MIRA
INFORM REPORT
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Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
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Name : |
BLUE GEMS |
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Registered Office : |
Room 1511, 15/F., Peninsular Square, 18 Sung On Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.09.1991 |
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Com. Reg. No.: |
14845597-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Manufacturer, Importer, Exporter and Retailer 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 : |
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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong
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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
BLUE GEMS
Address: Room 1511,
15/F., Peninsular Square,
18 Sung On
Street, Hunghom, Kowloon,
Hong Kong.
(Formerly located at:
Room 1707, 17/F, Workingport Commercial
Building,
3 Hau Fook Street, Tsimshatsui, Kowloon,
Hong Kong.)
PHONE: 2314 7661
FAX: 2314 7811
MANAGEMENT
Manager: Mr. Pareshkumar
Himmatlal Shah
SUMMARY
Establishment: 2nd
September, 1991.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees:
3.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Room 1511, 15/F., Peninsular Square, 18 Sung On Street, Hunghom,
Kowloon, Hong Kong.
Associated Company:-
Samkit Diamonds Exporters, India.
BUSINESS REGISTRATION NUMBER
14845597-000-09
MANAGEMENT
Manager: Mr. Pareshkumar
Himmatlal Shah
SOLE PROPRIETOR
Name: Mr. Pareshkumar Himmatlal
SHAH
Residential Address: Flat E,
14/F., Hanley House, 68-80 Canton Road, Tsimshatsui, Kowloon, Hong Kong.
HISTORY
The subject was originally established on 2nd September, 1991 as a sole
proprietorship owned by Mr. Pareshkumar Himmatlal Shah under the Hong Kong
Business Registration Regulations.
Converted into a partnership company on 1st June, 1993 when Mr.
Milankumar Amrutlal Virani joined in as a partner. Changed to a sole proprietorship company
again just owned by Mr. Pareshkumar Himmatlal Shah on 31st March, 1994 while
Mr. Milankumar Amrutlal Virani retired.
Initially the subject was located at Flat E, 14/F., Hanley House, 68-80
Canton Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A, 12/F., South Sea
Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in August 1993; to
Flat C, 9/F., Houng Su Mansion, 45-47 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong in July 1999; to Room 1511, 15/F, Peninsular Square, 18 Sung On
Street, Hunghom, Kowloon, Hong Kong in May 2002, and further moved to the
present address in September 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Manufacturer, Importer, Exporter and
Retailer.
Lines: All kinds of diamonds
and jewellery products, emerald, precious stones, etc.
Employees: 3.
Commodities Imported: Imported from India, Thailand, Europe, etc.
Markets: Hong Kong, Singapore, US, China,
South Africa, Europe, etc.
Terms/Sales:
L/C, T/T or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Making a small
profit every year.
Condition:
Keeping in an
active manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Satisfactory.
Banker:
Hang Seng
Bank Ltd., Hong Kong.
Standing:
Small.
GENERAL
Blue Gems is a sole proprietorship set up and owned by Mr. Pareshkumar
Himmatlal Shah who is an Indian. He is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. Shah is also the manager of
the subject.
The subject moved to the present address in September 2011.
The subject is a manufacturer, importer, exporter and retailer of
polished and cut diamonds in a wide variety of round and fancy shapes. It is specialized in white, ow, white natts,
ow natts in vs-si and pique quality.
Size ranges from 0.005 to 0.10 ct.
It also supplies customers with fancy shapes particularly
tapper/baquettes and princess cut diamonds.
Main products of the subject are rose cut diamonds, rose cut heart, rose
cut round, rose cut pears, rose cut oval, rose cut marquise, emerald cut,
taper, tapered baguette, fancy cut and fancy colour diamonds, briollets beads,
old mine cut diamonds round brilliant cut diamonds, marquise, pears, oval,
heart, trilliant, etc. Loose and cut
diamonds are chiefly imported from India, Thailand and other European
countries. However, India is the main
supplying countries. Most of its
suppliers are in Mumbai, India. The
major markets of the subject are Hong Kong, Singapore, the United States,
China, South Africa, Europe, etc.
Overall business is active.
The subject’s business is chiefly handled by Mr. Pareshkumar Himmatlal
Shah who can be reached at his mobile phone number 9805 0538.
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. For instance, it takes part in
Hong Kong Jewellery & Gem Fair every year.
The subject is an associated company of Samkit Diamonds Exporters
[Samkit], an India-based firm also trading in diamonds and jewellery. It is likely that Samkit is one of the
subject’s suppliers in India. Samkit has
had several associated companies in Hong Kong, the United States and the United
Arab Emirates.
As the history of the subject in Hong Kong is over twenty years and
three months, on the whole, 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 |
|
US Dollar |
1 |
Rs.48.82 |
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|
1 |
Rs.78.57 |
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Euro |
1 |
Rs.69.28 |
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.