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Report No. : |
353882 |
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Report Date : |
05.12.2015 |
IDENTIFICATION DETAILS
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Name : |
R.D. GEM LTD. |
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Registered Office : |
Flat 1201, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
21.11.2007 |
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Com. Reg. No.: |
38660913 |
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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, Emerald, Precious Stones. |
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No. of Employees : |
4 |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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
4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong
Kong and the mainland. The new measures, effective from March 2015, cover a
negative list and a most-favored treatment provision, and will improve access
to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
R.D. GEM LTD.
ADDRESS: Flat 1201, 12/F., Fu Hang
Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2766
2008
FAX: 852-2766
2040
E-MAIL: rdgemltd@yahoo.com
rdgemltd@hotmail.com
rdgemchina@gmail.com
Managing Director: Mr. Bharat
Babubhai Mangukiya
Incorporated on: 21st November, 2007.
Organization: Private Limited Company.
Issued Share Capital: HK$3,500,000.00
Business Category: Diamond
Trader.
Employees: 4.
Main Dealing Banker: The Hong
Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat 1201, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
PM Jewels Ltd., Hong Kong.
R.D. Gems, Inc., US.
38660913
1187492
Managing Director: Mr. Bharat
Babubhai Mangukiya
HK$3,500,000.00
(As per registry dated 21-11-2014)
|
Name |
|
No. of shares |
|
Bharat Babubhai MANGUKIYA |
|
3,500,000 ======= |
(As per registry dated 21-11-2014)
|
Name (Nationality) |
Address |
|
Bharat Babubhai MANGUKIYA |
Block B, 23/F., Tower 6, Laguna Verde, 8 Laguna Verde Avenue, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated 21-11-2014)
|
Name |
Address |
Co. No. |
|
Lodestar Secretaries Ltd. |
13/F., Wah Kit Commercial Center, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The subject was incorporated on 21st November, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Last two times the subject was located at Flat 404A, 4/F., Fu Hang
Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved
to Flat 404B in July 2010 and further to the present address in May 2012.
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, emerald, precious stones.
Brand Name: R.D. Gem.
Employees: 4.
Commodities Imported: India,
Belgium, other European countries.
Markets: Hong
Kong, China, India, other Asian countries.
Terms/Sales: CAD, L/C and T/T.
Terms/Buying: L/C, T/T, D/P.
Issued Share Capital: HK$3,500,000.00
Indebtedness: HK$4,761,975
(Total amount outstanding on all mortgages and charges as per last
Annual Return
dated 21-11-2014)
Mortgage or charge: (See
attachment)
Profit or Loss: Business
is profitable.
Condition: Keeping
in an active condition.
Facilities: Adequate
for current running.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Incorporated in November 2007 and having issued 3.5 million ordinary
shares of HK$1.00 each, R.D. Gem Ltd. is wholly-owned by Mr. Bharat Babubhai
Mangukiya who is an India merchant.
Mangukiya is a Hong Kong ID holder and has got the right to reside in
Hong Kong permanently. He is also
the only director of the subject. He can
be reached at his Hong Kong mobile phone number 852-9642 7035 or 852‑9793
9444.
Formerly the subject had shared the office with Perry Gems (Hong Kong)
Ltd. [Perry] which is a Hong Kong-registered company. The subject moved to the present address in
May 2012.
The subject is a supplier of single cut and full cut diamonds in Hong
Kong. Natural diamond roughs are
directly procured from mines and single cut diamonds are polished in its
factories in Botad and Bhavnagar, India.
Both are the prime manufacturing cities for single cut diamonds and full
cut diamonds. The factories are in
Surat, India. The factories have more
than 30 years’ experience in this field.
The followings are
the main products of the subject:-
Most of the products bear the brand name R.D.GEm and are exported to worldwide
countries.
The subject’s business is chiefly handled by
Mangukiya himself.
In order to penetrate the US market, the subject has set up an
associated company in the United States known as R.D. Gems, Inc. which is in
New York.
The subject has taken part in fairs and exhibitions held in Hong Kong
and other foreign large cities. For
instance, it is going to take part in “HKTDC Hong Kong International Diamond,
Gem & Pearl Show 2016” which will be held in Hong Kong AsiaWorld-Expo,
Lantau, Hong Kong during the period of 1st to 5th March, 2016.
The current office is owned by the subject. The premises have been mortgaged to The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong, for securing
banking facilities.
The history of the subject in Hong Kong is over seven years and eight
months, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
06-04-2011 |
Instrument: Floating Charge Property: By way of floating charge the undertaking of the Company and all its property
whatsoever and wheresoever both present and future including its uncalled
capital for the time being Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
All monies and liabilities |
|
29-04-2011 |
Instrument: Mortgage Property: 12/3,442nd parts or shares of and in Section A of Kowloon Marine Lot
No. 113 (Unit No. 1 on 12/F. of Fu Hang Industrial Building, 1 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
To secure “all moneys” in respect of general banking facilities |
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.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
HKD |
1 |
Rs.8.60 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.