MIRA INFORM REPORT

 

 

Report Date :           

13.12.2011

 

IDENTIFICATION DETAILS

 

Name :

GEM  DE  ORIENT

 

 

Registered Office :

Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

26.11.1966

 

 

Com. Reg. No.:

02171556-000-11

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds and jewellery products, gems, watches, etc.

 

 

No. of Employees :

3 persons

 

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

GEM  DE  ORIENT

 

 

Company ADDRESS

 

Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE:            2868 1956

FAX:                 2521 1403

E-MAIL:                        gdo@netvigator.com

 

 

MANAGEMENT

 

Manager:  Mr. Mujeebur Rahman Habeeb

 

 

SUMMARY

 

Establishment:                          26th November, 1966.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   3.

 

Main Dealing Banker:     ABN AMRO Bank N.V., Hong Kong Branch.

 

Banking Relation:           Satisfactory.

Company ADDRESS

 

Head Office:-

Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

 

Business Partner & Affiliate:-

Mashreq International LLC, UAE/Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

02171556-000-11

 

 

MANAGEMENT

 

Manager:  Mr. Mujeebur Rahman Habeeb

 

 

PARTNERS

 

Name:                           Mr. Mujeebur Rahman HABEEB

Residential Address:      Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong

Kong.

 

Name:                           Mr. Riyaz Ahmed KABIR

Residential Address:      Flat 11, 2/F., 9-11 Lock Road, Tsimshatsui, Kowloon, Hong Kong.

 

HISTORY

 

The subject was established on 26th November, 1966 as a partnership jointly owned by Indian under the Hong Kong Business Registration Regulations.

The subject’s partners have changed for many time.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Mohamed Sathakathulla Thaika Sahib

26-11-1966

31-12-2009

Hameed Jalal

01-07-1969

01-09-1972

S.A. Seyed Abdul Kader

01-07-1969

01-04-1980

M.K.A. Seyed Ahmed Kabir

01-07-1969

01-04-1980

A.M. Mohamed Irufan

01-09-1971

01-06-1977

Mujeebur Rahman Habeeb

01-06-1977

-

Ahmed Husain Lafir

01-04-1982

01-04-1986

Habeeb Syed Abdul Kader

01-04-1982

01-04-1987

Ahmed Sadiq Habeeb

12-07-1990

30-12-2000

Mohamed Mukrim Habeeb Syed

01-10-1990

31-03-2008

Sabeeha

01-04-2002

31-03-2008

Riyaz Ahmed Kabir

01-04-2008

-

 

Initially the subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road Central, Hong Kong, moved to the present address in October 1995.

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

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           All kinds of diamonds and jewellery products, gems, watches, etc.

 

Employees:                   3.

 

Commodities Imported:   India, Thailand, Belgium, other European countries, etc.

 

Markets:                       Japan, Southeast Asia, Europe, Middle East, North America, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         ABN AMRO Bank N.V., Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

 

Gem De Orient is jointly owned by two Indian, namely, Mr. Mujeebur Rahman Habeeb and Mr. Riyaz Ahmed Kabir.  Both of them are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.  The Manager of the subject Mr. Mujeebur Rahman Habeeb joined in the subject in June 1977.

The subject had a number of partners while most of them have retired.  Its operating address is located at Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong where is also the residential address of Mujeebur Rahman Habeeb.

The subject is a diamond and watch, classic watch trader.  It is a polished and cut diamond importer and exporter.  Size of diamonds supplied range from 0.01 carat to 5.00 carat.  It also trades in gemstones such as emerald, jadeite, ruby, sapphire, etc.  Other products carried are diamond gold jewellery and gemset gold jewellery — 18 karat, and premium watches, etc.  Raw materials and commodities are imported from Belgium, India, Israel, Russia, etc.  Prime markets are Japan, other Asian countries, the Middle East, etc.  Overall business is rather active.  The subject’s business is chiefly handled by the two partners themselves.

The subject is also the Hong Kong sales agent for Mashreq International LLC [Mashreq] which is a Dubai-based firm.  Currently, Mashreq International LLC, Hong Kong Office is also located at the operating address of the subject.  Mashreq Hong Kong Office is a Hong Kong-registered firm.

Mashreq, a marketing arm of the worldwide Mashreq Group, is a joint venture between the prestigious Saif Al Ghurair Group of Companies (the leading industrial group of the UAE, a fortune 500 group with interests in banking, real estate, insurance, cement manufacturing, sugar refining, etc.) and The Gem De Orient Group of Companies (claims to be the “fifth generation leading diamond jewellery group headquartered in Hong Kong with interests in real estate, shipping, retail chain stores, etc., with its presence in more than 25 cities from Tokyo in the East to Los Angles in the West”).

Mashreq is engaged in the business of world-renowned watches and clocks and in the distribution of various engineering equipments pertaining to the irrigation and construction industries.  Mashreq was established in Dubai in 1993.  It is trading in “ZENART” watches.

Now, Mashreq has had associated firms in Saudi Arabia, Shenzhen Special Economic Zone of China and Chennai of India.

In 2004, it was due to overwhelming demand from customers worldwide, “ZENART” introduced sub brands: “TRAZER”, “VERONA”, “LEROSKY”, “ARENDINO”, “SWISCARDIN”, “EPOK”, “QIDIZ”, “DGO”, “XETEX” and “FUSION”, etc.

The subject also trades in the above-mentioned brands.  Over the past years, it has developed a number of regular customers in Hong Kong and the United Arab Emirates.  Annual sales turnover is rather steady and significant.

The subject is a member of the Gem de Orient Group of companies.  Its business is chiefly administered by the Habeeb family.  The subject is fully supported by the Habeeb family in India.

The contact person of Mashreq Hong Kong Office is Mr. Ali.

On the whole, since the history of the subject in Hong Kong is about forty five years, consider it good for normal business engagements.

 

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.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          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 –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.42

UK Pound

1

Rs.81.92

Euro

1

Rs.69.94

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.