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Report Date : |
06.04.2013 |
IDENTIFICATION DETAILS
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Name : |
R.D. GEM LTD. |
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Registered Office : |
Flat 1201, 12/F., Fu |
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Country : |
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Date of Incorporation : |
21.11.2007 |
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Com. Reg. No.: |
38660913 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Diamond Trader of all kinds of diamonds and jewellery products, emerald, precious stones, etc. |
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No. of Employees : |
4 |
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
|
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
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Source
: CIA |
R.D. GEM
LTD.
Flat 1201, 12/F., Fu
Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2766 2008
FAX: 2766 2040
Managing
Director: Mr. Bharat Babubhai Mangukiya
Incorporated on: 21st November, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$3,500,000.00
Issued: HK$3,500,000.00
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
R.D. GEM
LTD.
Registered
Head Office:-
Flat 1201, 12/F.,
Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong
Kong.
Associated
Company:-
Riddhi
Diamonds, India.
38660913
1187492
Managing
Director: Mr. Bharat Babubhai Mangukiya
Nominal Share
Capital: HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share
Capital: HK$3,500,000.00
(As per registry dated 21-11-2011)
|
Name |
|
No.
of shares |
|
Bharat Babubhai MANGUKIYA |
|
3,500,000 ======= |
(As per registry dated 21-11-2011)
|
Name (Nationality) |
Address |
|
Bharat
Babubhai MANGUKIYA |
Tower No. 6, 23/F., Block B, Laguna Verde
Avenue, No. 8 Laguna Verde, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 21-11-2011)
|
Name |
Address |
Co.
No. |
|
Lodestar
Secretaries Ltd. |
13/F., Wah Kit Commercial Center, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The
subject was incorporated on 21st November, 2007 as a private limited liability
company under the Hong Kong Companies Ordinance.
Last
two times the subject was located at Flat 404A, 4/F., Fu Hang Industrial
Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to Flat
404B in July 2010 and further to the present address in May 2012.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Diamond Trader.
Lines: All kinds of diamonds and jewellery products, emerald, precious stones, etc.
Brand Name: R.D.GEm.
Employees: 4.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, India, other Asian countries, etc.
Terms/Sales: L/C and T/T.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital:
HK$3,500,000.00 (Divided into 3,500,000 shares of HK$1.00 each)
Issued Share
Capital: HK$3,500,000.00
Alternation
of Capital:-
|
21-11-2007 |
paid up |
HK$ 10,000.00 |
|
14-03-2008 |
paid up |
HK$ 1,990,000.00 |
|
21-02-2011 |
paid up |
HK$ 1,500,000.00 |
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|
|
––––––––––––––– |
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Total: |
paid up |
HK$ 3,500,000.00 ============== |
Increases
of Nominal Capital:-
|
From |
HK $10,000.00 |
to |
HK$2,000,000.00 |
on |
14-03-2008 |
|
From |
HK$2,000,000.00 |
to |
HK$3,500,000.00 |
on |
21-02-2011 |
Indebtedness: HK$3,097,811.94 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 21-11-2011)
Mortgage or charge: (See attachment)
Profit or Loss: Making a small profit.
Condition: Business is normal.
Facilities: Making rather 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.
Incorporated
in November 2007 and having issued 3.5 million ordinary shares of HK$1.00 each,
R.D. Gem Ltd. is wholly-owned by Mr. Bharat Babubhai Mangukiya who is an
Indian. Mangukiya is an India passport
holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the
subject. He can be reached at his mobile
phone number 9642 7035 or 9793 9444.
Formerly
the subject had shared the office with Perry Gems (Hong Kong) Ltd. [Perry]
which is a Hong Kong-registered company.
It moved to the present address in May 2012.
The
subject is a supplier of single cut and full cut diamonds in Hong Kong. Natural diamonds roughs directly procure from
mines and single cut diamonds polished in its factory in Botad and Bhavnagar
which is the prime manufacturing cities for single cut diamond and full cut
diamonds polishes in its factory in Surat.
Its experience of 30 years in this field has enabled it to provide
guaranteed and quality service to its customers worldwide.
The
subject has had an associated company in Mumbai, India known as Riddhi
Diamonds.
The
followings are the main products of the subject:-
·
Single Cut Diamonds
White, OW, TTLB, TLB, TTLC, White Natts and Dark Natts in -2, Star and Mele;
·
Full Cut Diamonds
White, OW, TTLB, TLB, DB & Black in -2, Star, Mele and Eleven.
Most
of the products bear the brand name R.D.GEm and are exported to
worldwide countries.
The
subject’s business is chiefly handled by Mangukiya himself. Sometimes he is in India acquiring diamonds.
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 “HKTDC Hong
Kong International Jewellery Show 2012” which had been held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 16th
to 20th February, 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
current office is owned by the subject.
The
history of the subject in Hong Kong is over four years and ten months, on the whole,
consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
06-04-2011 |
Instrument: Floating
Charge Property: By way of
floating charge the undertaking of the Company and all its property whatsoever
and wheresoever both present and future including its uncalled capital for
the time being Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
All monies and liabilities |
|
29-04-2011 |
Instrument: Mortgage Property: 12/3,442nd parts
or shares of and in Section A of Kowloon Marine Lot No. 113 (Unit No. 1 on
12/F. of Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.) Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure “all moneys” in respect of general banking facilities |
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.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
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UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION
DETAILS
|
Report Prepared by : |
MNL |
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 |
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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 |
---- |
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.