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Report Date : |
06.09.2013 |
IDENTIFICATION DETAILS
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Name : |
H.K. GEMS & DIAMONDS |
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Registered Office : |
Flat A, 15/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
25.02.1997 |
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Com. Reg. No.: |
20678528-000-02 |
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Legal Form : |
Partnership. |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS
AND JEWELLERY PRODUCTS, EMERALD, PRECIOUS STONES, ETC. |
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No. of Employees : |
01 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 |
|
Insignificant |
A1 |
|
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
H.K. GEMS & DIAMONDS
ADDRESS: Flat A, 15/F., Windsor
Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367 6747, 2366 4226
FAX: 2367 2798
E-MAIL: hkgd@hotmail.com
Establishment: 25th February, 1997.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Annual Turnover: HK$50~55 million (Including affiliate)
Employee: 1.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head
Office:-
Flat A, 15/F., Windsor Mansion, 29-31
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Affiliated Company: (same address)
A. World Trade Gems, Hong Kong.
[Formerly known as Allied Gems & Jewellery]
20678528-000-02
Manager: Mr. Ajay Gandhi
Name:
Ajay GANDHI
Residential Address: Flat B, 12/F., Alpha House, 27-33 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong.
Name:
Anshu RANKA
Residential Address: 35 Waitee Lane, Silom Road, Bangrak, Bangkok, Thailand.
The subject was established on 25th February, 1997 as a partnership
concern jointly owned by Mr. Ajay Gandhi and Mr. Surender Kumar Saini under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Ajay GANDHI |
25-02-1997 |
- |
|
Surender Kumar SAINI |
25-02-1997 |
31-03-2002 |
|
Saket DAGA |
01-04-2002 |
31-08-2002 |
|
Rishab CHANDALIYA |
01-09-2002 |
30-11-2008 |
|
Anshu RANKA |
01-12-2008 |
- |
Initially the subject was located at Flat B, 12/F., Alpha House, 27-33
Nathan Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat B, 8/F., Hang Wan
Building, 42-44 Granville Road, Tsimshatsui, Kowloon, Hong Kong in July 1997;
to Flat D, 6/F., Lising Court, 34-36 Granville Road, Tsimshatsui, Kowloon, Hong
Kong in May 1998; to Room 1609, 16/F., Rise Commercial Building, 5-11 Granville
Circuit, Tsimshatsui, Kowloon, Hong Kong in January 2001; to Flat D, 11/F.,
Comfort Building, 86-88 Nathan Road, Tsimshatsui, Kowloon, Hong Kong in
December 2001; to Room 1204-1206, 12/F., Rise Commercial Building, 5-11
Granville Circuit, Tsimshatsui, Kowloon, Hong Kong in September 2006; moved to
Flat H, 5/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong in April 2009, and further to Flat A, 15/F. of the same building in
November 2011.
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 jewellery products,
emerald, precious stones, etc.
Employee: 1.
Commodities Imported: India,
Thailand, Belgium, other European countries, US, etc.
Markets: Japan, Southeast Asia, Europe,
Middle East, US, etc.
Annual Turnover: HK$50~55
million (Including affiliate)
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit in the past
years.
Condition: Keeping in a satisfactory
manner.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Hang Seng Bank Ltd.,
Hong Kong.
Standing: Small.
H.K. Gems & Diamonds is a partnership jointly owned by Mr. Ajay
Gandhi and Mr. Anshu Ranka. Both of whom
are Indian while the former has been in Hong Kong for a very long time.
The subject moved to the present address in November 2011 where is in a
residential building. The residential
building is not trespassed by outsiders.
It is likely that the partners of the subject are residing in the
subject’s registered address. They have
moved to the this new address without making any amendments in the registration
materials of the subject.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds, loose
sapphire stone, loose ruby stone, emerald, precious stones, ruby jade, gem
sets, semi-precious stones, blue or coloured sapphire, Tanzanite, Burma Ruby,
white diamond jewellery, jewellery with precious stones, etc.
Commodities are imported from India, Thailand, Belgium, other European
countries, etc. Finished products and
polished diamonds are exported or re‑exported to Japan, other Asian
countries, the United States, Germany, the United Kingdom, Canada, etc. Business is rather active.
The subject’s business is chiefly handled by Mr. Ajay Gandhi.
The subject has got an affiliated company A. World Trade Gems located at
its operating address. A. World Trade
Gems was formerly known as Allied Gems & Jewellery, name changed to the
present style in April 2009. This firm
is also a diamond trader.
The annual sales turnover of the subject and its affiliate ranges from
HK$50 to 55 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 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-D25.
Since the history of the subject in Hong Kong is over sixteen years, on
the whole, consider it good for normal business engagements in small credit
amounts.
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 –
-
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.66.04 |
|
|
1 |
Rs.103.11 |
|
Euro |
1 |
Rs.86.99 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
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 |
|
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 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.