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Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
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Name : |
GEM CORPORATION (HK) |
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Registered Office : |
Flat A2, 5/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.05.1972. |
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Com. Reg. No.: |
03627265-000-05 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and gems. |
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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) |
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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
GEM CORPORATION
(HK)
ADDRESS: Flat A2, 5/F., Block A,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2376 1798
FAX: 2376 0780
E-MAIL: gemcorp@netvigator.com
Manager: Mr. Zarook Syed Shah
Establishment: 1st
May, 1972.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Gem Trader.
Annual Turnover: HK$25~30
million.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat A2, 5/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated/Affiliated Companies:-
ACI Impex, Hong Kong. [Owned by Ahamed
Kabeer Seyed]
Gem Cutters, India. [Owned
by Shafiq Mohamed Shah]
Precious Gems, Japan. [Owned by
Zarook Syed Shah]
03627265-000-05
Manager: Mr. Zarook Syed Shah
Contact Person: Mr. Ahamed Kabeer
Seyed
Name: Shafiq Mohamed SHAH
Residential Address: Flat A2,
5/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Zarook Syed SHAH
Residential Address: Flat B7, 6/F.,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Ahamed Kabeer SEYED
Residential Address: Flat A,
7/F., Bo Yip Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 1st May, 1972 as a partnership concern
owned by Mohamed Syed Abdulhaq Hameed Jalal and Mohamed Syed Abdulhaque Majeed
Saleem under the Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Mohamed Syed Abdulhaq HAMEED JALAL |
01-05-1972 |
11-07-1977 |
|
Mohamed Syed Abdulhaque Majeed SALEEM |
01-05-1972 |
31-12-1983 |
|
Mohamed Sadakatulla HAMEED |
11-07-1977 |
01-10-1991 |
|
Sathak Ahmed SHAW |
01-08-1982 |
30-03-1990 |
|
Shafiq Mohamed SHAH |
01-04-1988 |
15-08-1989 |
|
Zarook Syed SHAH |
01-04-1990 |
- |
|
Meeran Haroon THAIKA |
01-03-1991 |
30-11-1998 |
|
Faiza HAMEED |
13-12-1991 |
01-04-1993 |
|
Ahamed Kabeer SEYED |
30-11-1998 |
- |
|
Ahmed IMRAN |
30-11-1998 |
31-03-2005 |
At the very beginning, the subject was located at Flat C, 6/F., Bo Yip
Building, 6 Ashley Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 404A, 4/F.,
Kayamally Building, 22 Queen’s Road Central, Hong Kong in February 1974;
to Room 403, 4/F. of the same building in October 1975; moved back to Flat C,
6/F., Bo Yip Building in March 1984; to Flat A, 7/F. of the same building in
June 2002; to Flat E, 8/F. of the same building in February 2004; and further
moved to the present address in August 2006.
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 gems.
Employees: 2.
Commodities Imported: India, Thailand, Europe, etc.
Markets: Hong
Kong, China, other Asian countries, Europe, etc.
Annual Turnover: HK$25~30
million.
Terms/Sales: L/C, T/T, or
as per contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active and satisfactory manner.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Good.
Gem Corporation (HK) is a partnership jointly owned by three Indian,
namely, Shafiq Mohamed Shah, Zarook Syed Shah and Ahamed Kabeer Seyed. It is one of the oldest gem trading companies
in Hong Kong. All the partners are
Indian and have got the right to reside in Hong Kong permanently.
The subject had many partners but most of them have retired except the
above-mentioned three.
The subject has changed its registered address several times and moved
to the present address in August 2006.
Besides trading gems, the subject also trades in loose diamonds, pearl
brooches and jewellery watches.
It has had an affiliated company bears the same name in Mumbai, India
[hereinafter refers to “India Gem Corp.”].
India Gem Corp. is managed by Shafiq Mohamed Shah while the daily
operations of the subject is handled by Seyed who is a young and energetic
India businessman.
Including the partners, the subject has had five persons in the
subject’s operating office.
India Gem Corp. supplies the subject with all kinds of gems, polished
and cut diamonds. Most of the
commodities are marketed in Hong Kong, China or exported to Japan, the other
Asian countries, Europe, the United States, etc. Overall business is active. Regular suppliers and customers have been
maintained. The contact person of the
subject is Ahamed Kabeer Seyed.
Besides operating the subject, Ahamed Kabeer Seyed is also the sole
proprietor of ACI Impex which is also a diamond trader. ACI Impex was set up on 10th July, 2006. However, this firm is located at the residence
of Ahamed Kabeer Seyed. The supplier of
ACI Impex is also India Gem Corp.
The annual sales turnover of the subject ranges from HK$25 to 30
million. Making a small profit every
year.
In order to penetrate the international market further, the subject 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.
Since the history of the subject in Hong Kong is over forty years, on
the whole, 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.
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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.
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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.54.48 |
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|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.