MIRA INFORM REPORT
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Report Date : |
15.10.2011 |
IDENTIFICATION DETAILS
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Name : |
R.A.
GEM CENTRE LTD. |
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Registered Office : |
Room 912-913, 9/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.06.1998 |
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Com. Reg. No.: |
21790383 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Manufacturer, Importer, Wholesaler and Exporter of all kinds of diamonds, precious stones, gems, etc. |
RATING & COMMENTS
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MIRA’s 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 : |
Usually Correct |
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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
|
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
R.A. GEM
CENTRE LTD.
COMPANY ADDRESS
Room 912-913, 9/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2721 8360, 2774 8000, 2723 8587
FAX: 2311 9377
E-MAIL: info@ragemcentre.com
MANAGEMENT
Managing Director: Mr. Ketan Kantilal Shah
SUMMARY
Establishment: 1989.
Incorporated on: 5th June, 1998.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$100.00
Business Category: Diamond Trader.
Employees: 35.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head Office:-
Room 912-913, 9/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
S.Vinodkumar International Pte. Ltd., Singapore.
Affiliated Companies:-
S.Vinodkumar Group of
Companies
· Bharat Trading Inc., Japan.
· Gemini Diamonds Inc., USA.
· IDI Jewels Inc., USA.
· Indian Diamond Imports Inc., USA.
· S.V. Gems N.V., Belgium.
· S.V.K. Jewels Pvt. Ltd., India.
· S.Vinodkumar Diamonds Pvt. Ltd., India.
· S.Vinodkumar DMCC, UAE.
etc.
BUSINESS REGISTRATION NUMBEr
21790383
COMPANY FILE NUMBER
0646505
MANAGEMENT
Managing Director: Mr. Ketan Kantilal Shah
Contact Person: Mr. Chetan Shah
CAPITAL
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
SHAREHOLDER
(As per registry
dated 05-06-2011)
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Name |
|
No.
of shares |
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S.Vinodkumar International Pte. Ltd. 80, Raffles
Place, #25-01, UOB Plaza 1, Singapore 048624. |
|
100 === |
DIRECTORS
(As per registry
dated 05-06-2011)
|
Name (Nationality) |
Address |
|
Nilesh Vinodrai SHAH |
Flat H, 8/F., Kimberley Mansion, 15 Austin
Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Ketul Kumar
Chandrakant SHAH |
Room 912-913, 9/F., Harbour Centre Tower
1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong. |
SECRETARY
(As per registry dated
05-06-2011)
|
Name |
Address |
Co.
No. |
|
Hojin
SEC Ltd. |
Room 301, 3/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong
Kong. |
0612527 |
HISTORY
The
subject was originally established in 1989 under the name of R.A. Gem
Centre. Re-organized and incorporated on
5th June, 1998 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly
the subject was located at Room 1201, 12/F., Chevalier House, 45‑51
Chatham Road, Tsimshatsui, Kowloon, Hong Kong, moved to Unit 30‑31,
4/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon,
Hong Kong in May 2003, and further to the present address in March 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Manufacturer, Importer, Wholesaler and Exporter.
Lines: All kinds of diamonds, precious stones, gems, etc.
Employees: 35.
Materials/Commodities: Imported from Europe, South Africa, etc.
Markets: Southeast Asia, China, US, Europe, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T and D/P.
MEMBERSHIP
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
· Shanghai Diamond Exchange, China.
· The Indian Chamber of Commerce Hong Kong, Hong Kong.
FINANCIAL INFORMATION
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
Mortgage or Charge: (See attachment)
Profit or Loss: Business is profitable.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· The Royal Bank of Scotland N.V., Hong Kong Branch.
· Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Normal.
GENERAL
R.A.
Gem Centre Ltd. is a private limited company incorporated in June 1998. It was jointly owned by two Indian: Mr. Ketan
Kantilal Shah and Ms. Abhaykumar Sumatilal Shah. Now, it has become a wholly-owned subsidiary
of S.Vinodkumar International Pte. Ltd. which is a Singapore‑based
firm. The directors of the subject are
Nilesh Vinodrai Shah and Ketul Kumar Chandrakant Shah. The two Shahs belong to the same family.
The
subject is a diamond importer and exporter.
