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Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
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Name : |
NIKITA GEMS |
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Registered Office : |
Unit 9, 9/F., Block A, Hunghom Commercial Centre, |
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Country : |
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Date of Incorporation : |
20.05.2003 |
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Com. Reg. No.: |
33622918-000-05 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
03 |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
HONG KONG - ECONOMIC OVERVIEW
Hong Kong has a free market
economy, highly dependent on international trade and finance - the value of
goods and services trade, including the sizable share of re-exports, is about
four times GDP. Hong Kong's open economy left it exposed to the global economic
slowdown that began in 2008. Although increasing integration with China,
through trade, tourism, and financial links, helped it to make an initial
recovery more quickly than many observers anticipated, it again faces a
possible slowdown as exports to the Euro zone and US slump. The Hong Kong
government is promoting the Special Administrative Region (SAR) as the site for
Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to
establish RMB-denominated savings accounts; RMB-denominated corporate and
Chinese government bonds have been issued in Hong Kong; and RMB trade
settlement is allowed. The territory far exceeded the RMB conversion quota set
by Beijing for trade settlements in 2010 due to the growth of earnings from
exports to the mainland. RMB deposits grew to roughly 7.8% of total system
deposits in Hong Kong by the end of 2011, an increase of over 59% since the
beginning of the year. The government is pursuing efforts to introduce additional
use of RMB in Hong Kong financial markets and is seeking to expand the RMB
quota. The mainland has long been Hong Kong's largest trading partner,
accounting for about half of Hong Kong's exports by value. Hong Kong's natural
resources are limited, and food and raw materials must be imported. As a result
of China's easing of travel restrictions, the number of mainland tourists to
the territory has surged from 4.5 million in 2001 to 28 million in 2011,
outnumbering visitors from all other countries combined. Hong Kong has also
established itself as the premier stock market for Chinese firms seeking to
list abroad. In 2011 mainland Chinese companies constituted about 43% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the
Exchange's market capitalization. During the past decade, as Hong Kong's
manufacturing industry moved to the mainland, its service industry has grown
rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply
conditions caused Hong Kong property prices to rise rapidly in 2010 and
inflation to rise 5.3% in 2011. Lower and middle income segments of the
population are increasingly unable to afford adequate housing. Hong Kong
continues to link its currency closely to the US dollar, maintaining an
arrangement established in 1983.
Source
: CIA
NIKITA GEMS
Unit 9, 9/F.,
Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong
Kong.
PHONE: 2369 5442, 3579 2444
FAX: 2724 5442
E-MAIL: gemsnikita@yahoo.com
Manager: Mr. Virendra Banthia
Establishment: 20th
May, 2003.
Organization: Sole
Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$50~55
million.
Employees:
3.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Unit 9, 9/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road,
Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
Allied Diamonds Ltd., Hong Kong.
(Same address)
Allied Gems Corporation (Bombay), India.
Fortune Gems, Hong Kong. (Solely
owned by Mr. Ravi Prakash Chopra)
33622918-000-05
Manager: Mr. Virendra Banthia
Contact Person: Mr. Ravi Chopra
Name: Mr. Virendra BANTHIA
Residential Address: Flat 3A,
3/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 20th May, 2003 as a sole proprietorship
concern owned by Mr. Virendra Banthia under the Hong Kong Business Registration
Regulations. It become a partnership on
15th June, 2010 as Mr. Ashok Kumar Daga joined in as a partner on that
date. However, he retired on 30th
November, 2011 and the subject has become a sole proprietorship again.
Initially the subject was located at Flat 3A, 3/F., Houng Sun Building,
45‑47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat
B, 12/F., Alpha House, 27-33 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in
December 2003; to Room 1104, 11/F., Tung Shun Hing Commercial Centre, 20-22
Granville Road, Tsimshatsui, Kowloon, Hong Kong in July 2004; to Flat B, 7/F.,
Kim Hing Mansion, 49-51 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong in April
2005; to Flat B, 8/F., Valiant Commercial Building, 22-24 Prat Avenue,
Tsimshatsui, Kowloon, Hong Kong in June 2006, and further moved to the present
address in April 2011.
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.
Commodities Imported: India, other Asian countries, Belgium, other European countries,
etc.
Markets: Hong
Kong, Japan, Southeast Asia, Europe, etc.
Annual Turnover: HK$50~55 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKN0288]
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition:
Keeping in a
normal condition.
Facilities: Making active use of general banking
facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Nikita Gems was a sole
proprietorship set up and owned by Mr. Virendra Banthia who is an Indian. It has become a partnership since 15th June,
2010 as Mr. Ashok Kumar Daga joined in as a partner on that date. However the latter retired on 30th November,
2011.
Being the manager
of the subject, Banthia is a Hong Kong ID Card holder and has got the right to
reside in Hong Kong permanently.
The subject moved
to the present address in April 2011.
The subject is a
diamond importer, exporter and wholesaler.
It is carrying loose diamonds, round cut diamonds and fancy cut diamonds
in different shapes, grades and colours.
The followings are
its main products:-
· Round Diamonds;
Princess-Cut Diamonds;
Round-Cut Diamonds;
Fancy-Cut Diamonds; &
Loose Diamonds.
Finished products
and polished diamonds are exported or re-exported to Japan, other Asian
countries, Europe, North America, etc.
Business is rather active.
Commenced in May
2003, the business of the subject is chiefly handled by Banthia himself.
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 participates the “Hong Kong
International Jewellery Show” every year.
The latest one participated was Hong Kong International Jewellery Show
2012 which had been held between 16th to 20th March, 2012. Besides, it is going to take 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 annual sales
turnover of the subject ranges from HK$50 to 55 million. Making a small profit every year.
The subject has
had an associated company Allied Diamonds Ltd. which is also located at the
same operating address.
The contact person
of the subject Mr. Ravi Chopra is also an Indian.
As the history of
the subject is over nine years and three months in Hong Kong, on the
whole, consider it good for normal business engagements.
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.55.20 |
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UK Pound |
1 |
Rs.88.37 |
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Euro |
1 |
Rs.71.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.