MIRA INFORM REPORT
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Report Date : |
08.10.2011 |
IDENTIFICATION DETAILS
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Name : |
NIRGEM
HK LTD. |
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Registered Office : |
Room 1204, 12/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.04.2005 |
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Com. Reg. No.: |
35556903 |
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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 jeweller |
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 : |
Small Company |
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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 – 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
NIRGEM HK
LTD.
Company ADDRESS
Room 1204, 12/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 6504 1846
FAX: 2191 9759
E-MAIL: nirgemhk@yahoo.com
MANAGEMENT
Managing Director: Mr. Jignesh Chandrakant Mehta
SUMMARY
Incorporated on: 22nd April, 2005.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$2.00
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:-
Room 1204, 12/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Operating Company:-
Nirgem, Hong Kong. (Same address)
Holding Company:-
Pan International DMCC, UAE.
Affiliated/Associated Companies:-
Pan-Facets Co. Ltd., Thailand.
Paras Gems N.V., Belgium.
Popatlal Nathalal Shah, India.
BUSINESS REGISTRATION NUMBER
35556903
COMPANY FILE NUMBER
0965794
MANAGEMENT
Managing Director: Mr. Jignesh Chandrakant Mehta
CAPITAL
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$2.00
SHAREHOLDEr
(As per registry
dated 22-04-2011)
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Name |
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No. of shares |
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Pan International DMCC 205, Metro Building, Gold Souk, Deira Dubai, U.A.E. |
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2 == |
DIRECTOR
(As per registry
dated 22-04-2011)
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Name (Nationality) |
Address |
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Jignesh Chandrakant MEHTA |
Flat E, 11/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 22-04-2011)
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Name |
Address |
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Bayani Divino Bautista PONCE |
13/F., 5 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong. |
HISTORY
The subject was incorporated on 22nd April, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1204 of the same building in 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.
Employees: 4.
Commodities Imported: India, Thailand, Belgium, etc.
Markets: Worldwide.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$2.00
Profit & Loss: Making a small profit in the past years.
Condition: Business is normal.
Facilities: Making active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
GENERAL
Formerly Nirgem HK Ltd. was equally owned by Popatlal Nathalal Shah [PNS], India, and Pan Facets Co. Ltd., Thailand. The subject has just issued 2 ordinary shares of HK$1.00 each while each of the holding companies held one share. The shareholders have been reshuffled. Now, it is wholly-owned by Pan International DMCC [PID] which is a UAE-based firm.
The subject’s business name is Nirgem.
The managing director of the subject is Mr. Jignesh Chandrakant Mehta who is an Indian.
PNS is still the ultimate holding company of the subject and PID.
The subject and its associated companies are trading in diamonds, gems and jewellery. Business is rather active.
PNS is a reputed name in the Indian Diamond Industry for over five decades. It is engaged in manufacturing polished diamonds in various shapes and sizes. It is specialized in manufacturing high value round brilliant cuts from 1 cent to 5 carats.
PNS was established in 1956 by Shri Popatlal Nathalal Shah with the objective of manufacturing of quality diamonds in India and offer it for consumption to the world market. Today PNS is managed by Shri Ajay P. Shah.
PNS is manufacturing and selling polished diamonds. These diamonds are manufactured in 5 state-of-the-art manufacturing centres located in Dahisar, Mumbai. These units house over 300 skilled craftsmen.
PNS promotes and sells its products in the world market through its representatives in various countries. Its products find ready acceptance in various countries. It exports its goods to the United States, Bangkok, Hong Kong, Dubai and Antwerp, among other countries.
PNS sources its rough diamonds from dependable and reputed sources, ensuring quality and competitive price. It manufactures polished diamonds in various sizes and shapes like Rounds, Marquise, Oval, Princess, Pear, etc.
Manufacturing White Round Diamonds (Brilliant Cut) from 1 cent up to 5 carats is PNS’ speciality. It makes goods from shades D to J in all purities; these are mostly high value goods from 1 cent to 5 carats weight.
PNS’ future plans include venturing into manufacture of diamond-studded jewellery and offer more value to its customers. Besides the subject and PID, PNS has set up associated companies in Belgium and Thailand.
The subject is fully supported by PNS.
The subject’s business is chiefly handled by MEHTA who is a Hong Kong ID Card holder.
The history of the subject in Hong Kong is over six years and five months.
On the whole, in view of the subject’s background and parentage, consider it good for normal 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.14 |
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UK Pound |
1 |
Rs.75.97 |
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Euro |
1 |
Rs.65.99 |
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.