MIRA INFORM REPORT

 

 

Report Date :

05.09.2012

 

IDENTIFICATION DETAILS

 

Name :

AMOLI  ENTERPRISES  LTD.

 

 

 

 

Registered Office :

Room 1101, 11/F., Paramount Building, 12 Ka Yip Street, Chai Wan

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.11.1988

 

 

Com. Reg. No.:

12296918-000-11

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter, Distributor and Agent of IT Products, Customer Electronics, Consumable items, Pharmaceuticals Products, Chemicals, Textiles, Jewellery and Matchmaking Tools, Machinery and Machine Tools, etc.

 

 

No. of Employees :

25

 

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 :

No Complaints

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

 

 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA


Company name and address

 

AMOLI  ENTERPRISES  LTD.

(Trading as CHEMPHAR and TONER DISTRIBUTION)

 

 

ADDRESS:       Room 1101, 11/F., Paramount Building, 12 Ka Yip Street, Chai Wan, Hong Kong.

 

PHONE:            2557 1909

 

FAX:                 2896 3421

 

E-MAIL:            amoli@amoli.com

mail@amoli.com

sales@amoli.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Vikash Chandrakant Shah

 

 

SUMMARY

 

Incorporated on:            11th November, 1988.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$3,000,000.00

Issued:             HK$3,000,000.00

 

Business Category:       Importer, Exporter, Distributor and Agent.

 

Group Turnover:            US$550~600 million.

 

Group Employees:        25.  (Hong Kong)

 

Main Dealing Bankers:   Indian Overseas Bank, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

 

Banking Relation:          Satisfactory.


ADDRESS

 

Registered Head Office:-

Room 1101, 11/F., Paramount Building, 12 Ka Yip Street, Chai Wan, Hong Kong.

 

Overseas Offices:-

UAE (Jebel Ali), Vietnam (Honoi and Ho Chi Minh City), India (Mumbai) and Russia (Moscow).

 

Overseas Warehouses:-

Australia (Sydney), Germany (Hamburg), UK, Finland (Heslinki), Netherlands (Amsterdam), Ukraine (Kiev), Chile and USA (Miami of Florida).

 

Trading as:-

Chemphar, Hong Kong. [BR No. 12296918-001-11]

Toner Distribution, Hong Kong.  [BR No. 12296918-002-11]

 

Associated Companies:-

Amoli Middle East FZE, UAE.

Amoli Organics Ltd., India.

Indotech Ltd., Hong Kong.

KMI Business Technologies Pvt. Ltd., India.

Umedica Laboratories Ltd., India.

 

 

BUSINESS REGISTRATION NUMBER

 

12296918-000-11

 

 

COMPANY FILE NUMBER 

 

0232884

 

 

MANAGEMENT

 

Managing Director:  Mr. Vikash Chandrakant Shah

Director & Contact Person:  Ms. Sweta Vikash Shah

Accountant:  Mr. Ravi Chandra

 

 

CAPITAL

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 30,000 shares of HK$100.00 each)

Issued Share Capital: HK$3,000,000.00

SHAREHOLDERS

(As per registry dated 11-11-2011)

 

Name

 

No. of shares

Sweta Vikas SHAH

 

15,000

Vikash Chandrakant SHAH

 

15,000

 

 

––––––

 

Total:

30,000

=====

 

 

DIRECTORS

(As per registry dated 11-11-2011)

 

Name

(Nationality)

 

Address

Vikash Chandrakant SHAH

Flat 1, 5/F., Block E, Villa Monte Rosa, 41A Stubbs Road, Hong Kong.

 

Sweta Vikasha SHAH

Flat 1, 5/F., Block E, Villa Monte Rosa, 41A Stubbs Road, Hong Kong.

 

 

SECRETARY

(As per registry dated 11-11-2011)

 

Name

Address

Co. No.

Lodestar Secretaries Ltd.

13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong.

0113023

 

 

HISTORY

 

The subject was incorporated on 11th November, 1988 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, Distributor and Agent.

 

Lines:-

IT Products — Computers, laptops, desktops, notebooks, palmtops, peripherals, add-on cards, floppy diskettes, floppy disk drivers, hard‑disk drivers, , monitors, scanners, motherboards, keyboards, mice, modems, laser printers, pin-printers, multimedia and networking products, software, peripherals, cables/cords, etc.

Customer Electronics — Copiers, fax machines, electronic scales, colour televisions, office automation equipment and accessories, etc.

Consumables — Printer cartridges and toners and lots of varieties of consumable items.

