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Report Date : |
23.09.2013 |
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, 47 Peking Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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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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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.
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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., Hong Kong.
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. |
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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:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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17-09-2007 |
- |
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 |
|
US Dollar |
1 |
Rs.62.24 |
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UK Pound |
1 |
Rs.99.89 |
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Euro |
1 |
Rs.84.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.