MIRA INFORM REPORT
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Report Date : |
28.09.2011 |
IDENTIFICATION DETAILS
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Name : |
GEM
EXPORTS LTD. |
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Registered Office : |
Unit 27, 11/F., Block
B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.03.2010 |
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Com. Reg. No.: |
52002800 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, etc. |
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 : |
New Concern |
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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 – 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
GEM EXPORTS
LTD.
Company ADDRESS
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2723 2690, 2739 8551
FAX: 2723 6246
E-MAIL: gemexpo@netvigator.com
MANAGEMENT
Managing Director: Mr. Ashok Mundra
SUMMARY
Incorporated on: 26th March, 2010.
Organization: Private Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$2,000,000.00
Business Category: Diamond Trader.
Employees: 4. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head
Office:-
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.
Associated
Companies:- (Same address)
Gem Exports, Hong Kong.
Tirupati Diamonds, Hong Kong.
BUSINESS REGISTRATION NUMBER
52002800
COMPANY FILE NUMBER
1436043
MANAGEMENT
Managing Director: Mr. Ashok Mundra
CAPITAL
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
SHAREHOLDERS
(As per registry
dated 26-03-2011)
|
Name |
|
No.
of shares |
|
Ashok
MUNDRA |
|
1,600,000 |
|
Mukesh MUNDRA |
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400,000 |
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–––––––– |
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Total: |
2,000,000 ======= |
DIRECTORS
(As per registry
dated 26-03-2011)
|
Name (Nationality) |
Address |
|
Ashok MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna
Verde Phiva, IVB, 8 Laguna Verde Avenue, Hunghom, Kowloon,
Hong Kong. |
|
Mukesh MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna
Verde Phiva, IVB, 8 Laguna Verde Avenue, Hunghom, Kowloon,
Hong Kong. |
SECRETARY
(As per registry
dated 26-03-2011)
|
Name |
Address |
Co.
No. |
|
Top
Honour Secretarial Services Ltd. |
Room 1002, 10/F., Ginza Square, 565-567 Nathan Road, Kowloon, Hong
Kong. |
1312187 |
HISTORY
The subject was incorporated on 26th March, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, etc.
Employees: 4. (Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, other Asian countries, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
Profit or Loss: Made a small loss in 2010.
Condition: Business is under development.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Having
issued 2 million ordinary shares of HK$1.00 each, Gem Exports Ltd. is jointly
owned by Mr. Ashok Mundra, holding 80% interests; and Ms. Mukesh Mundra,
holding 20%. The two Mundras are Indian
and each is holding a Hong Kong ID Card.
The latter is an Indian businesswoman.
They have got the right to reside in Hong Kong permanently. They are also directors of the subject.
The
subject is trading in the following commodities:-
Finished Jewellery
·
Diamond Jewellery
o
White Diamond Jewellery
·
Gem Set Jewellery
o
Emerald Jewellery
o
Ruby Jewellery
o
Sapphire Jewellery
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Gold Jewellery
o
18K Gold Jewellery
o
21K Gold Jewellery
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Platinum Jewellery
o
Pt 750 Platinum Jewellery
o
Pt 850 Platinum Jewellery
o
Pt 900 Platinum Jewellery
o
Pt 950 Platinum Jewellery
o
Pt 990 Platinum Jewellery
o
Fineness not Specified
Materials
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Diamond
o
Polished White Diamond
o
Polished Colour Diamond
·
Precious gemstones
o
Polished Emerald
o
Polished Ruby
o
Polished Sapphire
·
Polished Semi precious Gemstone
o
Amethyst
o
Aquamarine
o
Citrine
o
Garnet
o
Tanzanite
o
Tourmaline
o
Others
Incorporated
on 26th March, 2010, the subject has had a main associated company Tirupati
Diamonds [Tirupati] located at the same operating office. Tirupati is a diamond trader, so does the
subject.
Tirupati
is a sole proprietorship set up and owned by Ms. Mukesh Mundra. Business commenced in October 1996, Tirupati
is trading in loose, cut and polished diamonds, precious stones, gem sets,
semi-precious stones, blue or coloured sapphire, etc. Rough diamonds, polished, cut and loose
diamonds are imported from India, Belgium, other European countries, etc. India is its main supplying country. Some of the rough diamonds are polished or
processed in Hong Kong or China.
Finished products and polished diamonds are marketed in Hong Kong,
exported to Japan, Europe and other Asian countries.
The
business of the subject and Tirupati are chiefly handled by the two Mundras.
Besides
Tirupati, the subject has had another associate Gem Exports, this firm is also
a diamond trader and also controlled by the Mundras.
The
subject’s business is still under development.
Since
the history of the subject is just over one and a half years in Hong Kong,
on the whole, consider it good for normal business engagements on secured basis
for the time being.
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 |
|
US Dollar |
1 |
Rs.49.18 |
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UK Pound |
1 |
Rs.76.65 |
|
Euro |
1 |
Rs.66.63 |
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.