|
Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASIA GEMS |
|
|
|
|
Registered Office : |
Flat B1, 7/F., Burlington House, 90-94 Nathan Road, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
01.03.1967 |
|
|
|
|
Com. Reg. No.: |
02224373-000-03 |
|
|
|
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Legal Form : |
Partnership Concern |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of All kinds of Jewellery and
Diamonds |
|
|
|
|
No. of Employees : |
4. (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 |
ASIA GEMS
Flat B1, 7/F., Burlington House, 90-94 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
PHONE: 2367 6824, 2724 2838
FAX: 2311 4682
E-MAIL: asiagems@hknet.com
didishk@didisgroup.com
Manager: Mrs. Padma Vashdev
Nainani
Establishment: 1st
March, 1967.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Jewellery Trader.
Annual Turnover: HK$25~30
million. (Including associates)
Employees:
4. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
ASIA GEMS
Head Office:-
Flat B1, 7/F., Burlington House, 90-94 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Companies:- (Same address)
Didi’s Jewellery Ltd., Hong Kong.
Vashi Ltd., Hong Kong.
[Also trading as Asia Gems bearing BR No. 58644844]
02224373-000-03
Manager: Mrs. Padma Vashdev
Nainani
Name: Padma Vashdev NAINANI
Residential Address: Flat B2, 10/F., Burlington House, 90-94 Nathan
Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Shyam Vashdev NAINANI
Residential Address: Flat A2, 9/F., Burlington House, 90-92 Nathan Road,
Kowloon, Hong Kong.
Name: Sanjay Vashdev NAINANI
Residential Address: Flat B1, 10/F., Burlington House, 92-94 Nathan
Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Laju Haresh DASWANI
Residential Address: 2/F., 39 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong.
The subject was established on 1st March, 1967 as a sole proprietorship
concern owned by Mrs. Padma Vashdev Nainani under the Hong Kong Business
Registration Regulations. It became a
partnership as Laju Haresh Daswani, Sanjay Vashdev Nainani and Shyam Vashdev
Nainani joined in as partners on 1st February, 2007.
Initially the subject was located at Flat B1, 10/F., Burlington House,
92‑94 Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat
B1, 7/F. of the same building in May 1990.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of jewellery and diamonds.
Employees: 4. (Including associates)
Commodities Imported: India, Belgium, etc.
Markets: USA,
UK, other European countries, Middle East, Australia, etc.
Annual Turnover: HK$25~30 million.
(Including associates)
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition:
Keeping in a
satisfactory manner.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Bankers:- The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
Dah Sing Bank
Ltd., Hong Kong.
ABN AMRO Bank
N.V., Hong Kong Branch.
Standing:
Normal.
Asia Gems is a partnership jointly owned by Padma Vashdev Nainani, Laju
Haresh Daswani, Sanjay Vashdev Nainani and Shyam Vashdev Nainani. All the partners are Indian and belong to the
Nainani family.
Located at the same address, the subject had got two associated
companies, namely, Didi’s Jewellery Ltd. [Didi’s] and Vashi Ltd., both are Hong
Kong-registered firms.
Having issued 500,000 ordinary shares of HK$1.00 each, Didi’s is jointly
owned by Laju Haresh Daswani, holding 20% interest; Padma Vashdev Daswani,
holding 70%; and Shyam Vashdev Daswani, 10%.
The subject and Didi’s are engaged in the same lines of business. They are trading in the following products:-
|
Product/Service |
|
Fine Jewellery |
|
Precious and Semi-Precious Jewellery |
|
Jewellery – Pearl |
|
Jewellery – Gemset |
|
Jewellery – Diamond |
|
Watches and Clocks |
|
Watches |
|
Watch – Digi-Ana |
The subject has had an affiliated factory in China employing about 150
persons. Products include bracelets, brooches,
earrings, necklaces, rings, pendants, etc.
Raw materials are imported from India, Belgium, etc. Finished products are exported to the United
States, the United Kingdom, and other European countries, the Middle East,
Australia, etc.
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 2012” which will be held
in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the
period of 16th to 20th February, 2012.
Didi’s also has taken part in fairs and exhibitions held in Hong Kong
and other foreign large cities. Didi’s
has set up a branch office located at a different address in
Hong Kong. Annual sales turnover of
the subject and Didi’s ranges from HK$25 to 30 million. Making a small profit every year.
Vashi Ltd. is also a diamond trader.
The history of the subject is about forty-five years in Hong Kong.
On the whole, in view of the subject’s background and history, 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.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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.