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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
NIKITA GEMS |
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Registered Office : |
Unit 9, 9/F., Block A, Hunghom Commercial Centre, |
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Country : |
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Date of Incorporation : |
20.05.2003 |
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Com. Reg. No.: |
33622918-000-05 |
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Legal Form : |
Sole Proprietorship |
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Line Of Business : |
Importer, Exporter
And Wholesaler Of Jewellery & Diamond Products (Including Loose Diamonds, Round Cut
Diamonds And Fancy Cut Diamonds In Different
Shapes, Grades As Well As Colours) Subject Main
Products Includes:- ·
Round
Diamonds; Princess-Cut
Diamonds; Round-Cut
Diamonds; Fancy-Cut
Diamonds; & Loose
Diamonds. |
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No. of Employees |
03 (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 |
NIKITA GEMS
Unit 9, 9/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2369 5442, 3579 2444
FAX: 852-2724 5442
E-MAIL: gemsnikita@yahoo.com
Manager: Mr. Virendra Banthia
Establishment: 20th May, 2003.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$60~65 million.
Employees: 3. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Unit 9, 9/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
Allied Diamonds Ltd., Hong Kong. (Same address)
Allied Gems Corporation (Bombay), India.
Fortune Gems, Hong Kong. (Solely owned by Mr. Ravi Prakash Chopra)
Nikita Gems (Shanghai) Co. Ltd., China.
33622918-000-05
Manager: Mr. Virendra Banthia
Contact Person: Mr. Ravi Prakash Chopra
Name: Mr. Virendra BANTHIA
Residential Address: Flat 3A, 3/F., Houng Sun Building, 45-47 Carnarvon Road, Tsimshatsui, Kowloon, Hong
Kong.
The subject was established on 20th May, 2003 as a sole proprietorship concern owned by Mr. Virendra Banthia under the Hong Kong Business Registration Regulations. It become a partnership on 15th June, 2010 as Mr. Ashok Kumar Daga joined in as a partner on that date. However, he retired on 30thNovember, 2011 and the subject has become a sole proprietorship again.
Initially the subject was located at Flat 3A, 3/F., Houng Sun Building, 45‑47 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 12/F., Alpha House, 27-33 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in December 2003; to Room 1104, 11/F., Tung Shun Hing Commercial Centre, 20-22 Granville Road, Tsimshatsui, Kowloon, Hong Kong in July 2004; to Flat B, 7/F., Kim Hing Mansion, 49-51 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong in April 2005; to Flat B, 8/F., Valiant Commercial Building, 22-24 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in June 2006, and further moved to the present address in April 2011.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: of jewellery & diamond products (including Loose Diamonds, Round Cut Diamonds
and Fancy Cut Diamonds in different Shapes, Grades as well as Colours)
Employees: 3. (Including associate)
Commodities Imported: India, other Asian countries, Belgium, other European countries, etc.
Markets: Hong Kong, Japan, Southeast Asia, Europe, etc.
Annual Turnover: HK$60~65 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
The Hong Kong General
Chamber of Commerce, Hong Kong.
[Membership No. HKN0288]
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a normal condition.
Facilities: Making 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.
Nikita Gems was a sole proprietorship set up and owned by Mr. Virendra Banthia who is an Indian. It has become a partnership since 15th June, 2010 as Mr. Ashok Kumar Daga joined in as a partner on that date. However the latter retired on 30th November, 2011.
Being the manager of the subject, Banthia is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject moved to the present address in April 2011.
The subject is a diamond importer, exporter and wholesaler. It is carrying loose diamonds, round cut diamonds and fancy cut diamonds in different shapes, grades and colours. The followings are its main products:-
· Round Diamonds;
Princess-Cut Diamonds;
Round-Cut Diamonds;
Fancy-Cut Diamonds;
&
Loose Diamonds.
Finished products and polished diamonds are exported or re-exported to Japan, other Asian countries, Europe, North America, etc. Business is rather active.
Commenced in May 2003, the business of the subject is chiefly handled by Banthia himself.
The subject has had an associated concern Nikita Gems (Shanghai) Co. Ltd. [Shanghai Nikita] in Shanghai, China. Shanghai Nikita is a member of Shanghai Diamond Exchange Association. It is responsible for further penetrating the China market which is considered vast.
In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it participates the “Hong Kong International Jewellery Show” every year. The latest one participated was Hong Kong International Jewellery Show 2014 which had been held between 5th to 9th March, 2014.
The annual sales turnover of the subject ranges from HK$60 to 65 million. Making a small profit every year.
The subject has had an associated concern Allied Diamonds Ltd. [Allied Diamonds] which is also located at the same operating address. Incorporated on 9 July, 2003, Allied Diamonds is also a diamond trader.
The contact person of the subject Mr. Ravi Prakash Chopra is an Indian who is also managing director of Allied Diamonds.
As the history of the subject is over nine years and three months in Hong Kong, on the whole, consider it good for normal business engagements.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.03 |
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UK Pound |
1 |
Rs.99.99 |
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Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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.