MIRA INFORM REPORT
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Report Date : |
20.05.2013 |
IDENTIFICATION DETAILS
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Name : |
RAJAB GEM CORPORATION |
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Registered Office : |
Flat E, 9/F., Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.08.1973 |
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Com. Reg. No.: |
03937206-000-08 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of Precious stones, gems, etc. |
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No. of Employees : |
3. (Including associates) |
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
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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.
|
Source
: CIA |
RAJAB GEM
CORPORATION
Flat E, 9/F., Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
(Formerly located at:
Flat B4, 12/F., Tsim Sha Tsui Mansion, 83 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong. )
PHONE: 2366 8552, 3119 7291
MOBILE: 9323 0191, 6082 1073
FAX: 2366 5744
E-MAIL: rajab@netvigator.com
salihurakin@netvigator.com
Manager: Mr. Seyed Ahamed Seyed Mohamed Salihu
Establishment: 16th August, 1973.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Precious
Stone Trader.
Employees: 3. (Including associates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
RAJAB GEM
CORPORATION
Head Office:-
Flat E, 9/F., Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated
Companies:-
* My Creations, Hong
Kong.
* Rajab Traders Ltd.,
Hong Kong.
* Rajab Traders, Hong
Kong.
Su-Raj Inter Gold (HK), Hong Kong.
Su-Raj Inter Gold DMCC, UAE.
Su-Raj Inter Gold Inc., USA.
Su-Raj Inter Gold Pvt. Ltd., Thailand.
(* same address)
03937206-000-08
Manager: Mr. Seyed Ahamed Seyed
Mohamed Salihu
Name: Mr. Seyed Ahamed Seyed Mohamed Salihu
Residential Address: 7/F., 44
Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Seyed Mohamed Salihu Seyed Ahamed
Residential Address: Flat F,
13/F., Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
Name: Mr. Mohamed Noohu Seyed Mohamed Salihu
Residential Address: Flat F,
13/F., Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong.
The subject was established on 16th August, 1973 as a sole
proprietorship concern owned by Mr. Seyed Ahamed Seyed Mohamed Salihu under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Ahamed Seyed Mohamed Salihu |
16-08-1973 |
- |
|
S. M. Mohamed Ali |
15-08-1975 |
15-08-1975 |
|
Saltari Abdul Cadas Ilyas Nowfer |
01-10-1980 |
30-09-1984 |
|
Sahul Hameed Mohamed Yusuf |
01-04-1985 |
30-11-1997 |
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Mohamed Noohu Seyed Mohamed Salihu |
09-08-1995 |
01-06-2006 |
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Mohamed Ali Bakar Sahib |
01-12-1999 |
30-11-2002 |
|
Ahamed Segu Jalaldeen |
01-12-2002 |
29-02-2004 |
|
Seyed Mohamed Salihu Seyed Ahamed |
01-06-2006 |
- |
|
Mohamed Noohu Seyed Mohamed Salihu |
01-06-2006 |
- |
At the very beginning, the subject was located at 9/F., Wang Kee
Building, 34-36 Connaught Road Central, Hong Kong, moved to 7/F., Howard
Building, 42-44 Hankow Road, Tsimshatsui, Kowloon, Hong Kong in June 1979;
to Room 908, 9/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon,
Hong Kong in October 1996; to Flat D2, 12/F, Block D, Tsim Sha Tsui
Mansion, 83-97 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in June 2002; to
Flat F, 13/F., Golden Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong in August 2005; moved to Flat B4, 12/F., Tsim Sha Tsui Mansion, 83
Nathan Road, Tsimshatsui, Kowloon, Hong Kong in October 2011; and further
to the present address in February 2013.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Precious
stones, gems, etc.
Employees: 3. (Including associates)
Commodities Imported: India,
Thailand, Belgium, Israel, Sri Lanka, etc.
Markets: Japan,
Taiwan, other Asian countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
manner.
Facilities: Making 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: Normal.
Rajab Gem Corporation is a partnership jointly owned by three Indian,
namely, Mr. Seyed Ahamed Seyed Mohamed Salihu, Mr. Seyed Mohamed Salihu Seyed
Ahamed and Mr. Mohamed Noohu Seyed Mohamed Salihu.
The subject moved to the present address in February 2013.
It shares the office with the following three firms:-
My Creations;
Rajab Traders; &
Rajab Traders Ltd.
One of the partners can be reached at his mobile phone number 852‑9323 0191.
Business commenced in August 1973, the subject is trading in loose
diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones,
blue or coloured sapphire, Tanzanite, imitation jewellery, 18K gold metal
jewellery, etc. Main products are bracelets,
brooches, earrings, necklaces, rings, pendants, etc.
The subject is one of the old India precious stone traders in Hong Kong.
Some of the commodities are imported from India. Other supplying countries are Thailand,
Belgium, Israel, Sri Lanka, etc.
The followings are the subject’s trading terms:-
Delivery Term — FOB Hong Kong;
Delivery Time — All the orders can be delivered within 3 to 4 weeks
after the order is confirmed;
Minimum Order — The minimum quantity per design should be 10 dozens or
more and shipment value not below US$3,000.00.;
Payment Terms — 50% in advance and the balance should pay once the
product will ready to ship; &
Sample — Samples would be charged first and the fee of the samples will
be refunded to customers if they place us an order with a certain quantity of
products.
Most of the products have been exported to Thailand, the Middle East,
India, Europe, etc. Business is rather
active.
The subject has had affiliated companies Su-Raj Inter Gold (HK), My
Creations and Rajab Traders in Hong Kong.
Rajab Traders is a gemstone and imitation jewellery supplier in Hong
Kong. It was established in 1975. Major products are gemstones, imitation
jewellery, fashion products, 18K gold jewellery, etc.
Su-Raj Inter Gold (HK) is trading in 18K gold jewellery with studded
diamond. It is a member of Hong Kong
Jewellery & Jade Manufacturers Association, Hong Kong.
Established on 16th December, 2005, My Creations is a partnership
jointly owned by three Indian, namely, Mr. Rakesh Kanakraj Kothari, Mr. Rajeev
Bharat Mehta and Mr. Prakesh Madhusudhan Doshi.
My Creations and the subject are engaged in the same lines of business,
more or less.
Besides, the subject has had another associated company known as Rajab
Traders Ltd. [RTL] located at its operating office. Having issued 100,000 ordinary shares of
HK$1.00 each, RTL is wholly owned by Seyed Ahamed Seyed Mohamed Salihu. Incorporated in July 2011, RTL is trading in
the following commodities: mobile phones, battery, memory card of mobile phones,
etc.
The subject’s business is chiefly handled by the three partners. Overall business is active. Regular suppliers and customers have been
maintained.
On the whole, since the history of the subject in Hong Kong is over 39
years and nine months, 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
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
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|
1 |
Rs.83.66 |
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Euro |
1 |
Rs.70.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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.