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Report Date : |
11.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
LAXMI DIAMOND (HK) LTD. |
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Registered Office : |
Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
05.12.2003 |
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Com. Reg. No.: |
34135130 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of All kinds of diamonds and jewellery
products, emerald |
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No. of Employees : |
6. (Including associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A1 |
A1 |
|
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 has no tariffs on imported goods, and it levies excise
duties on only four commodities, whether imported or produced locally: 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, its continued reliance
on foreign trade and investment leaves it vulnerable to renewed global
financial market volatility or a slowdown in the global economy. 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 12% of
total system deposits in Hong Kong by the end of 2013. 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 total
trade 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. Credit expansion and tight
housing supply conditions have caused Hong Kong property prices to rise
rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China
signed new agreements under the Closer Economic Partnership Agreement, adopted
in 2003 to forge closer ties between Hong Kong and the mainland. The new
measures, effective from January 2014, cover services and trade facilitation,
and will improve access to the mainland's service sector for Hong Kong-based
companies.
|
Source
: CIA |
LAXMI DIAMOND (HK)
LTD.
ADDRESS: Room 802, 8/F, Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2311 9628, 2365 1223
FAX: 852-2311 4498
E-MAIL: laxmi@laxmidiamondhk.com
info@laxmidiamondhk.com
Managing Director: Mr. Monikaben Rakesh Gajera
Incorporated on: 5th December, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$8,000,000.00
Issued: HK$800,000.00
Business Category: Diamond
Trader.
Employees: 6. (Including associates)
Main Dealing Banker: Wing Lung
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
LAXMI DIAMOND
(HK) LTD.
Registered Head
Office:-
Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
Komal Gems, Hong Kong. (Same address)
L. D. Creations, Hong Kong. (Same
address)
Laxmi Dia Jewels Pvt.
Ltd., India.
Laxmi Diamond (Shanghai) Ltd., China.
Laxmi Diamond Private Ltd., India.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Infosolutions & Jewellery
Ltd., India.
Shree Laxmi Jewelry
LLC, UAE.
Shree Laxmi Jewels Pvt.
Ltd., India.
Suberi Brothers LLC, USA.
34135130
0874076
Managing Director: Mr. Monikaben Rakesh Gajera
Nominal Share Capital: HK$8,000,000.00
(Divided into 8,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$800,000.00
(As per registry dated 05-12-2013)
|
Name |
|
No. of shares |
|
Laxmi Diamond Private Ltd. 416, Prasad Chambers, Opera House, Mumbai‑400 004, India. |
|
160,000 |
|
Monikaben Rakesh GAJERA |
|
640,000 |
|
|
|
––––––– |
|
|
Total: |
800,000 ====== |
(As per registry dated 05-12-2013)
|
Name (Nationality) |
Address |
|
Monikaben Rakesh GAJERA |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong. |
|
Ashokkumar Haribhai GAJERA |
416, Prasad Chambers, Opera House, Mumbai‑400 004, India. |
(As per registry dated 05-12-2013)
|
Name |
Address |
Co. No. |
|
RC Corporate Services Ltd. |
Room 2109, 21/F., China Resources Building, 26 Harbour Road, Wanchai, Hong
Kong. |
0467057 |
The subject was incorporated on 5th December, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Komal Gems Ltd., name changed to the present style on 19th
November, 2005.
Apart from these, neither material change nor amendment has been ever
traced and noted.
OPERATIONS
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds and jewellery products, emerald
Employees: 6. (Including associates)
Commodities Imported: India,
Belgium, Israel
Markets: Japan,
Thailand, other Asian countries, Middle East, North America
Terms/Sales: L/C, T/T
Terms/Buying: L/C, Advanced T/T, D/P
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$8,000,000.00
(Divided into 8,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$800,000.00
Mortgage or Charge:-
Date of Mortgage: 27-04-2012
Amount: All principal,
interest & other amounts from time to time owing by the Mortgagor to the
Lender on any current & other account & all other liabilities
Property: 5/718 part or
shares of and in Section E of Kowloon Marine, Lot No.
113 (Workshop Unit No. 2 on the 8/F. of Guardforce
Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Mortgagee: Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Profit or Loss: Making
a small profit every year.
Condition: Business
is active and steady.
Facilities: Making
active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Very Good.
