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Report Date : |
11.11.2013 |
IDENTIFICATION DETAILS
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Name : |
RONAK GEMS |
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Registered Office : |
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building,
2G Hok Yuen Street, Hunghom, Kowloon, |
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Country : |
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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, precious stones |
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No. of Employees : |
01 |
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 |
Source
: CIA
RONAK GEMS
ADDRESS: Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2333 2407
FAX: 852-2721 0173
Manager: Mr. Rajendrakumar Jayantilal Soni
Establishment: 30th October, 1989.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Gemstone & Diamond Trader.
Employee: 1.
Main Dealing Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 86207, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated 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; moved to Flat J, 3/F., Block 2 of the same building in January 2010.
The subject moved to the present address in late October 2013.
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, precious stones
Employee: 1.
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 normal 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 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. He has got the right to reside in Hong Kong permanently and is also the manager of the subject.
Its operating office was located in a residential building at Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong. 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.
The subject moved to the present address in late October 2013. Its phone number is 852-2333 2407.
The subject’s mailing address is P.O. Box 86207, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
The subject 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 marketed in Hong Kong, 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 the subject, 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 normal.
On the whole, since the history of the subject in Hong Kong is over 24 years, consider it good for normal business engagements in small credit amounts.
Property information of the principal:-
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
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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.62.73 |
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|
1 |
Rs.100.92 |
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Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
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.