MIRA
INFORM REPORT
|
Report Date : |
09.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
RICH GEMS INC |
|
|
|
|
Registered Office : |
1780 Broadway, New York, New
York, 10016 |
|
|
|
|
Country : |
United States |
|
|
|
|
Date of Incorporation : |
21.08.1997 |
|
|
|
|
Legal Form : |
Corporation for Profit |
|
|
|
|
Line of Business : |
Jewelry, Watch, Precious
Stone, and Precious Metal retailers |
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 : |
Usually correct |
|
|
|
|
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) |
|
United States |
a1 |
a1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
GEOPOLITICS - UNITED STATES
|
POLITICAL DATA |
ECONOMIC DATA |
|
Form of Government:
Federal
|
Currency: USD |
IDENTIFICATION
|
Legal Name: |
Rich Gems Inc |
||
|
|
|
||
|
Legal Address |
1780 BROADWAY, NEW YORK,
NEW YORK, 10016, USA. |
||
|
Operative Address |
2 W 46TH ST STE 1400 New
York, New York 10036 USA |
||
|
Telephone: |
+1 (212) 221-6500 |
ID : |
2173795 |
|
Fax: |
+1 (212) 221-1892 |
Legal Form: |
Corporation for Profit |
|
Email: |
Registered in: |
New York |
|
|
Website: |
NA |
Date Created: |
1997 |
|
Manager: |
Vishel T Rathi, President |
Date Incorporated: |
August 21, 1997 |
|
Staff: |
3 |
Stock: |
200 |
|
|
|
Value: |
No Par Value |
|
Activity: |
Jewelry, Watch, Precious
Stone, and Precious Metal retailers |
||
BUSINESS
|
HISTORY |
|
|
|
This company was created
in 1997 |
|
PRINCIPAL ACTIVITY |
|
|
|
Jewelry, Watch, Precious
Stone, and Precious Metal retailers. |
|
Products/Services description: |
|
|
|
Some of the products sold
are: Watches Rings Necklace Earrings Colored Gemstones Diamonds Pendants |
|
Sales are: |
|
|
|
Wholesale, Retail |
|
Clients: |
|
|
|
Miscellaneous, depending
on the demand |
|
Suppliers: |
|
|
|
The person contacted
refused to provide the name of the suppliers for us to check trade references |
|
Operations area: |
|
|
|
National, Local |
|
The subject employs 3
employee(s) |
|
|
PAYMENTS |
|
|
|
regular |
|
Branches: |
|
|
|
The company has no branch
locations |
Shareholders - Manager – Related
Companies
|
Listed at the stock
exchange: |
|
|
|
NO |
|
Shareholders Parent Company(ies): |
|
|
|
This is a privately held
company. Vishel T Rathi is the main shareholder. |
|
Management: |
|
|
|
Vishel T Rathi, President |
Financials
- COMMERCIAL TRENDS AND
FORECAST
|
As a private company the subject
does not publish any financial statements. |
|
We have contacted the
operator of the company who refused to provide us any financial data without
knowing the name of the inquiring party. |
|
However our financial sources
could provide us with the following data. Those figures are
estimates provided by confidential banking and financial institutions working
with the company. |
|
Currency |
DATE |
|
USD |
2010 |
|
Turnover |
300,000 |
|
The cash flow is |
Normal |
|
Currency |
DATE |
|
USD |
2008 |
|
Turnover |
320 000 |
|
The cash flow is |
Normal |
|
Legal Fillings |
|
There are no UCC** files listed with the
Secretary of State of New York. There are no legal
filings listed with the District Court. THE COMPANY IS NOT LISTED
ON THE OFAC LIST.* For information: * 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. ** The Uniform Commercial
Code (UCC) is one of a number of uniform acts that have been promulgated in
conjunction with efforts to harmonize the law of sales and other commercial
transactions in all 50 states within the United States of America. The UCC deals primarily
with transactions involving personal property (movable property), not real
property (immovable property). It allows a creditor to
notify other creditors about a debtor’s assets used as collateral for a
secured transaction by filing a public notice (financing statement) with a
particular filing office. The Uniform Commercial
Code Bureau files and maintains on financial obligations (including IRS
liens) incurred by individuals (in business as a sole proprietor), business
entities and corporations. |
Rating
|
Local credit bureau gave
a Correct credit rate. The company is in Good
Standing. This means that all local and federal taxes were paid on due date. |
|
|
Final Opinion |
|
|
|
This is a small sized
American company that has 3 employees and has been in business for 13 years. There were no legal
filings found against the company or its legal representatives. The company's income has
decreased a little bit from 2008 to 2010. Nevertheless, the income per
employee remains pretty fair for the company's size. |
SUMMARY
|
|
|
||
|
Profitability |
CORRECT |
Public Records |
NO |
|
Indebtedness |
CONTROLLED |
Payments |
REGULAR |
|
Cash |
NORMAL |
|
|
APPENDIX
|
Person Interviewed |
|
|
|
Operator |
|
Comments |
|
|
|
The person contacted
refused to verify or provide any information on grounds of confidentiality. |
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.49.38 |
|
UK Pound |
1 |
Rs.79.20 |
|
Euro |
1 |
Rs.67.84 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.