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Report Date : |
13.11.2013 |
IDENTIFICATION DETAILS
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Name : |
GEM DE ORIENT |
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Registered Office : |
Flat 1, 13/F., Block A, Hankow Centre, |
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Country : |
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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 |
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No. of Employees : |
3 |
RATING & COMMENTS
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MIRAs 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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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 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 |
GEM DE ORIENT
ADDRESS : Flat 1, 13/F.,
Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE : 852-2868 1956
FAX : 852-2521
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 : 3
Main Dealing Banker : ABN AMRO
Bank N.V., Hong Kong Branch.
Banking Relation :
Satisfactory
GEM DE ORIENT
ADDRESS:
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. Uzair Ahmed
Residential Address : 35
Veerabadran Street, Chennai 34, India.
The subject was established on 26th November, 1966 as a partnership jointly
owned by Indian under the Hong Kong Business Registration Regulations.
The subjects 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 |
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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 |
31-03-2013 |
|
Uzair Ahmed |
01-04-2013 |
--- |
Initially the subject was located at Room 803, 8/F., Dragon Seed
Building, 39 Queens Road Central, Hong Kong, moved to the present address
in October 1995.
An old partner retired while a new partner joined in April 2013
respectively.
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
Employees : 3.
Commodities Imported : India,
Thailand, Belgium, other European countries
Markets : Japan,
Southeast Asia, Europe, Middle East, North America
Terms/Sales : L/C, T/T
Terms/Buying : L/C, T/T, D/P
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. Uzair Ahmed. The
former is a 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. Uzair Ahmed joined in the subject on 1st
April, 2013 and he is an India passport holder.
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,
Other products carried are diamond and gold jewellery and gemset gold jewellery
18 karat, and premium watches. Raw
materials and commodities are imported from Belgium, India, Israel,
Russia, Prime markets are Japan, other
Asian countries, the Middle East, Overall business is active.
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,) 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)
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,
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 who is also an
Indian.
On the whole, since the history of the subject in Hong Kong is about
forty seven years, 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. Indias 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.63.59 |
|
|
1 |
Rs.101.56 |
|
Euro |
1 |
Rs.85.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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 |
|
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 |
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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 |
|
<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 SCs 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.