MIRA INFORM REPORT
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Report Date : |
29.10.2011 |
IDENTIFICATION DETAILS
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Name : |
KOMAL
GEMS |
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Registered Office : |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.12.1991 |
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Com. Reg. No.: |
15157882-000-12 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery products, emerald, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
Usually 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 – September 30th, 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
KOMAL GEMS
Company ADDRESS
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 9628, 2367 0121
FAX: 2311 4498
E-MAIL: komal@komalgems.com
MANAGEMENT
Manager: Mr. Rakesh Girdharlal Gajera
SUMMARY
Establishment: 23rd December, 1991.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 7. (Including affiliate)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
L. D. Creations, Hong Kong. (Same address)
Laxmi Dia Jewels Pvt. Ltd., India.
Laxmi Diamond (HK) Ltd., Hong Kong. (Same address)
Laxmi Diamond (Shanghai) Ltd., China.
Laxmi Diamond Pvt. Ltd., India.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
BUSINESS REGISTRATION NUMBER
15157882-000-12
MANAGEMENT
Manager: Mr. Rakesh Girdharlal Gajera
SOLE PROPRIETOR
Name: Mr. Rakesh Girdharlal GAJERA
Residential Address: Flat 8C, 8/F., Tower 12A, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon,
Hong Kong.
HISTORY
The subject was established on 23rd December, 1991 as a partnership concern jointly owned by Mr. Rajeshkumar Chandanmal Shah and Mr. Ashok Kumar Haribhai Gajera under the Hong Kong Business Registration Regulations.
The
following table shows the changes of the partners:-
Name |
Incoming Date |
Outgoing Date |
|
Rajeshkumar Chandanmal SHAH |
23-12-1991 |
22-02-2006 |
|
Ashok Kumar Haribhai GAJERA |
23-12-1991 |
29-12-1993 |
|
Girdharbhai H. GAJERA |
05-05-1995 |
29-10-2002 |
|
Kiran Shambhu VAGHASHIYA |
28-06-1995 |
24-05-2000 |
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Lalit Jivraj PATEL |
24-05-2000 |
01-06-2008 |
|
Vipulkumar Kesubhai BOGHANI |
03-01-2002 |
30-11-2009 |
|
Rakesh Girdharlal GAJERA |
21-02-2006 |
- |
Initially
the subject was located at Room 2208, 22/F., Melbourne Plaza, 33 Queen’s
Road Central, Hong Kong, moved to Room 404, 4/F., Block C, Lip Seng Mansion,
15-19 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in March 1992; to
Room 914, 9/F., Carnarvon Plaza, 20 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong in May 1993; to Room 906, 9/F., Hang Seng Tsim Sha Tsui
Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in August
1994; to Room 807, 8/F. of the same building in August 2000; and further moved
to the present address in June 2004.
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, emerald, etc.
Employees: 7. (Including affiliate)
Commodities Imported: India, other Asian countries, Belgium, Israel, etc.
Markets: Japan, Belgium, Thailand, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not
disclosed.
Profit & Loss: Maintaining
a small profit every year.
Condition: Business
is active and steady.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· Wing Lung Bank Ltd., Hong Kong.
· Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Normal.
GENERAL
Komal
Gems was a partnership jointly owned by Mr. Vipulkumar Kesubhai Boghani and Mr.
Rakesh Girdharlal Gajera. However,
Boghani retired on 30th November, 2009, since then the subject has become a
sole proprietorship owned by the latter.
R. G. Gajera is a Hong Kong ID Card holder and has got the right to
reside in Hong Kong permanently.
One
of the old partners of the subject Girdharbhai H. Gajera was a Belgium passport
holder besides holding an India passport.
The
subject has got an affiliated company Laxmi Diamond (HK) Ltd.
[Laxmi Diamond] located at its operating address. The directors of Laxmi Diamond are Monikaben
Rakesh Gajera and Ashokkumar Haribhai Gajera.
The Gajeras are the family member of R. G. Gajera. Laxmi Diamond is a subsidiary company of an
India diamond manufacturer Laxmi.
The
subject also has got another affiliated company Komal Gems N.V. [Komal] which
is a Belgium-based firm. Komal is a
manufacturer and wholesaler of diamonds and gems. This firm is controlled by Girdharbhai H.
Gajera who is in Belgium most of the time.
Located at
Hoveniersstraat, Internal Postal Box 347 BP 347 2018, Antwerpen, Belgium, Komal is one of
the significant diamond traders in Belgium.
Komal
is a subsidiary of Lamxi. It is one of
the largest diamond wholesalers in Southeast Asia.
Having
more than 30 years experience in manufacturing diamonds products, Laxmi is now one
of the largest diamond manufacturing companies in India.
Laxmi
becomes a “sightholder” of the Diamond Trading Company [DTC] of India in 1995.
Komal
is specialised in manufacturing star and melee from white to “TTLB”. It also produces a wide range of diamond in
round, princess cut, taper and marquise.
Possessing substantial stocks, Komal is able to supply customers with
diamonds in large quantities on diamonds.
The major markets of Komal are the United States, China, Singapore,
Thailand, the Philippines, Taiwan, Belgium, Japan and Europe.
Komal
is also trading in uncut diamonds. It is
a diamond importer while Laxmi is an exporter and manufacturer.
Besides
the subject, Laxmi has got affiliated companies in India, Belgium, China,
Thailand and the United States.
Laxmi
has had three jewellery brands, namely, “Cygnus” in India, “Noor”
in the United States and a branded diamond “Gabrielle” also in the
United States.
Currently,
the Chairman of Laxmi Diamond Group is Mr. Vasant Gajera.
The
subject is fully supported by Laxmi.
Overall business is active and satisfactory.
As
the history of the subject in Hong Kong is over twenty years and ten months, on
the whole, consider it good for normal business engagements.
REMARKS:
Court
case record:-
|
Action
Date |
Case
No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
Aug. 2003 |
H21 |
Antwerpse DiamantBank NV (also known as
Antwerp Diamond Bank NV) |
Komal Gems |
Assignment of Receivable |
Not stated |
Property
information of affiliate:-
Property Location: Unit No. 2 on 8/F., Guardforce
Centre, 3 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: Laxmi Diamond (HK) Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
29-01-2008 |
- |
Wing Lung Bank 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.82 |
|
UK Pound |
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.29 |
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 |
|
<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.