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Report Date : |
15.01.2013 |
IDENTIFICATION DETAILS
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Name : |
INTER-GEMS (H.K.) LTD. |
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Registered Office : |
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.10.1997 |
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Com. Reg. No.: |
21311654 |
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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, Emerald, Precious Stones, Etc. |
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No. of Employees : |
50. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source : CIA |
INTER-GEMS (H.K.)
LTD.
ADDRESS: 5/F., Kaiseng Commercial
Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2368 5589
FAX: 2368 9116
E-MAIL: dipan@inter-gemshk.com
Managing Director: Mr. Dipan
Jagdish Patel
Incorporated on: 15th
October, 1997.
Organization: Private
Limited Company.
Capital: Nominal: HK$501,000.00
Issued: HK$501,000.00
Business Category: Jewellery Trader.
Group Income: Rs
31,505.85 million (Year ended
31-03-2012)
Employees:
50. (Including associates)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon,
Hong Kong.
Holding Company:-
Shrenuj (Mauritius) Pvt. Ltd., Mauritius.
Ultimate Holding
Company:-
Shrenuj & Co. Ltd., India.
Associated/Affiliated
Companies:-
Shrenuj Group of Companies
Alija International Pty. Ltd., Australia.
Arisia Jewellery Pvt. Ltd., India.
Astral Holding Inc., USA.
Astral Jewels LLC, USA.
Astral USA Inc., USA.
Bernie’s International LLC, USA.
Copem & Shrenuj, Italy.
Daily Jewellery Ltd., Hong Kong.
[Trading as Joeliesse] (Same
address)
Ever Gold (HK) Ltd., Hong Kong.
(Same address)
Facet (Hong Kong) Ltd., Hong Kong.
(Same address)
Global Marine Diamond Corporation, USA.
Jomard SAS, France.
Kiara Jewellery (H.K.) Ltd., Hong Kong.
(Same address)
Kiara Jewellery Pvt. Ltd., India.
Lume Germany GmbH, Germany.
Lume Group AG, Switzerland.
Shrenuj (Shanghai) Diamonds Pvt. Ltd., China.
Shrenuj Australia Pty. Ltd., Australia.
Shrenuj Botswana Pty. Ltd., Botswana.
Shrenuj Diajewels Ltd., India.
Shrenuj DMCC, UAE.
Shrenuj Gems & Jewellery Ltd., India.
Shrenuj GmbH, Germany.
Shrenuj Japan Corporation, Japan.
Shrenuj Jewelry (Far East) Ltd., Hong Kong. (Same address)
Shrenuj Lifestyle Ltd., India.
Shrenuj N.V., Belgium.
Shrenuj Overseas Ltd., India.
Shrenuj South Africa Pty. Ltd., South Africa.
Shrenuj USA LLC, USA.
Simon Golub & Sons Inc., USA.
SWA Trading Ltd., Israel.
Trapz LLC, USA.
etc.
21311654
0626569
Managing Director: Mr. Dipan Jagdish
Patel
Nominal Share Capital: HK$501,000.00 (Divided into 501,000 shares of
HK$1.00 each)
Issued Share Capital: HK$501,000.00
(As per registry dated 15-10-2011)
|
Name |
|
No. of shares |
|
Dipan Jagdish PATEL |
|
5,010 |
|
Anita PATEL |
|
70,140 |
|
Shrenuj (Mauritius) Pvt. Ltd. St. James Court, Suite 308, St. Denis Street, Port Louis, Republic of
Mauritius. |
|
425,850 |
|
|
|
––––––– |
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|
Total: |
501,000 ====== |
(As per registry dated 15-10-2011)
|
Name (Nationality) |
Address |
|
Dipan Jagdish PATEL |
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Vishal Shreyas DOSHI |
162, Neelamber, 37, Gopalrao Deshmukh Marg, Mumbai 400026, M.S.,
India. |
|
Anita PATEL |
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui,
Kowloon, Hong Kong. |
Dipan Jagdish PATEL (As per
registry dated 15-10-2011)
The subject was incorporated on 15th October, 1997 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 707, 7/F., Kowloon Centre,
33 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present
address in March 2004.
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, emerald, precious stones, etc.
Employees: 50.
(Including associates)
Commodities Imported: India, Belgium, Israel, other European countries, etc.
Markets: Japan,
other Asian countries, etc.
Company Turnover: HK$344,045,733 (Year
ended 31-03-2010)
HK$334,400,897 (Year ended
31-03-2011)
Group Income: Rs 24,565.15 million
(Year ended 31-03-2011)
Rs 31,505.85 million (Year ended
31-03-2012)
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P,
etc.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKI0277]
The Indian Chamber of Commerce Hong Kong, Hong Kong.
Nominal Share Capital: HK$501,000.00 (Divided into 501,000
shares of HK$1.00 each)
Issued Share Capital: HK$501,000.00
Mortgage or Charge (since 2008):
(See attachment)
Company Net (Loss)/Profit: HK$1,640,905 (Year ended 31-03-2010)
(HK$ 1,808)(Year ended 31-03-2011)
Group Profit After Taxation: Rs 542.48 million (Year ended 31-03-2011)
Rs 686.21 million (Year ended
31-03-2012)
Profit or Loss: Subject made a small loss in 2011.
