MIRA INFORM REPORT
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Report Date : |
10.03.2012 |
IDENTIFICATION DETAILS
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Name : |
N.
R. GEM EXPORTS |
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Registered Office : |
Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
10.05.1995 |
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Com. Reg. No.: |
19093280-000-05 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer and Exporter of all kinds of diamonds, gem stones, etc. |
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No. of Employees
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02 |
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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
N. R.
GEM EXPORTS
Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2301 3888
FAX: 2312 7888
E-MAIL: nisham9hk@hotmail.com
Manager: Mr. Mukesh Babulal Modi
Establishment: 10th May, 1995.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond and Gem Trader.
Employees: 2.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Nasaa Gem And Jewellery Company, Hong Kong. (Same address)
N Kirtikumar & Company, India.
19093280-000-05
Manager: Mr. Mukesh Babulal Modi
Name: Ms. Nimisha Mukesh MODI
Residential Address: Flat G, 13/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong
Kong.
Name: Mr. Mukesh Babulal MODI
Residential Address: Flat A, 7/F., Kim Hing Mansion, 49-51 Kimberly Road, Tsimshatsui, Kowloon, Hong
Kong.
The subject was originally established on 10th May, 1995 as a sole proprietorship concern owned by Ms. Nimisha Mukesh Modi under the Hong Kong Business Registration Regulations. Changed to a partnership firm when Mr. Mukesh Babulal Modi was admitted as a partner on 1st October, 1997.
The subject was formed to take over the business which was founded by Mr. Mukesh Babulal Modi solely on 20th May, 1994 also under the name of N. R. Gem Exports but bearing another Business Registration Number 18115548-000-05.
The old N. R. Gem Exports was initially located at Flat D, 7/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 7/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon in June 1994 and further to Room 908, 9/F., Hang Seng Bank Building, 18 Carnarvon Road, Tsimshatsui, Kowloon in January 1995. The new owner, Ms. N. M. Modi took over the business with registered address located at Room 908, 9/F., Hang Seng Bank Building, but relocated at the present address in March 1998.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds, gem stones, etc.
Employees: 2.
Commodities Imported: Imported from India, Belgium, etc.
Markets: Hong Kong, Southeast Asia, Europe, North America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit & Loss: Making a very small profit.
Condition: Business is fairly active.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Hang Seng Bank Ltd., Hong Kong.
Standing: Small.
N. R. Gem Exports (bearing BR No. 19093280) was established in May 1995 by Ms. Nimisha Mukesh Modi solely. It is a successor to the company which was originally founded by Mr. Mukesh Babulal Modi in May 1994 also under the same company name (bearing BR No. 18115548).
The subject changed to a partnership firm when Mr. M. B. Modi was admitted as a partner in October 1997.
The two partners are Indian belonging to the same Modi family. They are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
The subject does not have its own operating office. Its registered address, located at Flat D, 9/F., Lising Court, 34-36 Granville Road Tsimshatsui, Kowloon, Hong Kong is also the residence of the sole proprietor. This office is not in a commercial building but a residential building. It is likely that Ms. N. M. Modi has moved to this new address but does not make any amendments on the subject’s registration materials. It seems that the subject’s operating address is also Ms. N. M. Modi’s current residential address.
The subject is a loose, polished diamond (main) and gem stone trader. Products are imported from India, Belgium and other European countries. Some of the commodities are cut and polished diamonds. Finished products and polished diamonds are exported or re-exported to Taiwan, the Philippines, China, other Asian countries, the United States, Europe, etc. Business is normal in Hong Kong.
The subject is able to supply customers with different carats and sizes.
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 took 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 got an associated company Nasaa Gem And Jewellery Company [Nasaa Gem] which is also located at the subject’s address. Established on 14th September, 2006, Nasaa Gem is solely owned by Mr. Sugar Mukesh Modi. The business of Nasaa Gem is same as the subject. The subject and Nasaa Gem are owned and operated by the Modi family.
Besides, the subject also has got an associated company in India known as N Kirtikumar & Company which seems to be the subject’s supplier.
The subject’s history in Hong Kong is over sixteen years and nine months.
On the whole, consider the subject 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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.50.02 |
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UK Pound |
1 |
Rs.79.00 |
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Euro |
1 |
Rs.66.18 |
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.