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Report Date : |
30.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
GANDHI JEWELS |
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|
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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 : |
Importer, Exporter and Wholesaler; Commission Agent of all kinds of diamonds
and gemstones |
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No. of Employees : |
3 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
GANDHI JEWELS
ADDRESS: 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.
GANDHI JEWELS
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.
Gemporium, India.
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
Terms/Sales: L/C, Advanced T/T
Terms/Buying: L/C, D/P, O/A
Capital: Not disclosed.
Profit or Loss: Making a small
profit every year.
Condition: Keeping in a
satisfactory condition.
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 and belonging to the same family.
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, etc. 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, etc.
Most of the subject’s products bear the brands names of “Gandhi”
and “Gemporium”.
Its diamonds and gemstones are imported from India, Belgium and the
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, the 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.
Gandhi Enterprises, the subject and Gemporium of India have a passion
for gemstones & jewellery. They are
manufacturers and wholesalers of various gemstones. Their inventory includes sapphire with blue,
pink, yellow, white, black, fancy colours and ruby, emerald, tanzanite,
tsavorite, spessartite & various semi-precious gems. They also manufacture jewellery on order
basis.
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 took part in
“HKTDC Hong Kong International Jewellery Show 2014” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2014. Its booth No.
was 3D-D34. It will take part in the
same exhibition in 2015.
As the history of the subject is over 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.
-
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.
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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.60.52 |
|
|
1 |
Rs.101.77 |
|
Euro |
1 |
Rs.83.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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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.