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Report Date : |
14.10.2013 |
IDENTIFICATION DETAILS
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Name : |
GANDHI JEWELS |
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Registered Office : |
Room F2-10, 2/F., Hang Fung Industrial Building, Phase 2, 2G Hok Yuen Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.06.2005 |
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Com. Reg. No.: |
35741483-000-06 |
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Legal Form : |
Partnership |
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Line of Business : |
· supplier, importer and exporter of diamonds in a wide variety like rose cuts diamonds, rose cut heart. · Subject also trades in emerald, ruby, sapphire, aquamarine, taurmaline amythist blue topaz, and other coloured stones. |
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No. of Employees : |
3 |
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) |
|
Hong Kong |
A2 |
A2 |
|
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 |
GANDHI JEWELS
Room F2-10, 2/F., Hang Fung Industrial Building, Phase 2, 2G Hok Yuen
Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2722 6272
FAX: 852-3690 1550
E-MAIL: infohk@gemporium.net
Manager: Mr. Vikash Gandhi
Establishment: 20th June, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Gemstone
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room F2-10, 2/F., Hang Fung Industrial Building, Phase 2, 2G Hok Yuen
Street, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
Embassy International (H.K.) Ltd., Hong Kong.
Embassy International, Hong Kong.
H.K. Dia Trading, Hong Kong.
Sunrays, Hong Kong.
Associated
Companies:-
Gandhi Enterprises Co. Ltd., Thailand.
Gandhi Enterprises, India.
Gandhi Gems, India.
Gemporium Inc., USA.
35741483-000-06
Manager: Mr. Vikash Gandhi
Name: Mr.
Vimal Prakash GANDHI
Residential Address: Saichol
Mansion 11L, 1349/145 Charoen Niakorn Klongsan BKK 10600, Thailand.
Name: Mr. Vikash GANDHI
Residential Address: Room B,
6/F., Dorfu Court, 5 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 20th June, 2005 as a partnership concern
jointly owned by Mr. Vikash Gandhi and Mr. Peeyush Daga under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Mr. Vimal Prakash GANDHI |
28-09-2007 |
-- |
|
Mr. Vikash GANDHI |
20-06-2005 |
-- |
|
Mr. Peeyush DAGA |
20-06-2005 |
28-09-2007 |
At the very beginning, the subject was located at Flat B, 11/F., 15
Austin Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Flat H, 6/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong in May 2006, and further
to the present address in September 2010.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler; Commission Agent.
Lines: All
kinds of diamonds and gemstones.
Bran Names: Gandhi, Gemporium.
Employees: 3.
Commodities Imported: India, etc.
Markets: Hong
Kong, Southeast Asia, Europe, US, etc.
Terms/Sales: L/C, Advanced T/T, etc.
Terms/Buying: L/C, D/P, O/A, etc.
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
manner.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Gandhi Jewels is a partnership jointly owned by Mr. Vimal Prakash Gandhi
and Mr. Vikash Gandhi. Both of whom are
Indian. The latter is a Hong Kong
ID Card holder and has got the right to reside in Hong Kong permanently. He is also manager of the subject. He can be reached at his Hong Kong mobile
phone number 852-9490 9781.
The subject is a diamond and precious stone importer, exporter and
wholesaler. It is also a commission
agent.
The subject is the supplier, importer and exporter of diamonds in a wide
variety like rose cuts diamonds, rose cut heart. It also trades in emerald, ruby, sapphire,
aquamarine, taurmaline amythist blue topaz, and other coloured stones. The followings are its main products: round
brilliant, princess, banguette, square, taper, briolette, pear, rose &
beval cut.
Most of the subject’s products bear the brand names of “Gandhi”
and “Gemporium”.
Its diamonds are imported from India, Belgium and other European
countries, etc. Some of the commodities
are polished and cut diamonds. Finished
products and polished diamonds are marketed in Hong Kong or exported or
re-exported to Japan, India, Taiwan, other Asian countries, the Middle East,
Australia, the United States, Central & South America. Business is normal.
The subject has had associated companies in Thailand, India and the
United States. Its main associated
company Gandhi Enterprises Co. Ltd. [Gandhi Enterprises] is in Thailand.
Gandhi Enterprises was established in Bangkok by Vimal Gandhi and now
run by Vimal Gandhi and his son Vikas Gandhi.
It started with manufacturing sapphire & rubies in all shapes and
sizes and colours. Having over 3 decades
of experience, Gandhi Enterprises pioneered the art of cutting precious
gemstones. It opened an office in New
York by the name of Gemporium Inc. and in Jaipur by the name of Gandhi Gems.
As its strengths in rubies and sapphire grew, it soon started to
manufacture emeralds and tanzanites as well followed by spessartite and
tsavorite garnets. Its strong sourcing
of raw materials gives it a competitive edge to supply to its customers premium
quality and reasonably priced goods.
Products supplied range from high end exclusive single pieces &
calibrated sizes to commercial quality.
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 2014” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2014.
Its booth No. is 3D-D34.
As the history of the subject is about eight years in Hong Kong, 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.61.16 |
|
|
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
-- |
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.