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Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
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Name : |
GOLD STAR
JEWELLERY |
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Registered Office : |
Flat D, 14/F.,
Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
13.10.2004 |
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Com. Reg. No.: |
34986470-000-10 |
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Legal Form : |
Sole Proprietorship. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds. |
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No. of Employees : |
1. |
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 : |
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
GOLD
STAR JEWELLERY
Flat D, 14/F., Block
8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon,
Hong Kong.
PHONE: 6478 7378
E-MAIL: rajeshpatdl2u@yahoo.co.in
Manager: Mr. Rajubhai Jivrajbhai Savani
Establishment: 13th October, 2004.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond and Jewellery Trader.
Annual Turnover: US$5.0~5.5 million.
Employees: 1.
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
GOLD
STAR JEWELLERY
Head
Office:-
Flat D, 14/F.,
Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom,
Kowloon, Hong Kong.
Mailing
Address:
P.O. Box 92015,
Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Wala Diam (HK), Hong Kong.
[Also owned by Mr. Rajubhai Jivrajbhai Savani] (Same address)
Waladiam Co. Ltd.,
Thailand.
Walam Diamonds,
India.
34986470-000-10
Manager: Mr. Rajubhai Jivrajbhai Savani
Name: Mr. Rajubhai Jivrajbhai SAVANI
Residential
Address:
Block A2, 4/F.,
Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
The
subject was established on 13th October, 2004 as a sole proprietorship concern
owned by Mr. Rajubhai Jivrajbhai Savani under the Hong Kong Business
Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Rajubhai Jivrajbhai Savani |
13-10-2004 |
23-06-2005 |
|
Pareshkumar Khimjibhai Diyora |
18-05-2005 |
12-02-2009 |
Initially
the subject was located at Flat 6B, Block 9, Luxury Court, 9 Hau Fook Street, Kowloon,
Hong Kong, moved to Block A2, 4/F., Prat Mansion, 26-36 Prat Avenue,
Tsimshatsui, Kowloon, Hong Kong in September 2005; and further to the present
address in August 2009.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds.
Employees: 1.
Commodities Imported: Imported from Belgium, India, other Asian countries, etc.
Markets: Belgium, Japan, Philippines, Taiwan, Thailand, US, etc.
Annual Turnover: US$5.0~5.5 million.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, D/P, T/T, etc.
Capital: Not disclosed.
Profit or Loss: Made a very small profit in the past years.
Condition: Keeping in a fairly active condition.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Hang Seng Bank Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Gold
Star Jewellery is a sole proprietorship owned by an Indian Mr. Rajubhai
Jivrajbhai Savani who is an Indian.
Savani is a Hong Kong ID Card holder and has got the right to reside in
Hong Kong permanently. He founded the
subject in October 2004 but retired in June 2005. In February 2009, he joined in the subject
again. Now, he is the manager of the
subject.
The
subject’s registered address is in a residential building located at Flat D,
14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street,
Hunghom, Kowloon, Hong Kong.
The subject’s registered address is also the new residential
address of the sole proprietor. The
subject moved to this address in August 2009.
The
subject’s telephone number and fax number have not registered with local
telephone company nor listed on telephone directories. However, Savani can be reached at his mobile
phone number 6478 7378.
The
subject is trading in all kinds of jewellery and diamond. It is a loose, polished and cut diamond
importer, exporter and wholesaler. Size
of diamonds handled range from 0.01 carat to 1.00 carat. Diamonds are imported from India, other Asian
countries and Belgium. However, India is
the main supplying countries.
The
subject’s products include: tapers, baguettes, marquise, princess, round
brilliant, etc. Finished products
including rings, earrings, pendants, bracelets, etc. are exported to Belgium,
Japan, the Philippines, India, Taiwan, Thailand, the United States, etc. Principal customers are jewellery
manufacturers. Business has been steady
and normal.
The
subject has had affiliated companies known as Walam Diamonds in Mumbai and
Surat of India and Waladiam Co. Ltd. in Bangkok of Thailand. Walam Diamonds is also an importer and
exporter of polished diamonds. The key
personnel is Mr. Nileshitaliya. The one
in Mumbai is Walam Diamonds’ head office while the one on Surat is its branch
office. Walam Diamonds’ manufacturing
unit is also in Surat. This firm is
supposed to be the main supplier of the subject.
Walam
Diamonds, a member of GJEPC (The Gem and Jewellery Export Promotion Council),
is promoted by Mr. D. D. Savani, a leading manufacturer and exporter of diamond
jewellery from India. It was established
as a government recognised export house and has been catering to both Indian
and international markets such as Belgium, the United Kingdom, the United
States, France, Hong Kong, Thailand, Singapore, the United Arab Emirates,
etc. Walam Diamonds has been in this
trade for about 40 years.
The
manufacturing units of Walam Diamonds located at Surat are well equipped with
modern and sophisticated laser polishing machines. Walam Diamonds seems to be the main supplier
of the subject.
Besides
the subject, Savani is operating another firm Wala Diam (HK) [Wala] which is
also located at the subject’s operating address. Wala was established on 1st August,
2000. Also owned and operated by Savani,
this firm is also a diamond trader.
Business
handled by Savani himself, the subject and Wala have just one employee in Hong
Kong.
The
annual sales turnover of the subject and Wala ranges from US$5.0 to 5.5
million. Making a very small profit in
the past years.
The
history of the subject in Hong Kong is over eight years in Hong Kong. On the whole, consider it good for normal
business engagements in small credit amounts.
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.
-
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.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
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.