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Report Date : |
13.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
SIM GEMS LTD |
|
|
|
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Registered Office : |
Unit 808, 8/F., Hart Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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|
|
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Date of Incorporation : |
26.06.2011 |
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Com. Reg. No.: |
58773132 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS
OF DIAMONDS AND GEMSTONES. |
|
|
|
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No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
NB |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
-- |
NB |
New Business |
-- |
|
Status : |
New Company |
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Payment Behaviour : |
Unknown |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
SIM GEMS LTD.
Unit 808, 8/F.,
Hart Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2739 9717
FAX: 2739 9737
Managing
Director: Mr. Simit Satish Parikh
Incorporated on : 26th July, 2011.
Organization : Private Limited Company.
Capital: Nominal : HK$8,100,000.00
Issued: HK$1,000,000.00
Business Category : Gemstone Trader.
Group Turnover : US$20 million (2011)
Employees : 2.
Main Dealing Banker : The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation : Satisfactory.
SIM GEMS LTD.
Registered
Head Office:-
Unit 808, 8/F., Hart
Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
58773132
1642299
Managing
Director: Mr. Simit Satish Parikh
Nominal Share Capital:
HK$8,100,000.00 (Divided into 8,100,000 shares of HK$1.00 each)
Issued Share
Capital: HK$1,000,000.00
(As per registry dated 26-07-2011)
|
Name |
|
No.
of shares |
|
Simit Satish PARIKH |
|
1,000,000 ======= |
(As per registry dated 24-11-2011)
|
Name (Nationality) |
Address |
|
Simit Satish
PARIKH |
Flat D, 21/F., Tower 3, Royal Peninsula, 8
Hung Lai Road, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 26-07-2011)
|
Name |
Address |
|
Bayani
Divino Bautista PONCE |
Flat A, 8/F., Block 5, Monterey Cove, Caribbean Coast, 2 Kin Tung
Road, Tung Chung, Hong Kong. |
The
subject was incorporated on 26th July, 2011 as a private limited liability company
under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Unit 324, 3/F., Hankow Centre, 5‑15 Hankow
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect
from 15th August, 2011.
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 gemstones.
Employees : 2.
Commodities Imported : India, etc.
Markets : Hong Kong, other Asian countries, etc.
Annual Turnover : US$20 million (2011)
Terms/Sales : L/C, T/T, etc.
Terms/Buying : L/C, T/T, etc.
Nominal Share Capital : HK$8,100,000.00 (Divided into 8,100,000 shares of HK$1.00 each)
Issued Share Capital : HK$1,000,000.00
Profit or Loss : Too early to offer an opinion.
Condition : Business is under development.
Facilities : Making fairly active use of general banking facilities.
Payment : Met trade commitments as required.
Commercial Morality : Too early to comment.
Banker : The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing : Small.
Having
issued 1,000,000 ordinary shares of HK$1.00 each, Sim Gems Ltd. is wholly-owned
by Mr. Simit Satish Parikh who is an Indian.
He is a Hong Kong ID Card holder and has got the right to reside in
Hong Kong permanently.
The
subject is a diamond and gemstone trader.
It is a family owned diamond business that dates back three generations to
its beginnings in India. It has offices
in South Africa (rough sourcing), Israel (manufacturing unit), and now in Hong
Kong which is the subject. The subject
is engaged in selling and marketing its products.
According
to the subject, elf for unity, trust, commitment and excellence. The Group’s
turnover has grown from a US$10 million in 2010 to US$20 million in 2011
worldwide.
The subject’s main specialty and niche is engaged
in manufacturing 1-7 carat GIA certified rounds and offers very competitive prices
to its buyers. Its business in Hong Kong
has been expanding.
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 Hong Kong Convention and Exhibition Centre,
Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
The subject’s history in Hong Kong is just over six
months.
On the whole, since the history of the subject is
short, consider it good for normal business engagements on L/C basis for the
time being.
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.49.64 |
|
|
1 |
Rs.78.35 |
|
Euro |
1 |
Rs.65.79 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.