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Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
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Name : |
DIVINE IMPEX |
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Registered Office : |
Flat 1206, 12/F., |
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Country : |
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Date of Incorporation : |
18.06.2008 |
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Com. Reg. No.: |
39439949-000-06 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Engaged in trading of single-cut diamond, fullcut loose diamond, carat
size diamonds & blue sapphire |
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No of Employees : |
05 (Including associates). |
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 Concern |
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Payment Behaviour : |
Slow but Correct |
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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 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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A1 |
A1 |
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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 |
DIVINE IMPEX
c/o Hesperus Jewellery Co. Ltd.
Unit 801, 8/F., Supreme House, 2A
PHONE: 852-2739 4685
FAX: 852-2367 9239
E-MAIL: hesperusjew@gmail.com
Manager: Mr. Chan Yuen Cheung
Establishment: 18th June, 2008.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 5. (Including associates).
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd.,
Banking Relation: Satisfactory.
Operating Address:
c/o Hesperus Jewellery Co. Ltd.
Unit 801, 8/F., Supreme House, 2A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Registered
Office:-
Flat 1206, 12/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Elegant Export, Hong Kong. (Same owner & same address)
Hesperus Jewellery Co. Ltd., Hong Kong. (Same address)
39439949-000-06
Manager: Mr. Chan Yuen Cheung
Name: CHAN Yuen Cheung
Residential Address: Flat
B, 9/F., Grand Excelsior, 83 Waterloo Road, Kowloon, Hong Kong.
The subject was established on 18th June, 2008 as a sole proprietorship concern owned by Mr. Ketan Kumar Doshi under the Hong Kong Business Registration Regulations. However, Mr. Piyushkumar Prakashkumar Shah joined in on 16th August, 2010 while Doshi retired on 15th September, 2010.
On 1st July, 2013, another new partner Mr. Chan Yuen Cheung joined in and since then, the subject had become a partnership. However, P. P. Shah retired on 30th June, 2014 and since then Chan has become the sole proprietor.
Initially the subject was located at Flat 7, 9/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 1, 11/F. of the same building in January 2009. In December 2012, the subject moved to Flat 6, 12/F. of the same building.
The subject’s operating office moved to the present address in 1st July, 2014.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds.
Employees: 5. (Including associates)
Commodities Imported: India, European countries, other Asian countries, etc.
Markets: Hong Kong, China, 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: Made a very small profit in 2012 & 2013.
Condition: Business keeps on improving.
Facilities: Make fairly active use of general banking facilities.
Payment: Slow but Correct
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Divine Impex is a sole proprietorship owned and operated by Mr. Chan Yuen Cheung who is a Hong Kong merchant. He is also manager of the subject. He took over the business of the subject formally on 1st July, 2014.
The subject’s registered address is located at Flat 1206, 12/F., Star Mansion, 3‑5 Minden Row, Tsimshatsui, Kowloon, Hong Kong. This office is not in a commercial building but in a residential building. This office is also the residence of Mr. Piyushkumar Prakashkumar Shah who was a partner of the subject. The residential building is not trespassed by outsiders.
The subject’s operating office has moved to Unit 801, 8/F., Supreme House, 2A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong. This is the operating address of Hesperus Jewellery Co. Ltd. [Hesperus] which is also operated by Chan Yuen Cheung. The subject moved to this formally on 1st July, 2014.
Hesperus was incorporated on 26th April, 1994 in Hong Kong. It is jointly owned by Mr. Chan Yuen Cheung, holding 99%, and his wife Ms. Chan Pui King, holding just 1%.
The subject and Hesperus are engaged in the same lines of business.
The subject is a diamond importer, exporter and wholesaler. It is trading in the following commodities: single-cut diamond, fullcut loose diamond, carat size diamonds & blue sapphire.
Most of the commodities are imported from India, other Asian countries, etc. Prime markets are Hong Kong, China and the other Asian countries. Business keeps on improving.
The subject’s business is chiefly handled by Chan himself. History in Hong Kong is over six years and five months.
The subject has had an associated concern Elegant Export which is also owned and operated by Chan. Elegant Export is also located at the same address.
On the whole, since the subject has been taken over by Mr. Chan Yuen Cheung recently, consider it good for normal business engagements in moderate 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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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 –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.88 |
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|
1 |
Rs.96.90 |
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Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.