|
Report Date : |
22.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
RONAK GEMS |
|
|
|
|
Registered Office : |
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon |
|
|
|
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
30.10.1989 |
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|
|
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Com. Reg. No.: |
13129493-000-10 |
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|
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Legal Form : |
Sole Proprietorship |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery
products, precious stones |
|
|
|
|
No. of Employees : |
2. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
RONAK GEMS
ADDRESS: Room 9, 12/F., Flat A2F2, Phase 2, Hang
Fung Industrial Building, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2333 2407, 2330 8619,
2330 8824
FAX: 852-2721 0173
[Formerly located at:-
Flat J, 3/F., Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.]
Manager: Mr. Rajendrakumar
Jayantilal Soni
Establishment: 30th October, 1989.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Gemstone
& Diamond Trader.
Employee: 2.
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
RONAK GEMS
Head Office:-
Room 9, 12/F., Flat A2F2, Phase 2, Hang Fung Industrial Building,
2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 86207, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated
Company:-
Hong Kong Capital Co., Hong Kong.
(Same owner and same address)
13129493-000-10
Manager: Mr. Rajendrakumar
Jayantilal Soni
Name: Mr. Rajendrakumar Jayantilal SONI
Residential
Address: 14/F., Front Portion, Ocean View
Court, 25 Chatham Road, Tsimshastui, Kowloon, Hong Kong.
The subject was established on 30th October, 1989 as a sole
proprietorship concern owned by Mr. Rajendrakumar Jayantilal Soni under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajendrakumar Jayantilal Soni |
30-10-1989 |
07-07-1992 |
|
Mayur Gambhirdas Gandhi |
06-07-1992 |
02-10-1998 |
|
Pravin Kirtilal Mehta |
01-10-1998 |
11-10-2001 |
Initially the subject was located at Flat E, 16/F., Windsor Mansion, 29‑31 Chatham
Road, Tsimshastui, Kowloon, Hong Kong, moved to 13/F., 23 Chatham Road,
Tsimshastui, Kowloon, Hong Kong in July 1990; to Flat A, 5/F., Hilton
Tower, 96 Granville Road, Tsimshastui, Kowloon, Hong Kong in February
1992; to Room 501, 5/F., Polly Commercial Building, 21-23A Prat Avenue,
Tsimshastui, Kowloon, Hong Kong in May 1993; to Flat D & E, 16/F., Cameron
Plaza, 23-25A Cameron Road, Tsimshastui, Kowloon, Hong Kong in November 1993;
to Room 108, 1/F., Wing On Plaza, 62 Mody Road, Tsimshastui East, Kowloon, Hong
Kong in October 1998; to Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong in May 2004; to 14/F., Front Portion,
Ocean View Court, 25 Chatham Road, Tsimshastui, Kowloon, Hong Kong in July
2004; to Flat B, 7/F., Golden Mansion, 83-85 Chatham Road, Tsimshastui,
Kowloon, Hong Kong in August 2005; to Flat F, 26/F., Block 1, Royal Peninsula,
8 Hung Lai Road, Hunghom, Kowloon, Hong Kong in July 2007; to Flat D, 18/F.,
Block 1 of the same building in July 2008; to Flat G, 3/F., Block 2 of the same
building in December 2009; moved to Flat J, 3/F., Block 2 of the same building
in January 2010.
The subject moved to the present address in late October 2013.
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, precious stones
Employee: 2.
Commodities Imported: India,
Belgium, other European and Asian countries
Markets: Hong
Kong, other Asian countries, North America, Western Europe
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Capital: Not
disclosed.
Profit or Loss: Making
a very small profit every year.
Condition: Business is normal in Hong
Kong.
Facilities: Making fairly active use of
general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:- Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
DBS Bank (Hong Kong) Ltd., Hong Kong.
Standing: Small.
Ronak Gems is a long-established company which was formed in 1989 by an
Indian merchant Mr. Rajendrakumar Jayantilal Soni. Soni had once retired from the subject but
joined in again in October 2001. He has
become a Hong Kong citizen and holds a Hong Kong ID card. He has got the right to reside in
Hong Kong permanently and is also the manager of the subject.
Formerly the subject was in a residential building at Flat J, 3/F.,
Block 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon,
Hong Kong. The above-mentioned
residence is the property of Mr. Soni who bought on 11th December, 2009 at
a consideration of HK$6.9 million. This
property was mortgaged to Standard Chartered Bank (Hong Kong) Ltd. on 11th
December, 2009 to secure general banking facilities.
The subject moved to the present address in late October 2013. Its phone number is 852-2330 8619.
The subject’s mailing address is P.O. Box 86207, Tsim Sha Tsui Post
Office, Kowloon, Hong Kong.
The subject is a diamond and gemstone trader. It is engaged in importing and exporting fine
coloured diamonds and rare gemstones.
Products handled include fancy coloured diamonds, unusual rose cut and
briolette cut diamonds as well as loose diamonds which are imported from India,
Belgium and European countries. Among
its products, some of them are polished diamonds. They are marketed in Hong Kong, exported or
re-exported to Japan, Europe, the Middle East, North America and the other
Asian countries.
In addition, the company also trades in some rare gemstones such as
amethyst, rubylite, green amethyst, blue topaz, lemon topaz, citrine, smokey
topaz, kunzite, peridot, morganite, pink tourmalines, pink topaz, emerald,
garnet, lapis-lazuli, ruby, sapphire, rose quartz.
Besides the subject, Soni is also operating another firm known as
Hong Kong Capital Co. which is located at the same office. This firm was set up on 14th April, 1994
and is engaged in the same line of business.
The business of the subject is normal.
On the whole, since the history of the subject in Hong Kong is over 24
years and eight months, consider it good for normal business engagements in moderate
credit amounts.
Property information of the principal:-
Property Location: Flat J on 3/F. of Block 2, Royal
Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.
Owner: Rajendrakumar Jayantilal
Soni & Bharati Rajendra Soni (Joint Tenant)
Date of Purchase: 11-12-2009
Purchased Price: HK$6,900,000.00
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
11-12-2009 |
- |
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
Mortgage |
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.61.30 |
|
|
1 |
Rs.99.16 |
|
Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.