MIRA INFORM REPORT
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Report Date : |
21.05.2012 |
IDENTIFICATION DETAILS
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Name : |
SIMPLEX
DIAM LTD. |
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Registered Office : |
Room 1401, 14/F., Nine Queen’s Road Central |
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Country : |
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Date of Incorporation : |
02.05.2002 |
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Com. Reg. No.: |
32610085 |
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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 product |
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No. of Employees
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6 Persons |
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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
SIMPLEX DIAM LTD.
Room 1401, 14/F., Nine Queen’s Road Central, Hong Kong.
PHONE: 2522 6131
FAX: 2845 3470
E-MAIL: fairway@simplexdiam.net
President: Mr. Yeung Kwok Hing, Carlos
Incorporated on: 2nd May, 2002.
Organization: Private Limited Company.
Capital: Nominal: HK$23,400,000.00
Issued: HK$23,400,000.00
Business Category: Diamond Trader.
Employees: 6.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1401, 14/F., Nine Queen’s Road Central, Hong Kong.
Associated Companies:-
· Fairway Diamond Co. Ltd., Hong Kong. (Same address)
·
Golawala Diamonds, India.
·
Simplex Diam (Israel) Ltd.,
Israel.
· Simplex Diam NV, Belgium.
·
Vaishali Diamond Corporation, USA.
Affiliated Company:-
·
MSY Holdings Corporation, Philippines.
32610085
0796009
President: Mr. Yeung Kwok Hing, Carlos
Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
(As per registry
dated 02-05-2011)
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Name |
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No.
of shares |
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Milan
Amratlal SHAH |
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9,945,000 |
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Treasure
World Investment Ltd., Hong Kong. |
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9,945,000 |
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Joystar International Investment Holdings
Ltd., Hong Kong. |
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3,510,000 |
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––––––––– |
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Total: |
23,400,000 ======== |
(As per registry
dated 02-05-2011)
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Name (Nationality) |
Address |
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YEUNG Kwok Hing,
Carlos |
Flat I, 12/F., Grenville House, 1 Magazine
Gap Road, Hong Kong. |
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Milan Amratlal
SHAH |
Flat B, 32/F., Block 5, Parc Palais, 18
Wylie Road, Homantin, Kowloon, Hong Kong. |
(As per registry
dated 02-05-2011)
|
Name |
Address |
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WONG
Suk Han |
Room 1401, 14/F., Nine Queen’s Road Central, Hong Kong. |
The
subject was incorporated on 2nd May, 2002 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.
Employees: 6.
Commodities Imported: India, Belgium, other Asian countries, etc.
Markets: Southeast Asia, Europe, US, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$23,400,000.00 (Divided into 23,400,000 shares of HK$1.00 each)
Issued Share Capital: HK$23,400,000.00
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having
issued 23.4 million ordinary shares of HK$1.00 each, Simplex Diam Ltd. is
jointly owned by Mr. Milan Amratial Shah, holding 42.5% interests; Treasure
World Investment Ltd. [TWI], also holding 42.5%; and Joystar International
Investment Holdings Ltd. [JIIH], 15.0%.
The first is an Indian. The
second and third firms are Hong Kong-registered firms and located at the
operating address of the subject.
Besides,
located at the same address, the subject has got an affiliated company Fairway
Diamond Co Ltd. [Fairway] which is also a Hong Kong-registered firm. Fairway is a member of Diamond Federation of
Hong Kong, China Ltd. which is a Hong Kong-based organization. Fairway and the subject are engaged in the
same lines of business. Both firms are
diamond traders.
The
president of the subject and Fairway is Mr. Carlos Yeung Kwok Hing who is a
Hong Kong merchant. It is likely that
TWI and JIIH are chiefly owned by Carlos Yeung.
The
subject is specialised in accurately regulated assortments of stars and melees,
baguettes marquise pears, exceptional diamonds from pointers to large
carat-size, brilliant Russian-cut rounds and a very broad selection of
GIA-certificated stones. Commodities are
imported from India, Belgium and other European countries. Prime markets are Hong Kong, Southeast Asia,
Europe and the United States. Business
is rather active.
The
subject has got a number of affiliated companies in Mumbai of India, Antwerp of
Belgium, Israel and New York of the United States.
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, in 2008, it took part in the
Las Vegas Show of the United States. It
also took part in Hong Kong Fairs in 2009, 2010 and 2011. It is going to take part in “HKTDC Hong Kong
International Jewellery Show 2012” which will be held in Wanchai, Hong Kong
during the period of 16th to 20th February, 2012.
According
to the subject, the management of the subject has been engaged in diamond
trading business for over forty years.
It is able to offer customers with all kinds of diamonds and jewellery
products at competitive prices.
Mr.
Carlos Yeung is holding a certain position in a firm known as MSY Holdings
Corporation which is a 100% Filipino family owned business. This firm is a real estate developer.
The
subject’s business is chiefly handled by Carlos Yeung.
As
the history of the subject is over nine years and six months in Hong Kong, on
the whole, consider it good for normal business engagements.
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.54.87 |
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UK Pound |
1 |
Rs.86.46 |
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Euro |
1 |
Rs.69.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.