MIRA INFORM REPORT

 

 

Report Date :

16.04.2012

 

IDENTIFICATION DETAILS

 

Name :

INTER-GEMS  (H.K.)  LTD.

 

 

Registered Office :

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

15.10.1997

 

 

Com. Reg. No.:

21311654

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc.

 

 

No. of Employees :

50.  (Including affiliates)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

INTER-GEMS  (H.K.)  LTD.

 

 

Company ADDRESS

 

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2368 5589

FAX:     2368 9116

E-MAIL:            dipan@inter-gemshk.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Dipan Jagdish Patel

 

 

SUMMARY

 

Incorporated on:             15th October, 1997.

 

Organization:                  Private Limited Company.

 

Capital:                         Nominal:           HK$501,000.00

Issued:              HK$501,000.00

 

Business Category:        Jewellery Trader.

 

Group Turnover:                          Rs 188,995.87 million  (Year ended 31-03-2010)

 

Employees:                    50.  (Including affiliates)

 

Main Dealing Banker:     Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


company ADDRESS

 

Registered Head Office:-

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

 

Holding Company:-

Shrenuj (Mauritius) Pvt. Ltd., Mauritius.

 

Ultimate Holding Company:-

Shrenuj & Co. Ltd., India.

 

Associated/Affiliated Companies:-

Shrenuj Group of Companies

Alija International Pty. Ltd., Australia.

Arisia Jewellery Pvt. Ltd., India.

Astral Holding Inc., USA.

Astral Jewels LLC, USA.

Astral USA Inc., USA.

Bernie’s International LLC, USA.

Copem & Shrenuj, Italy.

Daily Jewellery Ltd., Hong Kong.  [Trading as Joeliesse]  (Same address)

Ever Gold (HK) Ltd., Hong Kong.  (Same address)

Facet (Hong Kong) Ltd., Hong Kong.  (Same address)

Global Marine Diamond Corporation, USA.

Jomard SAS, France.

Kiara Jewellery (H.K.) Ltd., Hong Kong.  (Same address)

Kiara Jewellery Pvt. Ltd., India.

Lume Germany GmbH, Germany.

Lume Group AG, Switzerland.

Shrenuj (Shanghai) Diamonds Pvt. Ltd., China.

Shrenuj Australia Pty. Ltd., Australia.

Shrenuj Botswana Pty. Ltd., Botswana.

Shrenuj Diajewels Ltd., India.

Shrenuj DMCC, UAE.

Shrenuj Gems & Jewellery Ltd., India.

Shrenuj GmbH, Germany.

Shrenuj Japan Corporation, Japan.

Shrenuj Jewelry (Far East) Ltd., Hong Kong.  (Same address)

Shrenuj Lifestyle Ltd., India.

Shrenuj N.V., Belgium.

Shrenuj Overseas Ltd., India.

Shrenuj South Africa Pty. Ltd., South Africa.

Shrenuj USA LLC, USA.

Simon Golub & Sons Inc., USA.

SWA Trading Ltd., Israel.

Trapz LLC, USA.

etc.

 

BUSINESS REGISTRATION NUMBER

 

21311654

 

 

COMPANY FILE NUMBER

 

0626569

 

 

MANAGEMENT

 

Managing Director:  Mr. Dipan Jagdish Patel

 

 

CAPITAL

 

Nominal Share Capital: HK$501,000.00 (Divided into 501,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$501,000.00

 

 

SHAREHOLDERS

(As per registry dated 15-10-2011)

 

Name

 

No. of shares

Dipan Jagdish PATEL

 

5,010

Anita PATEL

 

70,140

Shrenuj (Mauritius) Pvt. Ltd.

St. James Court, Suite 308, St. Denis Street, Port Louis, Republic of Mauritius.

 

425,850

 

 

–––––––

 

Total:

501,000

======

 

 

DIRECTORS

(As per registry dated 15-10-2011)

 

Name

(Nationality)

 

Address

Dipan Jagdish PATEL

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

 

Vishal Shreyas DOSHI

162, Neelamber, 37, Gopalrao Deshmukh Marg, Mumbai 400026, M.S., India.

 

Anita PATEL

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

 

Dipan Jagdish PATEL  (As per registry dated 15-10-2011)

 

 

HISTORY

 

The subject was incorporated on 15th October, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 707, 7/F., Kowloon Centre, 33 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in March 2004.

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, emerald, precious stones, etc.

 

Employees:                   50.  (Including affiliates)

 

Commodities Imported:   India, Belgium, Israel, other European countries, etc.

 

Markets:                       Japan, other Asian countries, etc.

 

Group Turnover: Rs 146,010.03 million  (Year ended 31-03-2009)

Rs 188,995.87 million  (Year ended 31-03-2010)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 


MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKI0277]

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:                           HK$501,000.00 (Divided into 501,000 shares of HK$1.00 each)

 

Issued Share Capital:                             HK$501,000.00

 

Mortgage or Charge (since 2008):             (See attachment)

 

Group Profit After Taxation:                     Rs 2,369.38 million  (Year ended 31-03-2009)

Rs 5,115.88 million  (Year ended 31-03-2010)

 

Profit or Loss:                                        Making a small profit every year.

 

Condition:                                              Keeping in an active condition.

 

Facilities:                                              Making active use of general banking facilities.

 

Payment:                                              Met trade commitments as contracted.

 

Commercial Morality:                             Satisfactory.

