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Report Date : |
08.05.2013 |
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.
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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 |
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Mohamed Syed Abdulhaque Majeed SALEEM |
01-05-1972 |
31-12-1983 |
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Mohamed Sadakatulla HAMEED |
11-07-1977 |
01-10-1991 |
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Sathak Ahmed SHAW |
01-08-1982 |
30-03-1990 |
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Shafiq Mohamed SHAH |
01-04-1988 |
15-08-1989 |
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Zarook Syed SHAH |
01-04-1990 |
- |
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Meeran Haroon THAIKA |
01-03-1991 |
30-11-1998 |
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Faiza HAMEED |
13-12-1991 |
01-04-1993 |
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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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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 –
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Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
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The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
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UK Pound |
1 |
Rs.84.32 |
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Euro |
1 |
Rs.70.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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NB |
New Business |
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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.