MIRA INFORM REPORT

 

 

Report Date :

25.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SIMRAN GEMS LIMITED

 

 

Registered Office :

13/F, Soho Tower, 25 Hart Avenue Kowloon Tsim Sha Tsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

04.11.2013

 

 

Com. Reg. No.:

1990421

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of diamonds

 

 

No. of Employees :

02

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

 

--

NB

New Business

--

 

Status :

New Company

Payment Behaviour :

Unknown

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

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 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

 

Company Name:

SIMRAN GEMS LIMITED

Supplied Name:

SIMRAN GEMS LTD

Trading Address:

13/F, Soho Tower, 25 Hart Avenue Kowloon Tsim Sha Tsui, Kowloon, Hong Kong

Supplied Address:

13/F Soho Tower, 25 Hart Avenue Kowloon Tisim TSA Tsui

Note: The exact name and address are as above.

 

 

Special Note

 

We visited the supplied address, but the result has not been come back. We will update the report when receive the photos.

 

We contacted the subject through the supplied telephone number (+852-2301-4211), and Mr. Rahil answered the phone confirmed the subject is located at the supplied address.

 

Company Identification Details

 

Registered Name:

Simran Gems Ltd

Registered Address:

13/F, Soho Tower, 25 Hart Avenue Kowloon Tsim Sha Tsui, Kowloon, Hong Kong

Telephone Number:

+852-2301-4211

Fax Number:

+852-2366-4500

Date of Registration:

2013-11-4

Registered Number:

1990421

Business Registration No.:

62275089

Registered Capital:

HKD 100,000,000 (USD 12,900,000)

(As of 2014.11, 1 HKD = 0.129 USD)

Paid-up Capital:

HKD 1.00 (USD 0.129) = 1.00 Shares@ HKD 1

Legal Form:

Private Limited Liability Company

SITC Code:

66729—Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

Principal Activities:

Trading of diamonds, etc.

Staff:

About 2 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

--

 

Notes: Subject declined to disclose the number of staff, and from other source we cannot obtain the information, either.

 

 

History

 

Subject was incorporated on 2013-11-4 with the registered number 1990421 as Private Limited Liability Company in Hong Kong.

 

 

Corporate Structure

 

Subject did not register any subsidiaries or branches, from other source we can not obtain the relevant information, either.

 

 

Shareholders

 

Unit: HKD

Name

Subscription Amount

Proportion of Investment (%)

Rahil Kishor Zaveri

1.00

100%

Total

1.00

100%

 

Major Shareholder Information:

Name:

Rahil Kishor Zaveri

Address:

Flat G, 25F, Block 4, Royal Peninsula, 8 Huang Lai Rd., Hung Hom, Kowloon, Hong Kong

 

 

Management Information

 

Core Management

 

Detailed Information of Directors:

1

Name:

Rahil Kishor Zaveri

Address:

Flat G, 25F, Block 4, Royal Peninsula, 8 Huang Lai Rd., Hung Hom, Kowloon, Hong Kong

Position:

Director

ID Number:

M284004(4)

2

Name:

Gurung & Shum Business Solutions Limited

Address:

Unit 406B, 4F, Mirror Tower, 61 Mody Rd., Tsim Sha Tsui East, Kowloon, Hong Kong

Position:

Corporate Secretary

Registered Number:

1348317

 

Personnel Structure

 

Total Employees

About 2 Employees


 

Operation Information

 

Offices & Factories

 

 

Office

Address:

13/F, Soho Tower, 25 Hart Avenue Kowloon Tsim Sha Tsui, Kowloon, Hong Kong

 

Premises Information

 

Office address:

Address:

13th Floor Soho Tower No. 25 Hart Avenue Kowloon

Owners:

Sheen Peak Limited

Memorial Number:

13050900810037

Assignment

Date of Instrument:

2013-4-23

Date of Registration:

2013-5-9

Consideration Value:

$138,000,000.00 (PT.)

 

History of Premises Owners’

 

1

Memorial No.:

14061002300010

Date of Instrument:

2014-6-10

Date of Registration:

2014-6-10

Nature:

Memorandum Of Change Of Name Of The Building

In Favor of:

--

Consideration:

--

2

Memorial No.:

13050900810059

Date of Instrument:

2013-4-23

Date of Registration:

2013-5-9

Nature:

Assignment Of Rentals

In Favor of:

China Construction Bank (Asia) Corporation Limited

Consideration:

--

3

Memorial No.:

13050900810043

Date of Instrument:

2013-4-23

Date of Registration:

2013-5-9

Nature:

Mortgage

In Favor of:

China Construction Bank (Asia) Corporation Limited

Consideration:

ALL MONEYS (PT.)