 

Bankers:-

Hang Seng Bank Ltd., Hong Kong.

ICICI Bank Ltd., Hong Kong Branch.

Bank of India, Hong Kong Branch.

Punjab National Bank, Hong Kong Branch.

 

Standing:                                              Good.

 

 

GENERAL

 

Having issued 501,000 ordinary shares of HK$1.00 each, Inter-Gems (H.K.) Ltd. is a subsidiary company of Shrenuj (Mauritius) Pvt. Ltd. which is a Mauritius-registered firm.  The ultimate holding company of the subject Shrenuj & Co. Ltd. [Shrenuj] is an India-based firm.  The subject is chiefly owned by the Patel family, all of whom are Indian.

Located at its operating address, the subject has had a number of associated companies while the main one is Shrenuj Jewelry (Far East) Ltd.

The subject is a diamond importer, exporter and wholesaler.  It is dealing in jewellery ranging from 2 points to 2 carats, and in all colours — from D to L colours and all shades of brown.  Products include single cuts, full cuts and fancy shapes — such as princess, baguettes, marquise, pearl, oval, emerald and heart.  It is trading in the following products:-

Finished Jewellery

·         Diamond Jewellery

1.       White Diamond Jewellery

·         Gem Set Jewellery

2.       Emerald Jewellery

3.       Ruby Jewellery

4.       Sapphire Jewellery

·         Gold Jewellery

1.       14K Gold Jewellery

2.       18K Gold Jewellery

3.       Fineness not Specified

 

Materials

·         Diamond

1.       Polished White Diamond

·         Precious gemstones

2.       Polished Ruby

3.       Polished Sapphire

·         Findings

1.       Chain

Rough diamonds are imported from India, Belgium, Israel and other European countries, etc.  Polished and cut products are exported to Japan, Southeast Asia, the Middle East, etc.  Business is rather active.

The subject also markets its product online.  It sells its product via the website “BusyTrade.com”.  The subject is a DTC Sight Holder.

Shrenuj is a listed firm with shares actively traded on Bombay Stock Exchange [BSE] and National Stock Exchange [NSE].  Shrenuj is one of the largest diamond and jewellery manufacturing companies in India having an international presence in 15 countries with a geographically diversified customer base, favourable economies of scale, ability to source roughs from strategic partners, growing retail presence and market linked production mix.  Its activities are carried out in accordance with good corporate practices.

Shrenuj’s policies and practices are not only consistent with the statutory requirement but also underline its commitment to operate in the best interest of the stakeholders.  It will continue to focus its resources, strengths and strategies to achieve its vision of becoming a global company, while upholding the core values of transparency, integrity, honesty and accountability.

For the year ended 31st March, 2010, the turnover of the Shrenuj Group amounted to Rs 188,995.87 million (2009: Rs 146,010.03 million).  Group profit after taxation for the year was Rs 5,115.88 million (2009: Rs 2,369.38 million).

The subject is fully supported by the Shrenuj Group.

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 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.

Since the history of the subject in Hong Kong is over fourteen years and two months, on the whole, consider it good for normal business engagements.

 

 

 

 

 

REMARKS

 

            Property information of the company:-

1.         Property Location:          Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

Owner:  Inter-Gems (H.K.) Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

30-09-2008

-

Hang Seng Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

 

2.         Property Location:          Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

Owner:  Inter-Gems (H.K.) Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

30-09-2008

-

Hang Seng Bank Ltd., Hong Kong.

Mortgage to secure general banking facilities

 

 

MORTGAGE OR CHARGE

(Since 2008)

 

Date

Particulars

Amount

07-04-2008

Instrument:        Debenture

Property:

1)         Assign to the Bank the proceeds of each policy of insurance

2)         Charge to the Bank by way of a floating charge all shares, stock, bonds, debentures, certificates of deposit, promissory notes, warrants, futures, options, funds, units, notes and other securities

3)         Charge to the Bank by way of floating charge all book debts and other debts

4)         Charge to the Bank by way of floating charge all negotiable instruments

5)         Charge to the Bank by way of floating charge all funds

6)         Charge to the Bank by way of floating charge all choses in action and claims

Mortgagee:        ICICI Bank Ltd., Hong Kong Branch.

All monies

30-09-2008

Instrument:        Mortgage

Property:

12/428,830th parts or shares of and in Tung Chung Town Lot No. 5 (Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.)

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

30-09-2008

Instrument:        Mortgage

Property:

12/428,830th parts or shares of and in Tung Chung Town Lot No. 5 (Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.)

Mortgagee:        Hang Seng Bank Ltd., Hong Kong.

To secure all moneys in respect of general banking facilities

07-10-2010

Instrument:        Charge on Deposit

Property:

Account No.      Sum     Deposit Dated

6841000054       US$204,000.00  14-03-2010
6841000066       US$250,000.00  22-07-2010
6841000069       US$250,000.00  05-09-2010

Mortgagee:        Punjab National Bank, Hong Kong Branch.

To secure all monies in respect of banking facilities

19-10-2011

Instrument:        Supplemental Debenture

Property:

B way of a floating charge the whole of the Customer’s stocks of raw materials, goods-in-process, inventory, semi-finished goods, consumable stores and spares and other movables

Mortgagee:        ICICI Bank Ltd., Hong Kong Branch.

All monies


DIAMOND INDUSTRY – INDIA

 

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

RATING EXPLANATIONS

 

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

--

NB

                                       New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.