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Report Date : |
21.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
GEM DE ORIENT |
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Registered Office : |
Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
26.11.1966. |
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Com. Reg. No.: |
02171556-000-11 |
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Legal Form : |
Partnership. |
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LINE OF BUSINESS : |
IMPORTER AND EXPORTER OF ALL KINDS OF DIAMONDS AND JEWELLERY
PRODUCTS, GEMS, WATCHES, ETC. |
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No. of Employees : |
4 |
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 – 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
GEM DE
ORIENT
ADDRESS: Flat 1, 13/F., Block A,
Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2868 1956
FAX: 2521 1403
E-MAIL: gdo@netvigator.com
Manager: Mr. Mujeebur Rahman
Habeeb
Establishment: 26th
November, 1966.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Head Office:-
Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui,
Kowloon, Hong Kong.
Business Partner & Affiliate:-
Mashreq International LLC, UAE/Hong Kong. (Same address)
02171556-000-11
Manager: Mr. Mujeebur Rahman
Habeeb
Contact Person: Mr. Ali
Name: Mr. Mujeebur Rahman HABEEB
Residential Address: Flat 1, 13/F.,
Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Riyaz Ahmed KABIR
Residential Address: Flat 11,
2/F., 9-11 Lock Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 26th November, 1966 as a partnership
jointly owned by Indian under the Hong Kong Business Registration Regulations.
The subject’s partners have changed for many time.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Mohamed Sathakathulla Thaika Sahib |
26-11-1966 |
31-12-2009 |
|
Hameed Jalal |
01-07-1969 |
01-09-1972 |
|
S.A. Seyed Abdul Kader |
01-07-1969 |
01-04-1980 |
|
M.K.A. Seyed Ahmed Kabir |
01-07-1969 |
01-04-1980 |
|
A.M. Mohamed Irufan |
01-09-1971 |
01-06-1977 |
|
Mujeebur Rahman Habeeb |
01-06-1977 |
- |
|
Ahmed Husain Lafir |
01-04-1982 |
01-04-1986 |
|
Habeeb Syed Abdul Kader |
01-04-1982 |
01-04-1987 |
|
Ahmed Sadiq Habeeb |
12-07-1990 |
30-12-2000 |
|
Mohamed Mukrim Habeeb Syed |
01-10-1990 |
31-03-2008 |
|
Sabeeha |
01-04-2002 |
31-03-2008 |
|
Riyaz Ahmed Kabir |
01-04-2008 |
- |
Initially the subject was located at Room 803, 8/F., Dragon Seed
Building, 39 Queen’s Road Central, Hong Kong, moved to the present address
in October 1995.
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, gems, watches, etc.
Employees: 4.
Commodities Imported: India, Thailand, Belgium, other European countries, etc.
Markets: Japan,
Southeast Asia, Europe, Middle East, North America, 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: Keeping in an active manner.
Facilities:
Making active
use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
ABN AMRO
Bank N.V., Hong Kong Branch.
Standing:
Small.
Gem De Orient is jointly owned by two Indian, namely, Mr. Mujeebur Rahman
Habeeb and Mr. Riyaz Ahmed Kabir. Both
of them are Hong Kong ID Card holders and have got the right to reside in Hong
Kong permanently. The Manager of the
subject Mr. Mujeebur Rahman Habeeb joined in the subject in June 1977.
The subject formerly had a number of partners while most of them have
retired. Its operating address is
located at Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road,
Tsimshatsui, Kowloon, Hong Kong where is also the residential address of
Mujeebur Rahman Habeeb.
The subject is a diamond and watch, classic watch trader. It is also a polished and cut diamond
importer and exporter. Size of diamonds
supplied range from 0.01 carat to 5.00 carat.
It also trades in gemstones such as emerald, jadeite, ruby, sapphire,
etc. Other products carried are diamond
gold jewellery and gemset gold jewellery — 18 karat, and premium watches,
etc. Raw materials and commodities are
imported from Belgium, India, Israel, Russia, etc. Prime markets are Japan, other Asian
countries, the Middle East, etc. Overall
business is active. The subject’s
business is chiefly handled by the two partners themselves.
The subject is also the Hong Kong sales agent for Mashreq International
LLC [Mashreq] which is a Dubai-based firm.
Currently, Mashreq International LLC, Hong Kong Office is also located
at the operating address of the subject.
Mashreq Hong Kong Office is a Hong Kong-registered firm.
The subject is a significant premium watch trader. Most of its commodities are high-end. Its products include the following main
models:-
GDO 001 watch
GDO 002 watch
GDO 003 watch
Established in 1993 in Dubai, Mashreq started business in watches
wholesaling in the year.
Mashreq, the management arm of the Mashreqworld Group is an independent
limited liability company incorporated under the laws of the United Arab
Emirates.
Mashreq is a joint venture between Mr. Mohamed Mukrim Syed Habeeb of The
Mashreqworld Group. A 5th generation
(entrepreneur coming from) business family with interests in Real Estate,
Shipping, Jewellery, Retail Chain Stores, Asset Management, Construction, Land
Development, etc.) and Mr. Majid Saif Ahmed Al Ghurair of The Saif Al Ghurair
Group (A Fortune 500 Group with interests in Banking, Real Estate, Insurance,
Manufacturing, Malls & Shopping Complexes, Land Development, Sugar Refining
etc.)
Mashreq was established in Dubai in 1993. It is trading in “ZENART” watches.
Now, Mashreq has had associated firms in Saudi Arabia, Shenzhen Special
Economic Zone of China and Chennai of India, Bahrain, Oman and Qatar.
In 2004, it was due to overwhelming demand from customers worldwide, “ZENART”
introduced sub-brands: “TRAZER”, “VERONA”, “LEROSKY”, “ARENDINO”,
“SWISCARDIN”, “EPOK”, “QIDIZ”, “DGO”, “XETEX”
and “FUSION”, etc.
The subject also trades in the above-mentioned brands. Over the past years, it has developed a
number of regular customers in Hong Kong and the United Arab Emirates. Annual sales turnover is steady and significant. Profit margin is usually good.
The subject is a member of the Gem de Orient Group of companies. Its business is chiefly administered by the
Habeeb family. The subject is also fully
supported by the Habeeb family in India.
The contact person of Mashreq Hong Kong Office is Mr. Ali.
On the whole, since the history of the subject in Hong Kong is over
forty six years and two months, 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.54.05 |
|
|
1 |
Rs.83.45 |
|
Euro |
1 |
Rs.72.54 |
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.