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Report Date : |
26.06.2013 |
IDENTIFICATION DETAILS
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Name : |
GEMWAY
TRADING LTD. |
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Registered Office : |
Unit B, 14/F., |
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Country : |
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Date of Incorporation : |
08.08.2001 |
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Com. Reg. No.: |
31988623 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
trader of all kinds of diamond jewellery products which include diamond bracelets, diamond earrings, diamond & pearl ornament, silver diamond rings |
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No. of Employees : |
08 |
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
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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.
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Source : CIA |
GEMWAY TRADING LTD.
Unit B, 14/F., Chung Hing Commercial Building, 62-63 Connaught Road Central, Hong Kong.
PHONE: 852-2530 4334
FAX: 852-2530 4423
Managing Director: Mr. Shek Chun Hung, Peter
Incorporated on: 8th August, 2001.
Organization: Private Limited Company.
Capital: Nominal: HK$3,000,000.00
Issued: HK$3,000,000.00
Business Category: Diamond Jewellery Trader.
Employees: 8.
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit B, 14/F., Chung Hing Commercial Building, 62-63 Connaught Road Central, Hong Kong.
China Factory:-
Bridiamond (Zhuhai) Jewellery Co. Ltd.
Pingsha Town, Jinwan District, Zhuhai Special Economic Zone, 519055 China.
Associated
Company:-
Bridiamond Trading Ltd., Hong Kong. (same address)
31988623
0766011
Managing Director: Mr. Shek Chun Hung, Peter
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
(As per registry
dated 08-08-2012)
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Name |
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No. of shares |
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SHEK Chun Hung, Peter |
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3,000,000 ======= |
(As per registry
dated 08-08-2012)
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Name (Nationality) |
Address |
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SHEK Chun Hung, Peter |
Unit B, 14/F., Chunghing Commercial Building, 62‑63 Connaught Road Central, Hong Kong. |
(As per registry
dated 08-08-2012)
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Name |
Address |
Co.
No. |
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Excel Secretaries Ltd. |
18/F., On Hong Commercial Building, 145 Hennessy Road, Hong Kong. |
0541950 |
The subject was incorporated on 8th August, 2001 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 diamond jewellery products.
Employees: 8.
Commodities Imported: China, India, other Asian countries, Europe, US, etc.
Markets: Asian countries, Europe, North America, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,000,000.00
Mortgage or Charge:- (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Having issued 3 million ordinary shares of HK$1.00 each, Gemway Trading Ltd. is wholly owned by Mr. Shek Chun Hung, Peter who is a Hong Kong merchant.
The subject is
trading in all kinds of diamond jewellery products. The followings are some of its significant
products:-
Diamond Bracelets, Diamond Earrings, Diamond & Pearl Ornament, Silver Diamond Rings.
The subject is also a diamond trader. It is a member of Shanghai Diamond Exchange.
The subject has had an associated company Bridiamond Trading Ltd. located at its operating address. This firm is also operated by Shek Chun Hung, Peter.
The subject’s manufacturing plant is in Zhuhai Special Economic Zone, China known as Bridiamond (Zhuhai) Jewellery Co. Ltd. [Bridiamond Zhuhai].
Bridiamond Zhuhai was set up in May 1992. Its plant was constructed in 1993 in Pingsha, Zhuhai Special Economic Zone, China. It was put into operation in 1996. In 2000, its production capacity is about 80,000 carat of diamonds. Raw materials are imported from India, Europe, the United States, etc.
Now, Bridiamond Zhuhai has been equipped with foreign advanced production lines and has 500 workers. Its diamond jewellery products are marketed in Hong Kong, exported to Southeast Asia, Switzerland, other European countries and the United States.
Bridiamond Zhuhai is also engaged in diamond cutting and polishing. The legal representative of Bridiamond Zhuhai is also Shek Chun Hung, Peter.
The subject’s products are chiefly supplied by Bridiamond Zhuhai. It is able to make a small profit every year.
As the history of the subject is over eleven years in Hong Kong, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
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05-05-2011 |
Instrument: Charge Over Deposits - CD 1 Property: By Fixed Charge: all the Company’s right in respect (i) The sum deposited by the Company or for its benefit in the account or as evidenced by deposit instrument or other evidence of indebtedness specified in the schedule below, including renewals of such sums; and (ii) All other sums in any currency from time to time standing to the credit of the Company or the credit of any other person for the Company’s benefit, on any account in the Company’s sole or joint names maintained with the Bank or any SCB Group Company including renewals of such sums 2) By Assignment: all Deposits held with any SCB Group Company Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment or discharge of all moneys, obligation & liabilities |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.70 |
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UK Pound |
1 |
Rs.92.25 |
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Euro |
1 |
Rs.78.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.