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Report Date : |
03.08.2012 |
IDENTIFICATION DETAILS
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Name : |
J.
K. GEMS |
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Registered Office : |
Room 803, 8/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.09.1970 |
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Com. Reg. No.: |
03066340-000-09 |
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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. |
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No. of Employees : |
6. (Including
affiliate) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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, 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 |
|
Insignificant |
A1 |
|
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 |
J. K.
GEMs
Room 803, 8/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2376 2512
FAX: 2376 3693
E-MAIL: zaveri@netvigator.com
Manager: Mr. Jayant Kumar Kantilal Jhaveri
Establishment: 9th September, 1970.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Annual Turnover: HK$25~30 million.
Employees: 6. (Including affiliate)
Main Dealing Banker: Indian Overseas Bank, Hong Kong Branch.
Banking Relation: Satisfactory.
Head Office:-
Room 803, 8/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
P.O. Box 95602, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Affiliated
Company:-
R. J. Exports, Hong Kong. (Same address)
03066340-000-09
Manager: Mr. Jayant Kumar Kantilal Jhaveri
Name: Mr. Jayant Kumar Kantilal JHAVERI
Residential Address: 8-C,
8/F., Rattan House, 4 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 9th September, 1970 as a sole proprietorship concern owned by Mr. Jayant Kumar Kantilal Jhaveri under the Hong Kong Business Registration Regulations.
At the very beginning, the subject was located at 8-C, 8/F., Rattan House, 4 Hankow Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 8/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong in October 1981, and further to the present address in April 2007.
Apart from these, neither material change nor amendment has
been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery products, emerald, etc.
Employees: 6. (Including affiliate)
Commodities Imported: India, Belgium, Africa, US, etc.
Markets: Asian countries, Western Europe, Africa, North America, Middle East, etc.
Annual Turnover: HK$25~30 million.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
· Diamond Federation of Hong Kong, China Ltd., Hong Kong.
The
Indian Chamber of Commerce Hong Kong, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Business is steady and active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: Indian Overseas Bank, Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
J. K. Gems is a sole proprietorship set up and owned by Mr. Jayant Kumar Kantilal Jhaveri who is an Indian and has been in Hong Kong for a very long time. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
Business commenced in September 1970, the subject is trading in the following commodities:-
· Ruby (from South Africa and India);
Blue
or Coloured Sapphire (from South Africa, Sri Lanka and India); &
Loose
diamonds (from the United States, Belgium and India).
The subject also trades in emerald, precious stones, gem stones, semi‑precious stones, etc. It is also an export agent and buying co-operator. It imports diamond, gem stones and jade from Belgium, India, Israel, the United States, South Africa, etc. Products are marketed in Hong Kong, exported to the other Asian countries, Western Europe, Africa, North America, the Middle East, etc. It is also a commission agent. Business is rather steady.
The subject is a member of The Indian Chamber of Commerce Hong Kong, a Hong Kong base accociation.
The annual sales turnover of the subject ranges from HK$25 to 30 million. Making a small profit every year. Regular suppliers and customers have been maintained.
The subject has got an affiliated company R. J. Exports located at its operating address. R. J. Exports is also a diamond and gem stone trader. Its business is handled by Mr. Rakesh Zaveri who is also an Indian. Zaveri is also a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the sole owner of R. J. Exports. R. J. Exports seems to be a business partner of the subject.
Business chiefly handled by Jayant Kumar Kantilal Jhaveri himself, the subject is one of the oldest diamond traders in Hong Kong.
Since the history of the subject is over forty-one years, 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.
-
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.55.78 |
|
UK Pound |
1 |
Rs.86.75 |
|
Euro |
1 |
Rs.68.32 |
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 |
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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.