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Report Date : |
27.11.2012 |
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 products |
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No. of Employees : |
06 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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Source : CIA |
SIMPLEX DIAM LTD.
Room 1401, 14/F., Nine Queen’s Road Central,
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.
Cream Jewelry,
India.
Ima Gem
Jewels, India.
Best Long
Diamonds DMCC, UAE.
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 02-05-2012)
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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 02-05-2012)
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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 02-05-2012)
|
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: Met trade obligations as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Good.
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. 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.
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.
The subject’s associated company Golawala Diamond is an India-based firm. This company has a manufacturing unit in Mumbai, India. Around 150 workers deal with the carat and stones. Mr. Yogesh Mehta supervises the 7 millions per month manufacturing process. Partner Mr. Rohan Shah handles the daily operations in Mumbai, India. Golawala Diamond is the main supplier of the subject.
Carlos Yeung is also the Vice Chairman of MSY Holdings Corporation [MSY] which is a 100% owned by the Yeung family. The Chairwoman of MSY Mariquita Salimbangon Yeung is the wife of Carlos Yeung. MSY is a real estate developer. The Yeungs had accumulated quite a substantial amount of land in Cebu, the Philippines.
The subject’s business is chiefly handled by Carlos Yeung.
As the history of the subject is over ten years 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.55.69 |
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UK Pound |
1 |
Rs.89.20 |
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Euro |
1 |
Rs.72.10 |
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.