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Report Date : |
01.02.2013 |
IDENTIFICATION DETAILS
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Name : |
GEMPRO HK
LTD. |
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Registered Office : |
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.06.1990 |
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Com. Reg. No.: |
13896782 |
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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 and precious stones, etc. |
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No. of Employees : |
2 |
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 : |
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
HONG KONG |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
GEMPRO HK
LTD.
Flat A6, 14/F.,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2721 5880
FAX: 2366 8335
Managing
Director: Mr. Fazlal Hassan Ahmed
Incorporated on: 5th June, 1990.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond & Gem Trader.
Annual Turnover: HK$65~70 million.
Employees: 2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
GEMPRO HK
LTD.
Registered
Head Office:-
Flat A6, 14/F.,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
13896782
0279583
Managing
Director: Mr. Fazlal Hassan Ahmed
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 05-06-2012)
|
Name |
|
No.
of shares |
|
Fazlal
Hassan AHMED |
|
50,000 |
|
Abirin
Zulaiah AHMED FAZLAL HASSAN |
|
20,000 |
|
Ali SADAQ |
|
30,000 |
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|
|
––––––– |
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|
Total: |
100,000 ====== |
(As per registry dated 05-06-2012)
|
Name (Nationality) |
Address |
|
Fazlul Hasan
AHMED |
Flat A6, 14/F., Hankow Centre, 47 Peking
Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Nafeel
Ahmed MOHAMED ALI JINNAH |
Flat 1, 4/F., 1 Perth Street, Ho Man Tin,
Kowloon, Hong Kong. |
|
Ali SADAQ |
Flat A6, 14/F., Hankow Centre, 47 Peking
Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 05-06-2012)
|
Name |
Address |
Co.
No. |
|
Taxbase
Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong. |
0411324 |
The
subject was incorporated on 5th June, 1990 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Diamantina Ltd., name changed to
the present style on 31st October, 2001.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and precious stones, etc.
Employees: 2.
Commodities Imported: India, Belgium, other Asian & European countries, etc.
Markets: Hong Kong, Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$65~70 million.
Terms/Sales: CAD, L/C, Advanced T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge:-
Date of Two-Party Mortgage Deed: 17-09-2007
Amount: All moneys
Property: 1/720th part or share of and in Kowloon Inland Lot No. 8219 (Flat A6 on 14/F. and Portion No. 47 of Main Roof of Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.)
Mortgagee: Public Bank (Hong Kong) Ltd., Hong Kong.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a rather active manner.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Public Bank (Hong Kong) Ltd., Hong Kong.
Standing: Satisfactory.
Having
issued 100,000 ordinary shares of HK$10.00 each, Gempro HK Ltd. is jointly
owned by Mr. Fazlal Hassan Ahmed, holding 50% stake; Mr. Abirin Zulaiah Ahmed
Fazul Hassan, holding 20%; and Mr. Ali Sadaq, 30%. They are also directors of the subject. The first two have been in Hong Kong for a
very long time and become Hong Kong ID Card holders. They have got the right to reside in Hong
Kong permanently. The third shareholder
Ali Sadaq is an India passport holder.
It is likely that the shareholders of the subject are also residing in
the subject’s operating address.
Business
commenced in June 1990, the subject is a diamond importer, exporter and
wholesaler.
The
subject is dealing in the following products:-
·
Fine loose diamonds, polished and cut diamonds;
·
Gemstones & Jade;
·
Rare, coloured gemstones and jade; &
·
Semi-precious jewellery.
Its
diamond products include fancy coloured diamonds, unusual rose cut and
briolette cut diamonds, etc. It also
trades in single-cut diamond, fullcut loose diamond, carat size diamonds, blue
sapphire, ruby, etc. Products are
chiefly imported from India, Thailand, Sri-Lanka, Belgium and Israel. However, India is its main supplying
country. Loose diamonds are chiefly
exported to China, India, Japan, Southeast Asia, Europe, the Middle East,
etc. Business is rather steady. Regular customers and foreign suppliers have
been maintained.
The
subject’s business is chiefly handled by Fazlal Hassan Ahmed and Abirin Zulaiah
Ahmed Fazul Hassan.
The
subject owns its operating office located at the present registered address in
Tsimshatsui, Kowloon, Hong Kong which had been mortgaged to Public Bank
(Hong Kong) Ltd., Hong Kong, for securing general banking facilities.
On
3rd July, 2009, The Hongkong & Shanghai Banking Corp. Ltd. released the
subject’s property as the subject had repaid all its debts.
The
annual sales turnover of the subject ranges from HK$65 to 70 million. Business is profitable and keeps on
improving.
On
the whole, as the history of the subject in Hong Kong is about twenty-two
years, consider it good for normal business engagements.
Property
information of the company:-
Property Location:
Flat A6 on 14/F. and Portion No. 47 of Main Roof, Hankow Centre, 47 Peking
Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.
Owner: Gempro HK Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
17-09-2007 |
- |
Public Bank (Hong Kong) Ltd., Hong Kong. |
Mortgage to secure general 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.
-
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.
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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.53.29 |
|
|
1 |
Rs.84.22 |
|
Euro |
1 |
Rs.72.23 |
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 |
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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.