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Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
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Name : |
BKK GEMS LTD. |
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Registered Office : |
Flat A, 8/F., Pacific Building, 65-67 Kimberley Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
04.05.2012. |
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Com. Reg. No.: |
59753721 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of gems, diamonds, etc. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
-- |
NB |
New Business |
-- |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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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 |
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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
BKK GEMS
LTD.
ADDRESS: Flat A, 8/F., Pacific
Building, 65-67 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.
Managing Director: Mr. Siddhanth
Arun Jain
Incorporated on: 4th
May, 2012.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Gem Trader.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Flat A, 8/F., Pacific Building, 65-67 Kimberley Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated Company:-
K.C. Gems House Co. Ltd.
919/357, Jewelry Trade Centre, 28/F., Silom Road, Silom, Bangrak,
Bangkok 10500, Thailand.
[Tel: (662) 6300817
Fax: (662) 6300818
E-mail: kcgupta999@hotmail.com]
59753721
1739837
Managing Director: Mr. Siddhanth
Arun Jain
Nominal Share Capital: HK$10,000.00 (Divided into 1,000 shares of
HK$10.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 04-05-2012)
|
Name |
|
No. of shares |
|
Kailash Chand GUPTA |
|
400 |
|
Siddhanth Arun JAIN |
|
400 |
|
Niraj Pravinbhai SHAH |
|
200 |
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|
|
––––– |
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|
Total: |
1,000 ==== |
(As per registry dated 04-05-2012)
|
Name (Nationality) |
Address |
|
Kailash Chand GUPTA |
919/308, Jewellry Trade Centre, Silom Road, Bangkok, Thailand. |
|
Siddhanth Arun JAIN |
Flat A, 3/F., Carson Mansion, 61-63 Kimberley Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 04-05-2012)
|
Name |
Address |
|
Niraj Pravinbhai SHAH |
Flat A, 8/F., Pacific Building, 65-67 Kimberley Road, Tsimshatsui,
Kowloon, Hong Kong. |
The subject was incorporated on 4th May, 2012 as a private limited liability
company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of gems, diamonds, etc.
Employees: Nil.
Commodities Imported: India, other Asian countries, etc.
Markets: Hong
Kong, China, other Asian countries, etc.
Terms/Sales:
L/C, Advanced T/T,
etc.
Terms/Buying: L/C,
T/T, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 1,000 shares of
HK$10.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Is
making 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.
Having issued 1,000 ordinary shares of HK$10.00 each, BKK Gems Ltd. is jointly
owned by Mr. Kailash Chand Gupta, holding 40% interests; Mr. Siddhanth
Arun Jain, holding 40%; Mr. Niraj Pravinbhai Shah, 20%.
All are India merchants. However,
Jain is a Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently
The subject’s registered address is in a private building located at
Flat A, 8/F., Pacific Building, 65-67 Kimberley Road, Tsimshatsui, Kowloon,
Hong Kong. This is the residence of
Niraj Pravinbhai SHAH who is also the shareholder of the subject.
The subject is trading in gems and diamonds. It is trading in the following commodities:
amethyst, rubylite, green amethyst, blue topaz, lemon topaz, citrine, smokey
topaz, kunzite, peridot, morganite, pink tourmalines, amethyst, pink topaz,
emerald, garnet, lapis-lazuli, ruby, sapphire, rose quartz, etc.
Commodities are imported from India, Thailand, other Asian countries,
etc. Prime markets are Hong Kong, China,
other Asian countries, Europe, etc.
The subject is an associated company of K.C. Gems House Co. Ltd.
[K.C. Gems] which is controlled by Kailash Chand Gupta.
K.C. Gems is also a gemstone and diamond trader. Besides gemstones and diamonds, K.C. Gems
also trades in the following commodities: galvanized ‑ plain,
corrugated, C. R., PPGI steel, sheets & coils, automotive tyres BIAS,
radial for truck, bus, tractor, etc.
The subject’s business in Hong Kong is chiefly handled by Jain. History in Hong Kong is just over eleven
months.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis.
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.54.44 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.71.33 |
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 |
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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 |
|
-- |
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.