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Report Date : |
21.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
GEMS TRADING CO. |
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Registered Office : |
Unit 501, 5/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
15.01.1987 |
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Com. Reg. No.: |
10745614-000-01 |
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Legal Form : |
Partnership. |
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Line of Business : |
Manufacturer, Exporter & Wholesaler of all kinds of gemstone and diamond jewellery including emerald, sapphire, coloured sapphire, tanzanite, etc. |
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No. of Employees : |
10 |
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 |
|
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'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
GEMS TRADING
CO.
ADDRESS: Unit 501, 5/F., Tower 2,
Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2724 1273
FAX: 2367 5543
E-MAIL: sales@gemstrading.com
Chief Executive: Mr. Ashish
Dangayach
Establishment: 15th
January, 1987.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Jewellery & Gemstone Dealer.
Employees:
10.
Main Dealing Bankers: Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Address of Principal Place of Business:-
Unit 501, 5/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom,
Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 90623, Tsimshatsui Post Office, Kowloon, Hong Kong.
Associated Companies:-
Colorjewels Inc., U.S.A.
Colorjewels, Hong Kong. [Business
Registration Number: 33086146-000]
Colorjewels Panyu, China.
Diamond Star Ltd., Hong Kong.
(See attachment)
G.T.C. (Bangkok) Co. Ltd., Thailand.
Green Creations Inc., U.S.A.
GTC India, India.
10745614-000-01
Chief Executive: Mr. Ashish
Dangayach
Name: Ashish DANGAYACH
Residential Address: Flat B2,
9/F., Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Trisha DANGAYACH
Residential Address: Flat B,
25/F., Tower 3, Harbourfront Landmark, 11 Wan Hoi Street, Hung Hom,
Kowloon, Hong Kong.
The subject was established on 15th January, 1987 as a sole
proprietorship concern owned by Mr. Shpa Pu under the Hong Kong Business
Registration Regulations. Converted into
a partnership business since 1st December, 1989. The following table shows the changes of the
partners since its inception:-
|
Name |
Incoming Date |
Outgoing Date |
|
Shpa Pu |
15-01-1987 |
01-04-1994 |
|
Om Prakash Dangayach |
01-12-1989 28-09-2005 |
01-04-2004 14-05-2008 |
|
Ashish Dangayach |
01-04-1998 |
--- |
|
Yatish Dangayach |
01-02-2001 |
15-09-2011 |
|
Tarun Dangayach |
01-04-2004 |
15-09-2011 |
|
Trisha Dangayach |
15-09-2011 |
--- |
The subject was initially located at 14/F.,
Block 5, Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat
A1, 11/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong
Kong in July 1997, and further to the present location in May 2006.
Apart from these, neither material change
nor amendment has been ever traced and noted.
Activities: Manufacturer,
Exporter & Wholesaler.
Lines: All kinds of
gemstone and diamond jewellery including emerald, sapphire, coloured sapphire,
tanzanite, etc.
Employees: 10.
Commodities Imported: Mainly bought gemstones from India, Brazil,
Zambia, Africa, Europe & North America, etc.
Markets: US,
Japan, Singapore, Thailand, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewellery Manufacturers’
Association, Hong Kong.
Capital: Not
disclosed.
Profit & Loss: Business is profitable.
Condition:
Keeping in a
satisfactory manner.
Facilities:
Making active
use of general banking facilities.
Payment:
So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing:
Normal.
Gems Trading Co. [GTC] was established on 15th January, 1987 as a
jewellery and gemstones dealer. It was
set up by the Indian family headed by Mr. Om Prakash Dangayach. Currently, GTC is jointly owned by Mr. Ashish
Dangayach and Ms. Trisha Dangayach.
GTC is a manufacturer, exporter and wholesaler of fine-quality coloured
gemstones. The company is a leading
supplier of emeralds, tanzanite, sapphires, fancy-coloured sapphires, and
tsavorites. GTC’s cutting factory is in
Jaipur, India and it has rough sourcing office in Arusha, Tanzania.
GTC is the Group’s head office and sales office for the Asia Pacific
Region. It has an office in New York,
the United States, to undertake the business in North America.
Tanzanite is the main product of GTC, available in all the calibrated
sizes up to 50 carats in all the shapes.
Other gemstones are also available in calibrated sizes mainly up to 5
carats, in diamond and princess cut of fine quality. It is able to maintains large stocks all the
time.
Its associate Colorjewels, also located at the same office, is providing
customers with all kinds of gemstones and diamond jewellery in the world. As a Tanzanite Sightholder, Colorjewels
provides tanzanite jewellery to some of the largest companies in the United
States.
Colorjewels is the leading supplier of Tanzanite’s and Tanzanite
Jewellery. It has diversified into jewellery
manufacturing specifically in tanzanite in the hope of becoming one of the
largest suppliers of tanzanite and of the jewellery.
Having established strong production bases in India and China, sourcing
offices in Thailand and Tanzania, Colorjewels’ head office is in Hong Kong and
has marketing offices in New York and Los Angeles, the United States.
In addition to its core product, tanzanite, Colorjewels supplies a wide
range of colour gemstones such as emerald, pink sapphire, alexandrite and
Tsavorite as well as coloured gemstone jewellery to the market. Under the brand Dyach, Colorjewels
markets high-end tanzanite jewellery to the upper segment of the market.
Colorjewels has well-equipped factory which covers an area of 30,000
square feet and has been staffed by 350 well-trained workers in Panyu,
Guangzhou City, Guangdong Province, China.
Every year it launched 2,000 styles on the market.
In order to penetrate the international market further, GTC has taken
part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it is going to
take part in “HKTDC Hong Kong International Jewellery Show 2013” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2013.
The contact person of GTC is Ashish Dangayach.
GTC’s business is maintained in a normal and satisfactory manner. No derogatory information has been heard
since its establishment. Annual sales
turnover is significant.
The history of GTC is over 26 years in Hong Kong.
On the whole, consider it good for normal business engagements.
Property information of
affiliate:-
Property Location: Workshop Unit No. 1 on 5/F., Harbour
Centre, Tower 2, No. 8 Hok Cheung Street, Kowloon, Hong Kong.
Owner: Diamond Star Ltd.
Date of Purchase: 31-10-2005
Purchased Price: HK$8,002,300
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
31-10-2005 |
- |
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
Mortgage |
|
16-07-2007 |
– |
- ditto - |
Deed of Variation and Further Charge |
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.
-
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.
-
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.54.05 |
|
|
1 |
Rs.83.45 |
|
Euro |
1 |
Rs.72.53 |
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.