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Report Date : |
15.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ROYAL TREASURE |
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Registered Office : |
Flat 1, 12/F.,
Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.08.2003 |
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Com. Reg. No.: |
33853268-000-08 |
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Legal Form : |
Sole
Proprietorship. |
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LINE OF BUSINESS : |
DIAMOND & GEM TRADER OF ALL
KINDS OF JEWELLERY AND GEM PRODUCTS, ETC. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
No Operating Office In Hong Kong |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
|
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 |
ROYAL TREASURE
Flat 1, 12/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
PHONE: Not available
FAX: Not
available
Manager: Mr. Praveen Gupta
Establishment: 22nd
August, 2003.
Organization: Sole
Proprietorship.
Capital: US$25,000.00
Business Category: Diamond & Gem Trader.
Employee: Nil.
Main Dealing
Banker: Wing Lung Bank Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
ROYAL TREASURE
Head Office:-
Flat 1, 12/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.
Associated Companies:-
Royal Treasure
Flat C, 11/F., Jinli
Garden, Tian Bei 4th Road, Thang Shang Tower, Luohu District, Shenzhen Special
Economic Zone, China.
[Tel:
86-755-25787713 Fax: 86-755-25788100]
Royal Gems Co.
Ltd., Taiwan.
Gems Co. Ltd.,
Thailand.
33853268-000-08
Manager: Mr. Praveen GuptaName: Praveen GUPTA
Residential
Address: Flat B, 6/F., Wing Lee
Building, 27-33 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established
on 22nd August, 2003 as a partnership concern owned by Mr. Praveen Gupta and
Mr. Mohamed Samsudeen Mohamed Safee under the Hong Kong Business Registration
Regulations.
The subject became
a sole proprietorship as the latter retired on 31st March, 2005.
Last time, the
subject was located at Room C, 6/F., Pacific Building, 65‑67B Kimberley
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in
September 2008.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Diamond & Gem Trader.
Lines: All kinds of
jewellery and gem products, etc.
Employee: Nil.
Commodities
Imported: India, other Asian countries,
etc.
Markets: US, Hong Kong, Taiwan,
China, Thailand, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C,
pre-payment, etc.
Capital: US$25,000.00
Profit or Loss: Keeping a balance account in
Hong Kong.
Condition: Business is not very
active in Hong Kong.
Facilities: Making fairly active use
of general banking facilities.
Payment: Met
trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: Wing
Lung Bank Ltd., Hong Kong.
Standing: Small.
Royal Treasure is a
sole proprietorship set up and owned by Mr. Praveen Gupta who is an
Indian. He is also manager of the
subject.
The subject’s
registered address is in a private building located at Flat 1, 12/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong. This may be the new residence of Gupta when
he is in Hong Kong.
The residential
building is not trespassed by outsiders.
The subject has no employees in Hong Kong.
The subject’s
telephone number and fax number have not registered with local telephone
company nor listed on telephone directories.
The subject is a
member of the Royal Treasure Group.
The subject has had
an associated company bearing the same name [RT] in Shenzhen Special Economic
Zone, China. Most of the time, Gupta is
in Shenzhen administering the business of RT.
Gupta can be
reached at his mobile phone number 86-135100 10149.
RT Co. Ltd. are in
Taiwan and India.
The subject and
Shenzhen RT are engaged in the same lines of business. It is trading in the following commodities:-
·
Silver
Jewellery;
·
Gold Jewellery;
·
Precious
and Semi-precious Beads;
·
Cut
Stones; &
·
Precious
& Semi-Precious Rough Gemstones (Peridot, Synthetics, Zircon, Onex).
The subject is also
an importer and exporter of Precious & Semi-Precious Rough Gemstones
(Peridot, Synthetics, Zircon, Onex) and Cut and Polished Gemstones (Zircon,
Synthetics, Thi-Ruby, Sapphire, Onex).
Commodities are
imported from India, Thailand and acquired from the suppliers of China. Export markets are Taiwan, Thailand, the
United States as well as marketed in China and Hong Kong.
According to the
Group, it is planning to open branch offices in Japan and Italy. RT is a regular member of Gems &
Jewellery Export Promotion Council.
With an annual
turnover of Rs. 50 crore, the group has been growing from strength to strength
under the guidance of an eminent board of directors led by Praveen Gupta, the
Chairman and the Managing Director and Co-Director Lalit Khothari of RT Co.
Ltd.
Royal Group has
been founded since 1998 by Praveen Gupta- the President, Chairman and Manning
Director of RT Co. Ltd.
The Group is
engaged in manufacturing, sourcing, mining, marketing and export of precious,
semi precious cut & polished stones, natural gemstone beads, semi precious
stone beads, rough stones, loose diamonds, imitation stones, and also stones
studded in gold and silver jewellery.
The subject’s
business in Hong Kong is not active.
History in Hong Kong is over nine years.
Since the subject
does not have its own operating office and has no employee in Hong Kong,
consider it good for 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.
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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 |
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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 |
|
<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.