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Report Date : |
24.10.2013 |
IDENTIFICATION DETAILS
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Name : |
R.D. GEM LTD. |
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Registered Office : |
Flat 1201, 12/F., Fu |
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Country : |
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Date of Incorporation : |
21.11.2007 |
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Com. Reg. No.: |
38660913 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and
jewellery products, emerald, precious stones. |
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No. of Employees : |
4 |
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) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
R.D. GEM LTD.
Flat 1201, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
PHONE: 852-2766 2008
FAX: 852-2766 2040
E-MAIL: rdgemltd@yahoo.com
rdgemltd@hotmail.com
rdgemchina@gmail.com
Managing Director: Mr. Bharat
Babubhai Mangukiya
Incorporated on: 21st November, 2007.
Organization: Private Limited Company.
Capital: Nominal: HK$3,500,000.00
Issued: HK$3,500,000.00
Business Category: Diamond
Trader.
Employees: 4.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
R.D. GEM LTD.
Registered Head
Office:-
Flat 1201, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Perry Gems (Hong Kong) Ltd., Hong
Kong.
PM Jewels Ltd., Hong Kong.
Riddhi Diamonds, India.
38660913
1187492
Managing Director: Mr. Bharat Babubhai
Mangukiya
Nominal Share Capital: HK$3,500,000.00
(Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
(As per registry dated 21-11-2012)
|
Name |
|
No. of shares |
|
Bharat Babubhai MANGUKIYA |
|
3,500,000 ======= |
(As per registry dated 21-11-2012)
|
Name (Nationality) |
Address |
|
Bharat Babubhai MANGUKIYA |
Tower No. 6, 23/F., Block B, Laguna Verde Avenue,
No. 8 Laguna Verde, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 21-11-2012)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Center, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 21st November, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Last two times the subject was located at Flat 404A, 4/F., Fu Hang
Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved
to Flat 404B in July 2010 and further to the present address in May 2012.
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.
Brand Name: R.D.GEm.
Employees: 4.
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan,
India, other Asian countries, etc.
Terms/Sales: L/C and T/T.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$3,500,000.00
(Divided into 3,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$3,500,000.00
Increases of Nominal Capital:-
|
From |
HK $10,000.00 |
to |
HK$2,000,000.00 |
on |
14-03-2008 |
|
From |
HK$2,000,000.00 |
to |
HK$3,500,000.00 |
on |
21-02-2011 |
Alternation of issued Capital:-
|
21-11-2007 |
paid up |
HK$ 10,000.00 |
|
14-03-2008 |
paid up |
HK$1,990,000.00 |
|
21-02-2011 |
paid up |
HK$1,500,000.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$3,500,000 ============== |
Mortgage or charge: (See
attachment)
Profit or Loss: Making
a small profit every year.
Condition: Business
is active.
Facilities: Making rather active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Incorporated in November 2007 and having issued 3.5 million ordinary
shares of HK$1.00 each, R.D. Gem Ltd. is wholly-owned by Mr. Bharat Babubhai
Mangukiya who is an Indian. Mangukiya is
an India passport holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the
subject. He can be reached at his mobile
phone number 852-9642 7035 or 852-9793 9444.
Formerly the subject had shared the office with Perry Gems (Hong Kong) Ltd.
[Perry] which is a Hong Kong-registered company. It moved to the present address in May 2012.
The subject is a supplier of single cut and full cut diamonds in Hong
Kong. Natural diamonds roughs directly
procure from mines and single cut diamonds polished in its factory in Botad and
Bhavnagar which is the prime manufacturing cities for single cut diamond and
full cut diamonds polishes in its factory in Surat. Its experience of 30 years in this field has
enabled it to provide guaranteed and quality service to its customers
worldwide.
The subject has had an associated company in Mumbai, India known as
Riddhi Diamonds.
The followings are the main products of the subject:-
All kinds of loose diamonds;
Full Cut Diamonds
White, OW, TTLB, TLB, DB & Black in -2, Star, Mele and Eleven. Clarity: VVS, VS, S1, 11, 12 and Pique. Sizes: +0000-2, star (+2-6.5), Melee
(+6.5-11) & Eleven (+11-15)(0.90 mm - 3.60 mm);
Price Ranges: From US$15 to 400 per carat; &
Single Cut Diamonds
White, OW, TTLB, TLB, TTLC, White Natts and Dark Natts in -2, Star and Mele,
Most of the products bear the brand name R.D.GEm and are exported
to worldwide countries.
The subject’s associated company Riddhi Diamonds in Mumbai, India is
engaged in the same lines of business.
The subject’s business is chiefly handled by Mangukiya himself. Sometimes he is in India acquiring diamonds.
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 took part in
“HKTDC Hong Kong International Jewellery Show 2013” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2013. Besides, it is
going to take part in “HKTDC Hong Kong International Jewellery Show 2014” which
will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong
during the period of 5th to 9th March, 2014.
Its Booth No. is 3G-D35.
The current office is owned by the subject. Its business keeps on improving.
The history of the subject in Hong Kong is over five years, on the
whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
06-04-2011 |
Instrument: Floating Charge Property: By way of floating charge the undertaking of the Company and all its
property whatsoever and wheresoever both present and future including its
uncalled capital for the time being Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All monies and liabilities |
|
29-04-2011 |
Instrument: Mortgage Property: 12/3,442nd parts or shares of and in Section A of Kowloon Marine Lot
No. 113 (Unit No. 1 on 12/F. of Fu Hang Industrial Building, 1 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure “all moneys” in respect of general banking facilities |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.53 |
|
|
1 |
Rs.99.75 |
|
Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.