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Report Date : |
22.05.2014 |
IDENTIFICATION DETAILS
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Name : |
GEM EXPORTS LTD. |
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Registered Office : |
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.03.2010 |
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Com. Reg. No.: |
52002800 |
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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 and
jewellery products |
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No of Employees : |
04 (Including associate) |
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 Company |
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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
|
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.
|
Source
: CIA |
GEM EXPORTS
LTD.
ADDRESS: Unit 27, 11/F., Block B, Focal Industrial
Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2723 2690, 2739 8551,
2366 6863
FAX: 852-2723 6246
E-MAIL: gemexpo@netvigator.com
Managing Director: Mr. Ashok
Mundra
Incorporated on: 26th March, 2010.
Organization: Private Limited Company.
Capital: Nominal: HK$2,000,000.00
Issued: HK$2,000,000.00
Business Category: Diamond
Trader.
Employees: 4. (Including associate)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street,
Hunghom, Kowloon, Hong Kong.
Gem Exports, Hong Kong.
Tirupati Diamonds, Hong Kong.
52002800
1436043
Managing Director: Mr. Ashok
Mundra
Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
(As per registry
dated 26-03-2013)
|
Name |
|
No. of shares |
|
Ashok MUNDRA |
|
1,600,000 |
|
Mukesh MUNDRA |
|
400,000 |
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–––––––– |
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Total: |
2,000,000 ======= |
(As per registry
dated 26-03-2013)
|
Name (Nationality) |
Address |
|
Ashok MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB,
8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. |
|
Mukesh MUNDRA |
Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB,
8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 26-03-2013)
|
Name |
Address |
Co. No. |
|
Top Honour Secretarial Services Ltd. |
Unit 2501, 25/F., 113 Argyle Street, Mongkok, Kowloon, Hong Kong. |
1312187 |
The subject was incorporated on 26th March, 2010 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 and jewellery products
Employees: 4.
(Including associate)
Commodities Imported: India,
Belgium, other European countries, etc.
Markets: Japan, other Asian countries,
Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$2,000,000.00
(Divided into 2,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Made a small profit in 2013.
Condition: Business is 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: Small.
Having issued 2 million ordinary shares of HK$1.00 each, Gem Exports
Ltd. is jointly owned by Mr. Ashok Mundra, holding 80% interests; and
Ms. Mukesh Mundra, holding 20%. The
two Mundras are Indian and each is holding a Hong Kong ID Card. The latter is an Indian businesswoman. They have got the right to reside in Hong
Kong permanently. They are also directors
of the subject.
Ashok Mundra can be reached at his Hong Kong mobile phone number
852-9301 5041.
The subject is
trading in the following commodities:-
Finished Jewellery
Materials
Incorporated on 26th March, 2010, the subject has had a main associated
company Tirupati Diamonds [Tirupati] located at the same operating office. Tirupati is also a diamond trader.
Tirupati is a sole proprietorship set up and owned by Ms. Mukesh Mundra
who is a shareholder of the subject.
Business commenced in October 1996, Tirupati is trading in loose, cut
and polished diamonds, precious stones, gem sets, semi-precious stones, blue or
coloured sapphire, etc.
The subject’s polished, cut and loose diamonds are imported from India,
Belgium, the other European countries, etc.
India is its main supplying country.
Some of the rough diamonds are polished or processed in Hong Kong
or China. Finished products and polished
diamonds are marketed in Hong Kong, exported to Japan, the United States,
Thailand, the United Arab Emirates, South Korea, Europe and the other Asian
countries.
The business of the subject and Tirupati are chiefly handled by the two
Mundras.
Besides Tirupati, the subject has had another associate Gem Exports,
this firm is also a diamond trader and also controlled by the Mundras. Gem Exports is also located at the same address. It is a member of The Indian Chamber of
Commerce Hong Kong which is a Hong Kong Indian businessmen association.
In order to penetrate the international market further, the subject will
take part in fairs and exhibitions held in Hong Kong and other foreign large
cities.
The subject’s business keeps on improving. Its history in Hong Kong is about four years.
On the whole, consider the subject good for normal business engagements
in small credit amounts.
|
Date |
Particulars |
Amount |
|
06-01-2014 |
Instrument: Assignment of Life Insurance Property: (1) All the Assignor’s claims under the Insurance: Insurance Policy No: 28007393 Name of Insurance Co.: HSBC Life (International) Ltd. Name of the Insured: Priti Mundra Assignor / Policy Owner: Gem Exports Ltd. (2) All the Assignor’s claims against the issuer of the Policy Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
All monies |
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.58.72 |
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|
1 |
Rs.99.02 |
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Euro |
1 |
Rs.80.57 |
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 |
-- |
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.