Having issued 800,000 ordinary shares of HK$1.00 each, Laxmi Diamond (HK) Ltd. previously was jointly owned by
four Indian. Of the four, Hirenkumar Ramsehbhai Khunt was the largest shareholder holding 51%
interests. The subject was reshuffled on
23rd September, 2008 and the subject is now jointly owned by Laxmi Diamond Private Ltd. [Laxmi Diamond],
an Indian firm holding 20% interests, and Mr. Monikaben Rakesh Gajera, holding 80%. M. R. Gajera
is a Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently.
Being an associated company of Laxmi Diamond
which is in India, the subject is one of the major diamond wholesalers in the
Asia Pacific region. Having more than 30
years experience in manufacturing diamonds products, Laxmi
Diamond is now one of the largest diamond manufacturing companies in
India. Laxmi
Diamond is a sightholder of the Diamond Trading
Company [DTC] of India.
Laxmi Diamond is one of the major manufacturers
and distributors of polished diamonds and supplies loose polished to the jewellery trade globally.
The manufacturing facilities in Surat and Amreli, in Gujarat, have been equipped with the latest in
high-tech machinery and equipment. It
also has had a plant in Thailand. The
total areas of the factories is over 100,000 sq.ft. Now, it has three diamond polishing factories
while the largest one has 7,000 employees.
The subject is specialised in diamonds and
precious stones such as the following products:-
·
Round Brilliant:
Natts -2, -6.5, +6.5,
+11, +15.5;
TTLB -2, -6.5, +6.5, +11, +15.5 (All
Shades); &
White -2, -6.5, +11, +15.5.
·
Fancy Sharp:
MQ;
Pear; &
Princess Cut.
·
Special Cut:
Gabrielle Diamond (105 facet).
The subject’s products include SI diamond, TTLB diamond, diamond earrings,
diamond pendant, loose diamond and white diamond which are exported to
Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
Founded in 1972, Laxmi Diamond has had three jewellery brands: “Cygnus” in India, “Noor” in the United States and a branded diamond “Gabrielle”
also in the United States.
Currently, the Chairman of Laxmi Diamond Group
is Mr. Vasant Gajera. Headquartered in Mumbai, the Group now has
affiliate offices around the world, including the United States, Belgium,
Thailand, China and Dubai apart from the subject.
The annual turnover of Laxmi Diamond ranges
from INR 20 to 25 billion. Business is
profitable.
Laxmi Diamond Group has been conferred by The Gem
and Jewellery Export Promotion Council of India the
title of “the third-largest exporter of cut and polished from India”.
The subject has got an associated company L. D. Creations located at its
operating address. L. D. Creations is a
sole proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an
Indian belongs to the Gajera family. L. D. Creations is also controlled by the Gajera family.
Besides L. D. Creations, the subject has had another associated company Komal Gems located at the same address. Komal Gems N.V. [Komal] is a Belgium-based firm which is a manufacturer and
wholesaler of diamonds and gems. Komal is a subsidiary of Lamxi
Diamond. It is one of the largest
diamond wholesalers in Southeast Asia.
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 taking part the following exhibitions and shows:
·
USA
JCK Las Vegas Show (May)
·
Switzerland
Baselworld (Mar)
·
Hong Kong
HK Int’l Jewellery
Show (Mar)
HK Jewellery &
Gem Fair (Jun)
HK Jewellery &
Gem Fair (Sep)
·
Mainland China
Shenzhen Int'l Jewellery
Fair (Sep)
·
Asia (other than HK & China)
India Int’l Jewellery
Show (Aug)
Bangkok Gems & Jewelry Fair, Thailand
(Sep)
The subject operates from an office owned by itself. The premises had been mortgaged to Wing Lung
Bank Ltd. but was discharged on 27th April, 2012.
The subject is fully supported by Laxmi
Diamond and the Indian family. Overall
business is satisfactory. History in
Hong Kong is over ten years.
On the whole, consider the subject good for normal business engagements.
Property Location: Workshop Unit No. 2, 8/F., Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon,
Hong Kong.
Owner: Laxmi
Diamond (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
27-04-2012 |
|
Industrial & Commercial Bank of China (Asia) 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.
-
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.
-
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.60.21 |
|
|
1 |
Rs.101.05 |
|
Euro |
1 |
Rs.83.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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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 |
|
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.