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Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SUN DIAM |
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Registered Office : |
Flat 2, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.09.2003 |
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Com. Reg. No.: |
33874317-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, exporter and wholesaler of all kinds of diamonds and
jewellery products, gems, etc. |
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
SUN DIAM
Flat 2, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367 0499
FAX: 2367 1499
Manager: Mr. Mahendrakumar
Chhogalal Jain
Establishment: 1st
September, 2003.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat 2, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road,
Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Gem Trade, Hong Kong. (Same
owner)
33874317-000-09
Manager: Mr. Mahendrakumar
Chhogalal Jain
Name: Mr. Mahendrakumar Chhogalal
JAIN
Residential Address: Room 1701,
17/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
The
subject was established on 1st September, 2003 as a sole proprietorship concern
owned by Mr. Mahendrakumar Chhogalal Jain under the Hong Kong Business
Registration Regulations.
Initially
the subject was located at Room 1701, 17/F., Star Mansion, 3‑5 Minden
Row, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in November
2003.
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, gems, etc.
Employees: Nil.
Commodities Imported: India, Europe, Asian countries, etc.
Markets: Japan,
India, other Asian countries, 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 very small profit in the past years.
Condition: Business
is normal.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as condition.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Sun Diam is a sole
proprietorship set up and owned by Mr. Mahendrakumar Chhogalal Jain who is an
Indian. He is an India passport holder
and does not have the right to reside in Hong Kong permanently.
The subject’s registered address
is located at Flat 2, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road,
Tsimshatsui, Kowloon, Hong Kong. This
office is not in a commercial building but a residential building. It is likely that Jain has moved to this new
address but does not make any amendments on the subject’s registration
materials. It seems that the subject’s
operating address is also Jain’s new residential address. The residential building is not trespassed by
outsiders. The subject has no employees
in Hong Kong.
The subject is a diamond
and precious stone importer, exporter and wholesaler. It is also a commission agent. The subject is trading in fine coloured
diamonds and rare gem stones. Products
include fancy coloured diamonds, unusual rose cut and briolette cut
diamonds. Rough, polished and cut
diamonds are chiefly imported from India, Europe and other Asian
countries. Gem stones and diamonds are
processed, polished and cut in Hong Kong or China. Finished products are marketed in Hong Kong,
exported to India, Japan, other Asian countries, Europe, etc.
The subject carries the
following gemstones:-
Ruby (from Burma and
Thailand)
Sapphire (from Sri Lanka)
Emeralds (from Zambia)
Fancy Sapphire (from Burma)
The subject also trades in
the following semi-precious stones: aquamarine, pink amethyst, rubylite, green
amethyst, blue topaz, lemon topaz, citrine, smokey topaz, kunzite, peridot,
morganite, pink tourmalines, amethyst, pink topaz, garnet, rose quartz, etc.
Business handled by Jain
himself, the subject is just a one-man company.
Keeping a balance account or making a very small profit in most of the
past years.
The subject has got an
associated company Gem Trade located at Flat G, 9/F. of the same building. Gem Trade is also a sole proprietorship owned
and operated by Jain. Also established
on 1st September, 2003, Gem Trade is also trading in diamonds and gem stones.
The subject’s history in
Hong Kong is about eight years. Regular
suppliers and customers have been maintained.
On the whole, since the
registered office of the subject is in a residential building, consider it good
for normal business engagements on secured basis or 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.