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Report Date : |
18.10.2013 |
IDENTIFICATION DETAILS
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Name : |
GEMPRO
HK LTD. |
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Formerly Known as: |
Diamantina Ltd |
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Registered Office : |
Flat A6, 14/F., Hankow Centre, |
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Country : |
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Date of Incorporation : |
05.06.1990 |
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Com. Reg. No.: |
13896782 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
subject is dealing with Fine loose diamonds, polished and cut diamonds; Gemstones & Jade; Rare, coloured gemstones and jade & Semi-precious jewellery |
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No. of Employees : |
03 |
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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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 |
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Source : CIA |
GEMPRO HK LTD.
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2721 5880
FAX: 852-2366 8335
E-MAIL: gempro@netvigator.com
Managing Director: Mr. Fazlal Hassan Ahmed
Incorporated on: 5th June, 1990.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond & Gem Trader.
Annual Turnover: HK$65~70 million.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd.,
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Company:-
Sana Gem International Ltd., Hong Kong. (Same address)
13896782
0279583
Managing Director: Mr. Fazlal Hassan Ahmed
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry
dated 05-06-2013)
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Name |
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No.
of shares |
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Fazlal
Hassan AHMED |
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50,000 |
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Nafeel
Ahmed MOHAMED ALI JINNAH |
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20,000 |
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Ali SADAQ |
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30,000 |
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––––––– |
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Total: |
100,000 ====== |
(As per registry
dated 05-06-2013)
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Name (Nationality) |
Address |
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Fazlul Hasan
AHMED |
Flat A6, 14/F., Hankow Centre,
47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
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Nafeel Ahmed MOHAMED ALI JINNAH |
Flat 1, 4/F., 1 Perth Street, Ho
Man Tin, Kowloon, Hong Kong. |
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Ali SADAQ |
Flat A6, 14/F., Hankow Centre,
47 Peking Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 05-06-2013)
|
Name |
Address |
Co.
No. |
|
Taxbase Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road,
Kowloon, Hong Kong. |
0411324 |
The subject was incorporated on 5th June, 1990 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Diamantina Ltd., name changed to the present style on 31st October, 2001.
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 precious stones.
Employees: 3.
Commodities Imported: India, Belgium, other Asian & European countries, etc.
Markets: Hong Kong, Japan, Southeast Asia, Europe, Middle East, etc.
Annual Turnover: HK$65~70 million.
Terms/Sales: CAD, L/C, Advanced T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or
Charge:-
Date of Two-Party Mortgage Deed: 17-09-2007
Amount: All moneys
Property: 1/720th part or share of and in Kowloon Inland Lot No. 8219 (Flat A6 on 14/F. and
Portion No. 47 of Main Roof of Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.)
Mortgagee: Public Bank (Hong Kong) Ltd., Hong Kong.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a rather active manner.
Facilities: Making active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Satisfactory.
Bankers:-
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Public
Bank (Hong Kong) Ltd., Hong Kong.
Standing: Satisfactory.
Having issued 100,000 ordinary shares of HK$10.00 each, Gempro HK Ltd. was jointly owned by Mr. Fazlal Hassan Ahmed, holding 50% stake; Mr. Abirin Zulaiah Ahmed Fazul Hassan, holding 20%; and Mr. Ali Sadaq, 30%. On 6th May, 2011, Abirin Zulaiah Ahmed Fazul Hassan transferred all his shares to Nafeel Ahmed Mohamed Ali Jinnah.
Now the directors of the subject are Fazlal Hassan Ahmed, Ali Sadaq and the new shareholder Nafeel Ahmed Mohamed Ali Jinnah.
The first has been in Hong Kong for a very long time and become Hong Kong ID Card holder. He has got the right to reside in Hong Kong permanently. The third shareholder Ali Sadaq and the new one are India passport holders. It is likely that Fazlal Hassan Ahmed is also residing in the subject’s operating address.
Business commenced in June 1990, the subject is a diamond importer, exporter and wholesaler.
The subject is
dealing in the following products:-
· Fine loose diamonds, polished and cut diamonds;
Gemstones & Jade;
Rare, coloured gemstones
and jade; &
Semi-precious jewellery.
Its diamond products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds. It also trades in single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire, ruby. Products are chiefly imported from India, Thailand, Sri-Lanka, Belgium and Israel. However, India is its main supplying country. Loose diamonds are chiefly exported to China, India, Japan, Southeast Asia, Europe, the Middle East, etc. Business is rather steady. Regular customers and foreign suppliers have been maintained.
The subject’s business is chiefly handled by Fazlal Hassan Ahmed and Abirin Zulaiah Ahmed Fazul Hassan.
The subject owns its operating office located at the present registered address in Tsimshatsui, Kowloon, Hong Kong which had been mortgaged to Public Bank (Hong Kong) Ltd., Hong Kong, for securing general banking facilities.
On 3rd July, 2009, The Hongkong & Shanghai Banking Corp. Ltd. released the subject’s property as the subject had repaid all its debts.
The subject has had an associated company Sana Gem International Ltd. [Sana Gem], a Hong Kong-registered firm located at the same address. Incorporated on 26 March, 2012, Sana Gem is also a diamond and gemstone trader. In 2012, it took part in Shanghai International Gold, Jewellery and Gemstone Exhibition which was held in Shanghai, China.
The annual sales turnover of the subject ranges from HK$65 to 70 million. Business is profitable and keeps on improving.
On the whole, as the history of the subject in Hong Kong is about twenty-three years, consider it good for normal business engagements.
REMARKS:
Property
information of the company:-
Property Location: Flat A6 on 14/F. and Portion No. 47 of Main Roof, Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.
Owner: Gempro HK Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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17-09-2007 |
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Public Bank (Hong Kong) Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.58 |
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UK Pound |
1 |
Rs.98.51 |
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Euro |
1 |
Rs.83.49 |
INFORMATION DETAILS
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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.