MIRA INFORM REPORT

 

 

Report Date :

30.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SUNNY  GEM  CO.

 

 

Registered Office :

Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

05.01.1989

 

 

Com. Reg. No.:

12388773-000-01

 

 

Legal Form :

Partnership

 

 

Line of Business :

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

 

 

No. of Employees :

03

 

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 :

Usually Correct 

 

 

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

 

SUNNY  GEM  CO.

 

 

Company ADDRESS

 

Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

PHONE:            2722 5574

FAX:                 2311 0850

E-MAIL:                        sales@sunnygemco.com

 

 

MANAGEMENT

 

Manager:  Mr. Sunil Mundra

 

 

SUMMARY

 

Establishment:                          5th January, 1989.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Gem and Precious Stone Trader.

 

Employees:                   3.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


Company ADDRESS

 

Head Office:-

·         Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

P.O. Box 97152, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.

 

China Office:-

Guangzhou, Guangdong Province, China.

[Tel:      (86-20) 6194 1655, 6194 1669

Fax:      (86-20) 6194 1645

Mobile:  (86) 150 1891 8306]

 

 

BUSINESS REGISTRATION NUMBER

 

12388773-000-01

 

 

MANAGEMENT

 

Manager:  Mr. Sunil Mundra

 

 

PARTNERS

 

Name:                           Mr. Sunil MUNDRA

Residential Address:      House C, 11B Cambridge Road, Kowloon Tong, Kowloon, Hong Kong.

 

Name:                           Mr. Priyanka MUNDRA

Residential Address:      House C, 11B Cambridge Road, Kowloon Tong, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was established on 5th January, 1989 as a sole proprietorship concern owned by Mr. Rajendra Kumar Maheshwari under the Hong Kong Business Registration Regulations.

 

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Rajendra Kumar Maheshwari

05-01-1989

20-04-1989

Rajendra Kumar Mundra

10-04-1989
01-04-2002

01-04-1998
01-04-2010

Simla Mundra

01-04-1993
01-04-1995

26-05-1994
01-04-2010

Sunil Mundra

01-04-1995
16-08-2002

02-05-2002
-

Vinod Mundra

04-07-1996

01-04-2003

Priyanka MUNDRA

01-04-2010

-

 

Initially the subject was located at Flat C, 17/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong., moved to Flat F & G, 16/F. of the same building in January 1996; to Flat F & G, 17/F.of the same building in December 1998; moved back to Flat C, 17/F. of the same building in July 2004; and further to the present address in June 2005.

 

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 gem stones, emerald, precious stones, etc.

 

Employees:                   3.

 

Commodities Imported:   India, Belgium, Israel, Thailand, etc.

 

Markets:                       China, Japan, Southeast Asia, Europe, Middle East, Scandinavia, etc.

 

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

 

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

 

 

MEMBERSHIP

 

Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

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.

 

Banker:                         The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:                      Normal.

 

 

GENERAL

 

Sunny Gem Co. is a partnership owned by the Mundra family.  Set up on 5th January, 1989, the subject was jointly owned by three Indian partners: Rajendra Kumar Mundra, Simla Mundra and Sunil Mundra.  On 1st April, 2010, the partners were changed.  Now, the subject is jointly owned by Sunil Mundra and Priyanka Mundra.  The latter joined in the subject as a partner on 1st April, 2010.

 

The subject is trading in the following commodities:-

Product/Service

Product/Service Remarks

Emerald (Round-Cut and Oval-Cut)

From India

Ruby

From India

Sapphire (blue or coloured)

From India

Diamond

From India

Diamond Jewellery

From India

Other Precious Stones

From India

Pearl Jewellery

 

Men’s Jewellery

 

 

The subject has got a number of affiliated suppliers in India.  Prime markets are China, Hong Kong, Japan, Southeast Asia, Taiwan, North America, Eastern and Western Europe, etc.

 

In Hong Kong, the subject has had a business partner known as Sunlight Jewelers Hong Kong Ltd. [Sunlight].  Sunlight has had an affiliated factory in China employing about 200 persons.  At present, Sunlight is located at the next door of the subject.

 

The subject has set up an office in Guangzhou, Guangdong Province, China.

 

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 took part in “HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th to 20th February, 2012.  It also took part in China International Gold Jewellery & Gem Fair 2012 which had been held in Shenzhen Special Economic Zone, China during the period of 10th to 13th February, 2012

 

Besides, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.

Since the history of the subject in Hong Kong is over twenty-three years and three months, it has developed closed business with a number of regular suppliers and foreign customers.  Business is rather active and steady.

On the whole, consider it good for normal business engagements.


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.52.68

UK Pound

1

Rs.85.12

Euro

1

Rs.69.38

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.