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Report Date : |
13.09.2012 |
IDENTIFICATION DETAILS
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Name : |
GEMASIA
( |
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Registered Office : |
Level 28, |
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Country : |
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Date of Incorporation : |
25.05.1998 |
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Com. Reg. No.: |
21867859 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, jewellery, gemstones, etc. |
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No. of Employees : |
12 |
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 : |
Good |
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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 |
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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 |
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.
Room 1103, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2722 6333, 2367 0497
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: 12.
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.
Holding Company:-
Star Holdings Ltd., UAE.
Ultimate Holding
Company:-
Asian Star Co. Ltd., India.
Associated/Affiliated
Companies:-
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 |
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– |
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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: 12.
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, 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 manner.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Good.
Bankers:-
· 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 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 recent years, the subject has set up an office in Shenzhen Special Economic Zone, China in order to service the customers in 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 firm 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.
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 Card holder and has got the right to reside in Hong Kong permanently.
The subject is fully supported by Asian Star. History in Hong Kong is over fourteen years.
The subject is fully supported by the Group.
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
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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.
-
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.55.26 |
|
UK Pound |
1 |
Rs.88.85 |
|
Euro |
1 |
Rs.71.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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.