|
Report Date : |
06.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ FAR EAST LTD. |
|
|
|
|
Formerly Known As : |
INTER-GEMS (H.K.) LTD.] |
|
|
|
|
Registered Office : |
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
15.10.1997 |
|
|
|
|
Com. Reg. No.: |
21311654 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and jewellery
products, emerald, precious stones. |
|
|
|
|
No. of Employees : |
50.
(Subject) |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 |
SHRENUJ FAR EAST
LTD.
[Formerly knows as INTER-GEMS (H.K.) LTD.]
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 852-2368 5589
FAX: 852-2368 9116
E-MAIL: dipan@inter-gemshk.com
Managing Director: Mr. Dipan Jagdish Patel
Incorporated on: 15th
October, 1997.
Organization: Private Limited Company.
Capital: Nominal: HK$501,000.00
Issued: HK$501,000.00
Business Category: Jewellery Trader.
Company Turnover: US$63.3 million (Year
ended 31-03-2013)
Group Turnover: Rs
38,621.47 million (Year ended
31-03-2013)
Employees: 50. (Company)
1,700. (Group)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
SHRENUJ FAR EAST
LTD.
Registered Head
Office:-
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon,
Hong Kong.
Holding Company:-
Shrenuj (Mauritius) Pvt. Ltd., Mauritius.
Ultimate Holding
Company:-
Shrenuj & Co. Ltd., India.
Associated/Affiliated
Companies:-
Shrenuj Group of Companies
Alija International Pty. Ltd., Australia.
Arisia Jewellery Pvt. Ltd., India.
Astral Holding Inc., USA.
C & A Diamonds International LLC, USA.
Copem & Shrenuj, Italy.
Daily Jewellery Ltd., Hong Kong. [Trading
as Joeliesse] (Same address)
Ever Gold (HK) Ltd., Hong Kong.
(Same address)
Facet (Hong Kong) Ltd., Hong Kong.
(Same address)
Global Marine Diamond Corporation, USA.
Inala Metals & Minerals Pvt. Ltd., India.
Intergems H.K. Ltd., Hong Kong.
(Same address)
Ithemba Diamonds (Pty) Ltd., South Africa.
Jomard SAS, France.
Kiara Jewellery (H.K.) Ltd., Hong Kong.
(Same address)
Kiara Jewellery Pvt. Ltd., India.
Lume Group AG, Switzerland.
Shrenuj Australia Pty. Ltd., Australia.
Shrenuj Botswana Pty. Ltd., Botswana.
Shrenuj DMCC, UAE.
Shrenuj GmbH, Germany.
Shrenuj Japan Corporation, Japan.
Shrenuj Jewely (Far East) Ltd., Hong Kong.
Shrenuj Lifestyle Ltd., India.
Shrenuj N.V., Belgium.
Shrenuj Overseas Ltd., India.
Shrenuj Shanghai Ltd., China.
Shrenuj South Africa Pty. Ltd., South Africa.
Simon Golub & Sons Inc., USA.
SWA Trading Ltd., Israel.
Trapz LLC, USA.
Uxolo Diamond Cutting Works (Pty) Ltd., South Africa.
etc.
21311654
0626569
Managing Director: Mr. Dipan
Jagdish Patel
Nominal Share Capital: HK$501,000.00
(Divided into 501,000 shares of HK$1.00 each)
Issued Share Capital:
HK$501,000.00
(As per registry dated 15-10-2013)
|
Name |
|
No. of shares |
|
Shrenuj (Mauritius) Pvt. Ltd. St. James Court, Suite 308, St. Denis Street, Port Louis, Republic of
Mauritius. |
|
500,999 |
|
Smit Subhashbhai KOTHARI |
|
1 |
|
|
|
––––––– |
|
|
Total: |
501,000 ====== |
(As per registry dated 15-10-2013)
|
Name (Nationality) |
Address |
|
Dipan Jagdish PATEL |
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Vishal Shreyas DOSHI |
162, Neelamber, 37, Gopalrao Deshmukh Marg, Mumbai 400026, M.S.,
India. |
|
Vinod Mahadeo SHETYE |
C-0712, Harbourfront Horizon All-Suite Hotel, 8 Hung Luen Road,
Hunghom Bay, Kowloon, Hong Kong. |
(As per registry dated 15-10-2013)
|
Name |
Address |
Co. No. |
|
Cheng & Cheng Corporate Services Ltd. |
Room 1201, 12/F., Allied Kajima Building, 138 Gloucester Road,
Wanchai, Hong Kong. |
0307222 |
The subject was incorporated on 15th October, 1997 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Inter-Gems
(H.K.) Ltd., name changed to the present style on 8th August, 2013.
