|
Report Date : |
20.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
GEMASIA (HONG KONG) LTD. |
|
|
|
|
Registered Office : |
Level 28, Three Pacific Place, 1 Queen’s Road East |
|
|
|
|
Country : |
Hong Kong |
|
|
|
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Date of Incorporation : |
25.05.1998 |
|
|
|
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Com. Reg. No.: |
21867859 |
|
|
|
|
Legal Form : |
Private Limited Company. |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL
KINDS OF DIAMONDS, JEWELLERY, GEMSTONES, ETC. |
|
|
|
|
No. of Employees : |
11 Employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
|
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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Hong Kong - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
GEMASIA (HONG
KONG) LTD.
ADDRESS: Room 1103, 11/F., Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2722 6333, 2367 0497,
2367 0121
FAX: 2722 6360, 2721 1173
E-MAIL: sales@gemasiahk.com
Managing
Director: Mr. Jatin Pravinchandra Shah
Incorporated on: 25th May, 1998.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$2.00
Business Category: Diamond Trader.
Group Net Sales: Rs. 183,504.12 million (Year ended 31-03-2012)
Group Employees: Over 1,700. (As at 31-03-2012)
Employees: 11.
Main Dealing
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Very Good.
Registered Office:-
Level 28, Three
Pacific Place, 1 Queen’s Road East, Hong Kong.
Operating Office:-
Room 1103, 11/F., Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Star Holdings
Ltd., UAE.
Asian Star Co.
Ltd., India.
Asian Star Co.
Ltd., USA.
Asian Star Jewels
Pvt. Ltd., India.
Asian Star Trading
(Hong Kong) Ltd., Hong Kong.
Gemasia
(Shanghai), China.
Gemasia B.V.B.A.,
Belgium.
Gemasia Solitaire
Ltd., Hong Kong.
Inter Gems DMCC,
UAE.
InterGems Trading
(L.L.C.), Middle East.
Jewel Art, India.
Star Asia (Thailand)
Ltd., Thailand.
etc.
21867859
0645657
Managing
Director: Mr. Jatin Pravinchandra Shah
Nominal Share Capital:
HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$2.00
(As per registry dated 25-05-2012)
|
Name |
|
No.
of shares |
|
Jatin
Pravinchandra SHAH |
|
1 |
|
Star Holdings Ltd. Suite 1003, Khalid Al Altar Tower, SH. Zayed Road, P.O. Box
71241, Dubai, UAE. |
|
1 |
|
|
|
– |
|
|
Total: |
2 = |
(As per registry dated 25-05-2012)
|
Name (Nationality) |
Address |
|
Jatin
Pravinchandra SHAH |
Flat B, 6/F., Beauty Mansions, 69-71
Kimberley Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Saumil Shailesh
SHAH |
Flat H, 19/F., Royal Peninsula, 8 Hung Lai
Road, Hunghom, Kowloon, Hong Kong. |
(As per registry dated 25-05-2012)
|
Name |
Address |
Co.
No. |
|
Tricor
Strath Ltd. |
Level 28, Three Pacific Place, 1 Queen’s Road East, Hong Kong. |
0004873 |
The
subject was incorporated on 25th May, 1998 as a private limited liability
company under the Hong Kong Companies Ordinance.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and
Wholesaler.
Lines: All kinds of
diamonds, jewellery, gemstones, etc.
Group
Employees: Over 1,700. (As at 31-03-2012)
Employees: 11.
Commodities
Imported: India, Europe, etc.
Markets: Asian countries, Europe, Middle East,
Australia, North America, etc.
Group Net Sales:-
Rs. 146,557.11
million (Year ended 31-03-2009)
Rs. 146,701.74
million (Year ended 31-03-2010)
Rs. 166,732.64
million (Year ended 31-03-2011)
Rs. 183,504.12
million (Year ended 31-03-2012)
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry
Manufacturers’ Association, Hong Kong.
The Indian Chamber
of Commerce Hong Kong, Hong Kong.
Nominal Share
Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$2.00
Group
Profit After Tax (After Adjustment of Minority Interest):-
Rs. 4,648.93
million (Year ended 31-03-2009)
Rs. 3,007.38
million (Year ended 31-03-2010)
Rs. 3,777.63
million (Year ended 31-03-2011)
Rs. 4,139.50
million (Year ended 31-03-2012)
Profit or Loss:
Making a small profit every year.
Condition: Keeping in an active and satisfactory
condition.
Facilities: Is making use of general banking facilities.
Payment: Met obligations as contracted.
Commercial
Morality: Good.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Very Good.
Gemasia
(Hong Kong) Ltd. is a subsidiary of Star Holdings Ltd. which is a
UAE-registered firm. The ultimate
holding company Asian Star Co. Ltd. [Asian Star] is an India-based company.
Being
a diamond trader, the subject is a Hong Kong based marketing arm of Asian
Star. Established in 1998, the subject
has emerged as a prominent market player in the Asia Pacific region. The subject is able to lure buyers not only
from Asia but also from other parts of the world.
