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Report No. : |
341676 |
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Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
NIRGEM HK LTD. |
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|
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Registered Office : |
Room 1105, 11/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
22.04.2005 |
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Com. Reg. No.: |
35556903 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer and Exporter of All kinds of diamonds and jewellery. |
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No. of Employee : |
4. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Slow but correct |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
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 internationalTRADE 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 |
NIRGEM HK
LTD.
(Formerly located at:
Room 1504, 15/F., Lee Wai Commercial Building,
1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.)
ADDRESS: Room 1105, 11/F., Chevalier House, 45-51
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-6504 1846, 2191 9009
FAX: 852-2191 9759
E-MAIL: nirgemhk@yahoo.com
MANAGEMENT:
Managing Director: Mr. Jignesh
Chandrakant Mehta
Incorporated on: 22nd April, 2005.
Organization: Private Limited
Company.
Issued Share Capital: HK$2.00
Business Category: Diamond
Trader.
Employees: 4.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1105, 11/F., Chevalier House, 45-51 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong.
Operating
Company:-
Nirgem, Hong Kong. (Same address)
Holding Company:-
Pan International DMCC, UAE.
Affiliated/Associated
Companies:-
Pan-Facets Co. Ltd., Thailand.
Paras Gems N.V., Belgium.
Popatlal Nathalal Shah, India.
35556903
0965794
Managing Director: Mr. Jignesh
Chandrakant Mehta
(Hong Kong mobile phone No.: 852-6504 1846)
HK$2.00
(As per registry dated 22-04-2015)
|
Name |
|
No. of shares |
|
Pan International DMCC 18 E Almas Tower, Jumeriah Lake Towers, Sheikh Zayed Road, Dubai,
U.A.E. |
|
2 == |
(As per registry dated 22-04-2015)
|
Name (Nationality) |
Address |
|
Jignesh Chandrakant MEHTA |
Flat E, 11/F., South Sea Mansion, 81 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 22-04-2015)
|
Name |
Address |
|
Bayani Divino Bautista PONCE |
Flat A, 8/F., Tower 5, Caribbean Coast, 2 Kin Tung Road, Tung Chung,
Lantau Island, Hong Kong. |
The subject was incorporated on 22nd April, 2005 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 803, 8/F., Lee Wai Commercial
Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1204,
12/F. of the same building in 2010, moved to Room 1504, 15/F. of the same
building in July 2012, and further moved to the present address in June 2015.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer and
Exporter.
Lines: All kinds of
diamonds and jewellery.
Employees: 4.
Commodities Imported: India,
Thailand, Belgium
Markets: Worldwide.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P
Issued Share Capital: HK$2.00
Indebtedness: HK$3,643,739.42 (Total
amount outstanding on all mortgages and charges as per last Annual Return dated
22-04-2015)
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small
profit in the past years.
Condition: Business is normal
and steady.
Facilities: Making active use
of general banking facilities.
Payment: Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Good.
Formerly Nirgem HK Ltd. was equally owned by Popatlal Nathalal Shah
[PNS], an India-based company, and Pan Facets Co. Ltd., a Thailand-based
company. The subject had just issued 2
ordinary shares of HK$1.00 each while each of the holding companies held one
share. The shareholders have been
reshuffled. Now, it is wholly-owned by
Pan International DMCC [PID] which is a UAE-based firm.
The subject’s business name is Nirgem.
It moved to the present new address in June 2015.
The managing director of the subject is Mr. Jignesh Chandrakant Mehta
who is an Indian. He is a Hong Kong ID
Card 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 852-6504 1846.
PNS is still the ultimate holding company of the subject and PID.
The subject and its associated companies are trading in diamonds, gems
and jewellery. Business is normal and
steady.
PNS is a reputed name in the Indian Diamond Industry for over five
decades. It is engaged in manufacturing
polished diamonds in various shapes and sizes.
It is specialized in manufacturing high value round brilliant cuts from
1 cent to 5 carats.
PNS was established in 1956 by Shri Popatlal Nathalal Shah with the
objective of manufacturing of quality diamonds in India and sells its products
to world market. Today PNS is managed by
Shri Ajay P. Shah.
PNS’ polished diamonds are manufactured in 5 state-of-the-art
manufacturing centres located in Dahisar, Mumbai. These units house over 300 skilled craftsmen.
PNS promotes and sells its products in the world market through its
representatives in various countries.
Its products find ready acceptance in various countries. It exports its goods to the United States,
Bangkok, Hong Kong, Dubai and Antwerp, among other countries.
PNS sources its rough diamonds from dependable and reputed sources,
ensuring quality and competitive price.
It manufactures polished diamonds in various sizes and shapes like
Rounds, Marquise, Oval,
Princess, Pear
Manufacturing White Round Diamonds (Brilliant Cut) from 1 cent up to 5
carats is PNS’ speciality. It makes
goods from shades D to J in all purities; these are mostly high value goods
from 1 cent to 5 carats weight.
PNS’ future plans include venturing into manufacture of diamond-studded
jewellery and offer more value to its customers. Besides the subject and PID, PNS has set up
associated companies in Belgium and Thailand.
Its associated company in Belgium is Paras Gems N.V. which started
business in 2000 in Belgium. It is
engaged in manufacturing, wholesaling and exporting fine jewellery, pearls and
semi-precious stones.
In order to penetrate the international market further, Paras Gems N.V.
has taken part in fairs and exhibitions held in Hong Kong and other foreign
large cities. It is going to take part
in “HKTDC Hong Kong International Printing & Packaging Show 2016” which
will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period
of 27th to 30th April, 2016. Its booth
No. is AWE 2-M16.
The subject has taken part in fairs and exhibitions held in Hong Kong
and other foreign large cities. For
instance, it took part in the Tenth Shenzhen International Gold, Jewellery
& Gem Fair 2012 which was held in Shenzhen Special Economic Zone, China.
The subject is fully supported by PNS.
The subject’s business is chiefly handled by Jignesh C. Mehta.
The history of the subject in Hong Kong is over ten years and four
months.
On the whole, in view of the subject’s background and parentage,
consider it good for normal business engagements.
|
Date |
Description of Instrument |
Mortgagee |
|
19-07-2012 |
Security Over Deposits with the Bank (Fixed
Deposits) Limited Company - Under Seal |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
|
10-11-2014 |
Mortgage |
Hang Seng Bank Ltd., Hong Kong. |
|
10-11-2014 |
Rent Assignment |
Hang Seng Bank Ltd., Hong Kong. |
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.
-
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.
-
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.
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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.65.75 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.74.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
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|
Report Prepared
by : |
ANK |
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.