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Report Date : |
14.12.2012 |
IDENTIFICATION DETAILS
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Name : |
GREEN
GEMS |
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Registered Office : |
Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
06.10.1984 |
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Com. Reg. No.: |
9262532-000-10 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer, Exporter and Wholesaler of Fine jewellery, gemstones, jade, emerald, ruby, sapphire, diamonds, tourmaline, aquamarine, calibrated stones, etc. |
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No. of Employees : |
04 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
Country Name |
Previous Rating (31.03.2012) |
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 |
GREEN GEMS
Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2375 0093, 2370 0030
FAX: 2730 2300
E-MAIL: surana@netvigator.com
Manager: Mr. Prafful Surana
Establishment: 6th October, 1984.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Jewellery Trader.
Annual Turnover: HK$35-40 million.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Headquarters:-
Paras Gottam & Co.
535, Tiwari Ji Ka Bagh, Acharya Kriplani Marg Adarsh Nagar, Jaipur-302004, India.
[Tel: 91-141-2606098, 2600328 Fax: 91-141-2603790
E-mail: info@pgjpr.com ]
Associated/Affiliated
Companies:-
Gemdiam, Hong Kong. (Same address)
Gemstar, India.
Green Gems Japan Co. Ltd., Japan.
Napra Gems BV BA, Belgium.
Paras Gottam & Co., India.
9262532-000-10
Manager: Mr. Prafful Surana
Name: Mr. Prafful SURANA
Residential Address: Flat
A2, 13/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Sandeep SURANA
Residential Address: Flat
7, 5/F., 5-7 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Arun JAIN
Residential Address: Room
F, 12/F., Hilton Tower, 96 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 6th October, 1984 as a sole proprietorship concern owned by Mr. Prafful Surana under the Hong Kong Business Registration Regulations. It became a partnership when Mr. Sandeep Surana joined in as a partner on 1st April, 2004. On 1st April, 2010, Mr. Arun Jain joined in as a partner too.
At the very beginning, the subject was located at Flat A2, 13/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 8/F., Block B, Ashley Mansion, 10-14 Ashley Road, Tsimshatsui, Kowloon, Hong Kong in July 1993, to Flat B, 8/F., Houng Sun Building, 45‑47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in November 1998, to Flat 7, 5/F., 5-7 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong in October 2002, and further to the present address in July 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: Fine
jewellery, gemstones, jade, emerald,
ruby, sapphire, diamonds, tourmaline,
aquamarine, calibrated stones, etc.
Employees: 4.
Commodities Imported: Imported from India, Zambia, Colombia and other African countries.
Markets: Japan, Europe, US and other Asian countries.
Annual Turnover: HK$35-40 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying Various terms.
Capital: Not disclosed.
Profit & Loss: Made small profits in the past years.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Green Gems is a partnership jointly owned by Mr. Prafful Surana and Mr. Sandeep Surana, both of whom are Indian. They are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently. The two Suranas belong to the same family. On 1st April, 2010, Mr. Arun Jain joined in as the third partner.
Business commenced in October 1984, the subject carries the following commodities: Emerald, Ruby, Sapphire, Diamonds, Tourmaline, Aquamarine, Calibrated Stones, etc.
The subject is
trading in the following products:-
l
Antique Emeral;
l
Drop-Cut
Emeralds;
l
Emerald Diamond
Jewellery Set;
l
Emerald Stones;
l
Natural Rubies;
l
Natural
Sapphires;
l
Ruby Stones;
&
l Sapphire Jewellery Set.
The subject’s headquarters is in India which was established in 1967. It is a leading manufacturer, importer and exporter of precious and semi-precious stones with vast global net work. The Indian firm has been awarded a certificate for the outstanding export performance of cut and polished stones by The export Promotion Council of India for three consecutively years. It is also a leading supplier of emeralds from Zambia, Columbia, Brazil, Pakistan and Afghanistan. Processed and polished diamonds, gemstones and other products are exported to Japan, Europe, the United States, Taiwan, and other Asian countries.
Besides the subject, the Indian headquarters has set up firms in Japan and Belgium.
The annual sales turnover ranges from HK$35 to 40 million. Overall business is satisfactory. Regular suppliers and customers have been maintained.
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 has had an associated company Gemdiam located at the same address. Established on 11th July, 2001, Gemdiam is a partnership jointly owned by three Indian, namely, Mr. Arun Jain, Mr. Geb. Shah Sweta Jain and Mr. Sweta Jain. Gemdiam is also a diamond and gemstone trader.
The subject’s history in Hong Kong is over 28 years.
On the whole, in view of the subject’s background and history, 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.54.23 |
|
UK Pound |
1 |
Rs.87.53 |
|
Euro |
1 |
Rs.70.94 |
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 |
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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 |
|
<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.