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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
SUNNY
GEM CO. |
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Registered Office : |
Unit 15, 11/F., Block A, Focal Industrial Centre, |
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Country : |
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Date of Incorporation : |
05.01.1989 |
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Com. Reg. No.: |
12388773-000-01 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and gem stones, emerald, precious stones, etc. |
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No. of Employees : |
03 |
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 – 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 |
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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 |
SUNNY GEM CO.
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
Manager: Mr. Sunil Mundra
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.
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]
12388773-000-01
Manager: Mr. Sunil Mundra
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.
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 |
01-04-1998 |
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Simla Mundra |
01-04-1993 |
26-05-1994 |
|
Sunil Mundra |
01-04-1995 |
02-05-2002 |
|
Vinod Mundra |
04-07-1996 |
01-04-2003 |
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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.
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.
Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
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.
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 |
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Ruby |
From India |
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Sapphire (blue or coloured) |
From India |
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Diamond |
From India |
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Diamond Jewellery |
From India |
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Other Precious Stones |
From India |
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Pearl Jewellery |
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Men’s Jewellery |
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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
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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
|
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 |
|
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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 |
|
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.