|
Report No. : |
305960 |
|
Report Date : |
02.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
N. R. GEM EXPORTS |
|
|
|
|
Registered Office : |
Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
10.05.1995 |
|
|
|
|
Com. Reg. No.: |
19093280-000-05 |
|
|
|
|
Legal Form : |
Partnership. |
|
|
|
|
Line of Business : |
Importer and Exporter of all kinds of Diamonds, Gem
Stones. |
|
|
|
|
No. of Employees : |
01 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Company |
|
|
|
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 |
N. R.
GEM EXPORTS
ADDRESS: Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2301 3888, 2301 2608
FAX: 852-2312 7888
E-MAIL: nisham9hk@hotmail.com
Manager: Mr. Mukesh Babulal Modi
Establishment: 10th May, 1995.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond and Gem Trader.
Employee: 1.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat D, 9/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
N Kirtikumar & Company, India.
Nasaa Gem And Jewellery Company, Hong Kong. (Same address)
19093280-000-05
Manager: Mr. Mukesh Babulal Modi
Name: Ms. Nimisha Mukesh MODI
Residential Address: Flat G, 13/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Mukesh Babulal MODI
Residential Address: Flat A, 7/F., Kim Hing Mansion, 49-51 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was originally established on 10th May, 1995 as a sole proprietorship concern owned by Ms. Nimisha Mukesh Modi under the Hong Kong Business Registration Regulations. Changed to a partnership firm when Mr. Mukesh Babulal Modi was admitted as a partner on 1st October, 1997.
The subject was formed to take over the business which was founded by Mr. Mukesh Babulal Modi solely on 20th May, 1994. The business was traded also under the name of N. R. Gem Exports but bearing another Business Registration Number 18115548-000-05.
The old N. R. Gem Exports was initially located at Flat D, 7/F., Wah Fai Mansion, 38-40 Granville Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 7/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui, Kowloon in June 1994 and further to Room 908, 9/F., Hang Seng Bank Building, 18 Carnarvon Road, Tsimshatsui, Kowloon in January 1995. The new owner, Ms. N. M. Modi took over the business with registered address located at Room 908, 9/F., Hang Seng Bank Building, but moved to the present address in March 1998.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds, gem stones
Employee: 1.
Commodities Imported: Imported from India, other Asian countries, Belgium,
Markets: Hong Kong, China, Southeast Asia, Europe, North America,.
Terms/Sales: L/C, T/T,
Terms/Buying: L/C, T/T, D/P,
Capital: Not disclosed.
Profit & Loss: Making a very small profit every year.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
N. R. Gem Exports (bearing BR No. 19093280), the subject, was established in May 1995 by Ms. Nimisha Mukesh Modi solely. It is a successor to the company which was originally founded by Mr. Mukesh Babulal Modi in May 1994 also under the same company name but bearing BR No. 18115548.
The subject changed to a partnership firm as Mr. M. B. Modi was admitted as a partner in October 1997.
The two partners are Indian belonging to the same Modi family. They are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.
The subject’s registered address located at Flat D, 9/F., Lising Court, 34‑36 Granville Road Tsimshatsui, Kowloon, Hong Kong is also the residence of the partners. This office is not in a commercial building but a residential building. It is likely that Ms. N. M. Modi has moved to this new address but does not make any amendments on the subject’s registration materials. The subject’s operating address is also Ms. N. M. Modi’s current residential address.
The subject is a loose, polished diamond (main) and gem stone trader. Products are imported from India, Belgium and the other European countries. Some of the commodities are cut and polished diamonds. Finished products and polished diamonds are marketed in Hong Kong, exported or re-exported to Taiwan, the Philippines, China, the other Asian countries, the United States, Europe, etc. Business is normal in Hong Kong.
According to the subject, it is able to supply customers with different carats and sizes of loose diamonds with “competitive price”.
The subject is also a commission agent.
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 is going to take part in “HKTDC Hong Kong International Jewellery Show 2015” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2015.
The subject has got an associated company Nasaa Gem And Jewellery Company [Nasaa Gem] which is also located at the subject’s address. Established on 14th September, 2006, Nasaa Gem is solely owned by Mr. Sugar Mukesh Modi. The business of Nasaa Gem is the same as the subject. The subject and Nasaa Gem are owned and operated by the Modi family.
Besides, the subject also has got an affiliated company in India known as N Kirtikumar & Company which seems to be the subject’s supplier.
The subject’s history in Hong Kong is over nineteen years and four months. Regular suppliers and customers have been maintained. It has had sufficient working capital to support the current operating level.
On the whole, consider the subject good for normal business engagements in moderate credit amounts.
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.61.76 |
|
|
1 |
Rs.93.13 |
|
Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.