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Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
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Name : |
CRYSTURAL GEMS |
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Registered Office : |
Flat D, 6/F., Tower 2, |
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Country : |
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Date of Incorporation : |
23.09.1999 |
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Com. Reg. No.: |
30389498-000-09 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Wholesaler and Re-exporter of all kinds of
diamonds. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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) |
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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 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
CRYSTURAL GEMS
ADDRESS: Flat D, 6/F., Tower 2, Lake View Garden, 21 Yau On Street, Shatin, New Territories, Hong Kong.
PHONE: 852-2367 1144
FAX: 852-2367 2244
Manager: Mr. Gaurang Ramesh Paymaster
Establishment: 23rd September, 1999.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Importer, Wholesaler and Re-exporter.
Employees: Nil.
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Head Office:-
Flat D, 6/F., Tower 2, Lake View Garden, 21 Yau On Street, Shatin, New Territories, Hong Kong.
Associated Company:-
Nuance Jewels, Hong Kong. (Same owner and same address)
Affiliated Company:-
Yo Mao Trading, Hong Kong. (Same address)
30389498-000-09
Manager: Mr. Gaurang Ramesh Paymaster
Name: Mr. Gaurang Ramesh PAYMASTER
Residential Address: Flat
C, 4/F., Block 3, Site 4, Palm Mansion, Whampoa Garden, Hunghom, Kowloon,
Hong Kong.
The subject was established on 23rd September, 1999 as a sole proprietorship concern of Mr. Gaurang Ramesh Paymaster under the Hong Kong Business Registration Regulations.
Initially the subject was located at Flat C, 4/F., Block 3, Palm Mansion, Whampoa Garden, Hunghom, Kowloon, Hong Kong where is the residential address of the proprietor, moved to the present address in June 2002.
Apart from these, neither material change nor amendment has
been ever traced and noted.
Activities: Importer, Wholesaler and Re-exporter.
Lines: All kinds of diamonds.
Employees: Nil.
Commodities Imported: Imported from Europe, India, other Asian countries, etc.
Markets: Hong Kong, India, other Asian countries, Middle East, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Made small profits in past years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments on time.
Commercial Morality: Fair.
Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Standing: Small.
Crystural Gems is a sole proprietorship set up and owned by Mr. Gaurang Ramesh Paymaster, an Indian who has been in Hong Kong for a very long time. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is the manager of the subject.
Business commenced in September 1999, the subject is a diamond, gemstone importer, exporter and wholesaler. Commodities are mainly imported from India and Europe. The subject also imports gemstones from Sri Lanka, Thailand, South Africa, etc. Processed diamonds are marketed in Hong Kong which is the prime market. In recent years, the subject also has exported some of its products to India, other Asian countries and the Middle East. Most of its customers are Indian diamond retailers and exporters. Business has been normal.
Last time, the subject’s registered office was located at Flat C, 4/F., Block 3, Palm Mansion, Whampoa Garden, Hunghom, Kowloon, Hong Kong where was the residential address of the proprietor. In June 2002, the subject moved to the present address where is supposed to be Mr. Paymaster’s new residence. The residential building Lake View Garden is not trespassed by outsiders.
The subject’s business is chiefly handled by Mr. Paymaster himself. He has had close business ties with a number of diamond manufacturers and suppliers in India.
The subject has had an associated company known as Nuance Jewels (formerly known as Rolling Stone) located at its operating address and registered address. Nuance Jewels is also a diamond trader owned by Paymaster.
The subject and Nuance Jewels are engaged in the same lines of business. The businesses of the subject and Nuance Jewels are handled by Paymaster himself.
The subject has had an affiliated company Yo Mao Trading located at the same address. This company is also a diamond trader but owned by another Indian.
The history of the subject in Hong Kong is over fourteen years.
On the whole, consider it good for normal business engagements in moderate credit amounts.
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.62.57 |
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1 |
Rs.100.63 |
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Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
-- |
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.