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Report Date : |
09.10.2012 |
IDENTIFICATION DETAILS
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Name : |
GEMDIAM |
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Registered Office : |
Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
11.07.2001 |
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Com. Reg. No.: |
31914929-000-07 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
GEMDIAM
ADDRESS: Flat B, 14/F., Hody
Commercial Building, 6-6A Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2375 0093, 2370 0030
FAX: 2730 2300
Manager: Mr. Arun Jain
Establishment: 11th
July, 2001.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$30~35
million.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat B, 14/F., Hody Commercial Building, 6-6A Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Gemstar, India.
Green Gems Japan Co. Ltd., Japan.
Green Gems, Hong Kong. (Same
address)
Napra Gems BVBA, Belgium.
Paras Gottam & Co., India.
31914929-000-07
Manager: Mr. Arun JAIN
Name: Mr. Arun JAIN
Residential Address: Flat B, 8/F.,
Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Geb. Shah Sweta JAIN
Residential Address: 8 Bardia
Colony M D Road, Jaipur-4, India.
Name: Mr. Sweta JAIN
Residential Address: Flat F,
12/F., Hilton Tower, 96 Granville Road, Tsimshatsui East, Kowloon, Hong Kong.
The subject was established on 11th July,
2001 as a partnership concern jointly owned by Mr. Manish Sacheti and Mr. Arun
Jain under the Hong Kong Business Registration Regulations.
The following table shows the changes of the
partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Mr. Manish SACHETI |
11-07-2001 |
01-04-2012 |
|
Mr. Arun JAIN |
11-07-2001 |
--- |
|
Mr. Geb. Shah Sweta JAIN |
01-06-2002 |
--- |
|
Mr. Sweta Jain |
01-04-2012 |
--- |
Initially the subject was located at Flat B,
8/F., Houng Sun Building, 45‑47 Carnarvon Road, Tsimshatsui,
Kowloon, Hong Kong, moved to Room 1701, 17/F., Hart Avenue Plaza, 5-9 Hart
Avenue Road, Tsimshatsui, Kowloon, Hong Kong in March 2002, and further to the
present address in October 2009.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones, etc.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, US, etc.
Markets: Japan,
India, other Asian countries, etc.
Annual Turnover: HK$30~35 million.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Making a profit every year.
Condition:
Keeping in a
rather active state.
Facilities:
Making rather active
use of general banking facilities.
Payment:
Met obligations
on time.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Gemdiam is a partnership jointly owned by three Indian, namely, Mr. Arun
Jain, Mr. Geb. Shah Sweta Jain and Mr. Sweta Jain. The third joined in as a partner on 1st
April, 2012. Sweta Jain and Arun Jain
are Hong Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
Business commenced in July 2001, the subject is a diamond and jewellery
product trader. Raw materials such as
polished and cut diamonds are imported from India, Belgium and other European
countries, etc. Rough diamonds are
wholesaled, polished and processed in Hong Kong or China. Some of the finished products and polished
diamonds are marketed in Hong Kong, exported or re-exported to Japan,
India and other Asian countries, the Middle East, Europe. Business has been rather active.
The subject has got a number of regular suppliers in Jaipur, India. It seems that the subject’s business has
become active since March 2002, the month and year when it moved to a
commercial building in Tsimshatsui, Kowloon, Hong Kong.
The subject shares the operating office with another firm Green Gems
which is also a gemstone trader. Green
Gems is trading in natural rubies, natural sapphires, ruby stones, emerald
stones and drop-cut emeralds, etc. The
manager of Green Gems is Mr. P. Surana who is also an Indian. Green Gems is a business partner of the
subject.
In order to penetrate the international market further, Green Gems has
taken part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, 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 subject has had associated or affiliated companies in Japan, Belgium
and India.
The annual sales turnover of the subject ranges from HK$30 to 35
million. Business is chiefly handled by
Sweta Jain and Arun Jain.
On the whole, as the history of the subject in Hong Kong is over eleven
years and two months, consider it good for normal business engagements.
DIAMOND INDUSTRY –
INDIA
-
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.
-
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.
-
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.52.21 |
|
|
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.67.75 |
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.