MIRA INFORM REPORT
|
Report Date : |
21.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
VSD
GEMS |
|
|
|
|
Registered Office : |
Flat B, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
18.04.2005 |
|
|
|
|
Com. Reg. No.: |
35555559-000-04 |
|
|
|
|
Legal Form : |
Partnership. Concern |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
|
|
|
|
No. of Employees
: |
3. (Including
associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Concern |
|
Payment
Behaviour : |
No Complaints |
|
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 30th, 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 |
VSD GEMS
Flat B, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 5647
FAX: 2368 5646
E-MAIL: arihant@netvigator.com
Manager: Mr. Sunil Kumar Lunawat
Establishment: 18th April, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$10~15 million (Including associate)
Employees: 3. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat B, 6/F., Prat Commercial Building, 17-19 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Arihant Gems, Hong Kong. (Same address)
35555559-000-04
Manager: Mr. Sunil Kumar Lunawat
Name: Sunil Kumar LUNAWAT
Residential Address: Flat A-5, 8/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong
Kong.
Name: Ashish CHHAJED
Residential Address: 2335
Moti Singh Bhomiyo, Ka Rasta 1st Cross Johari, Bazar Jaipur Raj., India.
The subject was established on 18th April, 2005 as a sole proprietorship concern owned by Mr. Sunil Kumar Lunawat under the Hong Kong Business Registration Regulations. It became a partnership as Mr. Ashish Chhajed joined in as a partner on 20th May, 2011.
Initially the subject was located at Flat B, 14/F., Kok Pah Mansion, 58‑60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June 2009.
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 jewellery products, emerald, precious stones, etc.
Employees: 3. (Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Australia, South Africa, US, Philippines, etc.
Annual Turnover: HK$10~15 million (Including associate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a very small profit in the past years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
VSD Gems is a partnership set up on 18th April, 2005. Now, it is jointly owned by Mr. Sunil Kumar Lunawat and Mr. Ashish Chhajed, both of whom are Indians. The former has been in Hong Kong for a very long time. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. The latter is an India passport holder and currently residing in India. The subject moved to the present address in June 2009.
The subject is a diamond and gem trader. It has got an associate known as Arihant Gems, also a sole proprietorship located at its operating address. Also owned by Lunawat, Arihant Gems and the subject are engaged in the same lines of business.
The subject is an importer, exporter and wholesaler of diamonds and colour precious stones. It is specialized in brilliant cut diamonds of all colours and sizes (especially white, TTLB, TTLC, etc.) and fancy shapes (tapper, bagguate, marquise, princesscut, rose cut, briollete) in all price range as well as carat size of all prices. Besides, the subject also carries colour stones in emerald, ruby, and sapphire (pink sapphire, yellow sapphire, blue sapphire, green garnet [Tsavorite], princess cut, marquise, ovals, round and fancy sapphire) and also semi precious stones like Blue Topaz, Amethyst, Citrine, Peridot, Aquamarine, Garnet, etc. Most of its commodities are imported from India, Belgium, other European countries, etc. Prime markets are Hong Kong, Japan, other Asian countries, Australia, South Africa, the United States, the Philippines, etc. Business is improving.
The business of the subject and Arihant Gems is chiefly handled by Lunawat himself. The annual sales turnover of the two firms ranges from HK$10 to 15 million. Making a small profit every year.
The history of the subject in Hong Kong is about seven years. 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.49.21 |
|
UK Pound |
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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.