MIRA INFORM REPORT

 

 

Report Date :

16.05.2012

 

IDENTIFICATION DETAILS

 

Name :

NIRU  DIAMONDS  (H.K.)  LTD.

 

 

Registered Office :

Unit E & F, 16/F., 8 Hart Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

07.02.2001

 

 

Com. Reg. No.:

31651260

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of polished diamonds

 

 

No. of Employees :

10

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

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

                                                                                    

NIRU  DIAMONDS  (H.K.)  LTD.

 

 

Company ADDRESS

 

Unit E & F, 16/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:                  2368 2475,  2368 9937

 

FAX:                       2368 2459

 

E-MAIL:                  kalpesh@niru.co.il

 

 

MANAGEMENT

 

Managing Director:  Mr. Kalpesh Mahendra Shah  (Mobile: 9247 7916)

 

 

SUMMARY

 

Incorporated on:                         7th February, 2001.

 

Organization:                             Private Limited Company.

 

Capital: Nominal:                       HK$24,180,010.00

Issued:                                      HK$24,180,010.00

 

Business Category:                    Jewellery Trader.

 

Employees:                               10.

 

Main Dealing Banker:                 The Royal Bank of Scotland N.V., Hong Kong Branch.

 

Banking Relation:                       Satisfactory.


Company name

  

NIRU  DIAMONDS  (H.K.)  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

Unit E & F, 16/F., 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

New Century Marketing Ltd., Hong Kong.

 

Associated Companies:-

Niru Group of Companies

Niru (New York) Ltd., USA.

Niru Diamonds (M.E.) LLC, UAE.

Niru Diamonds Israel (1987) Ltd., Israel.

Niru Diamonds Ltd., Israel.

Niru Diamonds Ltd., Thailand.

Niru (Swiss) S.A., Switzerland.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

31651260

 

 

COMPANY FILE NUMBER

 

0746330

 

 

MANAGEMENT

 

Managing Director:  Mr. Kalpesh Mahendra Shah

 

 

CAPITAL

 

Nominal Share Capital: HK$24,180,010.00 (Divided into 2,418,001 shares of HK$10.00 each)

Issued Share Capital: HK$24,180,010.00

 

 

SHAREHOLDERS

 

(As per registry dated 07-02-2012)

 

Name

 

No. of shares

New Century Marketing Ltd., Hong Kong.

 

2,418,000

Kalpesh Mahendra SHAH

 

1

 

 

––––––––

 

Total:

2,418,001

=======

 

 

DIRECTORS

 

(As per registry dated 07-02-2012)

 

Name

(Nationality)

 

Address

Kalpesh Mahendra SHAH

Flat L, 4/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

 

Bhavini Kalpesh SHAH

Flat L, 4/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 07-02-2012)

 

Name

Address

Co. No.

Dhun’s Management Services Ltd.

7/F., Man On Commercial Building,
12-13 Jubilee Street, Central, Hong Kong.

0027006

 

 

HISTORY

 

The subject was incorporated on 7th February, 2001 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.

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of polished diamonds.

 

Employees:                   10.

 

Commodities Imported:   Israel, India, other Asian countries, etc.

 

Markets:                       Hong Kong, China, other Asian countries, Europe, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$24,180,010.00 (Divided into 2,418,001 shares of HK$10.00 each)

 

Issued Share Capital:     HK$24,180,010.00

 

Mortgage or Charge:-

Date of  Debenture:  23-09-2008

Amount:            General banking facilities

Property:           All the Company’s undertaking and property and assets whatsoever and wheresoever both present and future including all book and other debts revenues and claims

Mortgagee:        ABN AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.]

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Business is active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         The Royal Bank of Scotland N.V., Hong Kong Branch.

 

Standing:                      Normal.


GENERAL

 

Niru Diamonds (H.K.) Ltd. is a wholly owned subsidiary of New Century Marketing Ltd. which is a Hong Kong-based firm.

The subject in fact is a member of Niru Group of Companies [Niru] which were founded in 1979 in Israel.  The Israel firm is known as Niru Diamonds Israel (1978) Ltd. [Niru Israel].  Niru Israel is a global leader engaged in manufacturing and selling Baguette, Princess and Square Cut diamonds.

The subject is trading in polished diamonds which are manufactured by the Group.

Established in 1979 by Ranjeet Barmecha, Niru is a global leader in manufacturing and marketing long and square diamonds.  It also provides Swiss watch market with precision cutting and setting services.  The production facilities of Niru are in China, Sri Lanka and Israel.  The technologies of these factories came from Israel chiefly as well as from China.

The annual exports of Niru in polished diamonds amounted to US$110 to 111 million.  Business is good.  Niru now has set up associated companies in Switzerland, New York of the United States, Dubai of the United Arab Emirates, Bangkok of Thailand besides the subject and the one in Tel Aviv of Israel.

In Hong Kong, the subject re-exports the polished diamonds to Asian countries and Europe.  The subject’s business is chiefly handled by Mr. Kalpesh Mahendra Shah who is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

K. M Shah is also a minor shareholder of the subject.

As the history of the subject is over eleven years and two months in Hong Kong, 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.53.84

UK Pound

1

Rs.86.72

Euro

1

Rs.69.17

 

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.