For
three consecutive years since 1988, the subject had been awarded the “Second
Highest Importer of Diamonds” (Southeast Asia region) by the Indian Jewelry
Council. From 2002 to 2009, the subject
had been conferred the title of “Best Supporter of Loose Diamond Supplier in
Hong Kong”.
The
Shahs established R.A. Gem Centre, which was the subject’s predecessor, in
1989. Now, the subject is engaged in
manufacturing, wholesaling and exporting loose diamonds, brownish yellow
diamonds, etc. Imported from India and
Belgium, most of the diamonds have been certified by GIA, HRD and IGI.
The
subject has been serving the jewellery manufacturing customers for over 20
years. It is catering to more than 300
customers, both jewellery manufacturers and retailers.
The
subject is one of the members of S.Vinodkumar Group of Companies [Group] of
India. It is the pioneer trading company
catering the diamond market of Hong Kong as well as other Asian countries. It also has got its market share in Hong
Kong.
In
April 2003, the subject moved to Hunghom where is the jewellery district of
Hong Kong. The subject’s floor area
including a workshop covers nearly 14,000 sq.ft. with more than 35 staff. This office is fully equipped with fuller and
wider range of diamonds in all colours and sizes, providing a one-stop shop for
all walks of customers.
The
latest development of the Group is the penetration of the China market. Its first branch office was set up in
Shanghai, the hub of diamond marketplace in Mainland China.
Besides
the subject in Hong Kong, the Group has established several branch offices in
other major cities such as Tokyo, Mumbai, New York, Dubai, Los Angles and
Antwerp.
The
subject’s major markets are China, Japan, Taiwan, South Korea, the Philippines
and Hong Kong.
Rough
stones used by the subject are sourced from Belgium. Then they are shipped to the three production
plants located in India for cutting and polishing. Sizes of polished stones range from 0.005
points to 3 carats. Almost all colours
are available. Stones can be provided in
any shape that customers would request.
The
subject is also specialized in providing certified stones from sizes 0.30 to
5.00 carats.
The
subject constantly has maintained a stock in abundance in order to cater not
only general orders but big ones as well.
In
India, the subject is one of the top importers of polished and cut diamonds.
In
Hong Kong, the subject’s round diamond remained the best-sellers among
jewellery manufacturers in the region.
The
subject gets its supply of smaller sizes of medium to commercial make from
manufacturers in India mainly, including top exporter S. Vinod Kumar & Co.
in Mumbai. Larger sizes and stones of
finer make are imported from Antwerp in Belgium and New York.
Mr.
Chetan Shah is the contact person of the subject.
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. In Hong Kong it usually takes part in Hong
Kong International Jewellery Show, Hong Kong Jewellery & Gem Fair every
year. The second Show is held in Hong
Kong twice a year.
For
instance, the subject is going to take part in “HKTDC Hong Kong International
Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period
of 16th to 20th February, 2012.
The
annual sales turnover of the Group is very significant.
The
subject is fully supported by the Group and the Shah family of India.
On the whole,
consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
Property Location: Workshop Unit No. 12 & 13 on
9/F.. Harbour Centre Tower 1,
1 Hok Cheung Street, Kowloon, Hong Kong.
Owner: R.A. Gem Centre Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
13-06-2008 |
- |
Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV),
Hong Kong Branch. |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
|
15-10-2003 |
Instrument: Debenture Property: 1) All freehold and leasehold
property of the Company 2) All stocks shares bonds and
securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 3) All book and other debts
revenues and claims 4) The uncalled goodwill and
all patents patent applications trade marks trade names registered designs
and copyrights and all licences and ancillary and connected rights relating
to the intangible property 5) The undertaking and all other assets of the
Company Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
The general credit faciliteis for the sum of HK$46,800,000 |
|
13-06-2008 |
Instrument: Mortgage Property: 172/13,205th parts or shares of and in Section
F of Kowloon Marine Lot No. 113 and Section H of Kowloon Marine Lot No. 113
(Workshop Unit No. 12 & 13 on 9/F. of Harbour Centre Tower 1, 1 Hok
Cheung Street, Kowloon, Hong Kong.) Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
All sums |
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
|
UK Pound |
1 |
Rs.77.42 |
|
Euro |
1 |
Rs.67.72 |
RATING EXPLANATIONS
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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 |
|
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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.