MIRA INFORM REPORT
Preliminary report
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Report Date : |
08.05.2012 |
IDENTIFICATION DETAILS
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Name : |
R.A.
GEM CENTRE LTD. |
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Registered Office : |
Room 912-913, 9/F., |
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Country : |
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Date of Incorporation : |
05.06.1998 |
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Com. Reg. No.: |
21790383 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Importer, Wholesaler and Exporter of all kinds of diamonds, precious stones, gems, etc. |
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No. of Employees : |
35 |
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 : |
Usually Correct |
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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 |
R.A. GEM
CENTRE LTD.
Room 912-913, 9/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2721 8360, 2774 8000, 2723 8587
FAX: 2311 9377
E-MAIL: info@ragemcentre.com
Managing Director: Mr. Ketan Kantilal Shah
Establishment: 1989.
Incorporated on: 5th June, 1998.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$100.00
Business Category: Diamond Trader.
Employees: 35.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 912-913, 9/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Holding Company:-
S.Vinodkumar International Pte. Ltd., Singapore.
Affiliated Companies:-
S.Vinodkumar Group of
Companies
· Bharat Trading Inc., Japan.
· Gemini Diamonds Inc., USA.
· IDI Jewels Inc., USA.
· Indian Diamond Imports Inc., USA.
· S.V. Gems N.V., Belgium.
· S.V.K. Jewels Pvt. Ltd., India.
· S.Vinodkumar Diamonds Pvt. Ltd., India.
· S.Vinodkumar DMCC, UAE.
etc.
21790383
0646505
Managing Director: Mr. Ketan Kantilal Shah
Contact Person: Mr. Chetan Shah
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
(As per registry
dated 05-06-2011)
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Name |
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No.
of shares |
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S.Vinodkumar International Pte. Ltd. 80, Raffles
Place, #25-01, UOB Plaza 1, Singapore 048624. |
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100 === |
(As per registry
dated 05-06-2011)
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Name (Nationality) |
Address |
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Nilesh Vinodrai
SHAH |
Flat H, 8/F., Kimberley Mansion, 15 Austin
Avenue, Tsimshatsui, Kowloon, Hong Kong. |
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Ketul Kumar
Chandrakant SHAH |
Room 912-913, 9/F., Harbour Centre Tower
1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 05-06-2011)
|
Name |
Address |
Co.
No. |
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Hojin
SEC Ltd. |
Room 301, 3/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong
Kong. |
0612527 |
The
subject was originally established in 1989 under the name of R.A. Gem
Centre. Re-organized and incorporated on
5th June, 1998 as a private limited liability company under the Hong Kong
Companies Ordinance.
Formerly
the subject was located at Room 1201, 12/F., Chevalier House, 45‑51
Chatham Road, Tsimshatsui, Kowloon, Hong Kong, moved to Unit 30‑31,
4/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon,
Hong Kong in May 2003, and further to the present address in March 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Manufacturer, Importer, Wholesaler and Exporter.
Lines: All kinds of diamonds, precious stones, gems, etc.
Employees: 35.
Materials/Commodities: Imported from Europe, South Africa, etc.
Markets: Southeast Asia, China, US, Europe, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T and D/P.
· Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
· Shanghai Diamond Exchange, China.
· The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$100.00
Mortgage or Charge: (See attachment)
Profit or Loss: Business is profitable.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· The Royal Bank of Scotland N.V., Hong Kong Branch.
· Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing: Normal.
R.A.
Gem Centre Ltd. is a private limited company incorporated in June 1998. It was jointly owned by two Indian: Mr. Ketan
Kantilal Shah and Ms. Abhaykumar Sumatilal Shah. Now, it has become a wholly-owned subsidiary
of S.Vinodkumar International Pte. Ltd. which is a Singapore‑based
firm. The directors of the subject are
Nilesh Vinodrai Shah and Ketul Kumar Chandrakant Shah. The two Shahs belong to the same family.
The
subject is a diamond importer and exporter.
For
three consecutive years since 1988, the subject had been awarded the “Second
Highest Importer of Diamonds” (Southeast Asia region) by the Indian Jewelry
Council. From 2002 to 2009, the subject
had been conferred the title of “Best Supporter of Loose Diamond Supplier in
Hong Kong”.
