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Report Date : |
05.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
LAXMI DIAMOND (HK) LTD. |
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Registered Office : |
Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
05.12.2003 |
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Com. Reg. No.: |
34135130 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and
jewellery products, emerald, etc |
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No. of Employees : |
7. (Including associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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
LAXMI DIAMOND
(HK) LTD.
ADDRESS: Room 802, 8/F, Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 2311 9628, 2365 1223
FAX: 2311 4498
E-MAIL: laxmi@laxmidiamondhk.com
info@laxmidiamondhk.com
Managing Director: Mr. Monikaben
Rakesh Gajera
Incorporated on: 5th
December, 2003.
Organization: Private
Limited Company.
Capital: Nominal: HK$8,000,000.00
Issued: HK$800,000.00
Business Category: Diamond Trader.
Employees:
7. (Including associates)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
Komal Gems, Hong Kong. (Same
address)
L. D. Creations, Hong Kong. (Same
address)
Laxmi Dia Jewels Pvt. Ltd., India.
Laxmi Diamond (Shanghai) Ltd., China.
Laxmi Diamond Private Ltd., India.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Jewelry LLC, UAE.
Suberi Brothers LLC, USA.
34135130
0874076
Managing Director: Mr. Monikaben
Rakesh Gajera
Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$800,000.00
(As per registry dated 05-12-2011)
|
Name |
|
No. of shares |
|
Laxmi Diamond Private Ltd. 416, Prasad Chambers, Opera House, Mumbai‑400 004, India. |
|
160,000 |
|
Monikaben Rakesh GAJERA |
|
640,000 |
|
|
|
––––––– |
|
|
Total: |
800,000 ====== |
(As per registry dated 05-12-2011)
|
Name (Nationality) |
Address |
|
Monikaben Rakesh GAJERA |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong. |
|
Ashokkumar Haribhai GAJERA |
416, Prasad Chambers, Opera House, Mumbai‑400 004, India. |
(As per registry dated 05-12-2011)
|
Name |
Address |
Co. No. |
|
RC Corporate Services Ltd. |
Room 2109, 21/F., China Resources Building, 26 Harbour Road,
Wanchai, Hong Kong. |
0467057 |
The subject was incorporated on 5th December, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Komal Gems Ltd.,
name changed to the present style on 19th November, 2005.
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, emerald, etc.
Employees: 7. (Including associates)
Commodities Imported: India, Belgium, Israel, etc.
Markets: Japan,
Thailand, other Asian countries, Middle East, North America, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
Advanced T/T, D/P, etc.
Hong Kong Jewelry Manufacturers’
Association, Hong Kong.
Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$800,000.00
Mortgage or Charge:-
Date of Mortgage: 27-04-2012
Amount: All
principal, interest & other amounts from time to time owing by the
Mortgagor to the Lender on any current & other account & all other
liabilities
Property: 5/718
part or shares of and in Section E of Kowloon Marine, Lot No. 113 (Workshop Unit
No. 2 on the 8/F. of Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Mortgagee: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Profit or Loss: Keeping a small profit every year.
Condition: Business
is active and steady.
Facilities: Making
active use of general banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing:
Very Good.
Having issued 800,000 ordinary shares of HK$1.00 each,
Laxmi Diamond (HK) Ltd. was jointly owned by four Indian. Of the four, Hirenkumar Ramsehbhai Khunt was
the largest shareholder holding 51% interests.
The subject was reshuffled on 23rd September, 2008 and the subject is
now jointly owned by Laxmi Diamond Private Ltd. [Laxmi Diamond], an Indian
firm holding 20% interests, and Mr. Monikaben Rakesh Gajera, holding
80%. M. R. Gajera is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently.
Being an associated company of Laxmi Diamond which is in India, the
subject is one of the major diamond wholesalers in the Asia Pacific
region. Having more than 30 years
experience in manufacturing diamonds products, Laxmi Diamond is now one of the
largest diamond manufacturing companies in India. Laxmi Diamond is a sightholder of the Diamond
Trading Company [DTC] of India.
Laxmi Diamond is one of the major manufacturers and distributors of
polished diamonds and supplies loose polished to the jewellery trade
globally. The manufacturing facilities
in Surat and Amreli, in Gujarat, have been equipped with the latest in
high-tech machinery and equipment. It
also has had a plant in Thailand. The
total areas of the factories is over 100,000 sq.ft.
The subject is specialised in diamonds and precious stones such as the
following products:-
Round Brilliant:
·
White -2, -6.5, +11, +15.5
·
TTLB -2, -6.5, +6.5, +11, +15.5 (All Shades)
·
Natts -2, -6.5, +6.5, +11, +15.5
Fancy Sharp:
·
Princess Cut
·
MQ
·
Pear
Special Cut:
·
Gabrielle Diamond (105 facet)
The subject’s products include SI diamond, TTLB diamond, diamond earrings,
diamond pendant, loose diamond and white diamond which are exported to
Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
Founded in 1972, Laxmi Diamond has had three jewellery brands: “Cygnus”
in India, “Noor” in the United States and a branded diamond “Gabrielle”
also in the United States.
Currently, the Chairman of Laxmi Diamond Group is Mr. Vasant
Gajera. Headquartered in Mumbai, the
Group now has affiliate offices around the world, including the United States,
Belgium, Thailand, China and Dubai apart from the subject.
Concerning the turnover of Laxmi Diamond Group, in 2006, the Group’s
sales turnover amounted to US$372 million.
Now, it annual sales turnover ranges from US$500 to 550 million.
Laxmi Diamond Group has been conferred by The Gem and Jewellery Export
Promotion Council of India the title of “the third-largest exporter of cut and
polished from India”.
The subject has got an associated company L. D. Creations located at its
operating address. L. D. Creations is a
sole proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an Indian
belongs to the Gajera family. L. D.
Creations is also controlled by the Gajera family.
Besides L. D. Creations, the subject has had another associated company
Komal Gems located at the same address.
Komal Gems N.V. [Komal] is a Belgium-based firm which is a manufacturer
and wholesaler of diamonds and gems.
Komal is a subsidiary of Lamxi Diamond.
It is one of the largest diamond wholesalers in Southeast Asia.
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.
The subject operates from an office owned by itself. The premises had been mortgaged to Wing Lung
Bank Ltd. but was discharged on 27th April, 2012.
The subject is fully supported by Laxmi Diamond and the Indian
family. Overall business is
satisfactory. History in Hong Kong is
over nine years.
On the whole, consider the subject 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.
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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.
-
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.55.05 |
|
|
1 |
Rs.82.75 |
|
Euro |
1 |
Rs.71.61 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.