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Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
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Name : |
RAJAB GEM CORPORATION |
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Registered Office : |
Flat B4, 12/F., Tsim Sha Tsui Mansion, 83 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.08.1973 |
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Com. Reg. No.: |
03937206-000-08 |
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Legal Form : |
Partnership |
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LINE OF BUSINESS : |
IMPORTER,
EXPORTER AND WHOLESALER OF PRECIOUS STONES, GEMS, ETC. |
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No. of Employees : |
4. (Including associates) |
RATING & COMMENTS
|
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 – 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 |
|
Low |
A2 |
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Moderate |
B1 |
|
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
RAJAB GEM CORPORATION
Flat B4, 12/F., Tsim Sha Tsui Mansion, 83 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
PHONE: 2366 8552, 3119 7291
MOBILE: 9323 0191, 6082 1073
FAX: 2366 5744
E-MAIL: rajab@netvigator.com
Manager: Mr. Seyed Ahamed Seyed
Mohamed Salihu
Establishment: 16th
August, 1973.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Precious Stone Trader.
Employees:
4. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
RAJAB GEM
CORPORATION
Head Office:-
Flat B4, 12/F., Tsim Sha Tsui Mansion, 83 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Companies:-
My Creations, Hong Kong.
Rajab Traders Ltd., Hong Kong.
(Same address)
Rajab Traders, Hong Kong. (Same
address)
Su-Raj Inter Gold (HK), Hong Kong.
Su-Raj Inter Gold DMCC, UAE.
Su-Raj Inter Gold Inc., USA.
Su-Raj Inter Gold Pvt. Ltd., Thailand.
03937206-000-08
Manager: Mr. Seyed Ahamed Seyed
Mohamed Salihu
Name: Mr. Seyed Ahamed Seyed
Mohamed Salihu
Residential Address: 7/F., 44
Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Seyed Mohamed Salihu
Seyed Ahamed
Residential Address: Flat F,
13/F., Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
Name: Mr. Mohamed Noohu Seyed
Mohamed Salihu
Residential Address: Flat F,
13/F., Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
The subject was established on 16th August, 1973 as a sole
proprietorship concern owned by Mr. Seyed Ahamed Seyed Mohamed Salihu under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Ahamed Seyed Mohamed Salihu |
16-08-1973 |
- |
|
S. M. Mohamed Ali |
15-08-1975 |
15-08-1975 |
|
Saltari Abdul Cadas Ilyas Nowfer |
01-10-1980 |
30-09-1984 |
|
Sahul Hameed Mohamed Yusuf |
01-04-1985 |
30-11-1997 |
|
Mohamed Noohu Seyed Mohamed Salihu |
09-08-1995 |
01-06-2006 |
|
Mohamed Ali Bakar Sahib |
01-12-1999 |
30-11-2002 |
|
Ahamed Segu Jalaldeen |
01-12-2002 |
29-02-2004 |
|
Seyed Mohamed Salihu Seyed Ahamed |
01-06-2006 |
- |
|
Mohamed Noohu Seyed Mohamed Salihu |
01-06-2006 |
- |
At the very beginning, the subject was located at 9/F., Wang Kee
Building, 34-36 Connaught Road Central, Hong Kong, moved to 7/F., Howard
Building, 42-44 Hankow Road, Tsimshatsui, Kowloon, Hong Kong in June 1979;
to Room 908, 9/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon,
Hong Kong in October 1996; to Flat D2, 12/F, Block D, Tsim Sha Tsui
Mansion, 83-97 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in June 2002; to
Flat F, 13/F., Golden Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong in August 2005; and further moved to the present address in October
2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Precious
stones, gems, etc.
Employees: 4. (Including associates)
Commodities Imported: India,
Thailand, Belgium, Israel, Sri Lanka, etc.
Markets: Japan,
Taiwan, other Asian countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
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.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Rajab Gem Corporation is a partnership jointly owned by three Indian,
namely, Mr. Seyed Ahamed Seyed Mohamed Salihu, Mr. Seyed Mohamed Salihu Seyed
Ahamed and Mr. Mohamed Noohu Seyed Mohamed Salihu.
The subject moved to the present address in October 2011.
Business commenced in August 1973, the subject is trading in loose
diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones,
blue or coloured sapphire, Tanzanite, imitation, 18K gold metal jewellery, etc.
Main products are bracelets, brooches,
earrings, necklaces, rings, pendants, etc.
Products are exported to worldwide countries.
The subject is one of the old India precious stone traders in Hong Kong.
Some of the commodities are imported from India. Other supplying countries are Thailand,
Belgium, Israel, Sri Lanka, etc.
The followings are the subject’s trading terms:-
Sample — Samples would be charged first and the fee of the samples will
be refunded to customers if they place us an order with a certain quantity of
products
Minimum Order — The minimum quantity per design should be 10 dozens or
more and shipment value not below US$3,000.00.
Delivery Time — All the orders can be delivered within 3 to 4 weeks
after the order is confirmed
Payment Terms — 50% in advance and the balance should pay once the
product will ready to ship
Delivery Term — FOB Hong Kong
Most of the products have been exported to Thailand, the Middle East,
India, etc. Business is rather active.
The subject has had affiliated companies Su-Raj Inter Gold (HK), My
Creations and Rajab Traders in Hong Kong.
Rajab Traders is a gemstone and imitation jewellery supplier in Hong
Kong. It was established in 1975. Major products are gemstones, imitation
jewellery, fashion products, 18K gold jewellery, etc.
Su-Raj Inter Gold (HK) is trading in 18K gold jewellery with studded
diamond. It is a member of Hong Kong
Jewellery & Jade Manufacturers Association, Hong Kong.
Established on 16th December, 2005, My Creations is a partnership
jointly owned by three Indian, namely, Mr. Rakesh Kanakraj Kothari, Mr. Rajeev
Bharat Mehta and Mr. Prakesh Madhusudhan Doshi.
My Creations and the subject are engaged in the same lines of business,
more or less.
Besides, the subject has had another associated company known as Rajab
Traders Ltd. [RTL] located at its operating office. Having issued 100,000 ordinary shares of
HK$1.00 each, RTL is wholly owned by Seyed Ahamed Seyed Mohamed Salihu. Incorporated in July 2011, RTL is trading in
the following commodities: mobile phones, battery, memory card of mobile
phones, etc.
The subject’s business is chiefly handled by the three partners. Overall business is active. Regular suppliers and customers have been
maintained.
On the whole, since the history of the subject in Hong Kong is over 39
years, 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.
-
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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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.54.28 |
|
UK Pound |
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.