Pharmaceuticals — Pharmaceutical raw materials, pharmaceutical intermediates and veterinary raw materials.

Chemicals — Chemicals and food additives.

Textiles — Blended yarn, cotton yarn, raw cotton, raw silk, silk yarn, fabrics and garments, etc.

Jewellery and Matchmaking Tools.

Machinery and Machine Tools.

 

Office Floor Space:  826 sq.m.

 

Agents for:-

Brand

Product

Country of Origin

CANON

Copiers, fax machine, printers, cameras

Japan

EPSON

Printers

Japan

FUJITSU

Printers, hard disc drives

Japan

GOLDSTAR

TV, VCR, monitor

South Korea

HP, “Hewlett Packard”

Laser printers, plotters, scanners

USA

HYUNDAI

Printers, monitors

South Korea

NEC

Monitors

Japan

OKI

Printers

Japan

RICOH

Copiers, fax machine

Japan

SAMSUNG

TV, VCR, monitor

South Korea

SEAGATE

Hard disc drives

Thailand

SHARP

Office automation products

Japan

STAR

Printers

Japan

TEAC

Floppy disk drives, streamer tape drives

Japan

and other brand names:  COMPAQ, IBM, LG, CREATIVE, TOSHIBA, AMOLI, ALPS, MINISCRIBE, QUANTUM, CONNER, EIZO, INTEL, SONY, PANASONIC, GRAPHTEC, ROLAND’s computer and related products.

 

Group Employees:             25.  (Hong Kong)

1,200.  (Worldwide)

 

Commodities Imported: Imported from India, Japan, South Korea, Thailand, US, Europe, etc.

 

Markets:                        Hong Kong, China, Singapore, India, Germany, Sweden, Europe, US, Middle East, East Europe, etc.

 

Group Turnover:            US$550~600 million.

 

Terms/Sales:                  L/C or as per contracted.

 

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

 

 


MEMBERSHIP

 

The Indian Chamber of Commerce, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$3,000,000.00 (Divided into 30,000 shares of HK$100.00 each)

 

Issued Share Capital:     HK$3,000,000.00

 

Mortgage or Charge:     (See attachment)

 

Profit & Loss:               Operation is profitable.

 

Condition:                     Business is active and satisfactory.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Good.

 

Bankers:-

Indian Overseas Bank, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Calyon, Hong Kong Branch.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Industrial And Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Standing:                      Good.

 

 

GENERAL

 

Amoli Enterprises Ltd. [Amoli] is an Indian firm incorporated in Hong Kong in November 1988.  Having issued 30,000 ordinary shares of HK$100.00 each, Amoli was 50%-owned by Mr. Umed Bachubhai Doshi, an Indian who has been in Hong Kong for a very long time.  The other 50% was equally owned by Ms. Sweta Vikash Shah and Mr. Vikash Chandrakant Shah.  Later the shareholders have been reshuffled and Umed Bachubhai Doshi retired.  He has transferred all his shares equally to the two Shahs.  Now, the subject is equally owned by Sweta Vikash Shah and Vikash Chandrakant Shah.

Amoli is a leading Indian firm in Asia trading in IT products, computer peripherals, office automation equipment and office consumables.  It is part of the “Amoli Group” which has had diversified business interests.

Amoli has its interests in areas like pharmaceutical manufacturing and trading, cotton yarn trading, real estate, venture capital funding, manufacturing of TV sets in a joint venture with LG-Korea in Russia and copiers with Minolta-Japan in India, and IT consulting.  The Group employs over 1,200 people in 7 countries.

At present, Amoli is engaged in the following business scope:-

  • Distribution of IT Products like Printers, Scanners, Monitors, Copiers, Computer Systems, Notebooks, Add-on Cards, Mice, Motherboards, Multimedia and Networking Products and Peripherals;
  • Distribution of Customer Electronics;
  • Trading in Textiles and cotton yarns;
  • Manufacturing & Distribution of Pharmaceutical products;
  • Distribution of Pharmaceuticals;
  • Software and E-commerce;
  • Jewellery and Matchmaking Tools;
  • Machinery and Machine Tools;
  • Investment & Development of Real estate;
  • Global investment and Venture capital funding;
  • Manufacturing & Distribution of TV sets in a joint venture with LG - Korea in Russia; &
  • Manufacturing & Distribution of copiers with Minolta - Japan in India.

Amoli also manufactures monitors (CRT and LCD), computer casings, keyboards, mice, speakers, UPS, notebook computers, etc.  Products can be manufactured in OEM and ODM terms.

