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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
GLADSTONE
LTD. |
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Registered Office : |
Room 1204A, 12/F., Tower 2, Harbour Centre, |
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Country : |
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Date of Incorporation : |
01.10.1992 |
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Com. Reg. No.: |
17252886 |
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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, etc. |
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No. of Employees : |
10. (Including
affiliates) |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
GLADSTONE LTD.
Room 1204A, 12/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2722 1666, 2722 1000
FAX: 2722 1291
E-MAIL: gladhk@netvigator.com
Managing Director: Mr. Haytham Salman Ali Abu Obidah
Incorporated on: 1st October, 1992.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Group Total Sales: Rs.
46,000,000,000 (Year ended 31-03-2012) –
Estimated
Employees: 10. (Including affiliates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1204A, 12/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Associated
Company:-
Joint Ford Ltd., Hong Kong. (Same owner)
Affiliated
Companies:-
Su-Raj Group of Companies
Alma Diamonds California Inc., USA.
Alma Diamonds Inc., India.
Bombay Diamonds Co. Private Ltd., India.
Collection Diamond Exports Private Ltd., India.
Diadem Investment & Finance Private Ltd., India.
Euro Auto Private Ltd., India.
Firstrate Diamonds Private Ltd., India.
Forever Diamonds Private Ltd., India.
Forever Precious Jewellery & Diamonds Ltd., India.
Hira Exports Private Ltd., India.
J.R. Diamonds Private Ltd., India.
Kings Jewel Exports Private Ltd., India.
Kohinoor Diamonds Private Ltd., India.
Koradiam N.V., Belgium.
Noble Jewellery LLC, UAE.
Oriental Expressions DMCC, UAE.
Petch Su-Raj, Thailand.
Precious Jewels Exports Private Ltd., India.
Revah Corporation Ltd., India.
Shanghai Diamond (HK) Ltd., Hong Kong. (Same address)
SJR Commodities & Consultancies Private Ltd., India.
SJR Jewelry Co. Ltd., Thailand.
Su-Raj Diamond (H.K.) Ltd., Hong Kong. (Same address)
Su-Raj Diamond Dealers Ltd., India.
Su-Raj Diamond Industries Ltd., India.
Su-Raj Diamond Traders Private Ltd., India.
Su-Raj Diamonds & Jewellery DMCC, UAE.
Su-Raj Diamonds & Jewellery Ltd., India.
Su-Raj Diamonds & Jewelry USA Inc., USA.
Su-Raj Diamonds Inc., USA.
Su-Raj Diamonds N.V., Belgium.
etc.
17252886
0382466
Managing Director: Mr. Haytham Salman Ali Abu Obidah
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 01-10-2011)
|
Name |
|
No. of shares |
|
Mohamed Ashraff MOHAMED YAHYA |
|
10,000 ===== |
(As per registry
dated 01-10-2011)
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Name (Nationality) |
Address |
|
Haytham Salman Ali Abu OBIDAH |
Flat No. 602, Al Majaz, Al Majaz Off. 06 5567744, Sharjah, UAE. |
(As per registry
dated 01-10-2011)
|
Name |
Address |
Co.
No. |
|
Sincere Secretaries Ltd. |
13/F., Chun Wo Commercial Centre, 23-29 Wing Wo Street, Central, Hong Kong. |
0109535 |
The subject was incorporated on 1st October, 1992 as a private limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 11/F., Goldsland Building, 22-26 Minden Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Room 704, 7/F., Chevalier House, 45 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in April 2009; and further to the present address with effect from 12th April, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery products, etc.
Employees: 10. (Including affiliates)
Commodities Imported: India, other Asian countries, Europe, etc.
Markets: Hong Kong and other Asian countries.
Group Total Sales:-
· Rs. 21,422,022,691 (Year ended 31-03-2008)
Rs.
24,223,399,501 (Year ended 31-03-2009)
Rs.
30,454,482,116 (Year ended 31-03-2010)
Rs.
42,686,583,013 (Year ended 31-03-2011)
Rs.
46,000,000,000 (Year ended 31-03-2012) –
Estimated
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Group Profit After
Tax:-
· Rs. 625,882,397 (Year ended 31-03-2008)
Rs. 334,445,543
(Year ended 31-03-2009)
Rs. 656,633,724
(Year ended 31-03-2010)
Rs.
1,116,646,118 (Year ended 31-03-2011)
Rs.
1,300,000,000 (Year ended 31-03-2012) –
Estimated
Profit or Loss: The Group made profits in the past six years.
Condition: Business is rather active and steady
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Normal.
Gladstone Ltd. is wholly-owned by Mr. Mohamed Ashraff Mohamed Yahya who is an Indian. Besides the subject, Mohamed Yahya has had another firm known as Joint Ford Ltd. which is located at a different address.
The subject is a diamond trader. It is sharing the office with its affiliated company Shanghai Diamond (HK) Ltd. which is a Hong Kong-based firm. Shanghai Diamond (HK) Ltd. is an indirect subsidiary company of Su-Raj Diamonds & Jewellery Ltd. [Su-Raj] which is a listed firm in India. It is likely that the subject is also an affiliated company of Su-Raj.
The subject is a diamond importer, exporter and wholesaler. It is engaged in manufacturing loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts. Commodities are chiefly imported from India. Products are marketed in Hong Kong, exported to Japan, the other Asian countries, Europe, the Middle East, North America, etc. Business is active.
The subject’s only director Mr. Haytham Salman Ali Abu Obidah is a Jordan passport holder. Currently he is residing in the United Arab Emirates. Obidah was newly appointed in August 2011.
For the year ended 31st March, 2011, the total income of the Group amounted to Rs. 42,686,583,013, grew by 40.2% as compared with Rs. 30,454,482,116 in FY 2010; profit after taxation was Rs. 1,116,646,118, grew by 70.1% as compared with Rs. 656,633,724 in FY 2010. The Group’s profit after tax for the FY 2011 was the best in the past five years. The improvement in Group’s performance was driven by sustained demand from international markets.
It was estimated that the total income of the Group amounted to Rs. 46,000,000,000 for the year ended 31st March, 2012.
As the history of the subject is over nineteen years and six months in Hong Kong, on the whole, consider it 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.52.68 |
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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 |
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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.