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Report Date : |
30.12.2014 |
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 : |
04 |
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 – 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 |
R.D. GEM
LTD.
ADDRESS: 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.
Issued Share Capital: 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.
Registered Head
Office:-
Flat 1201, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
PM Jewels Ltd., Hong Kong.
R.D. Gems, Inc., US.
38660913
1187492
Managing Director: Mr. Bharat Babubhai Mangukiya
ISSUED SHARE
CAPITAL: HK$3,500,000.00
SHAREHOLDER: (As per registry dated 21-11-2014)
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Name |
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No. of shares |
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Bharat Babubhai MANGUKIYA |
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3,500,000 ======= |
DIRECTOR: (As per registry dated 21-11-2014)
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Name (Nationality) |
Address |
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Bharat Babubhai MANGUKIYA |
Block B, 23/F., Tower 6, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. |
SECRETARY: (As per registry dated 21-11-2014)
|
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.
Issued Share Capital: HK$3,500,000.00
Indebtedness: HK$4,761,975 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 21-11-2014)
Mortgage or charge: (See attachment)
Profit or Loss: Operation is conducted on a profitable basis.
Condition: Business remains active.
Facilities: Is making 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 India merchant.
Mangukiya is a Hong Kong ID 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 852-9642 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. The factory has 30 years’ experience in this field.
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 business is chiefly handled by Mangukiya himself.
The subject has set up an associated company in the United States known as R.D. Gems, Inc. which is in New York.
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 2015” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 4th to 8th March, 2015.
The current office is owned by the subject. Its business is normal.
The history of the subject in Hong Kong is over seven years and a month, on the whole, consider it good for normal business engagements.
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Date |
Particulars |
Amount |
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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 |
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.65 |
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1 |
Rs.99.14 |
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Euro |
1 |
Rs.77.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
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.