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Report Date : |
17.02.2014 |
IDENTIFICATION DETAILS
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Name : |
S. B. GEMS LTD. |
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Registered Office : |
Room 306, 3/F., Block A102, Harbour Centre, Tower 1, 1 Hok Cheung
Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
28.07.2009 |
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Reg. No.: |
50936956 |
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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 |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
S. B. GEMS LTD.
ADDRESS:
Room 306, 3/F., Block A102, Harbour Centre, Tower 1, 1 Hok Cheung
Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2142 0069, 6299 4125
FAX: 852-2142
0100, 2142 0108
E-MAIL: sbgems@hotmail.com
Managing Director: Mr. Sanjay Padamshibhai Vithani
Incorporated on: 28th
July, 2009.
Organization: Private
Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond and Gem Trader.
Employees:
4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
S. B. GEMS LTD.
ADDRESS
Registered Head
Office:-
Room 306, 3/F., Block A102, Harbour Centre, Tower 1, 1 Hok Cheung
Street, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Parul Diamond, India.
S. B. Gems Ltd., India.
Sanjay Brothers, India.
50936956
1355366
Managing Director: Mr. Sanjay
Padamshibhai Vithani
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 28-07-2013)
|
Name |
|
No. of shares |
|
Sanjay Padamshibhai VITHANI |
|
1,000,000 ======= |
(As per registry dated 28-07-2013)
|
Name (Nationality) |
Address |
|
Sanjay Padamshibhai VITHANI |
Flat G, 10/F., Tower 23A, Laguna Verde, Ocean Vista, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated
28-07-2013)
|
Name |
Address |
Co. No. |
|
Dhun’s Management Services Ltd. |
7/F., Man On Commercial Building, 12‑13 Jubilee Street, Central,
Hong Kong. |
0027006 |
The subject was incorporated on 28th July, 2009 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds
Employees: 4.
Commodities Imported: India, Europe, other Asian countries, etc.
Markets: Hong
Kong, India, China, United States, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Hong Kong Watch Manufacturers Association
Ltd., Hong Kong.
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Alternation of Capital:-
|
28-07-1009 |
paid up |
HK$ 1.00 |
|
01-11-2010 |
paid up |
HK$ 9,999.00 |
|
14-07-2011 |
paid up |
HK$ 990,000.00 |
|
|
|
––––––––––––––– |
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Total: |
paid up |
HK$1,000,000.00 ============= |
Profit or Loss: Made small profits in past three years.
Condition: Business
keeps on improving.
Facilities: Making
rather 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:
Normal.
Having issued 1 million ordinary shares of HK$1.00 each, S. B. Gems Ltd.
is wholly owned by Mr. Sanjay Padamshibhai Vithani who is an Indian. Formerly the subject had just issued 1
ordinary share of HK$1.00, increased to 10,000 shares of the same value each on
1st November, 2010 and further to the present number in July 2011.
Vithani is also the only director of the subject. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
The subject is a jewellery, gem and diamond trader. It is engaged in manufacturing single cut and
full cut diamonds. According to the
subject, it is the “largest supplier of single cut diamonds”. It has got an associated company in Mumbai,
India which is also operated by Vithani.
Vithani can be reached at his mobile phone number 852-6299 4125 in
Hong Kong.
To our knowledge, the subject’s associate in India is also known as S.
B. Gems Ltd. which has been put into operation since 1965. This firm is a diamond manufacturer.
The subject has another affiliate in India known as Sanjay Brothers
which is also a diamond trader.
The subject’s main products are polished while diamonds, full cut
diamonds, 8/8 cut diamonds, round-cut diamonds, loose diamond - G colour,
colour diamonds, diamonds from 0.65 mm to 1.8 mm. Most of its loose diamonds are for jewellery
manufacturing.
Most of its products are provided by its affiliated or associated
companies in India. It also imports
diamonds from Europe and the other Asian countries. The major markets of the subject are Hong
Kong, India, China, United States, Australia, the Middle East, etc. Business keeps on improving.
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 2014”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 3rd to 7th March, 2014. Its booth No. is AWE 2CON-53.
The subject also has taken part in the following exhibitions:-
International Jewellery & Watch Exhibition Vietnam;
Shenzhen Jewellery Exhibition.
As the history of the subject in Hong Kong is over four years, on the
whole, consider it good for normal business engagements in moderate credit
amounts.
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 –
-
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.62.28 |
|
|
1 |
Rs.103.67 |
|
Euro |
1 |
Rs.85.18 |
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.