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Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
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Name : |
BROWN GEMS (HK) LTD. |
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Registered Office : |
Room 2, Unit 306, 3/F., |
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Country : |
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Date of Incorporation : |
02.05.2014 |
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Com. Reg. No.: |
59745291 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trader of all Kinds of Diamonds, Precious Gemstone,
Semi-Precious Stones. |
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No. of Employees |
2 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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Source
: CIA |
BROWN
GEMS (HK) LTD.
ADDRESS: Room 2, Unit 306, 3/F.,
Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-3151 7037, 5499 4404
FAX: 852-3905 7799
Managing Director: Mr.
Harkishan Manjibhai Monpara
Incorporated on: 2nd
May, 2012.
Organization: Private
Limited Company.
Capital: Nominal: HK$7,700,000.00
Business Category: Gemstone Trader.
Employees:
2.
Main Dealing Banker: DBS Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered
Head Office:-
Room 2, Unit 306, 3/F., Harbour Centre Tower
1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Affiliated
Company:-
Gopal Gems, Hong Kong. (Same address)
59745291
1738993
Managing Director: Mr. Harkishan Manjibhai Monpara
HK$7,700,000.00
(As per registry dated 02-05-2014)
|
Name |
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No.
of shares |
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Harkishan Manjibhai MONPARA |
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7,700,000 ======= |
(As per registry dated 02-05-2014)
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Name (Nationality) |
Address |
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Harkishan Manjibhai MONPARA |
Dev Daya Building, C-5, Flat No. 403,
Sector 3, Shanti, Nagar, Mira Road (E), Thane-401 107, India. |
(As per registry dated 02-05-2014)
|
Name |
Address |
Co.
No. |
|
Champion Corporate Ltd. |
Unit 907, 9/F., Silvercord Tower 2, 30
Canton Road, Tsimshatsui, Kowloon, Hong Kong. |
0657221 |
The subject was incorporated on 2nd May,
2012 as a private limited liability company under the Hong Kong Companies
Ordinance.
Formerly the subject’s registered address
was located at Flat B, 7/F., Shing Hing Commercial Building, 21-27 Wing Kut
Street, Central, Hong Kong where is the operating address of Pioneer
Consultants Ltd. which is a commercial service provider, moved to Unit E2,
6/F., Summit Building, 30 Man Yue Street, Hunghom, Kowloon, Hong Kong with
effect from 14th May, 2012, and further moved to the present address in
May 2013.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Gemstone
Trader.
Lines: All
kinds of diamonds, precious and semi-precious stones.
Employees: 2.
Commodities Imported: India, Sri-Lanka, etc.
Markets: Hong
Kong, other Asian countries, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Paid Up Capital: HK$7,700,000.00
Profit or Loss: Kept a balance account in 2013.
Mortgage or Charge:-
Date: 30-04-2014
Description of
Instrument: Mortgage
Mortgagee: DBS Bank (Hong Kong) Ltd., Hong Kong.
Condition: Business
is improving.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory
Banker:
DBS Bank
(Hong Kong) Ltd., Hong Kong.
Standing:
Small.
Formerly Brown Gems (HK) Ltd. had issued 100,000 ordinary shares of
HK$1.00 each which were wholly owned by Mr. Harkishan Manjibhai Monpara who was
an India merchant. Now, its number of
shares have been increased to 7.7 million of the same value each. The newly issued ordinary shares are also
owned by H M Monpara. 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.
The subject moved to the present address in late May 2013. It shares the office with another firm Gopal
Gems which is also a Hong Kong-registered firm.
Gopal Gems is trading in Pizza cut diamonds and also trades in diamond
necklace. Its products bear the brand
names of PIZZA CUT and Gopal Gems. Products are exported to North America and
Asian countries. The contact person of
Gopal Gems is Mr. Vijay Lakhani who is also an Indian. The contact person of the subject is also
Harkishan Manjibhai Monpara.
The subject is a gemstone and loose, polished and cut diamond
trader. It is chiefly carrying the
following semi-precious stones: aquamarine, pink amethyst, rubylite, green
amethyst, blue topaz, lemon topaz, citrine, smokey topaz, kunzite, peridot,
morganite, pink tourmalines, amethyst, pink topaz, garnet, rose quartz, etc.
The subject is famous for its round-cut brown diamonds. Other significant products are DB, TTLB,
OWTTLB, Single Cut, Rose Cut, Tapper & Baggets.
Most of the commodities are imported from India, Sri-Lanka, other Asian
countries, etc. Prime markets are Hong
Kong, China and the other Asian countries.
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 Diamond, Gem & Pearl Show 2015”
which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the
period of 2nd to 6th March, 2015. Its
booth No. is AWE 11-F36.
The subject’s business is chiefly handled by Monpara himself. Business is improving. History in Hong Kong, which is short, is just
over two years and three months.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis.
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.61.88 |
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UK Pound |
1 |
Rs.96.90 |
|
Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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.