MIRA INFORM
REPORT
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Report Date : |
15.05.2012 |
IDENTIFICATION DETAILS
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Name : |
AJAY
DIAM LTD. |
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Registered Office : |
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
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Date of Incorporation : |
27.10.2004 |
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Com. Reg. No.: |
35031151 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter
of all kinds of diamonds and jewellery |
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No. of Employees
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08 |
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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Hong Kong |
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 |
AJAY DIAM LTD.
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2316 7655
FAX: 2316 7611
E-MAIL: sales@ajaydiamltd.com
Managing Director: Mr. Ajay Premchand Gandhi
Incorporated on: 27th October, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$10,000,000.00
Business Category: Diamond and Watch Trader.
Annual Turnover: HK$85~90 million.
Employees: 8.
Main Dealing Banker: UCO Bank, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1501-1502, 15/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Ajay Diam, Hong Kong. (Same address)
35031151
0930040
Managing Director: Mr. Ajay Premchand Gandhi
Contact Person: Mr. Lau Wa
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
(As per registry
dated 27-10-2011)
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Name |
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No. of shares |
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Ajay Premchand GANDHI |
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10,000,000 ======== |
(As per registry
dated 27-10-2011)
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Name (Nationality) |
Address |
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Ajay Premchand GANDHI |
11/F., Hang Shun Commercial Building, 12 Cameron Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 27-10-2011)
|
Name |
Address |
Co.
No. |
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SME Corporate Services Ltd. |
Room 305, 3/F., Carpo Commercial Building, 18-20 Lyndhurst Terrace, Central, Hong Kong. |
0952029 |
The subject was incorporated on 27th October, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat D & E, 8/F., Cameron Plaza, 23‑25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to 11/F., Hang Shun Commercial Building, 12 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in May 2006 and further moved to the present address with effect from 1st August, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery.
Trade Mark: SMEA.
Employees: 8.
Commodities Imported: India, Thailand, Israel, Belgium, etc.
Markets: Europe, US, South Korea, Japan, etc.
Annual Turnover: HK$85~90 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
·
Hong
Kong Watch Manufacturers Association Ltd., Hong Kong.
·
The
Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000,000.00
Alternation of
Capital:-
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Initially |
paid up |
HK$ 5,000,000.00 |
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28-03-2011 |
paid up |
HK$ 5,000,000.00 |
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–––––––––––––––– |
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Total: |
paid up |
HK$ 10,000,000.00 ============== |
Increase of
Nominal Capital:-
|
From |
HK$5,000,000.00 |
to |
HK$10,000,000.00 |
on |
28-03-2011 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
· UCO Bank, Hong Kong Branch.
· Indian Overseas Bank, Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 10 million ordinary shares of HK$1.00 each, Ajay Diam Ltd. is wholly owned by Mr. Ajay Premchand Gandhi who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject has got an affiliated company Ajay Diam located at its operating address. Ajay Diam was set up in 1993, it was reported. The subject and Ajay Diam are engaged in the same lines of business and under the same management.
The subject is marketing the following commodities:-
· Finished Jewellery
o Diamond Jewellery
§ White Diamond Jewellery
o Gold Jewellery
§ Fineness not Specified
o Silver Jewellery
§ Sterling 92.5%
o Platinum Jewellery
§ Fineness not Specified
· Materials
o Diamond
§ Polished White Diamond
o Polished Semi precious Gemstone
§ Others
The subject is specialized in diamonds and gold watches. Diamonds are imported from India, Thailand, Israel, Belgium, etc. Prime markets are Europe, the United States, South Korea, Japan, etc.
The subject’s significant products are the following items:-
· Ladies’ Jewellery Watch (including digital, analogue watch)
· Men’s Jewellery Watch
· Unisex Jewellery Watch
Most of its products bear the brand name “SMEA” and claimed to be elegant, luxury and sophisticated.
According to the subject, the subject’s jewellery watch features a Swiss mechanical movement for guaranteed precision. Besides, it has got a genuine leather strap and the case is made of 18K gold.
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. 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 annual sales turnover of the subject ranges from HK$85 to 90 million. Making a small profit every year. Business is chiefly handled by Mr. Lau Wa who is a Hongkongnese.
The subject has had an associated company Ajay Diam located at its operating address. The subject and Ajay Diam are engaged in the same lines of business. Also operated by Mr. Ajay Premchand Gandhi, Ajay Diam is a member of The Indian Chamber of Commerce Hong Kong, Hong Kong.
The history of the subject in Hong Kong is about seven years and six months.
On the whole, consider it good for normal business engagements.
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Date |
Particulars |
Amount |
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15-12-2008 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate
of Maturity Date 2008
FD 262 2 24-11-2008 AU$ 558,102.78 3.875% 24-12-2008 Mortgagee: Indian Overseas Bank, Hong Kong Branch. |
All and any liabilities |
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21-06-2010 |
Instrument: Undertaking Relating to Deposits Property: Distinctive Date of Amount Rate
of Maturity Date 2009
FD 244 2 10-03-2010 US$ 234,903.18 0.640% 10-09-2010 Mortgagee: Indian Overseas Bank, Hong Kong Branch. |
All and any liabilities |
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21-03-2011 |
Instrument: Security Over Deposits with the Bank (Limited Company – Under Seal) Property: Initially HK$5,000,000.00 or equivalent and all monies whether now or hereafter standing to the credit of the Company’s deposit with the Bank under deposit No. 636-595324-838 and whatever currency it may subsequently be denominated in, any renewal of such deposit and the interest thereon together with any further moneys in any deposit account with the Bank at any of its offices Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
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.