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Report Date : |
28.07.2014 |
IDENTIFICATION DETAILS
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Name : |
R. C. GEMS |
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Registered Office : |
Unit B, 3/F., |
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Country : |
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Date of Incorporation : |
01.12.2006 |
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Com. Reg. No.: |
37408536-000-12 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery Products, Gems as well as Precious Stones Subject product ranges includes Fancy Coloured Diamonds, Unusual Rose
Cut & Briolette Cut Diamonds, Single-Cut Diamond, Fullcut Loose Diamond,
Carat Size Diamonds & Blue Sapphire |
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No. of Employees : |
01 |
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 concern |
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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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Hong Kong |
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 |
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 has no tariffs on imported goods, and it levies excise duties on
only four commodities, whether imported or produced locally: 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, its continued reliance on foreign
trade and investment leaves it vulnerable to renewed global financial market
volatility or a slowdown in the global economy. 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 12% of total system
deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have
caused Hong Kong property prices to rise rapidly; consumer prices increased by
more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from January 2014,
cover services and trade facilitation, and will improve access to the
mainland's service sector for Hong Kong-based companies.
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Source
: CIA |
R. C. GEMS
ADDRESS: Unit B, 3/F., Chun Wah Commercial
Building, 30 Minden Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-9062 4599
FAX: Not available
Manager: Mr. Chirag Hitendra
Sanghvi
Establishment: 1st December, 2006.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employee: 1.
Main Dealing Banker: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Unit B, 3/F., Chun Wah Commercial Building, 30 Minden Avenue,
Tsimshatsui, Kowloon, Hong Kong.
37408536-000-12
Manager: Mr. Chirag Hitendra
Sanghvi
Name: Mr. Chirag Hitendra SANGHVI
Residential Address: 10, Hill
View, 2/F., Raghauji Road, Cumballa Hill, Mumbai-400036, India.
Name: Mr. Devendrasingh BORA
Residential
Address: Block 203, Dattatraya Niwas
Plot, 125 Krishna Nagar X Road No. 12, Borivali, Mumbai MS 400066, India.
The subject was established on 1st December, 2006 as a partnership
concern owned by Mr. Rickin Dhirenkumar Shah and Mr. Chirag Hitendra Sanghvi
under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rickin Dhirenkumar Shah |
01-12-2006 |
30-06-2009 |
|
Chirag Hitendra Sanghvi |
01-12-2006 |
- |
|
Devendrasingh Bora |
30-06-2009 |
- |
Initially the subject was located at Flat A3, 11/F., Burlington House,
90‑94C Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 11,
18/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon,
Hong Kong in November 2007 and further moved to the present address in
February, 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, gems as well as precious stones
Employee: 1.
Commodities Imported: India,
Belgium, other European countries
Markets: Hong
Kong, Japan, other Asian countries
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P, Advanced Payment
Capital: Not
disclosed.
Profit or Loss: Made
small profits in past years.
Condition: Business is normal.
Facilities: Making rather active use of
general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
R.C. Gems is a partnership established in December 2006. It was jointly owned by Mr. Rickin
Dhirenkumar Shah and Mr. Chirag Hitendra Sanghvi. Both of whom are Indian and each of them is
holding an India passport. The former
retired on 30th June, 2009 while Mr. Devendrasingh Bora joined in as a partner
on the same date so that the subject remains to be a partnership. The new partner is also an Indian holding an
India passport. Now, the subject is
jointly owned by Chirag Hitendra Sanghvi and Devendrasingh Bora.
The subject moved to the present new address in February 2012.
We can reach the subject at your given mobile phone number 852-9062
4599. He is the representative of the
subject.
The subject is a diamond and gem importer, exporter and wholesaler. It is dealing in fine coloured diamonds and
rare gem stones. Products include the
following items:-
Fancy coloured diamonds, unusual rose cut & briolette cut diamonds,
single-cut diamond, fullcut loose diamond, carat size diamonds & blue
sapphire
Rough diamonds, polished or cut products are imported from India,
Belgium and the other European countries, etc.
Rare gemstones are also imported from Cambodia and Sri Lanka. Finished products and polished diamonds and
gems are marketed in Hong Kong, exported or re-exported to Japan, India and
other Asian countries. Business keeps on
improving. It has got regular suppliers
in India and a number of foreign customers.
The subject’s business is chiefly handled by an Indian who can be
reached at his mobile phone in Hong Kong.
As the history of the subject in Hong Kong is over seven years, on the
whole, consider it good for business engagements in small 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-concern 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
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Indian Rupees |
|
US Dollar |
1 |
Rs.60.14 |
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UK Pound |
1 |
Rs.102.22 |
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Euro |
1 |
Rs.81.02 |
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 |
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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.