MIRA
INFORM REPORT
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Report Date : |
17.10.2011 |
IDENTIFICATION DETAILS
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Name : |
JIN GEMS |
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Registered Office : |
Flat C, 12/F., Mass Resources Development Building, 12 Humphreys Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
19.06.1991 |
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Com. Reg. No.: |
14616728-000-06 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products, emerald, precious stones, 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 : |
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 30, 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 and address
JIN GEMS
ADDRESS:
Flat C, 12/F., Mass Resources Development Building, 12 Humphreys Avenue,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2186 8785, 2367 1373,
2367 1450
FAX: 2367 1511
E-MAIL: jingems@gmail.com
MANAGEMENT
Manager: Mr. Rajendra Kumar Daga
SUMMARY
Establishment: 19th June, 1991.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$100~120 million.
Employees:
4.
Main Dealing Banker: Indian Overseas Bank, Hong Kong Branch.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Flat C, 12/F., Mass Resources Development Building, 12 Humphreys Avenue,
Tsimshatsui, Kowloon, Hong Kong.
BUSINESS REGISTRATION NUMBER
14616728-000-06
MANAGEMENT
Manager: Mr. Rajendra Kumar Daga
SOLE PROPRIETOR
Name: Mr. Rajendra Kumar DAGA
Residential Address: Flat E,
13/F., Star Mansion, 3-5 Minden Road, Mody Road, Tsimshatsui, Kowloon,
Hong Kong.
HISTORY
The subject was established on 19th June, 1991 as a sole proprietorship
concern owned by Mr. Rajendra Kumar Daga under the Hong Kong Business
Registration Regulations.
At the very beginning, the subject was located at Flat E, 13/F., Star
Mansion, 3-5 Minden Road, Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to
Flat C, 4/F., Heung Sun Mansion, 45-47 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong in December 1993, and further moved to the present address in May
2001.
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, other Asian countries, Europe, etc.
Markets: Thailand, China, Taiwan, Japan,
Southeast Asia, Europe, North America, etc.
Annual Turnover: HK$100~120 million.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit & Loss: Business is
profitable.
Condition:
Keeping in an
active condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Banker:
Indian
Overseas Bank, Hong Kong Branch.
Standing:
Good.
GENERAL
Jin Gems is a sole proprietorship set up and owned by Mr. Rajendra Kumar
Daga who is an Indian. He is an India
passport holder as well as a Hong Kong ID Card holder. Being the manager of the subject, Daga has
got the right to reside in Hong Kong permanently.
Business commenced in June 1991, the subject is trading in loose
diamonds, loose emeralds, precious stones, ruby jade, gem sets, semi-precious
stones, blue or coloured sapphire, Tanzanite, etc. Size of diamonds supplied ranges from 0.50
point to 0.80 carat. Diamonds supplied
can be full cut or single cut.
The subject is carrying the following products:-
|
Product/Service |
Product/Service Remarks |
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Fine Jewellery |
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Diamond |
from India (Importer) |
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Gemstones and Jade |
Precious stones from India |
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Semi-Precious Stone |
from India (Importer) |
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Ruby |
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Emerald |
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Precious and Semi-Precious Jewellery |
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Jewellery – Gemset |
from India (Importer) |
Most of the commodities are imported from India. It also imports gemstones from Sri-Lanka,
Thailand, Burma, etc.
The subject’s products are marketed in Hong Kong, exported to China,
Taiwan, Japan, India, Southeast Asia, North America, Western Europe,
Scandinavia, etc. Business is active.
The subject has set up marketing representative offices in Thailand,
China, New York and Malaysia. It
also has got manufacturing and administration office in Bombay, Surat and
Jaipur of India.
The subject’s overall business is satisfactory. Annual sales turnover ranges from HK$100 to
120 million. Overall business is
active. Making a small profit every
year.
It is likely that the subject is sharing the same operating office with
another diamond trader K.V. Impex which was set up on 22nd October, 1996. This firm is owned by Mr. Rekha Daga who
seems to be a family member of the sole proprietor 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. The significant one is “Hong
Kong International Jewellery Show” which is held in Hong Kong annually.
For instance, it 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.
On the whole, since the subject’s history in Hong Kong is over twenty
years and two months, 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
|
|
1 |
Rs.77.42 |
|
Euro |
1 |
Rs.67.72 |
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.