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Report Date : |
03.12.2012 |
IDENTIFICATION DETAILS
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Name : |
GEM STONE COMPANY |
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Registered Office : |
Room 1102, 11/F., Block A, Focal Industrial Centre, |
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Country : |
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Date of Incorporation : |
25.04.1988 |
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Com. Reg. No.: |
11754484-000-04 |
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Legal Form : |
Partnership |
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Line of Business : |
IMPORTER
AND EXPORTER OF EMERALD, RUBY, SAPPHIRE, SEMI-PRECIOUS STONES, BEADS,
DIAMONDS, JEWELLERY PRODUCTS, ETC. |
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No. of Employees : |
8 |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
Source
: CIA
GEM STONE COMPANY
Room 1102, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kolwoon, Hong Kong.
PHONE: 2376 2154
FAX: 2376 2289
E-MAIL: balugsco@netvigator.com
Manager: Mr. Bal Kishan Agarwal
Establishment: 25th
April, 1988.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Jewellery Trader.
Annual Turnover: HK$200-250
million.
Employees:
8.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong..
Banking Relation: Satisfactory.
GEM STONE COMPANY
Head Office:-
Room 1102, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kolwoon, Hong Kong.
P.O. Box 90864, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Gem Stone Company Workshop, Hong Kong.
(Same address)
[Established on 18-05-2005 under BR No. 11754484-003-04]
11754484-000-04
Manager: Mr. Bal Kishan Agarwal
Contact Person: Mr. Prateek
Agarwal
Name: Bal Kishan AGARWAL
Residential Address: Flat B,
16/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon, Hong
Kong.
Name: Ashishkumar SATYANARAYANAN
Residential Address: 13-31
Ishwarya Appartments, 11th Cross Thillai Nagar, Trichy, India.
The subject was established on 25th April, 1988 as a sole proprietorship
concern owned by Ravi Kant Agrawal under the Hong Kong Business Registration
Regulations.
The changes of owners are listed in the following table:-
|
Name |
Incoming Date |
Outgoing Date |
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Ravi Kant Agrawal |
25-04-1988 |
04-01-1993 |
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Bal Kishan Agarwal |
01-04-1991 |
--- |
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Hari Kishan Agarwal |
01-04-1991 |
31-03-2001 |
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Kumar Goyal Krishan |
14-02-1995 |
01-04-1997 |
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Ashishkumar Satyanarayanan |
05-09-2004 |
--- |
At the very beginning, the subject was located at Flat A, 8/F., Ashley
Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 16/F.,
Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong
in November 1988; to Flat D, 3/F., Hang Kwong Mansion, 25-29 Hankow Road,
Tsimshatsui, Kowloon, Hong Kong in December 1991; to Flat C, 12/F., Ashley
Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon, Hong Kong in April 2000; and
further moved to the present address in December 2003.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: Emerald, ruby, sapphire,
semi-precious stones, beads, diamonds, jewellery products, etc.
Employees: 8.
Commodities Imported: India, Thailand, Europe, US, etc.
Markets: Europe,
China, Japan, South Korea, other Asian countries, US, etc.
Annual Turnover: HK$200-250 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Operation showed profitable.
Condition:
Kept in an active manner.
Facilities:
Is making use of general banking facilities.
Payment:
Met as agreed.
Commercial Morality: Satisfactory.
Banker:
Hang Seng Bank Ltd., Hong Kong..
Standing:
Good.
Gem Stone Company is a partnership jointly owned by Mr. Bal Kishan
Agarwal and Mr. Ashishkumar Satyanarayanan.
Being India passport holders, both of the partners have been in Hong
Kong for a very long time. Now, they are
Hong Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
The contact person of the subject Mr. Prateek Agarwal can be reached at
his mobile phone number 6402 3848.
The subject is a gemstone trader and jewellery product
manufacturer. It imports, exports and
wholesales the following commodities: Amethyst, Aquamarine, Citrine, Emerald, Gamet,
Moonstone, Blue Topaz, Tourmaline, Other Coloured Gemstones, etc.
By 1980 the subject had become one of the market leaders in the supply
of Blue Topaz in Hong Kong, supplying all three shades of Sky, Swiss &
London Topaz.
In May 2005, the subject set up a workshop known as Gem Stone Company
Workshop which is also located at the subject’s operating address. With the same business registration number,
this workshop is engaged in processing and manufacturing all kinds of jewellery
products.
The subject wants to become a leading diamond supplier in Hong
Kong. In 2008, the subject entered the
diamond industry.
The subject’s raw materials are chiefly imported from India, Thailand,
Europe, the United States, etc. After
processing, finished products are exported to Europe, China, Japan, South
Korea, the other Asian countries, the United States, etc. Business is rather active. Annual sales turnover ranges from HK$200 to
250 million. Making a profit every year.
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 2013” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2013.
The subject’s business is chiefly handled by the two partners.
On the whole, as the history of the subject is over twenty-four years in
Hong Kong, 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.52 |
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1 |
Rs.87.48 |
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Euro |
1 |
Rs.70.89 |
INFORMATION DETAILS
|
Report
Prepared by : |
SHG |
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.