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Report Date : |
17.05.2012 |
IDENTIFICATION DETAILS
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Name : |
GOLDEN
DRAGON JEWELLERY CO. |
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Registered Office : |
Flat 01-02, 11/F., |
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Country : |
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Date of Incorporation : |
13.07.2009 |
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Com. Reg. No.: |
50883341-000-07 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and diamond products, etc. |
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No. of Employees : |
3. (Including
affiliates in |
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
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
GOLDEN DRAGON
JEWELLERY CO.
Flat 01-02, 11/F., Cammer Commercial Building, 30-32 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2721 4200
FAX: 2316 7695
E-MAIL: venusjewels@hotmail.com
Manager: Mr. Sunil Salunke
Establishment: 13th July, 2009.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond & Jewellery Trader.
Employees: 3. (Including affiliates in Hong Kong)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat 01-02, 11/F., Cammer Commercial Building, 30-32 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
Affiliated
Companies:- (Same address)
· Mercury Impex, Hong Kong.
Princess
Jewellery Co., Hong Kong.
Venus
Jewels (HK) Ltd., Hong Kong.
50883341-000-07
Manager: Mr. Sunil Salunke
Name: Sunil Salunke
Residential Address: Flat F, 12/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong
Kong.
The subject was established on 13th July, 2009 as a sole proprietorship concern owned by Mr. Sunil Salunke under the Hong Kong Business Registration Regulations.
Initially the subject was located at Flat F, 12/F., Windsor Mansion, 29‑31Chatham Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in June 2010.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamond products, etc.
Employees: 3. (Including affiliates in Hong Kong)
Commodities Imported: India, etc.
Markets: Hong Kong, Japan, other Asian countries, etc.
Terms/Sales: COD or as per contracted.
Terms/Buying: L/C, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit in 2011.
Condition: Business is improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Golden Dragon Jewellery Co. is a sole proprietorship set up and owned by Mr. Sunil Salunke who is an Indian. Being the manager of the subject, he is an India passport holder and does not have the right to reside in Hong Kong permanently.
The subject moved to the present address in June 2010. The following firms are also located at the same address:-
· Mercury Impex, Hong Kong.
· Princess Jewellery Co., Hong Kong.
· Venus Jewels (HK) Ltd., Hong Kong.
Its old registered address located at Flat F, 12/F., Windsor Mansion, 29‑31Chatham Road, Tsimshatsui, Kowloon, Hong Kong remains to be the residence of Salunke when he is in Hong Kong.
The subject is a diamond and jewellery product importer, exporter and wholesaler. It is trading in loose, polished and cut diamonds. Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and other Asian countries. Business is improving.
The subject has had a number of polished and cut diamond suppliers in Mumbai, India.
The subject’s business is chiefly handled by Salunke himself. History in Hong Kong is just over two years and ten months.
On the whole, consider the subject good for normal business engagements in small 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 |
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US Dollar |
1 |
Rs.54.29 |
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UK Pound |
1 |
Rs.86.61 |
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Euro |
1 |
Rs.68.87 |
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.