MIRA INFORM REPORT
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Report Date : |
28.12.2011 |
IDENTIFICATION DETAILS
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Name : |
R.D.
GEM LTD. |
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Registered Office : |
c/o Perry Gems (Hong Kong) Ltd., Flat 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
21.11.2007 |
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Com. Reg. No.: |
38660913 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products, emerald, precious stones, etc |
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No. of Employees
: |
4 persons |
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 : |
Moderate |
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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 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
R.D. GEM
LTD.
Company ADDRESS
c/o Perry Gems (Hong Kong) Ltd.
Flat 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2766 2008
FAX: 2766 2040
MANAGEMENT
Managing Director: Mr. Bharat Babubhai Mangukiya
SUMMARY
Incorporated on: 21st November, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$3,500,000.00
Issued: HK$3,500,000.00
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head Office:-
c/o Perry Gems (Hong Kong) Ltd.
Flat 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated Company:-
Riddhi Diamonds, India.
Affiliated Company:-
Perry Gems (Hong Kong) Ltd., Hong Kong.
BUSINESS REGISTRATION NUMBER
38660913
COMPANY FILE NUMBER
1187492
MANAGEMENT
Managing Director: Mr. Bharat Babubhai Mangukiya
CAPITAL
Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
SHAREHOLDER
(As per registry
dated 21-11-2011)
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Name |
|
No. of shares |
|
Bharat Babubhai MANGUKIYA |
|
3,500,000 ======= |
DIRECTOR
(As per registry
dated 21-11-2011)
|
Name (Nationality) |
Address |
|
Bharat Babubhai MANGUKIYA |
Tower No. 6, 23/F., Block B, Laguna Verde Avenue, No. 8 Laguna Verde, Hunghom, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 21-11-2011)
|
Name |
Address |
Co.
No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Center, 302 Des Voeux Road Central, Hong Kong. |
0113023 |
HISTORY
The subject was incorporated on 21st November, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.
Last time the subject was located at Flat 404A, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to Flat 404B in July 2010.
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: 4.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Terms/Sales: L/C and T/T.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
Alternation of Capital:-
|
21-11-2007 |
paid up |
HK$ 10,000.00 |
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14-03-2008 |
paid up |
HK$ 1,990,000.00 |
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21-02-2011 |
paid up |
HK$ 1,500,000.00 |
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|
––––––––––––––– |
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Total: |
paid up |
HK$ 3,500,000.00 ============== |
Increases of Nominal Capital:-
|
From |
HK $10,000.00 |
to |
HK$2,000,000.00 |
on |
14-03-2008 |
|
From |
HK$2,000,000.00 |
to |
HK$3,500,000.00 |
on |
21-02-2011 |
Indebtedness: HK$3,097,811.94 (Total amount outstanding on all mortgages and charges as per last
Annual Return dated 21-11-2011)
Mortgage or charge: (See attachment)
Profit or Loss: Making a small profit.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Incorporated in November 2007 and having issued 3.5 million ordinary shares of HK$1.00 each, R.D. Gem Ltd. is wholly-owned by Mr. Bharat Babubhai Mangukiya who is an Indian. Mr. Mangukiya is an India passport holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the subject.
Formerly the subject had shared the office with Perry Gems (Hong Kong) Ltd. [Perry] which is a Hong Kong-registered company. The subject moved to the present address in July 2010.
The subject is a supplier of single cut
and full cut diamonds in Hong Kong.
Natural diamonds roughs directly procure from mines and single cut
diamonds polished in its factory in Botad and Bhavnagar which is the prime
manufacturing cities for single cut diamond and full cut diamonds polishes in
its factory in Surat. Its experience of
30 years in this field has enabled it to provide guaranteed and quality service
to its customers worldwide.
The subject has had an associated company
in Mumbai, India known as Riddhi Diamonds.
The followings are the main products of the subject:-
Single Cut Diamonds
White, OW, TTLB, TLB, TTLC,
White Natts and Dark Natts in -2 , Star and Mele
·
Full Cut Diamonds
White, OW, TTLB,TLB, DB & Black
in -2, Star , Mele and Eleven
The subject’s business is chiefly handled by Mr. Mangukiya himself. Sometimes he is in India acquiring diamonds.
In order to penetrate the international market further, the subject 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 history of the subject in Hong Kong is over four years and a month, on the whole, consider it good for normal business engagements in moderate credit amounts.
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
06-04-2011 |
Instrument: Floating Charge Property: By way of floating charge the undertaking of the Company and all its property whatsoever and wheresoever both present and future including its uncalled capital for the time being Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
All monies and liabilities |
|
29-04-2011 |
Instrument: Mortgage Property: 12/3,442nd parts or shares of and in Section A of Kowloon Marine Lot No. 113 (Unit No. 1 on 12/F. of Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure “all moneys” in respect of general banking 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 |
|
US Dollar |
1 |
Rs.52.89 |
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UK Pound |
1 |
Rs.82.71 |
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Euro |
1 |
Rs.69.15 |
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.