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Report Date : |
30.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
NIRGEM HK LTD. |
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Registered Office : |
Room 1504, 15/F., |
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Country : |
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Date of Incorporation : |
22.04.2005 |
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Com. Reg. No.: |
35556903 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of All kinds of diamonds and jewellery |
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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) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
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 |
NIRGEM HK LTD.
Room 1504, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue,
Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-6504 1846, 2191
9009
FAX: 852-2191 9759
E-MAIL: nirgemhk@yahoo.com
Managing Director: Mr. Jignesh
Chandrakant Mehta
Incorporated on: 22nd
April, 2005.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$2.00
Business Category: Diamond Trader.
Employees:
4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
NIRGEM HK LTD.
Registered Head
Office:-
Room 1504, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue,
Tsimshatsui, Kowloon, Hong Kong.
Operating
Company:-
Nirgem, Hong Kong. (Same address)
Holding Company:-
Pan International DMCC, UAE.
Affiliated/Associated
Companies:-
Pan-Facets Co. Ltd., Thailand.
Paras Gems N.V., Belgium.
Popatlal Nathalal Shah, India.
35556903
0965794
Managing Director: Mr. Jignesh
Chandrakant Mehta
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$2.00
(As per registry dated 22-04-2013)
|
Name |
|
No. of shares |
|
Pan International DMCC 18 E Almas Tower, Jumeriah Lake, Towers, Sheikh Zayed Road, Dubai,
U.A.E. |
|
2 == |
(As per registry dated 22-04-2013)
|
Name (Nationality) |
Address |
|
Jignesh Chandrakant MEHTA |
Flat E, 11/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 22-04-2013)
|
Name |
Address |
|
Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung, Lantau
Island, Hong Kong. |
The subject was incorporated on 22nd April, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Lee Wai Commercial Building,
1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1204, 12/F., of
the same building in 2010 and further moved to Room 1504, 15/F. of the
same building in July 2012.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery.
Employees: 4.
Commodities Imported: India, Thailand, Belgium, etc.
Markets: Worldwide.
Terms/Sales:
As per contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$2.00
Mortgage or Charge:-
Date of Security Over Deposits with the Bank
(Fixed Deposits) Limited Company - Under Seal:
19-07-2012
Amount: All
monies
Property: Amount
HKS50,000, deposit A/C 636557704838 (0001)
Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Profit & Loss: Making a small profit in the past years.
Condition: Business
is normal.
Facilities: Making
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Good.
Formerly Nirgem HK Ltd. was equally owned by Popatlal Nathalal Shah
[PNS], India, and Pan Facets Co. Ltd., Thailand. The subject has just issued 2 ordinary shares
of HK$1.00 each while each of the holding companies held one share. The shareholders have been reshuffled. Now, it is wholly-owned by Pan International
DMCC [PID] which is a UAE-based firm.
The subject’s business name is Nirgem.
The managing director of the subject is Mr. Jignesh Chandrakant Mehta
who is an Indian. He is a Hong Kong ID
Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the
subject. He can be reached at his Hong
Kong mobile phone number 852-6504 1846.
PNS is still the ultimate holding company of the subject and PID.
The subject and its associated companies are trading in diamonds, gems
and jewellery. Business is rather
active.
PNS is a reputed name in the Indian Diamond Industry for over five
decades. It is engaged in manufacturing
polished diamonds in various shapes and sizes.
It is specialized in manufacturing high value round brilliant cuts from
1 cent to 5 carats.
PNS was established in 1956 by Shri Popatlal Nathalal Shah with the
objective of manufacturing of quality diamonds in India and sells its products
to world market. Today PNS is managed by
Shri Ajay P. Shah.
PNS is manufacturing and selling polished diamonds. These diamonds are manufactured in 5
state-of-the-art manufacturing centres located in Dahisar, Mumbai. These units house over 300 skilled craftsmen.
PNS promotes and sells its products in the world market through its
representatives in various countries.
Its products find ready acceptance in various countries. It exports its goods to the United States,
Bangkok, Hong Kong, Dubai and Antwerp, among other countries.
PNS sources its rough diamonds from dependable and reputed sources,
ensuring quality and competitive price.
It manufactures polished diamonds in various sizes and shapes like
Rounds, Marquise, Oval, Princess, Pear, etc.
Manufacturing White Round Diamonds (Brilliant Cut) from 1 cent up to 5
carats is PNS’ speciality. It makes
goods from shades D to J in all purities; these are mostly high value goods
from 1 cent to 5 carats weight.
PNS’ future plans include venturing into manufacture of diamond-studded
jewellery and offer more value to its customers. Besides the subject and PID, PNS has set up
associated companies in Belgium and Thailand.
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
the Tenth Shenzhen International Gold, Jewellery & Gem Fair 2012 which was
held in Shenzhen Special Economic Zone, China.
The subject is fully supported by PNS.
The subject’s business is chiefly handled by Mehta.
The history of the subject in Hong Kong is over eight years.
On the whole, in view of the subject’s background and parentage,
consider it good for normal business engagements.
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.
-
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.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
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.61.46 |
|
|
1 |
Rs.98.99 |
|
Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.