MIRA INFORM REPORT

 

 

Report No. :

323451

Report Date :

22.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SIM GEMS LTD.

 

 

Registered Office :

Unit 808, 8/F., Hart Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

26.07.2011

 

 

Com. Reg. No.:

58773132

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS AND GEMSTONES

 

 

No. of Employees :

02

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 


Company Name & address

 

SIM GEMS LTD.

 

 

ADDRESS:       Unit 808, 8/F., Hart Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2739 9717

 

FAX:                 852-2739 9737

 

E-MAIL:            simit@simgems.com

 

MANAGEMENT:

 

Managing Director:  Mr. Simit Satish Parikh

 

 

SUMMARY

 

Incorporated on:                        26th July, 2011.

 

Organization:                             Private Limited Company.

 

Issued Share Capital:                 HK$1,000,000.00

 

Business Category:                   Gemstone Trader.

 

Annual Group Turnover:              US$20-25 million.

 

Employees:                              2.

 

Main Dealing Banker:                 The Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:                      Satisfactory.

 

 

Name

 

SIM  GEMS  LTD.

 

 

ADDRESS

 

Registered Head Office:-

Unit 808, 8/F., Hart Avenue Plaza, 5-8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

BUSINESS REGISTRATION NUMBER

 

58773132

 

 

COMPANY FILE NUMBER

 

1642299

 

 

MANAGEMENT

 

Managing Director:  Mr. Simit Satish Parikh

 

 

ISSUED SHARE CAPITAL

 

HK$1,000,000.00

 

 

SHAREHOLDER

 

(As per registry dated 26-07-2014)

Name

 

No. of shares

Simit Satish PARIKH

 

1,000,000

=======

 

 

DIRECTORS

 

(As per registry dated 26-07-2014)

Name

(Nationality)

 

Address

Simit Satish PARIKH

22/F., Tower 28, Celestial Heights, 80 Sheung Shing Street, Ho Man Tin, Kowloon, Hong Kong.

 

Shreya Simit PARIKH

22/F., Tower 28, Celestial Heights, 80 Sheung Shing Street, Ho Man Tin, Kowloon, Hong Kong

 

 

SECRETARY

 

(As per registry dated 26-07-2014)

Name

Address

Bayani Divino Bautista PONCE

Unit 324, 3/F., Hankow Centre, 5‑15 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 26th July, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Formerly the subject was located at Unit 324, 3/F., Hankow Centre, 5‑15 Hankow Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address with effect from 15th August, 2011.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds and gemstones.

 

Employees:                  2.

 

Commodities Imported: India.

 

Markets:                        Hong Kong, other Asian countries, Europe, etc.

 

Annual Group Turnover:  US$20-25 million.

 

Terms/Sales:                 L/C, T/T.

 

Terms/Buying:               L/C, T/T, D/P.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$1,000,000.00

 

Profit or Loss:   Made a small profit in 2014.

 

Condition:         Business is normal.

 

Facilities:          Making active use of general banking facilities.

 

Payment:  Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Banker:  The Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:  Small.

 

 

GENERAL

 

Having issued 1,000,000 ordinary shares of HK$1.00 each, Sim Gems Ltd. is wholly-owned by Mr. Simit Satish Parikh who is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  He and Shreya Simit Parikh are directors of the subject.

 

The subject is a diamond and gemstone trader.  It is a family owned diamond business that dates back three generations to its beginnings in India.  It has offices in South Africa (rough sourcing), Israel (manufacturing unit), and now in Hong Kong which is the subject.  The subject is engaged in selling and marketing its products.

 

Its main products are GIA polished diamonds.  Other products include Brown, Green and Milky Stones.  Most of its diamonds are 1 carat or above.

 

According to the subject, the Group’s turnover has grown from US$10 million in 2010 to US$20 million in 2011.  Now, the annual sales turnover of the Group ranges from US$20 to 25 million.

 

The subject’s main specialty and niche is engaged in manufacturing 1-7 carat GIA certified rounds and offers very competitive prices to its buyers.  Its business in Hong Kong is normal and has been expanding.

 

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 took part in 2012 Shanghai International Jewellery Exhibition.

 

Besides, 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.  Its booth No. is AWE 5-B32.

 

The subject’s history in Hong Kong is just over three years and nine months.  Business is chiefly handled by Simit Satish Parikh himself.

 

On the whole, consider the subject good for normal business engagements in small credit amounts.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.70

UK Pound

1

Rs.98.92

Euro

1

Rs.70.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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%)

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