Formerly the subject was located at Room 707, 7/F., Kowloon Centre,
33 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present
address in March 2004.
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 stonesc.
Employees: 50.
(Company)
1,700. (Group)
Commodities Imported: India, Belgium, Israel, other European countries, etc.
Markets: Japan,
other Asian countries, etc.
Company Turnover: US$72.8 million
(Year ended 31-03-2012)
US$63.3 million (Year ended
31-03-2013)
Group Turnover: Rs 24,565.15 million
(Year ended 31-03-2011)
Rs 31,505.85
million (Year ended 31-03-2012)
Rs 38,621.47
million (Year ended 31-03-2013)
Terms/Sales:
L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKI0277]
The Indian Chamber of Commerce Hong Kong,
Hong Kong.
Nominal Share Capital: HK$501,000.00 (Divided into
501,000 shares of HK$1.00 each)
Issued Share Capital: HK$501,000.00
Mortgage or Charge (since 2008): (See attachment)
Company Net (Loss)/Profit: US$0.5 million (Year ended 31-03-2012)
US$2.9 million (Year ended
31-03-2013)
Group Profit After Taxation:-
Rs 542.48
million (Year ended 31-03-2011)
Rs 686.21
million (Year ended 31-03-2012)
Rs 751.41
million (Year ended 31-03-2013)
Profit or Loss: Subject made profits in 2011 & 2012.
Condition: Keeping
in an active condition.
Facilities:
Making
active use of general banking facilities.
Payment:
Met
trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank
Ltd., Hong Kong.
ICICI Bank Ltd.,
Hong Kong Branch.
Bank of India,
Hong Kong Branch.
Punjab National Bank, Hong Kong Branch.
Standing:
Very
Good.
Having issued 501,000 ordinary shares of HK$1.00 each, Shrenuj Far East
Ltd. is a subsidiary company of Shrenuj (Mauritius) Pvt. Ltd. which is a
Mauritius-registered firm. The ultimate
holding company of the subject Shrenuj & Co. Ltd. [Shrenuj] is an
India-based firm.
Located at its operating address, the subject has had a number of
associated companies while the main one is Shrenuj Jewelry (Far East) Ltd.
The subject is a diamond importer, exporter and wholesaler. It is dealing in jewellery diamonds ranging
from 2 points to 2 carats, and in all colours — from D to L colours and all
shades of brown. Products include single
cuts, full cuts and fancy shapes — such as princess, baguettes, marquise,
pearl, oval, emerald and heart. It is
trading in the following products:-
·
Finished Jewellery
·
Diamond Jewellery
·
White Diamond Jewellery
·
Gem Set Jewellery
·
Emerald Jewellery
·
Ruby Jewellery
·
Sapphire Jewellery
·
Gold Jewellery
·
14K Gold Jewellery
·
18K Gold Jewellery
·
Fineness not Specified
·
Materials
·
Diamond
·
Polished White Diamond
·
Precious gemstones
·
Polished Ruby
·
Polished Sapphire
·
Findings
·
Chain
The subject is famous for its carat-size diamonds, loose diamonds, GIA
diamonds, etc.
Rough diamonds are imported from India, Belgium, Israel and other
European countries, etc. Polished and
cut products are exported to Japan, Southeast Asia, the Middle East, etc. Business is rather active.
The subject also markets its product online. It sells its product via the website
“BusyTrade.com”. The subject is a DTC
Sight Holder.
