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Report Date : |
23.06.2012 |
IDENTIFICATION DETAILS
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Name : |
COSMOPOLITAN GEMS |
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Registered Office : |
Room 1601, 16/F., |
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Country : |
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Date of Incorporation : |
01.07.1996 |
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Com. Reg. No.: |
20027177-000-07 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds, precious stones, semi-precious stones, etc. |
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No. of Employees : |
1 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Small Company |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
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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 |
COSMOPOLITAN GEMS
ADDRESS: Room 1601, 16/F., Star Mansion,
3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2366 9651; 5198 9805 (mobile)
FAX: 2739 7005
Manager: Ms. Raj Shree Parwal
Establishment: 1st July, 1996.
Organization: Sole Proprietorship.
Capital: Not
disclosed.
Business Category: Diamond
Trader.
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Fair.
Head Office:-
Room 1601, 16/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon,
Hong Kong.
20027177-000-07
Manager: Ms. Raj Shree Parwal
Contact Person: Mr. Vithani
Rajesh
Name: Ms. Raj Shree PARWAL
Residential Address: Room
1601, 16/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 1st July, 1996 as a sole proprietorship
concern owned by Ms. Raj Shree Parwal under the Hong Kong Business Registration
Regulations.
Formerly, the subject was located at Flat E, 16/F., Star Mansion, 3-5
Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A (renamed Flat 1 or
Room 1601) of the same floor and same building in June 2008.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds, precious stones, semi-precious stones, etc.
Employee: 1.
Commodities Imported: India, Belgium, Israel, other Asian countries, etc.
Markets: Hong
Kong, Japan, India, other Asian countries, etc.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C, T/T, etc.
Capital: Not
disclosed.
Profit & Loss: Made very small profits 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.
Cosmopolitan Gems is a sole proprietorship set up and owned by
Ms. Raj Shree Parwal who is an Indian residing in Hong Kong for a
very long time. She is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently.
The subject’s registered and operating address is located at Room 1601,
16/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong which is
in a residential building. The subject’s
registered address is also the residential address of the sole proprietor.
The subject is a diamond, precious, semi-precious stone and jewellery
product trader and wholesaler. However,
its chief products are loose diamonds packed in plastic bags.
Its loose diamonds, black diamonds and rough diamonds are chiefly
imported from India, Belgium and other European countries, etc. Rough diamonds and precious stones are
polished or processed in Hong Kong or China.
Single-Cut and polished diamonds are marketed in Hong Kong, exported to
Japan, India, other Asian countries and North America.
According to the subject, it also trades in diamond watches.
The subject’s business is chiefly handled by Parwal herself. It has had an employee known as Ms. Vithani
Rajesh who is the contact person of the subject. She is also an Indian and she can be reached
at her mobile phone number 5198 9805.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong. For instance, it took part in “HKTDC Hong
Kong Watch & Clock Fair 2010” and “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. Besides, it is going to take part
in “HKTDC Hong Kong International Jewellery Show 2013” which will be held in
Hong Hong Convention and Exhibition Centre, Wanchai, Hong Kong during the
period of 5th to 9th March, 2013.
Over the past years, the subject was able to make small profits. It is able to maintain a number of suppliers
and customers in Asia, the United States, etc.
The history of the subject in Hong Kong is about sixteen years.
On the whole, consider it good for normal business engagements in
moderate credit amounts.
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.56.99 |
|
|
1 |
Rs.88.97 |
|
Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.