MIRA
INFORM REPORT
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Report Date : |
21.10.2011 |
IDENTIFICATION DETAILS
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Name : |
GOLD STAR JEWELLERY |
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Registered Office : |
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak
Fung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.10.2004 |
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Com. Reg. No.: |
34986470-000-10 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and
diamond. |
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 : |
Small Company |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 and address
GOLD STAR
JEWELLERY
ADDRESS: Flat D, 14/F., Block 8, Oak
Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong
Kong.
PHONE: 6478 7378
MANAGEMENT
Manager: Mr. Rajubhai Jivrajbhai
Savani
SUMMARY
Establishment: 13th
October, 2004.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond and Jewellery Trader.
Annual Turnover: US$4.5~5.0
million.
Employees:
Nil.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Head Office:-
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung
Street, Hunghom, Kowloon, Hong Kong.
P.O. Box 92015, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Wala Diam (HK), Hong Kong.
[Also owned by Mr. Rajubhai Jivrajbhai Savani]
Waladiam Co. Ltd., Thailand.
Walam Diamonds, India.
BUSINESS REGISTRATION NUMBER
34986470-000-10
MANAGEMENT
Manager: Mr. Rajubhai Jivrajbhai
Savani
SOLE PROPRIETOR
Name: Mr. Rajubhai Jivrajbhai
SAVANI
Residential Address: Block A2,
4/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
HISTORY
The subject was established on 13th October, 2004 as a sole
proprietorship concern owned by Mr. Rajubhai Jivrajbhai Savani under the Hong
Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajubhai Jivrajbhai Savani |
13-10-2004 |
23-06-2005 |
|
Pareshkumar Khimjibhai Diyora |
18-05-2005 |
12-02-2009 |
Initially the subject was located at Flat 6B, Block 9, Luxury Court, 9
Hau Fook Street, Kowloon, Hong Kong, moved to Block A2, 4/F., Prat Mansion,
26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in September 2005; and
further to the present address in August 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery
and diamond.
Employees: Nil.
Commodities Imported: Imported from Belgium, India, other Asian countries, etc.
Markets: Belgium, Japan, Philippines, Taiwan,
Thailand, US, etc.
Annual Turnover: US$4.5~5.0
million.
Terms/Sales:
L/C, T/T, D/P, etc.
Terms/Buying: L/C,
D/P, T/T, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Made a very
small profit in the past years.
Condition:
Keeping in a
fairly active condition.
Facilities:
Making fairly
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.
GENERAL
Gold Star Jewellery is a sole proprietorship owned by an Indian Mr.
Rajubhai Jivrajbhai Savani who is an Indian.
Savani is a Hong Kong ID Card holder and has got the right to reside in
Hong Kong permanently. He founded the
subject in October 2004 but retired in June 2005. In February 2009, he joined in the subject
again. Now, he is the manager of the
subject.
The subject does not have its own office. Its registered address is in a residential
building located at Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa
Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong Kong. The subject’s registered address is also
the new residential address of the sole proprietor. It is likely that the subject has not updated
its information filed with the Inland Revenue Department Business Registration
Office of the Hong Kong SAR Government.
The subject’s telephone number and fax number have not registered with
local telephone company nor listed on telephone directories. However, Savani can be reached at his mobile
phone number 6478 7378.
The subject is trading in all kinds of jewellery and diamond. It is a polished and cut diamond importer,
exporter and wholesaler. Size of
diamonds handled range from 0.01 carat to 1.00 carat. Rough diamonds are imported from India, other
Asian countries and Belgium. However,
India is the main supplying countries.
Processed in Hong Kong or China, the subject’s products include: tapers,
baguettes, marquise, princess, round brilliant, etc. Finished products including rings, earrings,
pendants, bracelets, etc. are exported to Belgium, Japan, the Philippines,
India, Taiwan, Thailand, the United States, etc. Principal customers are jewellery
manufacturers. Business has been steady
and fairly active.
The subject has had affiliated companies known as Walam Diamonds in
Mumbai and Surat of India and Waladiam Co. Ltd. in Bangkok of Thailand. Walam Diamonds is also an importer and
exporter of polished diamonds. The key
personnel is Mr. Nileshitaliya. The one
in Mumbai is Walam Diamonds’ head office while the one on Surat is its branch
office. Walam Diamonds’ manufacturing
unit is also in Surat. This firm is
supposed to be the main supplier of the subject.
Walam Diamonds, a member of GJEPC (The Gem and Jewellery Export
Promotion Council), is promoted by Mr. D. D. Savani, a leading manufacturer and
exporter of diamond jewellery from India.
It was established as a government recognised export house and has been
catering to both Indian and international markets such as Belgium, the United
Kingdom, the United States, France, Hong Kong, Thailand, Singapore, the United
Arab Emirates, etc. Walam Diamonds has
been in this trade for about 40 years.
The manufacturing units of Walam Diamonds located at Surat are well
equipped with modern and sophisticated laser polishing machines. Its workers are well trained. Walam Diamonds seems to be the main supplier of
the subject.
Besides the subject, Savani is operating another firm Wala Diam (HK)
[Wala] which is also located at the subject’s operating address. Wala was established on 1st August,
2000. Also owned and operated by SAVANI,
this firm is also a diamond trader.
Business handled by Savani himself, the subject and Wala has no other
employees in Hong Kong.
The annual sales turnover of the subject and Wala ranges from US$4.5 to
5.0 million. Keeping a balance account
most of the time or just making a very small profit in the past years.
The history of the subject in Hong Kong is over seven years in Hong
Kong.
On the whole, consider the subject good for normal business engagements.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.71 |
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|
1 |
Rs.78.08 |
|
Euro |
1 |
Rs.68.05 |
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 |
|
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.