|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
RAINBOW GEMS
(HK) LTD. |
|
|
|
|
Registered Office : |
Room 806, 8/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
26.10.2005 |
|
|
|
|
Com. Reg. No.: |
36135548 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of
diamonds, etc |
|
|
|
|
No. of Employees : |
3 |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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
Source : CIA
RAINBOW GEMS
(HK) LTD.
Room 806, 8/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2366 2312, 2367 6499
FAX: 2367 8767
E-MAIL: rainbowgems@gmail.com
Managing
Director: Mr. Pravinkumar Narsinhbhai
Donda
Incorporated on: 26th October, 2005.
Organization: Private Limited Company.
Capital: Nominal: HK$100,000.00
Issued: HK$100,000.00
Business Category: Diamond Trader.
Annual Turnover: HK$25~30 million.
Employees: 3. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
RAINBOW GEMS
(HK) LTD.
Registered
Head Office:-
Room 806, 8/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Parent
Company:-
Donda Exports
2/218, Regal
Diamond Centre Building, 11/15 Tata Road, 1 Prasad Chambers Comp., Opera House,
Mumbai, Maharashtra, India.
Associated/Affiliated
Companies:-
Fancy Rainbow Co.
Ltd., Thailand.
Rainbow Gems, Hong
Kong. (Same address)
S N Creation, Hong
Kong.
36135548
1003573
Managing
Director: Mr. Pravinkumar Narsinhbhai
Donda
Nominal Share Capital:
HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share
Capital: HK$100,000.00
(As per registry dated 26-10-2011)
|
Name |
|
No.
of shares |
|
Pravinkumar
Narsinhbhai DONDA |
|
55,000 |
|
Rashmikant
Pravinbhai DONDA |
|
10,000 |
|
Jigneshkumar Pravinbhai DONDA |
|
35,000 |
|
|
|
––––––– |
|
|
Total: |
100,000 ====== |
(As per registry dated 26-10-2011)
|
Name (Nationality) |
Address |
|
Jigneshkumar Pravinbhai DONDA |
8/F., Tung Wui Commercial Building, 27
Prat Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Pravinkumar Narsinhbhai DONDA |
8/F., Tung Wui Commercial Building, 27
Prat Avenue, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 26-10-2011)
|
Name |
Address |
Co.
No. |
|
Buttar.HK
Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan,
Kowloon, Hong Kong. |
0975326 |
The
subject was incorporated on 26th October, 2005 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at 8/F., Tung Wui Commercial Building, 27 Prat
Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in recent
months.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, etc.
Employees: 3. (Including affiliate)
Commodities Imported: Belgium India, Israel, etc.
Markets: US, Europe, Thailand, other Asian countries, etc.
Annual Turnover: HK$25~30 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)
Issued Share Capital: HK$100,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active state.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Normal.
Having
issued 100,000 ordinary shares of HK$1.00 each, Rainbow Gems (HK) Ltd. is
wholly-owned by the Donda family. The
directors are also the members of the Donda family. The Donda family is also the owner of Donda
Exports, an Indian firm located in Mumbai, Maharashtra, India and engaged in
diamonds trading.
The
subject moved to the present address in early 2012.
The
subject is a fancy diamond, rose-cut diamond, natural fancy colour diamonds trader. Its products bear the brand name “Argyle
Pink”.
The
subject has got an affiliated company Rainbow Gems located at the same
operating address. The subject and
Rainbow Gems are engaged in the same lines of business. Rainbow Gems was set up in 1997 by the Donda
family in Hong Kong. This firm is a
subsidiary of Donda Exports, India.
The
subject is a diamond broker, importer, exporter and wholesaler. Its main products are fine jewellery, fancy
diamonds, carat size diamonds, loose diamonds, diamond jewellery, etc. Products are imported from Belgium India,
Israel, etc. However, Donda Exports
seems to be a main supplier of the subject.
The subject has had a factory in Surat, India which is employing about
350 workers. The subject also has
offices in Mumbai of India and Bangkok of Thailand. The firm in Thailand is known as Fancy
Rainbow Co. Ltd.
The
subject’s products are exported to the United States, Europe, and other Asian
countries. Business has been so far
active. Annual sales turnover of the subject
and its affiliate ranges from HK$25 to 30 million. It is able to maintain a small profit every
year.
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 Hong Kong
International Jewellery Show 2012 which had been held during the period of 16th
to 20th February, 2012.
It
is also 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.
As
the history of the subject in Hong Kong is over six years, on the whole,
consider it good for normal business engagements.
Property
information of the company:-
Property Location:
Unit 6 on 8/F.,
Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.
Owner: Rainbow Gems (HK) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
26-03-2010 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
05-10-2007 |
Instrument: Assignment
of Receivables – General with Notice of Assignment Property: In consideration of the Banking
Facilities, the Customer, as beneficial owner and by way of security for the
payment of the Secured Monies, hereby assigns, and agrees to assign, to the Bank
the Receivables until all the Secured Monies have been paid or discharged Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
|
26-03-2010 |
Instrument: Mortgage Property: 188/19,060th parts or shares of and in The
Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No.
8670, Kowloon Inland Lot No. 8567 and Kowloon Inland Lot No. 7074 (Unit 6 on
8/F. of Chevalier House, 45‑51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: Hang
Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general credit facilities |
|
14-01-2011 |
Instrument: Assignment
of Insurance Policy (Two-Party) Property: All the rights, title, benefits and interests
of the Borrower in and to the Policy and the Proceeds Mortgagee: Hang
Seng Bank Ltd., Hong Kong. |
To secure all sums of money, debts and liabilities |
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.