|
Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
SM GEMS LTD. |
|
|
|
|
Registered Office : |
Room 710, 7/F., Tower A, Hung Hom Commercial Center, 37-39 Ma Tau Wai Road,
Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
11.08.1997 |
|
|
|
|
Com. Reg. No.: |
21622219 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Gemstone Trader of All kinds of gemstones. |
|
|
|
|
No. of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 |
|
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 |
SM GEMS LTD.
Room 710, 7/F., Tower A, Hung Hom Commercial Center, 37-39 Ma Tau Wai Road,
Hunghom, Kowloon, Hong Kong.
PHONE: 852-2368 0660
FAX: 852-2368 2969
E-MAIL: kamal@smgems.com
smgems@attglobal.net
Managing Director: Mr. Prakash Gangaram Punjabi
Incorporated on: 11th
August, 1997.
Organization: Private
Limited Company.
Capital: Nominal: HK$11,237,890.00
Issued: HK$11,237,890.00
Business Category: Gemstone Trader.
Employees:
8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
SM GEMS LTD.
Registered Head
Office:-
Room 710, 7/F., Tower A, Hung Hom Commercial Center, 37-39 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong.
21622219
0620102
Managing Director: Mr. Prakash Gangaram Punjabi
Contact Person: Mr. Hiranandani Kamal (Mobile:
852-9152 3151)
Nominal Share Capital: HK$11,237,890.00
(Divided into 11,237,890 shares of HK$1.00 each)
Issued Share Capital: HK$11,237,890.00
(As per registry dated 11-08-2013)
|
Name |
|
No. of shares |
|
Prakash Gangaram PUNJABI |
|
1 |
|
Sunder Gangaram PUNJABI |
|
9,365,907 |
|
Parshotam Dulahdinomal RATWANI |
|
1,871,982 |
|
|
|
––––––––– |
|
|
Total: |
11,237,890 ======== |
(As per registry dated 11-08-2013)
|
Name (Nationality) |
Address |
|
Prakash Gangaram PUNJABI |
Flat B, 4/F., Block 1, Site 2, Whampoa Garden, Kowloon, Hong Kong. |
|
Suresh PANJABI |
Flat C, 26/F., Tower 7, Villa Verde, Phase IIA, Laguna Verde, 8 Laguna
Verde Avenue, Kowloon, Hong Kong. |
|
Sunder Gangaram PUNJABI |
Flat B, 4/F., Block 1, Site 2, Whampoa Garden, Kowloon, Hong Kong. |
(As per registry dated
11-08-2013)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 11th August, 1997 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Beckham Ltd.,
name changed to the present style on 20th May, 1998.
Last time, the subject was located at Room 814, 8/F., Tower A, Hung Hom Commercial
Center, 37-39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong, moved to Room
710, 7/F. of the same building in December 2005.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Gemstone
Trader.
Lines: All
kinds of gemstones.
Employees: 8.
Commodities Imported: India, Sri Lanka, etc.
Markets: Japan,
North America, Southeast Asia, Europe, other Asian countries, etc.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
The Indian Chamber of Commerce Hong Kong,
Hong Kong.
Nominal Share Capital: HK$11,237,890.00 (Divided into 11,237,890
shares of HK$1.00 each)
Issued Share Capital: HK$11,237,890.00
Indebtedness: HK$2,424,482.00 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 11-08-2013)
Mortgage or Charge: (See
attachment)
Profit or Loss: Making a small profit every year.
Condition:
Keeping in a
satisfactory manner.
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.
Having issued 11,237,890 ordinary shares of HK$1.00 each, SM Gems Ltd.
is jointly owned by Mr. Sunder Gangaram Punjabi, holding 83.3%% interests; Mr.
Parshotam Dulahdinomal Ratwani, holding 16.7%.
Both are Indian.
The Contact Person of the subject Mr. Hira Kamal who is the Sales
Manager can be reached at his Hong Kong mobile phone number 852-9152 3151.
The subject is a gemstone trader.
It is trading in all kinds of rough, cut and polished Exotic Stones such
as the followings:-
Morganite, Morganite Stone, Amblygonite, Beryls, Ruby Rhodonite, Lemon
Quartz, Precious Topaz, Paraiba Tourmaline, Santa-maria Aquamarine, Rhodolite,
Goshenite, Aragonites, Rubellites, Andaluzite, etc.
The subject also trades in fine and imitation jewellery.
According to the subject, it imports its rough gemstones directly form
sources. Besides, it has had factories
in Brazil, China and India. According to
the subject, it is able to provide customers with its products in competitive
prices.
Gemstones are exported to Japan, Thailand, North America, Southeast
Asia, other Asian countries, Germany, other European countries, etc. Business is active and profitable.
The subject is a member of The Indian Chamber of Commerce Hong Kong.
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 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.
The subject is chiefly owned by the Punjabi family in Hong Kong. History is over sixteen years.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
28-10-2004 |
Instrument: Charge Over Securities and Receivables Property: In consideration of the Banking Facilities, the customer as beneficial
owner, charges to the Bank, by way of first fixed charge, all the right,
title and interest of the customer in and to the Securities and the
receivables as a continuing security for the obligations of the customer in
respect of the Secured Moneys Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities owing a any time
plus interest and all expenses |
|
28-12-2004 |
Instrument: Mortgage Property: All those 19/12,841 part or share of and in All that piece or parcel
of ground registered in the Land Registry as The Remaining Portion of Section
O of Kowloon Marine Lot No. 40 and in the messuages erections and buildings
erected thereon now known as Hung Hom Commercial Centre together with the
sole and exclusive right and privilege to hold use occupy and enjoy All that
Unit No. 10 on the Seventh Floor of Tower A of the Building Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of general banking facilities and
interest thereon |
|
23-07-2010 |
Instrument: Mortgage Property: All that the estate right title benefit and interest of and in All
those 10/27,172 part or share of and in Section B of Kowloon Inland Lot No. 10750
(Flat B on the Fourth Floor or Block 1 of Whampoa Garden - Site 2, Kowloon,
Hong Kong) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure all monies in respect of general banking facilities and
interest thereon |
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.59 |
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.