On
21st January, 2011, Asian Star set up a subsidiary company known as Asian Star
Trading (Hong Kong) Ltd. which is also located at the operating address of the
subject.
The
subject is specialized in round and loose diamonds, WHITE, TTLB and TTLC
shades, sizes ranges from 0.003 points to 2 carats, clarity ranges from IF, VVS
to heavy PK and colour ranges from D to N-O.
It also provides certified diamonds from the world’s reputed gem
laboratories like GIA, HRD and IGI. Its
extensive marketing network ensures efficient and personalized services with
consistent supply of goods. It regularly
participates in jewellery shows in Asian countries in order to penetrate the
international market further.
In
recent years, the subject has set up an office in Shenzhen Special Economic
Zone, China in order to service the customers in Southern China.
The
subject is trading in the following commodities:-
|
Product/Service |
Product/Service
Remarks |
|
Jewellery –
Diamond |
From
India and Belgium (Importer) From
India and Belgium (Exporter) |
|
Loose Diamond |
From
India, Belgium and Israel (Importer) From
India, Belgium and Israel (Exporter) |
Asian
Star was established in 1971 as a partnership and became a public limited
company in 1995.
Now,
Asian Star is one of the world’s leading diamantaires and a Diamond Trading
Company Sightholder. Its business comprises
of diamond manufacturing, jewellery manufacturing and retailing. Having set up marketing arms across three
continents — Asia, Europe and North America — Asian Star is positioned to serve
its customers throughout the world.
The
Group is trading in the following commodities, so does the subject:-
·
Polished
Diamonds - All polished 2 ct. and smaller in fine makes;
·
Jewellery
- Gold and platinum, diamond studded jewellery spanning all categories like Rings,
Earrings, Pendants, Bracelets, Bangles, Necklaces etc. for the domestic and
international market;
·
Jewellery
Retailing - ‘Shagun Jewels’, the flagship retail store at Hyderabad catering to
urban Indian women; &
·
Power
- Windmills in Maharashtra, Kerala and Tamil Nadu.
Asian
Star’s factory is in Surat, India, covering an area of 65,000 sq.ft. and
employing about 1,000 skilled workers.
Asian
Star achieved a new milestone on 6th December, 2010 at the grand opening of its
new factory, A’Star Jewellery — Hosur.
The
5,000 sq.ft. state-of-the-art factory employs 120 highly skilled employees,
especially trained in the manufacture of hand-crafted diamond jewellery. The product line would be primarily focused
on high value, couture diamond jewellery.
For
the year ended 31st March, 2012, the sales of the Group amounted to
Rs. 183,504.12 million, increased by 10.1% as compared with Rs. 166,732.64
million in FY 2011; profit after tax and after adjustment of minority interest
in the year was Rs. 4,139.58 million, increased by 9.6% as compared with
Rs. 3,777.63 million in FY 2011.
Asian
Star’s shares are listed on the Bombay Stock Exchange (scrip code‑531847)
in India.
As
on 31st March, 2011, Asian Star Co. Ltd. had a market capitalisation of
Rs. 1,428 crore.
Over
the past years, the subject had participated the following fairs held in Hong
Kong, Macau and Japan:
Hong
Kong
·
HK Int’l Jewellery Show (Mar.)
·
HK Jewellery & Watch Fair (Jun.)
·
HK Jewellery & Watch Fair (Sep.)
·
JMA Hong Kong (Dec.)
Macau
·
Macau Jewellery & Watch Fair (Jan.)
Japan
·
Int’l Jewellery Tokyo (Jan.)
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
Chairman of Asian Star is Mr. Dinesh Shah, Chief Executive Officer and Managing
Director is Mr. Vipul Shah. All of them
belong to the Shah family.
The
subject’s business is chiefly handled by Mr. Jatin Pravinchandra Shah who is an
Indian residing in Hong Kong. He is a
Hong Kong ID holder and has got the right to reside in Hong Kong
permanently. He is also the contact
person of the subject.
The
subject is fully supported by Asian Star.
History in Hong Kong is over fourteen years.
The
subject is fully supported by the Group.
History in Hong Kong is over eight years and seven months.
On
the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
19-09-2003 |
Instrument: Debenture Property: 1) All freehold and leasehold
property of the Company 2) All stocks shares bonds and
securities of any kind whether marketable or otherwise and all other
interests including loan capital of the Company 3) All book and other debts
revenues and claims 4) 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 5) The undertaking and all others of the
Company Mortgagee: Antwerpse
DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong
Branch. |
General credit facilities of sum of HK$15,600,000 |
|
26-10-2004 |
Instrument: Charge
Over Accounts (Limited Company – Under Seal) Property: In consideration of the Bank agreeing to
grant or continuing to grant the Banking Facilities, the Chargor, as
beneficial owner and by way of fixed charge, assigns, charges and pledges the
“Charged Property” to Bank as a continuing security for the due payment and
satisfaction of the Secured Moneys by the Chargor to the Bank on demand Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
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.54.73 |
|
UK Pound |
1 |
Rs.89.01 |
|
Euro |
1 |
Rs.72.47 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.