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Report Date : |
03.01.2013 |
IDENTIFICATION DETAILS
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Name : |
SUNNY GEM CO. |
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Registered Office : |
Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.01.1989 |
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Com. Reg. No.: |
12388773-000-01 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and gem stones,
emerald, precious stones, etc. |
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No. of Employees : |
3 |
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) |
|
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 |
SUNNY GEM CO.
Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon, Hong Kong.
PHONE: 2722 5574
FAX: 2311 0850
E-MAIL: sales@sunnygemco.com
sunnygemco@biznetvigator.com
Manager: Mr. Sunil Mundra
Establishment: 5th January, 1989.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Gem and
Precious Stone Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
SUNNY GEM CO.
Head Office:-
Unit 15, 11/F., Block A, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 97152, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
China Office:-
Guangzhou, Guangdong Province, China.
[Tel: (86-20) 6194 1655, 6194
1669 Fax: (86-20) 6194 1645
Mobile: (86) 150 1891 8306]
12388773-000-01
Manager: Mr. Sunil Mundra
Name: Mr. Sunil MUNDRA
Residential Address: House C,
11B Cambridge Road, Kowloon Tong, Kowloon, Hong Kong.
Name: Mr. Vinod Mundra
Residential Address: House C,
11B Cambridge Road, Kowloon Tong, Kowloon, Hong Kong.
The subject was established on 5th January, 1989 as a sole
proprietorship concern owned by Mr. Rajendra Kumar Maheshwari under the Hong
Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajendra Kumar Maheshwari |
05-01-1989 |
20-04-1989 |
|
Rajendra Kumar Mundra |
10-04-1989 |
01-04-1998 |
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Simla Mundra |
01-04-1993 |
26-05-1994 |
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Sunil Mundra |
01-04-1995 |
02-05-2002 |
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Vinod Mundra |
04-07-1996 |
01-04-2003 |
|
Priyanka MUNDRA |
01-04-2010 |
15-11-2012 |
Initially the subject was located at Flat C, 17/F., Star Mansion, 3-5
Minden Row, Tsimshatsui, Kowloon, Hong Kong., moved to Flat F & G, 16/F. of
the same building in January 1996; to Flat F & G, 17/F.of the same building
in December 1998; moved back to Flat C, 17/F. of the same building in July
2004; and further to the present address in June 2005.
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 gem stones, emerald, precious stones, etc.
Employees: 3.
Commodities Imported: India,
Belgium, Israel, Thailand, etc.
Markets: China,
Japan, Southeast Asia, Europe, Middle East, Scandinavia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewellery & Jade Manufacturers Association,
Hong Kong.
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in an active
condition.
Facilities: Making 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: Normal.
Sunny Gem Co. is a partnership owned by the Mundra family. Set up on 5th January, 1989, the subject
was jointly owned by three Indian partners: Rajendra Kumar Mundra, Simla Mundra
and Sunil Mundra. On 1st April, 2010,
the partners changed and changed again in November 2012. Now, the subject is jointly owned by Sunil
Mundra and Vinod Mundra. The latter
joined in the subject as a partner again on 15th November, 2012.
The subject is trading in the following commodities:-
|
Product/Service |
Product/Service Remarks |
|
Emerald (Round-Cut and Oval-Cut) |
From India |
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Ruby |
From India |
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Sapphire (blue or coloured) |
From India |
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Diamond |
From India |
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Diamond Jewellery |
From India |
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Other Precious Stones |
From India |
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Pearl Jewellery |
From Japan, China |
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Men’s Jewellery |
From India, China |
The subject has got a number of affiliated suppliers in India. Prime markets are China, Hong Kong, Japan,
Southeast Asia, Taiwan, North America, Eastern and Western Europe, etc.
In Hong Kong, the subject has had a business partner known as Sunlight
Jewelers Hong Kong Ltd. [Sunlight].
Sunlight has had an affiliated factory in China employing about 200
persons. At present, Sunlight is located
at the next door of the subject.
The subject has set up an office in Guangzhou, Guangdong Province,
China.
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. It also
took part in China International Gold Jewellery & Gem Fair 2012 which had
been held in Shenzhen Special Economic Zone, China during the period of 10th to
13th 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.
Since the history of the subject in Hong Kong is about twenty-four years
, it has developed closed business with a number of regular suppliers and
foreign customers. Business is rather
active and steady.
On the whole, consider it good for normal business engagements.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
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UK Pound |
1 |
Rs.88.76 |
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Euro |
1 |
Rs.72.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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 |
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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 |
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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.