MIRA INFORM REPORT
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Report Date : |
22.11.2011 |
IDENTIFICATION DETAILS
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Name : |
GEM
TRADE |
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Registered Office : |
Flat G, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.09.2003 |
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Com. Reg. No.: |
33874309-000-09 |
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Legal Form : |
Subject was a Sole Proprietorship Concern |
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Line of Business : |
subject was a Diamond Importer, Exporter and Wholesaler |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Ceased Operation |
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Payment
Behaviour : |
---- |
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Litigation : |
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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
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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
GEM TRADE
company ADDRESS
Registered
Office:-
Flat G, 9/F., Block B, Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Sun Diam, Hong Kong. (Same owner)
BUSINESS REGISTRATION NUMBEr
33874309-000-09
ESTABLISHMENT
1st September, 2003.
SOLE PROPRIETOR
Name: Mr. Mahendrakumar Chhogalal JAIN
Residential Address: Room
1701, 17/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
GENERAL
Gem Trade was a sole proprietorship which has ceased business since 15th October, 2011.
The subject was set up and owned by Mr. Mahendrakumar Chhogalal Jain who was an Indian. He was an India passport holder and did not have the right to reside in Hong Kong permanently.
The subject’s registered address was initially the subject was located at Room 1701, 17/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat G, Block B, 9/F., Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in November 2003. This office was not in a commercial building but a residential building. It was likely that Jain had moved to this new address but did not make any amendments on the subject’s registration materials. It seemed that the subject’s operating address was also Jain’s latest residential address. The residential building is not trespassed by outsiders.
The subject’s telephone number and fax number did not registered with local telephone company nor listed on telephone directories. It had no employees in Hong Kong.
The subject was a diamond importer, exporter and wholesaler. It was also a commission agent. The subject dealt in fine coloured diamonds and rare gem stones. Products included fancy coloured diamonds, unusual rose cut and briolette cut diamonds.
Business handled by Jain himself, the subject was just a one-man company.
Besides the subject, Jain also operates another firm Sun Diam located at Flat 2, 9/F., Block B of the same building. Sun Diam is a sole proprietorship also set up on 1st September, 2003 and owned by Jain.
On the whole, since the subject has ceased business formally since 15th October, 2011, consider it not suitable for any business engagements.
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
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.72 |
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UK Pound |
1 |
Rs.81.42 |
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Euro |
1 |
Rs.68.89 |
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.