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Report Date : |
18.01.2014 |
IDENTIFICATION DETAILS
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Name : |
INTER-GEMS
LTD. |
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Registered Office : |
Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.06.2013 |
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Com. Reg. No.: |
61584609 |
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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, emerald, precious stones and jewellery products |
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No. of Employees : |
50. (Including associates) 1,700. (Group) |
RATING & COMMENTS
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MIRA’s Rating : |
NB |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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-- |
NB |
New Business |
-- |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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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) |
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Hong Kong |
A2 |
A2 |
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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 |
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 |
INTER-GEMS LTD.
Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE/FAX: Not Available
Managing Director: Mr. Dipan Jagdish Patel
Incorporated on: 13th June, 2013.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Jewellery Trader.
Group Turnover: Rs. 38,621.47 million (Year ended 31-03-2013)
Employees: 50. (Including associates)
1,700. (Group)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
Operating
Address:-
5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
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 & Co. Ltd., India.
Shrenuj (Mauritius) Pvt. Ltd., Mauritius.
Shrenuj Australia Pty. Ltd., Australia.
Shrenuj Botswana Pty. Ltd., Botswana.
Shrenuj DMCC, UAE.
Shrenuj Far East
Ltd.,Hong Kong.
[Formerly knows as Inter-Gems (H.K.) Ltd.]
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.
61584609
1922198
Managing Director: Mr. Dipan Jagdish Patel
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 13-06-2013)
|
Name |
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No. of shares |
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Dipan Jagdish PATEL |
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5,000 |
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Anita PATEL |
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5,000 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 13-06-2013)
|
Name (Nationality) |
Address |
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Anita PATEL |
Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan
Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Dipan Jagdish PATEL |
Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan
Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 13-06-2013)
|
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 13th June, 2013 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, emerald, precious stones and jewellery products
Employees: 50. (Including associates)
1,700. (Group)
Commodities Imported: India, Belgium, Israel, other European countries, etc.
Markets: Japan, other Asian countries, etc.
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.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
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: Too early to offer an opinion.
Condition: Business is under development.
Facilities: Making fairly 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 10,000 ordinary shares of HK$1.00 each, Inter-Gems Ltd. is equally owned by Mr. Dipan Jagdish Patel and Ms. Anita Patel. Both are Indian merchant. Both are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently. They are also directors of the subject.
The subject’s registered address is in a private building located at Flat A1, 8/F., Block A, Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. This is the residence of the two shareholders in Hong Kong.
The subject’s operating address is located at “5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong” where is the operating address of the subject’s associated company Shrenuj Far East Ltd. [Shrenuj FE]. The ultimate holding company of Shrenuj FE is Shrenuj & Co. Ltd. [Shrenuj] which is an India-based firm.
There are about 50 employees in the above-mentioned office.
The managing director of Shrenuj is also Dipan Jagdish Patel.
The subject 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 also trading in the following products:-
· Finished Jewellery
o Diamond Jewellery
§ White Diamond Jewellery
o Gem Set Jewellery
§ Emerald Jewellery
§ Ruby Jewellery
§ Sapphire Jewellery
o Gold Jewellery
§ 14K Gold Jewellery
§ 18K Gold Jewellery
§ Fineness not Specified
· Materials
o Diamond
§ Polished White Diamond
o Precious gemstones
§ Polished Ruby
§ Polished Sapphire
o Findings
§ Chain
The subject is famous for its carat-size diamonds, loose diamonds, GIA diamonds.
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.
The subject is fully supported by the Shrenuj Group.
Since the history of the subject in Hong Kong is just over seven months, on the whole, consider it good for normal business engagements on L/C basis for the time being.
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.61.35 |
|
|
1 |
Rs.100.21 |
|
Euro |
1 |
Rs.83.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
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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 |
|
-- |
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.