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Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
KOMAL GEMS |
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Registered Office : |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.12.1991 |
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Com. Reg. No.: |
15157882-000-12 |
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Legal Form : |
Sole Proprietorship. |
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Line of business : |
Importer and exporter of all kinds of diamonds and jewellery products, emerald, etc. |
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No. of Employees : |
6. (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 |
|
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 |
KOMAL GEMS
Company ADDRESS
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
PHONE: 2311 9628, 2367 0121
FAX: 2311 4498
E-MAIL: komal@komalgems.com
Manager: Mr. Rakesh Girdharlal
Gajera
Establishment: 23rd December, 1991.
Organization: Sole
Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employees: 6. (Including associates)
Main Dealing Banker: Wing Lung
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Associated
Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
L. D. Creations, Hong Kong. (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 Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Jewelry LLC, UAE.
15157882-000-12
Manager: Mr. Rakesh Girdharlal
Gajera
Name: Mr. Rakesh Girdharlal
GAJERA
Residential Address: Flat 8C,
8/F., Tower 12A, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong
Kong.
The subject was established on 23rd December, 1991 as a partnership
concern jointly owned by Mr. Rajeshkumar Chandanmal Shah and Mr. Ashok Kumar
Haribhai Gajera under the Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
Name |
Incoming Date |
Outgoing Date |
|
Rajeshkumar Chandanmal SHAH |
23-12-1991 |
22-02-2006 |
|
Ashok Kumar Haribhai GAJERA |
23-12-1991 |
29-12-1993 |
|
Girdharbhai H. GAJERA |
05-05-1995 |
29-10-2002 |
|
Kiran Shambhu VAGHASHIYA |
28-06-1995 |
24-05-2000 |
|
Lalit Jivraj PATEL |
24-05-2000 |
01-06-2008 |
|
Vipulkumar Kesubhai BOGHANI |
03-01-2002 |
30-11-2009 |
|
Rakesh Girdharlal GAJERA |
21-02-2006 |
-- |
Initially the subject was located at Room 2208, 22/F., Melbourne Plaza, 33 Queen’s
Road Central, Hong Kong, moved to Room 404, 4/F., Block C, Lip Seng Mansion,
15-19 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in March 1992; to
Room 914, 9/F., Carnarvon Plaza, 20 Carnarvon Road, Tsimshatsui, Kowloon,
Hong Kong in May 1993; to Room 906, 9/F., Hang Seng Bank Building, 18
Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in August 1994; to Room
807, 8/F. of the same building in August 2000; and further moved to the present
address in June 2004.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery products, emerald, etc.
Employees: 6. (Including associates)
Commodities Imported: India, other
Asian countries, Belgium, Israel, etc.
Markets: Japan,
Belgium, Thailand, India, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not
disclosed.
Profit & Loss: Maintaining
a small profit every year.
Condition: Business
is active and steady.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Good.
Komal Gems was a partnership jointly owned by Mr. Vipulkumar Kesubhai
Boghani and Mr. Rakesh Girdharlal Gajera.
However, Boghani retired on 30th November, 2009, since then the subject
has become a sole proprietorship owned by the latter. R. G. Gajera is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently.
One of the old partners of the subject Girdharbhai H. Gajera was a
Belgium passport holder besides holding an India passport.
The subject has got an affiliated company Laxmi Diamond (HK) Ltd.
[Laxmi Diamond] located at its operating address. The directors of Laxmi Diamond are Monikaben
Rakesh Gajera and Ashokkumar Haribhai Gajera.
The Gajeras are the family member of R. G. Gajera. Laxmi Diamond is a subsidiary company of an
India diamond manufacturer Laxmi.
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. This firm is controlled by Girdharbhai H.
Gajera who is in Belgium most of the time.
The subject is trading in Diamond and Diamond Jewellery. The followings are some of its major
products:-
Diamond Bracelets, Diamond Earrings, Diamonte & Pearl Ornaments, 925
Silver Diamonds, etc.
Products are exported to Japan, South Korea, India, the other Asian
countries, North America, Europe, etc.
Located at Hoveniersstraat, Internal Postal Box 347 BP 347 2018,
Antwerpen, Belgium, Komal is one of the significant diamond traders in Belgium.
Komal is a subsidiary of Lamxi.
It is one of the largest diamond wholesalers in Southeast Asia.
Having more than 30 years experience in manufacturing diamonds products,
Laxmi is now one of the largest diamond manufacturing companies in India.
Laxmi becomes 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.
Komal is also trading in uncut diamonds.
It is a diamond importer while Laxmi is an exporter and manufacturer.
Besides the subject, Laxmi has got affiliated companies in India,
Belgium, China, Thailand and the United States.
Laxmi has had three jewellery brands, namely, “Cygnus” in India,
“Noor” in the United States and a branded diamond “Gabrielle” also in the
United States.
Currently, the Chairman of Laxmi Diamond Group is Mr. Vasant Gajera.
The subject is fully supported by Laxmi.
Overall business is active and satisfactory.
As the history of the subject in Hong Kong is about twenty-one years, on
the whole, consider it good for normal business engagements.
Court case record:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
Aug. 2003 |
H21 |
Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV) |
Komal Gems |
Assignment of Receivable |
Not stated |
Property information of affiliate:-
Property Location: Unit
No. 2 on 8/F., Guardforce Centre, 3 Hok Yuen Street East, Kowloon, Hong Kong.
Owner: Laxmi Diamond (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
29-01-2008 |
- |
Wing Lung Bank Ltd., Hong Kong. |
Mortgage to secure general 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.
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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.
-
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.54.44 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.71.33 |
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 |
---- |
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.