Condition:
Keeping
in an active condition.
Facilities:
Making
active use of general banking facilities.
Payment:
Met
trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
ICICI Bank Ltd., Hong Kong Branch.
Bank of India, Hong Kong Branch.
Punjab National Bank, Hong Kong Branch.
Standing:
Very
Good.
Having issued 501,000 ordinary shares of HK$1.00 each, Inter-Gems (H.K.)
Ltd. is a subsidiary company of Shrenuj (Mauritius) Pvt. Ltd. which is a
Mauritius-registered firm. The ultimate
holding company of the subject Shrenuj & Co. Ltd. [Shrenuj] is an
India-based firm. The subject is chiefly
owned by the Patel family, all of whom are Indian.
The subject is 85% interests owned by Shrenuj.
Located at its operating address, the subject has had a number of
associated companies while the main one is Shrenuj Jewelry (Far East) Ltd.
The subject is a diamond importer, exporter and wholesaler. It is dealing in jewellery ranging from 2
points to 2 carats, and in all colours — from D to L colours and all shades of
brown. Products include single cuts,
full cuts and fancy shapes — such as princess, baguettes, marquise, pearl,
oval, emerald and heart. It is trading
in the following products:-
FINISHED JEWELLERY
·
Diamond Jewellery
White Diamond
Jewellery
·
Gem Set Jewellery
Emerald Jewellery
Ruby Jewellery
Sapphire Jewellery
·
Gold Jewellery
14K Gold Jewellery
18K Gold Jewellery
Fineness not Specified
MATERIALS
·
Diamond
Polished White
Diamond
·
Precious gemstones
Polished Ruby
Polished Sapphire
·
Findings
Chain
Rough diamonds are imported from India, Belgium, Israel and other
European countries, etc. Polished and
cut products are exported to Japan, Southeast Asia, the Middle East, etc. Business is rather active.
The subject also markets its product online. It sells its product via the website
“BusyTrade.com”. The subject is a DTC
Sight Holder.
Shrenuj is a listed firm with shares actively traded on Bombay Stock
Exchange [BSE] and National Stock Exchange [NSE]. Shrenuj is one of the largest diamond and
jewellery manufacturing companies in India having an international presence in
15 countries with a geographically diversified customer base, favourable
economies of scale, ability to source roughs from strategic partners, growing
retail presence and market linked production mix. Its activities are carried out in accordance
with good corporate practices.
Shrenuj’s policies and practices are not only consistent with the
statutory requirement but also underline its commitment to operate in the best
interest of the stakeholders. It will
continue to focus its resources, strengths and strategies to achieve its vision
of becoming a global company, while upholding the core values of transparency,
integrity, honesty and accountability.
For the year ended 31st March, 2012, the income of the Shrenuj Group
amounted to Rs 31,505.85 million (2011: Rs 24,565.1 million). Group profit after taxation for the year was
Rs 686.21 million (2011: Rs 524.48 million).
For the year ended 31st March, 2011, the turnover of the subject amounted
to HK$334.4 million (2010: HK$334.4 million).
Loss after taxation for the year was HK$1,808 (2010: made a profit of
HK$1.6 million).
The subject is fully supported by the Shrenuj Group.
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 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 over fourteen years and
nine months, on the whole, consider it good for normal business engagements.
Property information of
the company:-
1. Property Location: Carparking Space No. B84 at Basement 2
of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island,
Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Carparking Space No. B85 at Basement 2
of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island,
Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
(Since 2008)
|
Date |
Particulars |
Amount |
|
07-04-2008 |
Instrument: Debenture Property: 1) Assign to the Bank the
proceeds of each policy of insurance 2) Charge to the Bank by
way of a floating charge all shares, stock, bonds, debentures, certificates
of deposit, promissory notes, warrants, futures, options, funds, units, notes
and other securities 3) Charge to the Bank by
way of floating charge all book debts and other debts 4) Charge to the Bank by
way of floating charge all negotiable instruments 5) Charge to the Bank by
way of floating charge all funds 6) Charge to the Bank by
way of floating charge all choses in action and claims Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies |
|
30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5
(Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin
Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5
(Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin
Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
07-10-2010 |
Instrument: Charge on Deposit Property: Account No. Sum Deposit Dated 6841000054 US$204,000.00 14-03-2010 Mortgagee: Punjab National Bank, Hong Kong
Branch. |
To secure all monies in respect of banking facilities |
|
19-10-2011 |
Instrument: Supplemental Debenture Property: B way of a floating charge the whole of the Customer’s stocks of raw materials,
goods-in-process, inventory, semi-finished goods, consumable stores and
spares and other movables Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies |
|
06-02-2012 |
Instrument: Property: All sums of Charge on Deposit money from time to time standing to the credit of the account of the
Depositor Mortgagee: Punjab National Bank, Hong Kong
Branch. |
To secure All monies in respect of banking facilities owing at any
time plus interest and all expenses |
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.
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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.54.63 |
|
|
1 |
Rs.88.17 |
|
Euro |
1 |
Rs.73.12 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.