
IDENTIFICATION DETAILS
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Name : |
IN
COLLECTION LTD. |
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Registered Office : |
Room 901, 9/F., Harbour Centre, Tower 2, |
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Country : |
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Date of Incorporation : |
15.11.2005 |
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Com. Reg. No.: |
36196746 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
7. (Including
associate) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – 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 |
IN COLLECTION LTD.
Room 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 3011
FAX: 2311 1167, 2311 1272
E-MAIL: info@incollectiondiam.com
Managing Director: Mr. Kamlesh Jivanbhai Shah
Incorporated on: 15th November, 2005.
Organization: Private Limited Company.
Capital: Nominal: HK$20,000,000.00
Issued: HK$20,000,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$45~50 million.
Employees: 7. (Including associate)
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Associated China
Factory:-
56 Feng Xiang North Road, Ronggui, Shunde District, Foshan City, Guangdong Province, China.
[E-mail: incollection009.cn@gmail.com]
Affiliated/Associated
Companies:-
Dimano Stone LLC, UAE.
Dimoni Ltd., Hong Kong. [Dissolved]
In Collection, Hong Kong. (Same address)
Nine Diam, India.
36196746
1007854
Managing Director: Mr. Kamlesh Jivanbhai Shah
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
(As per registry
dated 15-11-2011)
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Name |
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No. of shares |
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Kamlesh Jivanbhai SHAH |
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20,000,000 ======== |
(As per registry dated
15-11-2011)
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Name (Nationality) |
Address |
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Kamlesh Jivanbhai SHAH |
Flat 901, 9/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hung Hom, Kowloon, Hong Kong. |
(As per registry
dated 15-11-2011)
|
Name |
Address |
Co.
No. |
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World Link Business Services Ltd. |
5/F., Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong. |
0746596 |
The subject was incorporated on 15th November, 2005 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.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 7. (Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong Kong, other Asian countries, North America, Western Europe, etc.
Annual Turnover: HK$45~50 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Business is active.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Bank of India, Hong Kong Branch.
Standing: Normal.
Having issued 20 million ordinary shares of HK$1.00 each, In Collection Ltd. is wholly owned by Mr. Kamlesh Jivanbhai Shah who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.
The subject increased its issued share capital from HK$7 million to HK$20 million in September 2011.
The subject has had an associated company In Collection located at its operating address. Business commenced in June 2001, In Collection is a sole proprietorship, and is also operated and owned by Shah.
The subject’s main associate in India is Nine Diam which is a diamond manufacturer and trader.
The subject is a jewellery and diamond trader. It is engaged in manufacturing, importing and exporting all kinds of diamonds. The subject supplies customers with loose diamonds in different carats and cuts, in fancy colour and in white colour. It has established good relationship with major retailers of the world. Cut and polished diamonds are imported from India, Belgium and other European countries. Products are marketed in Hong Kong, exported to Japan, the United States, China, Singapore, Malaysia, the Philippines, Indonesia, the United Arab Emirates, etc.
In order to penetrate the international market further, In Collection has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, In Collection usually takes part in Hong Kong International Jewellery Show [HKIJS] and Hong Kong Jewellery & Gem Fair. The former is usually held in March while the latter, in September. HKIJS is organized by Hong Kong Trade Development Council in Hong Kong every year.
On the other hand, the subject 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.
In Collection is a member of The Indian Chamber of Commerce Hong Kong and Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
The subject had got an affiliated factory in Foshan City, Guangdong Province, China known employing about 250 persons. Business is rather active.
Associated offices have been set up in Thailand, Malaysia and the United States. Its main associated company in Dubai, the United Arab Emirates is known as Dimano Stone LLC.
The annual sales turnover of the subject and In Collection ranges from HK$45 to 50 million. Making a small profit every year.
The subject’s business is chiefly handled by Shah himself.
As the history of the subject in Hong Kong is over six years and five months, on the whole, consider it good for normal business engagements.
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Date |
Particulars |
Amount |
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05-01-2011 |
Instrument: Letter of Lien Property: Date
of Deposit: 10.01.2011 Mortgagee: Bank of India, Hong Kong Branch. |
HK$10,000,000 |
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05-01-2011 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents representing or relating to goods. The company agree that the same and all goods thereby represented or to which the document relate shall be hypothecated by way of first charge as a continuing security for all sums in which the company from time to time be actually or contingently indebted or liable to bank on any account. Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank and the Company |
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23-12-2011 |
Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch. |
HK$45,000,000.00 |
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23-12-2011 |
Instrument: Hypothecation of Tangible Moveable Property Property: All tangible moveable assets of borrower including in particular stocks of all goods of Diamonds, gem, precious stones, jewellery, gold, furniture and fixtures and plant & machinery, etc. Mortgagee: Bank of India, Hong Kong Branch. |
HK$45,000,000.00 |
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23-12-2011 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents representing or relating to goods Mortgagee: Bank of India, Hong Kong Branch. |
All the Money |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.64 |
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UK Pound |
1 |
Rs.86.42 |
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Euro |
1 |
Rs.69.29 |
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.