MIRA INFORM REPORT
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Report Date : |
23.05.2012 |
IDENTIFICATION DETAILS
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Name : |
KWALITY
DIAMONDS (HK) |
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Registered Office : |
Room 1306, 13/F., |
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Country : |
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Date of Incorporation : |
22.03.1991 |
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Com. Reg. No.: |
14319429-000-03 |
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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
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03 |
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 |
KWALITY DIAMONDS (HK)
Room 1306, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2314 7822, 2314 8025
FAX: 2314 7839
E-MAIL: kwalitydiamonds@hotmail.com
Manager: Mr. Jayesh Pravinchandra Kanakia
Establishment: 22nd March, 1991.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 3.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 1306, 13/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.
Associated
Company:-
Kwality Diamonds (HK) Ltd., Hong Kong. [Dissolved]
14319429-000-03
Manager: Mr. Jayesh Pravinchandra Kanakia
Name: Mr. Jayesh Pravinchandra KANAKIA
Residential Address: Flat
G, 11/F., Imperial Building, 58 Canton Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 22nd March, 1991 as a sole proprietorship concern owned by Mr. Jayesh Pravinchandra Kanakia under the Hong Kong Business Registration Regulations.
Initially the subject was located at Flat G, 11/F., Imperial Building, 58 Canton Road, Tsimshatsui, Kowloon, Hong Kong, moved to Block C, 8/F., Golden Mansion, 83-85 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in November 1992; to Room 1509, 15/F., Beverley Commercial Building, 87‑105 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in June 1994; to Room 1405, 14/F., Fung Lee Commercial Building, 6-8 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in April 1998; to Room 1506, 15/F., Peninsula Square, 18 Sung On Street, Hunghom, Kowloon, Hong Kong in June 2004; and further moved to Room 1306, 13/F. of the same building in March 2010.
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: Japan, Taiwan, Southeast Asia, Europe, USA, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit in the past years.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Kwality Diamonds (HK) is a sole proprietorship set up and owned by Mr. Jayesh Pravinchandra Kanakia 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 is a diamond importer, exporter and wholesaler. Commodities such as loose diamonds are chiefly imported from India and Israel. Its main commodities are loose full-cut diamonds. Some of the rough diamonds are polished or processed in Hong Kong or China. Finished products and polished diamonds are exported or re-exported to Japan, Taiwan, Southeast Asia, Europe, the USA, etc.
The subject is famous for polished white diamonds with a variety range of cuts and sizes. It is able to provide customers with consistent supply of diamonds with timely delivery.
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 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 business of the subject is rather steady as regular suppliers and clients have been maintained.
The history of the subject in Hong Kong is about twenty-one years.
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.54.88 |
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UK Pound |
1 |
Rs.86.84 |
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Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
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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.