MIRA INFORM
REPORT
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Report Date : |
12.04.2012 |
IDENTIFICATION DETAILS
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Name : |
ARIHANT
GEMS |
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Formerly Known As : |
Classic Gems |
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Registered Office : |
Flat B, 6/F., |
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Country : |
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Date of Incorporation : |
17.11.2003 |
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Com. Reg. No.: |
34068177-000-11 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees
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3. (Including associate) |
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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
ARIHANT GEMS
Flat B, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 5647
FAX: 2368 5646
E-MAIL: arihant@netvigator.com
Manager: Mr. Dharmendra Kumar Lunawat
Establishment: 17th November, 2003.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$30~35 million (Including associate)
Employees: 3. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat B, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
Arihant Gems, India.
VSD Gems, Hong Kong. (Same address)
34068177-000-11
Manager: Mr. Dharmendra Kumar Lunawat
Name: Mr. Dharmendra Kumar LUNAWAT
Residential Address: Flat B, 14/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong
Kong.
The subject was established on 17th November, 2003 as a sole proprietorship concern owned by Mr. Dharmendra Kumar Lunawat under the Hong Kong Business Registration Regulations.
A new partner Mr. Gourav Bohara who joined in on 13th December, 2005 but retired on 28th March, 2006.
Originally the subject was registered under the name of Classic Gems, name changed to the present style on 18th November, 2003.
Initially the subject was located at Flat B, 14/F., Kok Pah Mansion, 58‑60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in July 2008.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 3. (Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Australia, South Africa, US, Philippines, etc.
Annual Turnover: HK$30~35 million (Including affiliate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
· Hong Kong Gemstone Manufacturers’ Association Ltd., Hong Kong.
· Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small profit in the past three years.
Condition: Business is normal.
Facilities: Making rather 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.
Arihant Gems is a sole proprietorship set up in November 2003 and owned by Mr. Dharmendra Kumar Lunawat, an Indian who has been in Hong Kong for a very long time. Lunawat is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is a diamond and gemstone trader. It has got an associate known as VSD Gems, also a sole proprietorship, located at its operating address. VSD Gems is owned by Mr. Sunil Kumar Lunawat and engaged in the same lines of business as the subject. The two Lunawats seemed belongs to the same family.
The subject is an importer and wholesaler of loose diamonds and colour precious stones. It is specialized in brilliant cut diamonds of all colours and sizes (white, TTLB, TTLC,) and fancy shapes (tapper, bagguate, marquise, princesscut, rose cut, briollete) in all price range as well as carat size of all prices. Other significant products are tourmaline stones, emerald stones, loose sapphire and emerald, etc.
Besides, the subject also carries colour stones in emerald, ruby, and sapphire (pink sapphire, yellow sapphire, blue sapphire, green garnet [Tsavorite], princess cut, marquise, ovals, round and fancy sapphire) and also semi precious stones like Blue Topaz, Amethyst, Citrine, Peridot, Aquamarine, Garnet, etc. Commodities are imported from India, Belgium, other European countries, etc. India is the main supplying country.
The subject has had an associated company bearing the same name in Jaipur, India. India Arihant Gems is also owned by the Lunawats family.
Prime markets are Japan, Australia, South Africa, the United States, the Philippines, etc. Business is normal.
The annual sales turnover of the two firms ranges from HK$30 to 35 million. Making a small profit every year.
The history of the subject in Hong Kong is over eight years and four months in Hong Kong.
On the whole, consider the subject good for 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.51.55 |
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UK Pound |
1 |
Rs.81.95 |
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Euro |
1 |
Rs.67.57 |
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.