MIRA INFORM REPORT

 

 

Report Date :           

23.12.2011

 

IDENTIFICATION DETAILS

 

Name :

GEMDIAM

 

 

Registered Office :

Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

11.07.2001

 

 

Com. Reg. No.:

31914929-000-07

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

 

No. of Employees :

2 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Concern

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

GEMDIAM

 

 

Company ADDRESS

 

Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2375 0093

FAX:                 2730 2300

 

 

MANAGEMENT

 

Manager:  Mr. Manish Sacheti

 

 

SUMMARY

 

Establishment:                          11th July, 2001.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Annual Turnover:            HK$12~15 million.

 

Employees:                   2.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.

Company ADDRESS

 

Head Office:-

Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Affiliated Company:-

Green Gems, Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

31914929-000-07

 

 

MANAGEMENT

 

Manager:  Mr. Manish Sacheti

 

 

PARTNERS

 

Name:                           Mr. Manish SACHETI

Residential Address:      Flat B, 8/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong

Kong.

 

Name:                           Mr. Arun JAIN

Residential Address:      Flat B, 8/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong

Kong.

 

Name:                           Mr. Geb. Shah Sweta JAIN

Residential Address:      8 Bardia Colony M D Road, Jaipur-4, India.

 

 

HISTORY

 

The subject was established on 11th July, 2001 as a partnership concern jointly owned by Mr. Manish Sacheti and Mr. Arun Jain under the Hong Kong Business Registration Regulations.

On 1st June, 2002, Mr. Geb. Shah Sweta Jain joined in as a partner.  Since then, the subject has had three partners.

Initially the subject was located at Flat B, 8/F., Houng Sun Building, 45‑47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1701, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue Road, Tsimshatsui, Kowloon, Hong Kong in March 2002, and further to the present address in October 2009.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

Employees:                   2.

 

Commodities Imported:   India, Belgium, other European countries, US, etc.

 

Markets:                       Japan, India, other Asian countries, etc.

 

Annual Turnover:            HK$12~15 million.

 

Terms/Sales:                 L/C, T/T, etc.

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in a rather active state.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met obligations on time.

 

Commercial Morality:     Satisfactory.

 

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

 

Standing:                      Small.

 

GENERAL

 

Gemdiam is a partnership jointly owned by three Indian, namely, Mr. Manish Sacheti, Mr. Arun Jain and Mr. Geb. Shah Sweta Jain.  All of them are India passport holders and do not have the right to reside in Hong Kong permanently except Mr. Arun Jain who has already got a Hong Kong ID card.

Business commenced in July 2001, the subject is a diamond and jewellery product trader.  Raw materials such as polished and cut diamonds are imported from India, Belgium and other European countries, etc.  Rough diamonds are wholesaled, polished and processed in Hong Kong or China.  Some of the finished products and polished diamonds are marketed in Hong Kong, exported or re-exported to Japan, India and other Asian countries, the Middle East, Europe.  Business has been rather active.

The subject has got a number of suppliers in Jaipur, India.  It seems that the subject’s business has become active since March 2002, the month and year when it moved to a commercial building in Tsimshatsui, Kowloon, Hong Kong.

The subject shares the operating office with another firm Green Gems which is also a gemstone trader.  Green Gems is trading in natural rubies, natural sapphires, ruby stones, emerald stones and drop-cut emeralds, etc.  The manager of Green Gems is Mr. P. Surana who is also an Indian.  Green Gems is a business partner of the subject.

In order to penetrate the international market further, Green Gems has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.  For instance, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.

The annual sales turnover of the subject ranges from HK$12 to 15 million.

On the whole, as the history of the subject in Hong Kong is over nine years, consider it good for normal business engagements.

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.52.78

UK Pound

1

Rs.82.73

Euro

1

Rs.68.88

 

 

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

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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%)

 

 

 

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.