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Report Date : |
10.07.2013 |
IDENTIFICATION DETAILS
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Name : |
BLUE GEMS |
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Registered Office : |
Room 1511, 15/F., Peninsular Square, 18 Sung On Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.09.1991 |
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Com. Reg. No.: |
14845597-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Manufacturer, Importer, Exporter and Retailer of All kinds of diamonds
and jewellery products, emerald, precious stones. |
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No. of Employees : |
3. (Including associate) |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
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 |
BLUE GEMS
Room 1511, 15/F., Peninsular Square, 18 Sung On Street, Hunghom,
Kowloon, Hong Kong.
PHONE: 852-2314 7661
FAX: 852-2314 7811
Manager: Mr.
Pareshkumar Himmatlal Shah
Establishment: 2nd September, 1991.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employees: 3.
(Including associate)
Main Dealing Banker: Hang Seng
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
BLUE GEMS
Head Office:-
Room 1511, 15/F., Peninsular Square, 18 Sung On Street, Hunghom,
Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Blue Gems Ltd., Hong Kong. (Same
address)
Samkit Diamonds Exporters, India.
14845597-000-09
Manager: Mr. Pareshkumar
Himmatlal Shah
Name: Mr. Pareshkumar Himmatlal SHAH
Residential Address: Flat E,
14/F., Hanley House, 68-80 Canton Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was originally established on 2nd September, 1991 as a sole
proprietorship owned by Mr. Pareshkumar Himmatlal Shah under the Hong Kong
Business Registration Regulations.
Converted into a partnership company on 1st June, 1993 when Mr. Milankumar
Amrutlal Virani joined in as a partner.
Changed to a sole proprietorship company again just owned by Mr.
Pareshkumar Himmatlal Shah on 31st March, 1994 while Mr. Milankumar
Amrutlal Virani retired.
Initially the subject was located at Flat E, 14/F., Hanley House, 68-80
Canton Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A, 12/F., South Sea
Mansion, 81 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in August 1993; to
Flat C, 9/F., Houng Su Mansion, 45-47 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong in July 1999; to Room 1511, 15/F, Peninsular Square, 18 Sung On
Street, Hunghom, Kowloon, Hong Kong in May 2002, and further moved to the
present address in September 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Manufacturer, Importer, Exporter and
Retailer.
Lines: All kinds of diamonds and jewellery products,
emerald, precious stones.
Employees: 3. (Including associate)
Commodities Imported: Imported
from India, Thailand, Europe, etc.
Markets: Hong Kong, Singapore, US, China,
South Africa, Europe, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active
condition.
Facilities: Making rather active use of
general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: Hang Seng Bank Ltd., Hong Kong.
Standing: Small.
Blue Gems is a sole proprietorship set up and owned by Mr. Pareshkumar
Himmatlal Shah who is an Indian. He is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. Shah is also the manager of
the subject.
The subject moved to the present address in September 2011.
The subject is a manufacturer, importer, exporter and retailer of
polished and cut diamonds in a wide variety of round and fancy shapes. It is specialized in white, ow, white natts,
ow natts in vs-si and pique quality.
Size ranges from 0.005 to 0.10 ct.
It also supplies customers with fancy shapes particularly
tapper/baquettes and princess cut diamonds.
Main products of the subject are rose cut diamonds, rose cut heart, rose
cut round, rose cut pears, rose cut oval, rose cut marquise, emerald cut,
taper, tapered baguette, fancy cut and fancy colour diamonds, briollets beads,
old mine cut diamonds round brilliant cut diamonds, marquise, pears, oval,
heart, trilliant, etc. Loose and cut
diamonds are chiefly imported from India, Thailand and other European
countries. However, India is the main
supplying countries. Most of its
suppliers are in Mumbai, India. The
major markets of the subject are Hong Kong, Singapore, the United States,
China, South Africa, Europe, etc.
Overall business is active.
The subject’s business is chiefly handled by Mr. Pareshkumar Himmatlal
Shah who can be reached at his mobile phone number 852-9805 0538.
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 takes part in
Hong Kong Jewellery & Gem Fair every year.
The subject is an associated company of Samkit Diamonds Exporters
[Samkit], an India-based firm also trading in diamonds and jewellery. It is likely that Samkit is one of the
subject’s suppliers in India. Samkit has
had several associated companies in Hong Kong, the United States and the United
Arab Emirates.
The subject has had an associated company Blue Gems Ltd. [BGL] located
at the same address. The contact person
of BGL is also Pareshkumar Himmatlal Shah.
Having issued just one ordinary share of HK$1.00, BGL is wholly owned by
Kiran Champaklal Bhansali who is also an Indian. He is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently. He is the only director of BGL. BGL was incorporated on 6th March, 2012.
As the history of the subject in Hong Kong is over twenty-one years and
ten months, 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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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 –
-
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.60.07 |
|
|
1 |
Rs.89.91 |
|
Euro |
1 |
Rs.77.43 |
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 |
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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 |
|
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 |
|
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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.