The
Shahs established R.A. Gem Centre, which was the subject’s predecessor, in
1989. Now, the subject is engaged in
manufacturing, wholesaling and exporting loose diamonds, brownish yellow
diamonds, etc. Imported from India and
Belgium, most of the diamonds have been certified by GIA, HRD and IGI.
The
subject has been serving the jewellery manufacturing customers for over 20
years. It is catering to more than 300
customers, both jewellery manufacturers and retailers.
The
subject is one of the members of S.Vinodkumar Group of Companies [Group] of
India. It is the pioneer trading company
catering the diamond market of Hong Kong as well as other Asian countries. It also has got its market share in Hong
Kong.
In
April 2003, the subject moved to Hunghom where is the jewellery district of
Hong Kong. The subject’s floor area
including a workshop covers nearly 14,000 sq.ft. with more than 35 staff. This office is fully equipped with fuller and
wider range of diamonds in all colours and sizes, providing a one-stop shop for
all walks of customers.
The
latest development of the Group is the penetration of the China market. Its first branch office was set up in
Shanghai, the hub of diamond marketplace in Mainland China.
Besides
the subject in Hong Kong, the Group has established several branch offices in
other major cities such as Tokyo, Mumbai, New York, Dubai, Los Angles and
Antwerp.
The
subject’s major markets are China, Japan, Taiwan, South Korea, the Philippines
and Hong Kong.
Rough
stones used by the subject are sourced from Belgium. Then they are shipped to the three production
plants located in India for cutting and polishing. Sizes of polished stones range from 0.005
points to 3 carats. Almost all colours
are available. Stones can be provided in
any shape that customers would request.
The
subject is also specialized in providing certified stones from sizes 0.30 to
5.00 carats.
The
subject constantly has maintained a stock in abundance in order to cater not
only general orders but big ones as well.
In
India, the subject is one of the top importers of polished and cut diamonds.
In
Hong Kong, the subject’s round diamond remained the best-sellers among
jewellery manufacturers in the region.
The
subject gets its supply of smaller sizes of medium to commercial make from
manufacturers in India mainly, including top exporter S. Vinod Kumar & Co.
in Mumbai. Larger sizes and stones of
finer make are imported from Antwerp in Belgium and New York.
Mr.
Chetan Shah is the contact person of the subject.
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. In Hong Kong it usually takes part in Hong
Kong International Jewellery Show, Hong Kong Jewellery & Gem Fair every
year. The second Show is held in Hong
Kong twice a year.
For
instance, the subject is going to take part in “HKTDC Hong Kong International
Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period
of 16th to 20th February, 2012.
The
annual sales turnover of the Group is very significant.
The
subject is fully supported by the Group and the Shah family of India.
On the whole,
consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
Property Location: Workshop Unit No. 12 & 13 on
9/F.. Harbour Centre Tower 1,
1 Hok Cheung Street, Kowloon, Hong Kong.
Owner: R.A. Gem Centre Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
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13-06-2008 |
- |
Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV),
Hong Kong Branch. |
Mortgage to secure general banking facilities |
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Date |
Particulars |
Amount |
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15-10-2003 |
Instrument: Debenture Property: 1) All freehold and leasehold
property of the Company 2) All stocks shares bonds and
securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 3) All book and other debts
revenues and claims 4) The uncalled goodwill and
all patents patent applications trade marks trade names registered designs
and copyrights and all licences and ancillary and connected rights relating
to the intangible property 5) The undertaking and all other assets of the
Company Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
The general credit faciliteis for the sum of HK$46,800,000 |
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13-06-2008 |
Instrument: Mortgage Property: 172/13,205th parts or shares of and in
Section F of Kowloon Marine Lot No. 113 and Section H of Kowloon Marine Lot
No. 113 (Workshop Unit No. 12 & 13 on 9/F. of Harbour Centre Tower 1, 1
Hok Cheung Street, Kowloon, Hong Kong.) Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
All sums |
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 |
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US Dollar |
1 |
Rs.53.34 |
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UK Pound |
1 |
Rs.86.09 |
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Euro |
1 |
Rs.69.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.