Note: PT. means part of.

 

Production Information

 

Subject is a trader of diamonds, etc. without any production activities.

 

Purchase Information

 

The major products of the subject are mainly purchased from abroad.

 

Sales Information

 

Subject is engaged in trading of diamonds, etc.

The major products of the subject include round diamonds, rounds & princess diamonds, etc.

It is introduced that subject’s diamonds are with the size of 1 point, 2 points and 30 points, etc.

It is introduced that subject has obtained the certification of GIA.

Subject’s major customers are manufacturer of jewelry and watches, etc.

 

 

Settlements

 

Purchase

 

Domestic Purchase

 

Subject has little domestic purchase.

 

Import

Products

Diamonds, etc.

Payment Terms

L/C, T/T, etc.

 

Sales

 

Domestic Markets

Product

Diamonds, etc.

Selling Terms

T/T, Cash, etc.

 

Export

Product

Diamonds, etc.

Selling Terms

L/C, T/T, etc.

 

 

Financial Information

 

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff rejected to disclose the financial information; from other sources we could not obtain such information, either.

 

Bankers

 

Name:

Hang Seng Bank Limited

 

 

Lawsuits

 

Up to now, no present or latent litigation of the subject has been found.

High Court Action:

Clear

High Court Baukufty Bankruptcy Proceedings:

Clear

High Court Commercial Action:

Clear

High Court Construction & Arbitration Proceedings:

Clear

High Court Companies Winding-Up:

Clear

 

 

Special Note

 

Interview Details

Name

Mr. Rahil

Position:

Director

 

 

Industry Information

 

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

 

Unit: HKD/000

 

2014.05

2014.01~2014.05

 

Quantity

Value

Quantity

Value

Imports

United Arab Emirates

96,110

728,817

662,210

4,475,744

Armenia

--

--

461

1,049

Australia

1,756

23,658

3,733

54,816

Belgium

84,515

1,239,263

423,171

6,622,381

Canada

476

2,771

2,771

48,195

Switzerland

8,077

206,582

32,377

858,188

Germany

709

2,321

12,087

20,158

Britain

1,277

88,340

9,442

386,120

Israel

65,772

1,433,655

360,130

8,238,886

India

981,536

4,727,211

5,338,417

26,201,042

Malaysia

3,860

18,103

19,791

137,275

USA

129,016

1,115,405

703,068

6,169,441

The Mainland of China

114,204

798,063

516,495

3,689,202

Exports

United Arab Emirates

--

--

53

749

Israel

--

--

50

24,803

Japan

--

--

3

116

Singapore

--

--

17

208

Belgium

13

4,441

249

67,929

Thailand

--

--

251

732

USA

33

924

465

35,419

The Mainland of China

157

184

2,711

8,359

 

 

External Trade Information:

 

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

 

Imports

Domestic Exports

Re-exports

Total exports

Year-on-year % change of Total exports

Merchandise trade balance

2011

3,764,596

65,662

3,271,592

3,337,253

+10.1

-427,343

2012

3,912,163

58,830

3,375,516

3,434,346

+2.9

-477,817

2013

4,060,717

54,364

3,505,322

3,559,686

+3.6

-501,031

2013.03

340,857

5,073

286,638

291,711

+11.2

-49,146

2013.04

332,963

4,503

285,763

290,267

+9.0

-42,696

2013.05

335,809

4,818

286,724

291,542

-1.0

-44,267

2013.06

327,309

4,476

273,161

277,637

-0.2

-49,673

2013.07

342,565

4,783

300,630

305,413

+10.6

-37,152

2013.08

347,059

4,932

302,558

307,490

-1.3

-39,570

2013.09

359,841

4,395

313,436

317,830

+1.5

-42,010

2013.10

361,196

4,458

318,686

323,144

+8.8

-38,052

2013.11

370,104

4,587

320,935

325,522

+5.8

-44,581

2013.12

365,228

4,596

306,281

310,877

0.0

-54,351

2014.01

323,436

4,299

299,157

303,456

-0.4

-19,979

2014.02

266,587

3,276

209,638

212,914

-1.3

-53,673

2014.03

351,889

5,120

296,403

301,523

+3.4

-50,365

2014.04

340,972

4,867

280,816

285,682

-1.6

-55,290

2014.05

348,323

5,299

300,673

305,973

+4.9

-42,350

2014.06

352,316

4,802

304,409

309,211

+11.4

-43,105

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

 

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.61.78

UK Pound

1

Rs.96.78

Euro

1

Rs.76.59

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.