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Report Date : |
17.08.2013 |
IDENTIFICATION DETAILS
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Name : |
L. D. CREATIONS |
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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 : |
25.03.2006. |
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Com. Reg. No.: |
36669282-000-03 |
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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 |
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No. of Employees : |
6. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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
L. D.
CREATIONS
ADDRESS: Room 802, 8/F., Guardforce Centre,
3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2365 1223, 2311 9628
FAX: 852-2311 4498
E-MAIL: komal@komalgems.com
Manager: Mr. Rakesh Girdharlal
Gajera
Establishment: 25th
March, 2006.
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/Affiliated Companies:-
Cygnus Jewelry Inc., US.
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., US.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Jewelry LLC, UAE.
Suberi Brothers LLC, US.
36669282-000-03
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 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.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery products, emerald, etc.
Employees: 6. (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.
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 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:
Normal.
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 also the manager of the subject.
The subject is a diamond trader.
It is specialised in the following products:-
Round Brilliant:
Fancy Sharp:
Special Cut:
The subject’s products include SI diamond, TTLB diamond, diamond earrings,
diamond pendant, loose diamond and white diamond which are exported to
Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
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 seven years,
consider it good for normal business engagements.
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.
-
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.
-
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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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 –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
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The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and jewellery
sector. This follows the implementation of Basel III accord – a global
voluntary regulatory standard on bank capital adequacy, stress testing and
market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.82 |
|
|
1 |
Rs.96.57 |
|
Euro |
1 |
Rs.82.45 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.