Amoli, headquartered in Hong Kong, is the IT arm within the Group.  It started and continues to be one of the leading independent distributors of Computer products.  Amoli monitors the global market, for “in-demand” computer products and quickly and efficiently sources these products to its customer base.  Its customer base exceeds more than 6,000 spanning from government, corporate, value added resellers and distributors worldwide.  It has got direct relationship with fortune 500 companies such as Canon, Alps, Conner, Fujitsu, OKI, Panasonic, Seagate, Star, Ricoh, Minolta, IBM, Compaq, Hewlett-Packard, Epson, 3 Com, Adaptec, AMD, ATi, Creative Labs, CTX, Fuji Film, Genius, Initel, Iomega, Logitech, Maxell, Quantum, Sony, Teac, Toshiba, TrippLite, Samsung and many more.

Amoli has had warehouses in the United Arab Emirates, Helsinki, Hong Kong, the Netherlands, Singapore, Vietnam and Tanzania from where it can service most of its customers.

Amoli has two divisions, namely, “Chemphar” and “Toner Distribution”.  Amoli and its divisions are registered under the same Business Registration Number 12296918 in Hong Kong.

Chemphar is trading in pharmaceutical and veterinary raw materials, intermediates, chemicals and food additives.

The Amoli Group has manufacturing plants in India under the name of Amoli Organics Ltd. and Umedica Laboratories Ltd. engaged in manufacturing high‑tech pharmaceuticals and intermediates (formulations and medicines) as per WHO/GMP standards.  Chemphar is distributing the products of this firm.

Toner Distribution deals in consumables like printer cartridges and toners and lots of varieties of consumable items bearing brand names such as “Canon”, “Epson”, “HP”, “Minolta”, “Toshiba”, etc.

Indotech Ltd., a textile product arm of the Group started in 1992, is dealing in high grade 100% cotton yarns, fabrics, garments and garment accessories.

In recent years, the annual sales turnover of the Group has been ranged from US$550 to 600 million.  Making a profit every year.

The history of Amoli in Hong Kong is over 23 years.

On the whole, in view of Amoli’s background and lines of business, consider it good for normal business engagements.

 

 

REMARKS

 

            Property information of the company:-

1.         Property Location:         Unit 1 & 15 on 11/F., Paramount Building, 12 Ka Yip Street, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  18-05-1991

Purchased Price:  HK$2,315,700

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

28-11-1996

-

Indian Overseas Bank, Hong Kong Branch.

Mortgage to secure general banking facilities

 

2.         Property Location:         Unit 2 on 11/F., Paramount Building, 12 Ka Yip Street, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  29-10-1993

Purchased Price:  HK$3,562,600

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

29-10-1993

-

Indian Overseas Bank, Hong Kong Branch.

Legal charge to secure general banking facilities

 

3.         Property Location:         Unit 8 on 11/F., Paramount Building, 12 Ka Yip Street, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

28-07-1997

-

Banque Nationale de Paris, Hong Kong Branch.  [Now known as BNP Paribas]

Mortgage to secure general banking facilities

 

4.         Property Location:         Car Parking Space No. 21 on 1/F., Paramount Building,
12 Ka Yip Street, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

28-06-2001

-

Indian Overseas Bank, Hong Kong Branch.

Collateral mortgage to secure general banking facilities

 

5.         Property Location:         Unit G n 27/F. of Block 1, New Jade Gardens, 233 Chai Wan Road, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

04-12-2008

-

BNP Paribas, Hong Kong Branch.

Mortgage to secure general banking facilities

 


6.         Property Location:         Unit 1 on 12/F. of Block 8, Heng Fa Chuen, 100 Shing Tai Road, Hong Kong.

Owner:  Amoli Enterprises Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

04-12-2008

-

BNP Paribas, Hong Kong Branch.

Mortgage to secure general banking facilities

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

29-10-1993

Instrument:        Legal Charge

Property:

29/5,625th parts or shares of and in Chai Wan Inland Lot No. 134 (Unit 2 on 11/F. of Paramount Building, 12 Ka Yip Street, Hong Kong.)

Mortgagee:        Indian Overseas Bank, Hong Kong Branch.

To secure credit facilities

28-11-1996

Instrument:        Mortgage

Property:

30/5,625th parts or shares of and in Chai Wan Inland Lot No. 134 (Unit 1 & 15 on 11/F. of Paramount Building, 12 Ka Yip Street, Hong Kong.)

Mortgagee:        Indian Overseas Bank, Hong Kong Branch.

