MIRA INFORM REPORT

 

 

Report Date :

14.06.2014

 

IDENTIFICATION DETAILS

 

Name :

GEM GOLD

 

 

Registered Office :

Flat B-7, 11/F., Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

03.06.1991

 

 

Com. Reg. No.:

14591712-000-06

 

 

Legal Form :

Sole Proprietorship

 

 

LINE OF BUSINESS :

IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS, PRECIOUS AND SEMI-PRECIOUS STONES

 

 

No. of Employees

01

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

Payment Behaviour :

No complaints

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

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

Source : CIA

 

 

 

Company name and address

 

GEM  GOLD

 

 

ADDRESS:       Flat B-7, 11/F., Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2366 8910

 

FAX:                 852-2366 8535

 

 

MANAGEMENT

 

Manager:  Mr. Biren Ashokkumar Shah

 

 

SUMMARY

 

Establishment:              3rd June, 1991.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Jewellery Merchant.

 

Employees:                   1.

 

Main Dealing Banker:     Hang Seng Bank Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.

 

 

ADDRESS

 

Head Office:-

Flat B-7, 11/F., Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.

 

Mailing Address:

P.O. Box 91991, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.

 

Affiliated Company:-

Gem Gold (Thailand) Ltd., Thailand.

 

 

BUSINESS REGISTRATION NUMBER 

 

14591712-000-06

 

 

MANAGEMENT

 

Manager:  Mr. Biren Ashokkumar Shah

 

 

SOLE PROPRIETOR

 

Name:  Mr. Biren Ashokkumar SHAH

Residential Address:      6/F., Star Masnion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was originally established on 3rd June, 1991 as a partnership concern jointly owned by Mr. Paresh Bhaskarrai Mehta and Mr. Biren Ashokkumar Shah under the Hong Kong Business Registration Regulations.  Changed to a sole proprietorship solely owned by Mr. Biren Ashokkumar Shah as Mr. Paresh Bhaskarrai Mehta retired on 26th May, 1994.

Initially the subject was located at 6/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 9/F., Houng Sun Mansion, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in September 1992; to Flat A-1, 12/F., Austin Mansion, 15A Austin Avenue, Tsimshatsui, Kowloon, Hong Kong in February 1997; to Flat A, 8/F., Ka Ma Building, 16 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in October 1998; to Flat 5F, 5/F., Block F, Comfort Building, 88 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in November 2002; to Flat 44, 7/F., Howard Building, 44 Hankow Road, Tsimshatsui, Kowloon, Hong Kong in September 2003; and further moved to the present address in March 2005.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds, precious and semi-precious stones.

 

Employees:                   1.

 

Commodities Imported: India, Thailand, other Asian countries, Europe, etc.

 

Markets:                       Japan, other Asian countries, Europe, Middle East, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:  L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Capital:             Not disclosed.

 

Profit or Loss:                Making a very small profit every year.

 

Condition:                      Keeping in a fairly active manner.

 

Facilities:                      Making fairly active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Hang Seng Bank Ltd., Hong Kong.

 

Standing:                      Small.

 

GENERAL

 

Gem Gold is an Indian company founded by Mr. Biren Ashokkumar Shah in 1991.  Shah has been in Hong Kong for a very long time as he is a Hong Kong ID holder.

The subject’s registered address is located at Flat B-7, 11/F, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.  This office is not in a commercial building but a residential building.  It is likely that Shah has moved to this address but does not make any amendments on the subject’s registration materials.  The subject’s operating address is also Shah’s residential address.  The residential building is not trespassed by outsiders.

 

The subject is a diamond importer, exporter and wholesaler.  It is handling single-cut diamonds, fullcut loose diamonds, diamond watches, carat size diamonds, etc.  Commodities are chiefly imported from India, Thailand and other Asian countries.  Prime markets are Hong Kong, Japan, India, Thailand, other Asian countries, Europe, the Middle East, etc.

 

It is reported that it has had an associated company known as Gem Gold (Thailand) Ltd. in Thailand.

The subject is able to make a very small profit in the past years.  Business is normal.  However, it is able to maintain a number of regular suppliers and customers in India and Thailand respectively.

The history of the subject in Hong Kong is over 23 years.  It has had sufficient working capital to support the current operating level.

On the whole, consider the subject good for normal business engagements in small credit amounts.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.48

UK Pound

1

Rs.100.93

Euro

1

Rs.80.71

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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