MIRA INFORM REPORT
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Report Date : |
26.11.2012 |
IDENTIFICATION DETAILS
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Name : |
VARNIRAJ
EXPORTS LTD. |
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Registered Office : |
Room 305, Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.05.2007 |
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Com. Reg. No.: |
37966566 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Supplier, Importer and Exporter of all kinds of diamonds and jewellery products |
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No. of Employees
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2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 |
VARNIRAJ EXPORTS
LTD.
Room 305, Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2866 6627
FAX: 2723 2290
E-MAIL: info@viraniexports.com
Managing Director: Mr. Mukundkumar Ranchhodbhai Virani
Incorporated on: 17th May, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$1,600,000.00
Issued: HK$1,600,000.00
Business Category: Diamond Trader.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 305, Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated Company:-
Virani Exports Ltd., India.
37966566
1133613
Managing Director: Mr. Mukundkumar Ranchhodbhai Virani
Nominal Share Capital: HK$1,600,000.00 (Divided into 1,600,000shares of HK$1.00 each)
Issued Share Capital: HK$1,600,000.00
(As per registry
dated 17-05-2011)
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Name |
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No. of shares |
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Mukundkumar Ranchhodbhai VIRANI |
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1,600,000 ======= |
(As per registry
dated 17-05-2011)
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Name (Nationality) |
Address |
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Mukundkumar Ranchhodbhai VIRANI |
65/66, Gopinath Society 2, Kantareshwar Mandir, Katargam, Surat-395004, India. |
(As per registry
dated 17-05-2011)
|
Name |
Address |
Co.
No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
The subject was incorporated on 17th May, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
Initially the subject’s registered office was located at Unit A, 8/F., Kam Chung Commercial Building, 19-21 Hennessy Road, Wanchai, Hong Kong where is the operating office of CBS Pacific Ltd., moved to Room 602, 6/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong with effect from 22nd December, 2009, and further moved to the present address in October 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Supplier, Importer and Exporter.
Lines: All kinds of diamonds and jewellery products.
Employees: 2.
Commodities Imported: India, Europe, other Asian countries, etc.
Markets: Hong Kong, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$1,600,000.00 (Divided into 1,600,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,600,000.00
Profit & Loss: Made a very small profit in 2010.
Condition: Business is normal.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Varniraj Exports Ltd. was incorporated on 17th May, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
The subject has issued 1.6 million ordinary shares of HK$1.00 each which are wholly owned by Mr. Mukundkumar Ranchhodbhai Virani who is an Indian.
Formerly the subject had just issued 100,000 ordinary shares of HK$1.00 each which were wholly-owned by Mr. Parshottambhai Naranbhai Virani who is an Indian.
Parshottambhai Naranbhai Virani has transferred his shares to Mukundkumar Ranchhodbhai Virani and the subject has increased its ordinary shares to the present number. The former was also the only director of the subject.
On 27th April, 2010, Mukundkumar Ranchhodbhai Virani was appointed the new director of the subject to replace Parshottambhai Naranbhai Virani.
The subject is a diamond trader. Owned by the Virani family, the subject has got an associated firm Virani Exports Ltd. [Virani] which is a diamond manufacturer in Surat, India. Virani is supplying its worldwide customers with polished diamonds under the name of the subject.
Virani has been exporting a wide range of exquisite diamonds since 1971. It is engaged in manufacture diamonds like Round, Princess, Marquise, Pear, Heart, Emerald, Cushion and Fancy shapes in all Sizes and Colours. It is pioneers in Colour D to K Diamonds and Quality pk to vvs Diamonds. Its manufacturing unit is based out of Surat, India which is the Diamond Hub of India as well as the world. It has set up its offices in Mumbai and Delhi of India.
The subject is the supplier, importer and exporter of versatile range of diamonds in a wide variety like rose cut diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose cut marquise, fancy cut and fancy colour diamonds, etc. Commodities are chiefly supplied by Virani in India. Prime markets are Hong Kong and the other Asian countries. Business is improving.
The history of the subject in Hong Kong is just over four years and seven months. On the whole, consider it good for business engagements in small credit amounts.
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 |
|
US Dollar |
1 |
Rs.55.34 |
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UK Pound |
1 |
Rs.88.30 |
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Euro |
1 |
Rs.71.37 |
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.