Shrenuj is a listed firm with shares actively traded on Bombay Stock
Exchange [BSE] and National Stock Exchange [NSE]. Shrenuj is one of the largest diamond and
jewellery manufacturing companies in India having an international presence in
15 countries with a geographically diversified customer base, favourable
economies of scale, ability to source roughs from strategic partners, growing
retail presence and market linked production mix. Its activities are carried out in accordance
with good corporate practices.
Shrenuj’s policies and practices are not only consistent with the
statutory requirement but also underline its commitment to operate in the best
interest of the stakeholders. It will
continue to focus its resources, strengths and strategies to achieve its vision
of becoming a global company, while upholding the core values of transparency,
integrity, honesty and accountability.
For the year ended 31st March, 2013, the income of the Shrenuj Group
amounted to Rs 38,621.47 million (2012: Rs 31,505.85 million). Group profit after taxation for the year was
Rs 751.41 million (2012: Rs 686.21 million).
Shrenuj has invested substantially in enhancing its manufacturing base
globally as well as in India in the past few years. The group has adopted a high growth strategy
and expects its revenues to increase significantly in the next three years.
With the enlargement of our manufacturing facilities, Shrenuj is well
geared to meet the projected high growth in demand. Shrenuj has successfully tested a new
collection in the US market which is now being rolled out to over 800
stores. Its variants, using 10 hearts
and 10 arrows diamonds, will be made available to consumers in other markets
during the year.
For the year ended 31st March, 2013, the turnover of the subject
amounted to US$63.3 million (2012: HK$72.8 million). Profit after taxation for the year was US$2.9
million (2012: US$0.5 million).
The subject is fully supported by the Shrenuj Group.
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.
Since the history of the subject in Hong Kong is over sixteen years, on
the whole, consider it good for normal business engagements.
Property information of the company:-
1. Property Location: Carparking Space No. B84 at Basement 2
of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island,
Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
2. Property Location: Carparking Space No. B85 at Basement 2
of Phase VI, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island,
Hong Kong.
Owner: Inter-Gems (H.K.) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
30-09-2008 |
- |
Hang Seng Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
(Since 2008)
|
Date |
Particulars |
Amount |
|
07-04-2008 |
Instrument: Debenture Property: 1) Assign to the Bank the
proceeds of each policy of insurance 2) Charge to the Bank by
way of a floating charge all shares, stock, bonds, debentures, certificates
of deposit, promissory notes, warrants, futures, options, funds, units, notes
and other securities 3) Charge to the Bank by
way of floating charge all book debts and other debts 4) Charge to the Bank by
way of floating charge all negotiable instruments 5) Charge to the Bank by way
of floating charge all funds 6) Charge to the Bank by
way of floating charge all chooses in action and claims Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies |
|
30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5
(Carparking Space No. B84 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin
Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
30-09-2008 |
Instrument: Mortgage Property: 12/428,830th parts or shares of and in Tung Chung Town Lot No. 5
(Carparking Space No. B85 at Basement 2 of Phase VI, Caribbean Coast, 1 Kin
Tung Road, Tung Chung, Lantau Island, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
07-10-2010 |
Instrument: Charge on Deposit Property: Account No. Sum Deposit Dated 6841000054 US$204,000.00 14-03-2010 Mortgagee: Punjab National Bank, Hong Kong
Branch. |
To secure all monies in respect of banking facilities |
|
19-10-2011 |
Instrument: Supplemental Debenture Property: B way of a floating charge the whole of the Customer’s stocks of raw
materials, goods-in-process, inventory, semi-finished goods, consumable
stores and spares and other movables Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies |
|
06-02-2012 |
Instrument: Property: All sums of Charge on Deposit: Money from time to time standing to the credit of the account of the
Depositor Mortgagee: Punjab National Bank, Hong Kong
Branch. |
To secure All monies in respect of banking facilities owing at any time
plus interest and all expenses |
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.62.41 |
|
|
1 |
Rs.102.54 |
|
Euro |
1 |
Rs.85.20 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.