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Report Date : |
10.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASIA
GEMS |
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Registered Office : |
Flat B1, 7/F., Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.03.1967 |
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Com. Reg. No.: |
02224373-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and diamonds. |
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|
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No. of Employees : |
3. (Including
associates) |
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 |
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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 – 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 |
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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 |
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
Manager: Mr. Shyam Vashdev Nainani
Establishment: 1st March, 1967.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Jewellery Trader.
Annual Turnover: HK$30~35 million. (Including associates)
Employees: 3. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat B1, 7/F., Burlington House, 90-94 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
Affiliated
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: Mr. Shyam Vashdev Nainani
Name: Mr. Shyam Vashdev NAINANI
Residential Address: Flat
A2, 9/F., Burlington House, 90-92 Nathan Road, 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. The subject became a sole proprietorship again as Padma Vashdev Nainani, Laju Haresh Daswani, and Shyam Vashdev Nainani retired on 15th March, 2012.
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: 3. (Including associates)
Commodities Imported: India, Belgium, etc.
Markets: USA, UK, other European countries, Middle East, Australia, etc.
Annual Turnover: HK$30~35 million. (Including associates)
Terms/Sales: L/C, Advanced 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: Small.
Asia Gems is a sole proprietorship owned by Sanjay Vashdev Nainani who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
Located at the same address, the subject had got two affiliated 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%. Laju Haresh Daswani was the old partner of the subject.
The subject and Didi’s are engaged in the same lines of business.
They are trading
in the following products:-
|
Product/Service |
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Fine Jewellery |
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Precious and Semi-Precious Jewellery |
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Jewellery – Pearl |
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Jewellery – Gemset |
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Jewellery – Diamond |
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Watches and Clocks |
|
Watches |
|
Watch – Digi-Ana |
The subject is trading in the following diamonds: pear-cut, princess-cut, brilliant-cut, marquise-cut, loose diamonds, etc.
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 2013” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2013.
Annual sales turnover of the subject ranges from HK$30 to 35 million. Making a small profit every year.
Vashi Ltd. is also a diamond trader.
The history of the subject is over forty-five years and seven months in Hong Kong. It is one of the oldest Indian diamond trading companies.
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.
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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.
-
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.52.38 |
|
UK Pound |
1 |
Rs.83.99 |
|
Euro |
1 |
Rs.67.99 |
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.