MIRA
INFORM REPORT
|
Report Date : |
07.02.2012 |
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 : |
7. (Including associates) |
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 : |
Moderate |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 and address
L. D.
CREATIONS
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: 7.
(Including associates)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
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
owner and 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 B.V.B.A., Belgium.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Jewelry LLC, UAE.
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: 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.
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 DiamantBank 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 associated companies Laxmi
Diamond (HK) Ltd. [Laxmi Diamond] and Komal Gems located at its operating
address. Komal Gems is also a sole
proprietorship owned by Mr. Rakesh Girdharlal Gajera
The subject also has got another associated 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 also 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. In 2007, Laxmi Diamond’s brand name “CYGNUS
‘Gold’” was launched in India. In
2008, the trade mark “Noor” was launced in India. In 2009, the Gem & Jewellery Export
Promotion Council of India conferred Laxmi Diamond the title of the “Third
Largest Exporter of Cut and Polished from India”.
Above all, Laxmi Diamond has had an associated company Lorenzo
International which is a NASDAQ listed company in the United States. In recent years, Laxmi Diamond has set up
associated companies in the United Arab Emirates and Belgium.
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 and ten months, consider it good for normal business engagements.
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.48.68 |
|
|
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.63.57 |
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.