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Report Date : |
24.12.2014 |
IDENTIFICATION DETAILS
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Name : |
H.K. DIA TRADING |
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Registered Office : |
Room 1701, 17/F., |
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Country : |
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Date of Incorporation : |
10.02.2005 |
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Com. Reg. No.: |
35365778-000-02 |
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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, emerald, precious stones |
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No of Employees : |
2 |
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 – September 30, 2014
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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 |
H.K. DIA
TRADING
ADDRESS: Room 1701, 17/F.,
PHONE: Not available
FAX: Not available
Manager: Mr. Puran Singh Bajetha
Establishment: 10th February, 2005.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
and Gemstone Trader.
Employee: 2.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd.,
Banking Relation: Satisfactory.
Head Office:-
Room 1701, 17/F.,
35365778-000-02
Manager: Mr. Puran Singh Bajetha
Name: Mr. Puran Singh BAJETHA
Residential Address: Flat B,
3/F., Ma’s building,
The subject was established on 10th February, 2005 as a sole
proprietorship concern owned by Mr. Puran Singh Bajetha under the Hong Kong
Business Registration Regulations.
Initially the subject was located at Flat B, 3/F., Ma’s Building, 35-37
Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat G, 12/F., Luna
Court, 55 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong in July 2007, to Flat
B1, 15/F., Golden Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong in June 2010 and further to the present address in May 2013.
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, emerald, precious stones
Employee: 2.
Commodities Imported: India,
Belgium, other European countries, other Asian countries, etc.
Markets: Japan,
India, other Asian countries, Europe, US, 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 small profit in the past years.
Condition: Keeping in a normal
condition.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
H.K. Dia Trading is a sole proprietorship set up and owned by Mr. Puran
Singh Bajetha who is an Indian. He is a Hong
Kong ID Card holder and has got the right to reside in Hong Kong
permanently. He is also manager of the
subject.
Formerly the subject’s registered address and operating office was
located at a residential building which was not trespassed by outsiders. Now, it has moved to the present address
since May 2013.
The subject’s telephone number and fax number have not registered with
local telephone company nor listed on telephone directories.
The subject is a loose, cut and polished diamond and precious stone
importer, exporter and wholesaler. It is
also a commission agent. The subject is
the supplier, importer and exporter of diamonds in a wide variety like rose
cuts diamonds, rose cut heart, etc. It
also trades in emerald, ruby, sapphire, aqumarine, taurmaline amythist blue
topaz, and other coloured stones. Its
diamonds are imported from India, Belgium and other European countries,
etc. Finished products and polished diamonds
are marketed in Hong Kong or exported or re-exported to China, Japan, India,
other Asian countries, and the United States.
Business is normal.
The subject has had affiliated companies in Thailand, India and the
United States.
The business of the subject chiefly handled by Bajetha himself. It just made very small profits in the past
years. History in Hong Kong is over nine
years.
On the whole, consider the subject good for normal 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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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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.45 |
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|
1 |
Rs.98.88 |
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Euro |
1 |
Rs.77.62 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
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 |
-- |
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.