MIRA INFORM REPORT

 

 

Report No. :

321391

Report Date :

12.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DIAMONDS ON FIRE INC.

 

 

Registered Office :

15 West 47th Street, Ste 810, New York, NY 10036

 

 

Country :

United States

 

 

Date of Incorporation :

16.12.2009

 

 

Legal Form :

Corporation – Profit

 

 

Line of Business :

Subject is in the business of sourcing premium and exclusive diamonds from leading diamond manufacturers in India.

 

 

No. of Employees :

3

           

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

United States

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

UNITED STATES - ECONOMIC OVERVIEW

 

The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. In 2014, however, US GDP ran second to China’s, when compared on a Purchasing Power Parity basis; the US lost the top spot, where it had stood for more than a century. In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology has been a driving factor in the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers, has put additional downward pressure on wages and upward pressure on the returns to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression.

 

 

Source : CIA

 

Company summary

 

Company name:            DIAMONDS ON FIRE INC.

 

Address:                       15 West 47th Street, Ste 810, New York, NY 10036 - USA

 

Telephone:                    +1 212-869-8676

 

Fax:                              +1 917-210-3210

 

Website:                       www.diamondsonfire.com

 

 

Corporate ID#:              3889532

 

State:                           New York State

 

 

Judicial form:                Corporation – Profit

 

Date incorporated:        12-16-2009

 

Stock:                           200 shares common

 

Value:                           No par value

 

 

Name of manager:         Manisha NAROLA

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Headquartered in New York, USA, the company was established in 2009 by Prakash NAROLA with the prime business of sourcing premium and exclusive diamonds from leading diamond manufacturers in India.

 

 

Office of the Foreign Assets Control (OFAC):

 

The company is not listed on the OFAC list.

The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

No name of foreign suppliers available.

 

 

EIN:                  -

 

Staff:    3

 

 

Operations & branches:

 

At the headquarters, we find a showroom and office.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

This is a NAROLA family owned and managed company.

 

 

Management:

 

Manisha NORALOA is the President, Director and CEO.

Prakash NAROLA is a Manager.

 

As far as we know, they are not involved in other local corporations.

 

 

Subsidiaries

And partnership:                        None

 

 

FINANCIALS

 

In United States, privately held corporations are not required to publish any financials.

 

On a direct call, a financial assistant controlled the present report.

 

Sales declared for year 2014 is in the range of USD 3,800,000=

 

The business is said to be profitable.

 

 

Banks:  Sovereign Bank

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary (UCC):  

 

 

1.

Debtor Names:

DIAMONDS ON FIRE INC.

15 WEST 47TH STREET SUITE 810, NEW YORK, NY 10036-3383, USA

Secured Party Names:

SOVEREIGN BANK, N.A.

450 PENN STREET, READING, PA 19602, USA

 

 

File no.

File Date

Lapse Date

Filing Type

201306255688876

06/25/2013

06/25/2018

Financing Statement

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               April 2015

High credit:                   USD 5,000

Now owing:                   0

Past due:                      0

Last purchase:              March 2015

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               April 2015

High credit:                   USD 8,000

Now owing:                   0

Past due:                      0

Last purchase:              March 2015

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               April 2015

High credit:                   USD 180

Now owing:                   0

Past due:                      0

Last purchase:              March 2015

Line of business:           Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

 

National Credit Bureaus gave a satisfying credit risk.

 

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

 

 

International credit history:

 

 

Payments of imports are currently made on terms.

 

 

Other comments:

 

 

The Company maintains a regular business.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is low.

 

 

Our opinion:

 

 

A business connection may be conducted.

 

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.

-            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 –

 

-            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.

 

-            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

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.98.47

Euro

1

Rs.71.51

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.