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Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
RONAK GEMS |
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Registered Office : |
Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
30.10.1989 |
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Com. Reg. No.: |
13129493-000-10 |
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Legal Form : |
Sole Proprietorship. |
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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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|
|
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
RONAK GEMS
Flat J, 3/F.,
Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 2102, 2333 2470
FAX: 2721 0173, 3154 9680
Manager: Mr. Rajendrakumar Jayantilal Soni
Establishment: 30th October, 1989.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Gemstone Trader.
Employees: Nil.
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
RONAK GEMS
Head
Office:-
Flat J, 3/F.,
Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.
Mailing
Address:-
P.O. Box 86207,
Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Affiliated
Company:-
Hong Kong Capital
Co., Hong Kong. (Same owner and same
address)
13129493-000-10
Manager: Mr. Rajendrakumar Jayantilal Soni
Name: Mr. Rajendrakumar Jayantilal SONI
Residential
Address:
14/F., Front
Portion, Ocean View Court, 25 Chatham Road, Tsimshastui, Kowloon, Hong Kong.
The
subject was established on 30th October, 1989 as a sole proprietorship concern
owned by Mr. Rajendrakumar Jayantilal Soni under the Hong Kong Business
Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajendrakumar Jayantilal Soni |
30-10-1989 |
07-07-1992 |
|
Mayur Gambhirdas Gandhi |
06-07-1992 |
02-10-1998 |
|
Pravin Kirtilal Mehta |
01-10-1998 |
11-10-2001 |
Initially
the subject was located at Flat E, 16/F., Windsor Mansion, 29‑31 Chatham
Road, Tsimshastui, Kowloon, Hong Kong, moved to 13/F., 23 Chatham Road,
Tsimshastui, Kowloon, Hong Kong in July 1990; to Flat A, 5/F., Hilton
Tower, 96 Granville Road, Tsimshastui, Kowloon, Hong Kong in February
1992; to Room 501, 5/F., Polly Commercial Building, 21-23A Prat Avenue,
Tsimshastui, Kowloon, Hong Kong in May 1993; to Flat D & E, 16/F., Cameron
Plaza, 23-25A Cameron Road, Tsimshastui, Kowloon, Hong Kong in November 1993;
to Room 108, 1/F., Wing On Plaza, 62 Mody Road, Tsimshastui East, Kowloon, Hong
Kong in October 1998; to Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong in May 2004; to 14/F., Front Portion,
Ocean View Court, 25 Chatham Road, Tsimshastui, Kowloon, Hong Kong in July
2004; to Flat B, 7/F., Golden Mansion, 83-85 Chatham Road, Tsimshastui,
Kowloon, Hong Kong in August 2005; to Flat F, 26/F., Block 1, Royal Peninsula,
8 Hung Lai Road, Hunghom, Kowloon, Hong Kong in July 2007; to Flat D, 18/F.,
Block 1 of the same building in July 2008; to Flat G, 3/F., Block 2 of the same
building in December 2009; and further moved to Flat J, 3/F., Block 2 of the
same building in January 2010.
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: Nil.
Commodities Imported: India, Belgium, other European and Asian countries, etc.
Markets: Hong Kong, other Asian countries, North America, Western Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Keeping a balance account in Hong Kong.
Condition: Business is fairly active in Hong Kong.
Facilities: Making fairly active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing: Small.
Ronak
Gems is a long-established company which was formed in 1989 by an Indian
merchant known as Mr. Rajendrakumar Jayantilal Soni. Soni had once retired from the subject but
joined in again in October 2001. He has
become a Hong Kong citizen and holds a Hong Kong ID card subsequently.
Currently,
its place of business is located inside a residential building at Flat J, 3/F.,
Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon,
Hong Kong. This address appears to
be another residential address of Mr. Soni.
The above-mentioned residence is the property of Mr. Soni who bought on
11th December, 2009 at a consideration of HK$6.9 million. This property was mortgaged to Standard
Chartered Bank (Hong Kong) Ltd. on 11th December, 2009 to secure general
banking facilities.
Ronak
Gems is a diamond and gemstone trader.
It is engaged in importing and exporting fine coloured diamonds and rare
gemstones. Products handled include
fancy coloured diamonds, unusual rose cut and briolette cut diamonds as well as
loose diamonds which are imported from India, Belgium and European countries. Among its products, some of them are polished
diamonds. They are exported or
re-exported to Japan, Europe, the Middle East, North America and the other
Asian countries.
In
addition, the company also trades in some rare gemstones such as amethyst,
rubylite, green amethyst, blue topaz, lemon topaz, citrine, smokey topaz, kunzite,
peridot, morganite, pink tourmalines, pink topaz, emerald, garnet,
lapis-lazuli, ruby, sapphire, rose quartz, etc.
Besides
Ronak Gems, Soni is also operating another firm known as Hong Kong Capital
Co. which is located at the same office.
This firm was set up on 14th April, 1994 and is engaged in the same
line of business.
The
business of the subject is fairly active.
On
the whole, since the history of the subject in Hong Kong is over 23 years,
consider it good for normal business engagements in small credit amounts.
Property Location:
Flat J on 3/F. of
Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.
Owner: Rajendrakumar Jayantilal Soni & Bharati Rajendra
Soni (Joint Tenant)
Date of
Purchase: 11-12-2009
Purchased
Price: HK$6,900,000.00
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
11-12-2009 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Mortgage |
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.
-
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.
-
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.
-
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.
-
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.
-
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.54.40 |
|
|
1 |
Rs.81.56 |
|
Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.