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Report Date : |
22.08.2012 |
IDENTIFICATION DETAILS
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Name : |
LAXMI DIAMOND
(HK) LTD. |
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Formerly Known As : |
Komal Gems Ltd |
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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 : |
05.12.2003 |
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Com. Reg. No.: |
34135130 |
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Legal Form : |
Private Limited Company. |
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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 : |
07 employees |
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 : |
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 |
|
Risk Category |
ECGC
Classification |
|
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 |
LAXMI DIAMOND
(HK) LTD.
Room 802, 8/F,
Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 9628, 2365 1223
FAX: 2311 4498
E-MAIL: laxmi@laxmidiamondhk.com
Managing
Director: Mr. Monikaben Rakesh Gajera
Incorporated on: 5th December, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$8,000,000.00
Issued: HK$800,000.00
Business Category: Diamond Trader.
Employees: 7. (Including associates)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
LAXMI DIAMOND
(HK) LTD.
Registered Head
Office:-
Room 802, 8/F, Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
· Cygnus Jewelry Inc., USA.
Komal
Gems N.V., Belgium.
Komal
Gems, Hong Kong. (Same address)
L.
D. Creations, Hong Kong. (Same address)
Laxmi
Dia Jewels Pvt. Ltd., India.
Laxmi
Diamond (Shanghai) Ltd., China.
Laxmi
Diamond Private Ltd., India.
Laxmi
Jewel Pvt. Ltd., India.
Mili
Star (N.Y.) Inc., USA.
Mili
Star Co. Ltd., Thailand.
Shree
Laxmi Jewelry LLC, UAE.
34135130
0874076
Managing
Director: Mr. Monikaben Rakesh Gajera
Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$800,000.00
(As per registry
dated 05-12-2011)
|
Name |
|
No.
of shares |
|
Laxmi Diamond Private Ltd. 416,
Prasad Chambers, Opera House, Mumbai‑400 004, India. |
|
160,000 |
|
Monikaben Rakesh GAJERA |
|
640,000 |
|
|
|
––––––– |
|
|
Total: |
800,000 ====== |
(As per registry
dated 05-12-2011)
|
Name (Nationality) |
Address |
|
Monikaben Rakesh
GAJERA |
Room 802, 8/F., Guardforce Centre, 3 Hok
Yuen Street East, Hunghom, Kowloon, Hong Kong. |
|
Ashokkumar
Haribhai GAJERA |
416, Prasad Chambers, Opera House, Mumbai‑400
004, India. |
(As per registry
dated 05-12-2011)
|
Name |
Address |
Co.
No. |
|
RC
Corporate Services Ltd. |
Room 2109, China Resources Building, 26 Harbour Road, Wanchai,
Hong Kong. |
0467057 |
The
subject was incorporated on 5th December, 2003 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Komal Gems Ltd., name changed to
the present style on 19th November, 2005.
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: 7. (Including associates)
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.
Hong Kong Jewelry
Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$800,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Keeping a small profit every year.
Condition: Business is active and steady.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments on time.
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.
Having
issued 800,000 ordinary shares of HK$1.00 each, Laxmi Diamond (HK)
Ltd. was jointly owned by four Indian.
Of the four, Hirenkumar Ramsehbhai Khunt was the largest shareholder
holding 51% interests. The subject was
reshuffled on 23rd September, 2008 and the subject is now jointly owned by
Laxmi Diamond Private Ltd. [Laxmi Diamond], an Indian firm holding 20%
interests, and Mr. Monikaben Rakesh Gajera, holding 80%. M. R. Gajera is a Hong Kong ID Card
holder and has got the right to reside in Hong Kong permanently.
Being
an associated company of Laxmi Diamond which is in India, the subject is one of
the major diamond wholesalers in the Asia Pacific region. Having more than 30 years experience in
manufacturing diamonds products, Laxmi Diamond is now one of the largest
diamond manufacturing companies in India.
Laxmi Diamond is a sightholder of the Diamond Trading Company [DTC] of
India.
Laxmi
Diamond is one of the major manufacturers and distributors of polished diamonds
and supplies loose polished to the jewellery trade globally. The manufacturing facilities in Surat and
Amreli, in Gujarat, have been equipped with the latest in high-tech machinery
and equipment. It also has had a plant
in Thailand. The total areas of the
factories is over 100,000 sq.ft.
The
subject is specialised in diamonds and precious stones such as the following
products:-
·
Round Brilliant:
o
White -2, -6.5, +11, +15.5
o
TTLB -2, -6.5, +6.5, +11, +15.5 (All Shades)
o
Natts -2, -6.5, +6.5, +11, +15.5
·
Fancy Sharp:
o
Princess Cut
o
MQ
o
Pear
·
Special Cut:
o
Gabrielle Diamond (105 facet)
The
subject’s products include SI diamond, TTLB diamond, diamond earrings, TTLB
diamond, diamond pendant, loose diamond and white diamond which are exported to
Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
Founded
in 1972, 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. Headquartered in Mumbai, the Group now has affiliate
offices around the world, including the United States, Belgium, Thailand, China
and Dubai apart from the subject.
The
subject has got an associated company L. D. Creations located at its operating
address. L. D. Creations is a sole
proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an Indian
belongs to the Gajera family. L. D.
Creations is also controlled by the Gajera family.
Besides
L. D. Creations, the subject has had another associated company Komal Gems
located at the same address. Komal Gems
N.V. [Komal] is a Belgium-based firm which 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.
In
order to penetrate the international market further, the subject has taken part
in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in
“HKTDC Hong Kong International Jewellery Show 2013” which will be held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th
to 9th March, 2013.
The
subject is fully supported by Laxmi Diamond and the Indian family. Overall business is satisfactory. History in Hong Kong is over eight years and
five months.
The
annual sales turnover of Laxmi Diamond Group is over US$500 million.
On
the whole, consider the subject good for normal business engagements.
Court Cases: None as per our.
Property information of the
company:-
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 |
|
Date |
Particulars |
Amount |
|
19-01-2005 |
Instrument: Debenture Property: 1) All stocks, shares, bonds and
securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 2) All book and other debts
revenues and claims 3) The uncalled capital
goodwill and all patents, patent applications, trade marks, trade names,
registered designs and copyrights and all licences and ancillary and
connected rights 4) The undertaking and all other assets of the
Company Mortgagee: Antwerpse DiamantBank NV (also known as
Antwerp Diamond Bank NV), Hong Kong Branch. |
All money and liabilities |
|
29-01-2008 |
Instrument: Mortgage Property: 5/718th parts or shares of and in Section
E of Kowloon Marine Lot No. 113 (Workshop Unit No. 2 on 8/F. of Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.) Mortgagee: Wing Lung Bank Ltd., Hong Kong. |
All sums |
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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.55.54 |
|
UK Pound |
1 |
Rs.87.39 |
|
Euro |
1 |
Rs.68.72 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.