To secure general banking facilities

19-12-1996

Instrument:        Deed of Charge on Deposit

Property:

The Charged Moneys as defined in the Deed of Charge on Deposit No. 014-45697-10

Mortgagee:        Banque Nationale de Paris, Hong Kong Branch.  [Now known as BNP Paribas]

The Liabilities as defined in the Deed of Charge on Deposit

28-07-1997

Instrument:        Mortgage

Property:

22/5,625th parts or shares of and in Chai Wan Inland Lot No. 134 (Unit 8 on 11/F. of Paramount Building, 12 Ka Yip Street, Hong Kong.)

Mortgagee:        Banque Nationale de Paris, Hong Kong Branch.  [Now known as BNP Paribas]

General banking facilities

28-06-2001

Instrument:        Collateral Mortgage

Property:

3/5,625th parts or shares of and in Chai Wan Inland Lot No. 134 (Car Parking Space No. 21 on 1/F. of Paramount Building, 12 Ka Yip Street, Hong Kong.)

Mortgagee:        Indian Overseas Bank, Hong Kong Branch.

To secure all moneys in respect of general banking facilities and interest thereon

22-09-2003

Instrument:        Assignment of DC Proceeds re export bills restricted to other banks for negotiation/payment

Property:

By way of assignment or agreement to assign in each case as beneficial owner.  All monies in any currency representing proceeds payable or to be paid to the company under the Documentary Credit (means each documentary credit issued in favour of the company as beneficiary (a) which is advised by, and the negotiation of which is restricted to any banker or person other than the bank and (b) in relation to which the company has requested and been granted a loan by the Bank and includes any bill of exchange or other negotiable document issued under any documentary credit drawn by or payable to the company), all the company’s right, title and interest in the said Documentary Credit and the benefit of all powers and remedies for enforcing the Documentary Credits

Mortgagee:        The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

All loans or other advances made or to be made by the Bank to the Customer against documents submitted under a Documentary Credit, all monies and liabilities in any currency owing by the Customer to the Bank at any time, whether separately or jointly, actually or contingently, present or future, interest on all loans and advances and such monies and all expenses of the Bank in perfecting or enforcing the Assignment

04-12-2008

Instrument:        Mortgage

Property:

10/18,000th parts or shares of and in Chai Wan Inland Lot No. 120 (Unit G on 27/F. of Block 1 of New Jade Gardens, 233 Chai Wan Road, Hong Kong.)

Mortgagee:        BNP Paribas, Hong Kong Branch.

As security for the Secured Indebtedness and the due fulfilment by the Borrower of the agreements covenants and conditions contained in the Deed

04-12-2008

Instrument:        Mortgage

Property:

516/4,685,000th parts or shares of and in The Remaining Portion of Chai Wan Inland Lot No. 121 (Unit 1 on 12/F. of Block 8 of Heng Fa Chuen, 100 Shing Tai Road, Hong Kong.)

Mortgagee:        BNP Paribas, Hong Kong Branch.

As security for the Secured Indebtedness and the due fulfilment by the Borrower of the agreements covenants and conditions contained in the Deed

09-06-2012

Instrument:        Mortgage

Property:

All those 26 equal undivided 5,625 parts or shares of and in CHAI WAN INLAND LOT No. 134 and of and in the building erected thereon now known as “PARAMOUNT BUILDING” together with the sole and exclusive right and privilege to hold use occupy and enjoy ALL Those Units No. 10, 11 and 12 on the 11/F., of the Building

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Repayment of all principal, interest and other amounts frim time to time owing by the company

09-07-2012

Instrument:        Mortgage

Property:

All Those 8 equal undivided 5,625 parts or shares of and in CHAI WAN INLAND LOT No. 134 and of and in the building erected thereon now known as “PARAMOUNT BUILDING” together with the sole and exclusive right and privilege to hold use occupy and enjoy ALL THAT No. 13 on the 11/F., of the Building

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Repayment of all principal, interest and other amounts form time to time owing by the company

20-07-2012

Instrument:        Mortgage

Property:

All Those 4 equal undivided 3,015 parts or shares of and in ALL THAT piece or parcel of ground registered in the Land Registry as CHAI WAN INLAND LOT No. 80 and of and in the messuages erections and buildings thereon now known as “GOLD MINE BUILDING” together with the sole and exclusive right and privilege to hold use occupy and enjoy ALL THAT UNIT being Flat No. 4 on the 14/F., of Block A of the Building

Mortgagee:        Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Rapayment of all principal, interest and other amounts from time to time owing by the company


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.55.54

UK Pound

1

Rs.88.23

Euro

1

Rs.70.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.