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Report Date : |
04.08.2014 |
IDENTIFICATION DETAILS
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Name : |
GEMS TRADING CO. |
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Registered Office : |
Unit 501, 5/F., Tower 2, Harbour Centre, |
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Country : |
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Date of Incorporation : |
15.01.1987 |
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Com. Reg. No.: |
10745614-000-01 |
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Legal Form : |
Partnership |
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Line of Business : |
Manufacturer, Exporter and Wholesaler of Fine-Quality
Coloured Gemstones. |
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No. of Employees : |
7 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Hong Kong |
A1 |
A1 |
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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 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 |
GEMS TRADING CO.
ADDRESS: Unit 501, 5/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2724 1273
FAX: 852-2367 5543
E-MAIL: sales@gemstrading.com
Chief Executive: Mr. Ashish Dangayach
Establishment: 15th January, 1987.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Jewellery & Gemstone Dealer.
Employees: 7.
Main Dealing Bankers: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
GEMS TRADING CO.
Registered Address of Principal Place of Business:-
Unit 501, 5/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 90623, Tsimshatsui Post Office, Kowloon, Hong Kong.
Associated
Companies:-
Colorjewels Inc., US.
*Colorjewels,
Color Jewels UK Ltd.,
*Diamond Star Ltd., Hong Kong.
G.T.C. (Bangkok) Co. Ltd., Thailand.
Green Creations Inc., US.
GTC India, India.
(* Same address)
10745614-000-01
Chief Executive: Mr. Ashish Dangayach
Name: Mr. Ashish DANGAYACH
Residential Address: Flat B2, 9/F., Hankow Centre, 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Ms.Trisha DANGAYACH
Residential Address: Flat B, 25/F., Tower 3, Harbourfront Landmark, 11 Wan Hoi Street, Hunghom, Kowloon, Hong Kong.
The subject was established on 15th January, 1987 as a sole proprietorship concern owned by Ms. Shpa Pu under the Hong Kong Business Registration Regulations. Converted into a partnership business on 1st December, 1989. The following table shows the changes of the partners since its inception:-
|
Name |
Incoming Date |
Outgoing Date |
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Shpa Pu |
15-01-1987 |
01-04-1994 |
|
Om Prakash Dangayach |
01-12-1989 28-09-2005 |
01-04-2004 14-05-2008 |
|
Ashish Dangayach |
01-04-1998 |
--- |
|
Yatish Dangayach |
01-02-2001 |
15-09-2011 |
|
Tarun Dangayach |
01-04-2004 |
15-09-2011 |
|
Trisha Dangayach |
15-09-2011 |
--- |
The subject was initially located at 14/F., Block 5, Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat A1, 11/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong in July 1997, and further to the present location in May 2006.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Exporter & Wholesaler.
Lines: All kinds of gemstone and diamond jewellery including emerald, sapphire, coloured sapphire, tanzanite
Employees: 7.
Commodities Imported: Mainly bought gemstones from India, Brazil, Zambia, Africa, Europe & North America,
Markets: US, Japan, Singapore, Thailand
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Partnership: Hong Kong Jewellery Manufacturers’ Association, Hong Kong.
Capital: Not disclosed.
Profit & Loss: Business is profitable.
Condition: Keeping in a satisfactory condition.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Normal.
Gems Trading Co. [GTC] was established on 15th January, 1987 as a jewellery and gemstones dealer. It was set up by the Indian family headed by Mr. Om Prakash Dangayach. Currently, GTC is jointly owned by Mr. Ashish Dangayach and Ms. Trisha Dangayach. Both are Hong Kong ID holders and have got the right to reside in Hong Kong permanently.
GTC is a manufacturer, exporter and wholesaler of fine-quality coloured gemstones. The company is a leading supplier of emeralds, tanzanite, sapphires, fancy-coloured sapphires, and tsavorites. GTC’s cutting factory is in Jaipur, India and it has rough sourcing office in Arusha, Tanzania. GTC is the Group’s head office and sales office for the Asia Pacific Region. It has an office in New York, the United States, to undertake the business in North America.
Tanzanite is the main product of GTC, available in all the calibrated sizes up to 50 carats in all shapes. Other gemstones are also available in calibrated sizes mainly up to 5 carats, in diamond and princess cut of fine quality. It is able to maintains large stocks all the time.
Its associate Colorjewels, also located at the same office, is providing customers with all kinds of gemstones and diamond jewellery in the world. Colorjewels is also owned by Ashish Dangayach. As a Tanzanite Sightholder, Colorjewels provides tanzanite jewellery to some of the largest companies in the United States.
Colorjewels is the leading supplier of Tanzanite’s and Tanzanite Jewellery. It has diversified into jewellery manufacturing specifically in tanzanite in the hope of becoming one of the largest suppliers of tanzanite and of the jewellery. Having established strong production bases in India and China, sourcing offices in Thailand and Tanzania, Colorjewels’ head office is in Hong Kong and has marketing offices in New York and Los Angeles, the United States.
In addition to its core product, tanzanite, Colorjewels supplies a wide range of colour gemstones such as emerald, pink sapphire, alexandrite and Tsavorite as well as coloured gemstone jewellery to the market. Under the brand Dyach, Colorjewels markets high-end tanzanite jewellery to the upper segment of the market. The patent of Dyach is protected by Color Jewels Inc., New York, the United States.
Colorjewels has well-equipped factory which covers an area of 30,000 square feet and has been staffed by 350 well-trained workers in Panyu, Guangzhou City, Guangdong Province, China. Every year it launched about 2,000 styles on the market.
In order to penetrate the international market further, GTC 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 Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015. Its booth No. is AWE 5-E23.
The contact person of GTC is Ashish Dangayach. GTC’s business is maintained in a satisfactory manner. No derogatory information has been heard since its establishment. Annual sales turnover is significant.
The history of GTC is over 27 years in Hong Kong. It operates from an office owned by its associated company Diamond Star Ltd. which is a Hong Kong-registered company. On the whole, consider it good for normal business engagements.
Property information
of affiliate:-
Property Location: Workshop Unit No. 1, 5/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Kowloon, Hong Kong.
Owner: Diamond Star Ltd.
Date of Purchase: 31-10-2005
Purchased Price: HK$8,002,300
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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31-10-2005 |
- |
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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16-07-2007 |
- |
- ditto - |
Deed of Variation and Further Charge |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.85 |
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|
1 |
Rs.102.69 |
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Euro |
1 |
Rs.81.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
-- |
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.