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MIRA INFORM
REPORT
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Report Date : |
24.12.2011 |
IDENTIFICATION DETAILS
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Name : |
RAINBOW
GEMS (HK) LTD |
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Registered Office : |
8/F., |
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Country : |
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Date of Incorporation : |
26.10.2005 |
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Com. Reg. No.: |
36135548 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of Diamond gold jewellery,
platinum jewellery, etc |
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No. of Employees : |
3. (Including affiliate) |
RATING & COMMENTS
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MIRAs 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 : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Hong Kong |
a2 |
a2 |
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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 |
Company name
RAINBOW
GEMS (HK) LTD.
Company ADDRESS
8/F.,
PHONE: 2366 2312, 2367 6499
FAX: 2367 8767
E-MAIL: donda@hotmail.com
MANAGEMENT
Managing Director: Mr. Pravinkumar Narsinhbhai Donda
SUMMARY
Incorporated on: 26th October, 2005.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$18~20 million.
Employees: 3. (Including affiliate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp.
Ltd.,
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head
Office:-
8/F.,
Parent Company:-
Donda Exports
2/218, Regal Diamond Centre Building, 11/15 Tata Road, 1 Prasad Chambers Comp., Opera House, Mumbai, Maharashtra, India.
Associated/Affiliated
Companies:-
Rainbow Gems, Hong Kong. (Same address)
S N Creation,
BUSINESS REGISTRATION NUMBER
36135548
COMPANY FILE NUMBER
1003573
MANAGEMENT
Managing Director: Mr. Pravinkumar Narsinhbhai Donda
CAPITAL
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
SHAREHOLDERS:
(As per registry
dated 26-10-2010)
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Name |
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No. of shares |
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Pravinkumar Narsinhbhai DONDA |
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55,000 |
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Jigneshkumar Pravinbhai DONDA |
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35,000 |
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Rashmikant Pravinbhai DONDA |
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10,000 |
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Total: |
100,000 ====== |
DIRECTORS
(As per registry dated 26-10-2010)
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Name (Nationality) |
Address |
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Pravinkumar Narsinhbhai DONDA |
8/F., |
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Jigneshkumar Pravinbhai DONDA |
8/F., |
SECRETARY
(As per registry dated 26-10-2010)
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Name |
Address |
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HMGC Corporate Practice Ltd. |
Room 406B, 4/F., 61 Mody Road, Tsimshatsui East, |
1127329 |
HISTORY
The subject was incorporated on 26th October, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: Diamond gold jewellery, platinum jewellery, etc.
Employees: 3. (Including affiliate)
Commodities Imported:
Markets:
Annual Turnover: HK$18~20 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See attachment)
Profit & Loss: Making a small profit every year.
Condition: Keeping in a normal state.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
·
The Hongkong & Shanghai Banking Corp. Ltd.,
·
Hang Seng Bank Ltd.,
Standing:
GENERAL
Having
issued 100,000 ordinary shares of HK$1.00 each, Rainbow Gems (HK) Ltd. is
wholly-owned by the Donda family. The
directors are also the members of the Donda family. The Donda family is also the owner of Donda
Exports, an Indian firm located in Mumbai,
The
subject is a fancy diamond, rose-cut diamond and jewellery trader. It has got an affiliated company Rainbow Gems
located at the same operating address.
The subject and Rainbow Gems are engaged in the same lines of
business. Rainbow Gems was set up in
1997 by the Donda family in
The
subject is a diamond broker, importer, exporter and wholesaler. Its main products are fine jewellery, fancy
diamonds, carat size diamonds, loose diamonds, diamond jewellery, etc. Raw materials are imported from Belgium
India,
The
subjects products are exported to the
In
order to penetrate the international market further, the subject has taken part
in fairs and exhibitions held in
The
history of the subject in
On the whole, consider it good for normal business engagements.
REMARKS:
Court Cases: None per our.
Property
information of the company:-
Property Location: Unit
6 on 8/F., Chevalier House,
Owner: Rainbow Gems (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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26-03-2010 |
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Hang Seng Bank Ltd., |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
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Date |
Particulars |
Amount |
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05-10-2007 |
Instrument: Assignment of Receivables General with Notice of Assignment Property: In consideration of the Banking Facilities, the Customer, as beneficial owner and by way of security for the payment of the Secured Monies, hereby assigns, and agrees to assign, to the Bank the Receivables until all the Secured Monies have been paid or discharged Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., |
To secure all monies in respect of banking facilities |
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26-03-2010 |
Instrument: Mortgage Property: 188/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on 8/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., |
To secure all moneys in respect of general credit facilities |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.72 |
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1 |
Rs.82.71 |
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Euro |
1 |
Rs.68.90 |
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 |
This score serves as a reference to assess SCs 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.