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Report Date : |
12.08.2013 |
IDENTIFICATION DETAILS
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Name : |
GEM EXPORTS LTD. |
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Registered Office : |
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.03.2010 |
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Com. Reg. No.: |
52002800 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products. |
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No. of Employees : |
4. (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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,
and less than 2% in 2012. Credit expansion and tight housing supply conditions
caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in
2012. 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
GEM EXPORTS
LTD.
ADDRESS: Unit 27, 11/F., Block B, Focal Industrial
Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2723 2690, 2739 8551
FAX: 2723 6246
E-MAIL: gemexpo@netvigator.com
Managing Director: Mr. Ashok
Mundra
Incorporated on: 26th
March, 2010.
Organization: Private
Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$2,000,000.00
Business Category: Diamond Trader.
Employees: 4.
(Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon, Hong Kong.
Associated Companies:- (Same
address)
Gem Exports, Hong Kong.
Tirupati Diamonds, Hong Kong.
52002800
1436043
Managing Director: Mr. Ashok
Mundra
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
(As per registry dated 26-03-2013)
|
Name |
|
No. of shares |
|
Ashok MUNDRA |
|
1,600,000 |
|
Mukesh MUNDRA |
|
400,000 |
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–––––––– |
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Total: |
2,000,000 ======= |
(As per registry dated 26-03-2013)
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Name (Nationality) |
Address |
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Ashok MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB,
8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. |
|
Mukesh MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB,
8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 26-03-2013)
|
Name |
Address |
Co. No. |
|
Top Honour Secretarial Services Ltd. |
Unit 2501, 25/F., 113 Argyle Street, Mongkok, Kowloon, Hong Kong. |
1312187 |
The subject was incorporated on 26th March, 2010 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, Exporter and Wholesaler.
Lines: All kinds of diamonds
and jewellery products.
Employees: 4.
(Including associate)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, other Asian countries,
Europe, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
Profit or Loss: Made a small
loss in 2010.
Condition: Business is under development.
Facilities: Making rather 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.
Having issued 2 million ordinary shares of HK$1.00 each, Gem Exports
Ltd. is jointly owned by Mr. Ashok Mundra, holding 80% interests; and
Ms. Mukesh Mundra, holding 20%. The
two Mundras are Indian and each is holding a Hong Kong ID Card. The latter is an Indian businesswoman. They have got the right to reside in Hong
Kong permanently. They are also
directors of the subject.
Ashok Mundra can be reached at his mobile phone number 9301 5041.
The subject is trading in the following commodities:-
Finished Jewellery
·
Diamond Jewellery
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White Diamond Jewellery
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Gem Set Jewellery
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Emerald Jewellery
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Ruby Jewellery
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Sapphire Jewellery
Gold Jewellery
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18K Gold Jewellery
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21K Gold Jewellery
Platinum Jewellery
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Pt 750 Platinum Jewellery
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Pt 850 Platinum Jewellery
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Pt 900 Platinum Jewellery
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Pt 950 Platinum Jewellery
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Pt 990 Platinum Jewellery
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Fineness not Specified
Materials
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Diamond
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Polished White Diamond
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Polished Colour Diamond
Precious gemstones
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Polished Emerald
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Polished Ruby
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Polished Sapphire
Polished Semi
precious Gemstone
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Amethyst
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Aquamarine
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Citrine
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Garnet
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Tanzanite
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Tourmaline
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Others
Incorporated on 26th March, 2010, the subject has had a main associated
company Tirupati Diamonds [Tirupati] located at the same operating office. Tirupati is also a diamond trader.
Tirupati is a sole proprietorship set up and owned by Ms. Mukesh
Mundra. Business commenced in October
1996, Tirupati is trading in loose, cut and polished diamonds, precious stones,
gem sets, semi-precious stones, blue or coloured sapphire, etc.
The subject’s polished, cut and loose diamonds are imported from India,
Belgium, other European countries, etc.
India is its main supplying country.
Some of the rough diamonds are polished or processed in Hong Kong
or China. Finished products and polished
diamonds are marketed in Hong Kong, exported to Japan, Europe and other
Asian countries.
The business of the subject and Tirupati are chiefly handled by the two
Mundras.
Besides Tirupati, the subject has had another associate Gem Exports,
this firm is also a diamond trader and also controlled by the Mundras. Gem Exports is also located at the same
address. It is a member of The Indian
Chamber of Commerce Hong Kong which is a Hong Kong Indian businessmen
association.
The subject’s business keeps on improving. Its history in Hong Kong is over three years.
On the whole, consider the subject good for normal business engagements
in small credit amounts.
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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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 –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February 2013.
Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India
exported $ 1.84 billion worth of polished diamonds in February 2013. A senior
executive of GJEPC said, “Export of cut and polished diamonds started falling
month-wise after the imposition of 2 % of import duty on the polished diamonds.
But February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.94.77 |
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Euro |
1 |
Rs.81.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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 |
|
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.