MIRA INFORM REPORT
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Report Date : |
05.10.2011 |
IDENTIFICATION DETAILS
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Name : |
GEMPRO
HK LTD. |
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Registered Office : |
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.06.1990 |
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Com. Reg. No.: |
13896782 |
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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, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Hong Kong |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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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 |
Company name
GEMPRO HK
LTD.
Company ADDRESS
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2721 5880
FAX: 2366 8335
MANAGEMENT
Managing Director: Mr. Fazlal Hassan Ahmed
SUMMARY
Incorporated on: 5th June, 1990.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Gem Trader.
Annual Turnover: HK$60~65 million.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Registered Head Office:-
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
BUSINESS REGISTRATION NUMBER
13896782
COMPANY FILE NUMBER
0279583
MANAGEMENT
Managing Director: Mr. Fazlal Hassan Ahmed
CAPITAL
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
SHAREHOLDERS
(As per registry
dated 05-06-2011)
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Name |
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No. of shares |
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Fazlal Hassan AHMED |
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50,000 |
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Abirin Zulaiah AHMED FAZLAL HASSAN |
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20,000 |
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Ali SADAQ |
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30,000 |
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––––––– |
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Total: |
100,000 ====== |
DIRECTORS
(As per registry
dated 05-06-2011)
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Name (Nationality) |
Address |
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Fazlul Hasan AHMED |
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
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Nafeel Ahmed MOHAMED ALI JINNAH |
Flat 1, 4/F., 1 Perth Street, Ho Man Tin, Kowloon, Hong Kong. |
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Ali SADAQ |
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
SECRETARY
(As per registry
dated 05-06-2011)
|
Name |
Address |
Co.
No. |
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Taxbase Consultants Ltd. |
Room 1426, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong. |
0411324 |
HISTORY
The subject was incorporated on 5th June, 1990 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Diamantina Ltd., name changed to the present style on 31st October, 2001.
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 jewellery products, emerald, precious stones, etc.
Employees: 2.
Commodities Imported: India, Belgium, other Asian & European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$60~65 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge:-
Date of Two-Party Mortgage Deed: 17-09-2007
Amount: All moneys
Property: 1/720th part or share of and in Kowloon Inland Lot No. 8219 (Flat A6 on 14/F.
and Portion No. 47 of Main Roof of Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.)
Mortgagee: Public Bank (Hong Kong) Ltd., Hong Kong.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a rather active manner.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Public Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
GENERAL
Having issued 100,000 ordinary shares of HK$10.00 each, Gempro HK Ltd. is jointly owned by Mr. Fazlal Hassan Ahmed, holding 50% stake; Mr. Abirin Zulaiah Ahmed Fazul Hassan, holding 20%; and Mr. Ali Sadaq, 30%. They are also directors of the subject. The first two have been in Hong Kong for a very long time and become Hong Kong ID Card holders. They have got the right to reside in Hong Kong permanently. The third shareholder Ali Sadaq is an India passport holder. It is likely that the shareholders of the subject are also residing in the subject’s operating address.
Business commenced in June 1990, the subject is a diamond importer, exporter and wholesaler. The subject is dealing in the following products:-
· Fine loose diamonds
· Rare, coloured gemstones and jade
· Semi-precious jewellery
Its diamond products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds, etc. It also trades in single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire, ruby, etc. Products are chiefly imported from India, Thailand, Sri-Lanka, Belgium and Israel. However, India is its main supplying country. Loose diamonds are chiefly exported to China, India, Japan, Southeast Asia, Europe, the Middle East, etc. Business is rather steady. Regular customers and foreign suppliers have been maintained.
The subject’s business is chiefly handled by Fazlal Hassan Ahmed and Abirin Zulaiah Ahmed Fazul Hassan.
The subject owns its operating office located at the present registered address in Tsimshatsui, Kowloon, Hong Kong which had been mortgaged to Public Bank (Hong Kong) Ltd., Hong Kong, for securing general banking facilities.
On 3rd July, 2009, The Hongkong & Shanghai Banking Corp. Ltd. released the subject’s property (here refers to “Receivables”) from Charge.
The annual sales turnover of the subject ranges from HK$60 to 65 million. Making a small profit every year.
On the whole, as the history of the subject in Hong Kong is abouttwenty-one years and four months, consider it good for normal business engagements.
REMARKS:
Property information of the company:-
Property Location: Flat A6 on 14/F. and Portion No. 47 of Main Roof, Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.
Owner: Gempro HK Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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17-09-2007 |
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Public Bank (Hong Kong) Ltd., Hong Kong. |
Mortgage to secure 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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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.
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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 –
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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.23 |
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UK Pound |
1 |
Rs.76.07 |
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Euro |
1 |
Rs.65.06 |
RATING EXPLANATIONS
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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.