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Report Date : |
29.10.2013 |
IDENTIFICATION DETAILS
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Name : |
GEM STAR INC. |
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Registered Office : |
1111 A Flinch Avenue W., Ste 100
North York, Ontario M3J 2P7 |
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Country : |
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Date of Incorporation : |
10.06.1982 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
Subject is a |
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No. of Employees : |
4 |
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 : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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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A1 |
A1 |
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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 |
As a high-tech industrial society in the trillion-dollar
class,
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Source
: CIA |
Company name: GEM STAR INC.
Address: 1111 A Flinch Avenue W., Ste
100 North York, Ontario M3J 2P7 -
Telephone: +1
416-667-9397
Fax: +1 416-667-9399
Website: www.gemstar.ca
Corporate ID#: ON-0000514904
State:
Judicial form: Corporation – Profit
Date incorporated: June
10, 1982
Stock: -
Value: -
Name of manager: Bushan
VORA
Business:
Gem star is a
Over 30 years of active
diamond trading has given GEM STAR a respected position in the Canadian diamond
industry.
No name of foreign suppliers available.
Staff: 4
Operations & branches:
At the headquarters, we
find a store, warehouse and office, on lease.
Shareholders:
This is a family owned and managed company.
Management:
Bushan VORA is the President and CEO.
Other managers include
- Raj VORA
- Ashish DHARIA
- Rocco GALLETTA
As far as we know, they are not involved in other local corporations.
Subsidiaries
And partnership: None
In Canada, privately held
corporations are not required to publish any financials.
On a direct call, nobody
accepted to answer our questions.
We sent a fax but no answer
received.
Outside sources (bank) gave
estimate sales for year 2012 in the range of
CAD 500,000=
The business is said to be
profitable.
Banks: HSBC Bank
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: None
Haut du formulaire
Trade references:
Date reported: September 2013
High credit: CAD 2,000
Now owing: 0
Past due: 0
Last purchase: August 2013
Line of business: Office supply
Paying status: On terms
Date reported: September 2013
High credit: CAD 4,000
Now owing: 0
Past due: 0
Last purchase: August 2013
Line of business: Payroll
Paying status: As agreed
Date reported: September 2013
High credit: CAD 200
Now owing: 0
Past due: 0
Last purchase: August 2013
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
Domestic credit history
appears as follow:
Monthly Payment Trends - Recent Activity
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
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04/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
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05/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
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06/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
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07/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
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08/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
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09/13 |
$600 |
100% |
0% |
0% |
0% |
0% |
National Credit Bureaus gave
a satisfying credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made on terms.
Other comments:
The Company maintains its
business.
The Company is in good
standing.
This means that all local and
federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
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.61.50 |
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1 |
Rs.99.49 |
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Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.