MIRA INFORM REPORT

 

 

Report Date :           

28.04.2012

 

IDENTIFICATION DETAILS

 

Name :

L.  D.  CREATIONS

 

 

Registered Office :

Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

25.03.2006

 

 

Com. Reg. No.:

36669282-000-03

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Importer and Exporter of all Kinds of Diamonds and Jewellery Products, Emerald, etc

 

 

No. of Employees :

8.  (Including affiliates)

 

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 :

Regular

 

 

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

         

L.  D.  CREATIONS

 

 

Company ADDRESS

 

Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

PHONE:            2365 1223,  2311 9628

FAX:                 2311 4498

E-MAIL:                        komal@komalgems.com

 

 

MANAGEMENT

 

Manager:  Mr. Rakesh Girdharlal Gajera

 

 

SUMMARY

 

Establishment:              25th March, 2006.

 

Organization:                 Sole Proprietorship.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   8.  (Including affiliates)

 

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.

Komal Gems, 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

 

36669282-000-03

 

 

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 25th March, 2006 as a sole proprietorship concern owned by Mr. Neelang Arvind Popat under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-




Name

Incoming Date

Outgoing Date

 

Neelang Arvind Popat

25-03-2006

01-06-2008

Vipulkumar Kesubhai Boghani

28-02-2007

19-06-2008

Rakesh Girdharlal gajera

01-06-2008

-

 

Initially the subject was located at Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to Flat F, 14/F., Union Mansion, 33-35 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in October 2006; and further moved back to Guardforce Centre in June 2008.

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:                   8.  (Including affiliates)

 

Commodities Imported:   India, Belgium, Israel, etc.

 

Markets:                       Japan, 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 or Loss:                Making a small profit every year.

 

Condition:                      Business is active and steady.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Bankers:-

Wing Lung Bank Ltd., Hong Kong.

Antwerpse Diamant Bank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.

Standing:  Small.

 

GENERAL

 

L. D. Creations is a sole proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.  Gajera is the manager of the subject.

As a diamond trader, the subject has got affiliated companies Laxmi Diamond (HK) Ltd. [Laxmi Diamond] and Komal Gems located at its operating address.

Komal Gems is a partnership jointly owned by Mr. Vipulkumar Kesubhai Boghani and Gajera.  Mr. Vipulkumar Kesubhai Boghani is also the director of Laxmi Diamond.

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.  Komal is a subsidiary of Lamxi Diamond.  It is one of the largest diamond wholesalers in Southeast Asia.

Having more than 30 years experience in manufacturing diamonds products, Laxmi Diamond is also one of the largest diamond manufacturing companies in India.  Laxmi Diamond become 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.  The subject also has had the same markets.  Komal is also trading in rough diamonds.  It is a diamond importer while Laxmi Diamond is an exporter.

Besides the subject, Laxmi Diamond has got affiliated companies in India, Belgium, China, Thailand and the United States.

Laxmi Diamond has had three jewellery brands: “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 Diamond and the Gajera family.  Overall business is improving and satisfactory.

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

 

COURT CASES:            None per our.


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.52.68

UK Pound

1

Rs.85.12

Euro

1

Rs.69.38

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.