MIRA INFORM REPORT

 

 

Report Date :

22.08.2014

 

IDENTIFICATION DETAILS

 

Name :

GEM  DE  ORIENT

 

 

Registered Office :

Flat A-1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

26.11.1966

 

 

Com. Reg. No.:

02171556-000-11

 

 

Legal Form :

Partnership Concern

 

 

Line of Business :

·         Trader of Diamond, Classic & Premium watches as well as gold Jewellery and Gemset Gold Jewellery of 18 karat

importer and exporter of polished and Cut Diamond range from 0.01 carat to 5.00 carat.

subject also trades in gemstones such as Emerald, Jadeite, Ruby & Sapphire. 

subject is a member of the Gem de Orient Group of companies

 

 

No of Employees :

05

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

Concern name

 

GEM  DE  ORIENT

 

 

Concern ADDRESS

 

Flat A-1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2868 1956

FAX:                 852-2521 1403

E-MAIL:            gdo@netvigator.com

 

 

MANAGEMENT

 

Manager:  Mr. Mujeebur Rahman Habeeb

 

 

SUMMARY

 

Establishment:              26th November, 1966.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:        Diamond Trader.

 

Employees:                   5.

 

Main Dealing Banker:     ABN AMRO Bank N.V., Hong Kong Branch.

 

Banking Relation:           Satisfactory.

 

 

Concern ADDRESS

 

Head Office:-

Flat A-1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

 

Business Partner:-

Mashreq International LLC, UAE/Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

02171556-000-11

 

 

MANAGEMENT

 

Manager:                       Mr. Mujeebur Rahman Habeeb

Contact Person:             Mr. Ali

 

 

PARTNERS

 

Name:                           Mr. Mujeebur Rahman HABEEB

Residential Address:      Flat A-1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong

Kong.

 

Name:                           Mr. Uzair Ahmed

Residential Address:      35 Veerabadran Street, Chennai 34, India.

 

 

HISTORY

 

The subject was established on 26th November, 1966 as a partnership jointly owned by Indian under the Hong Kong Business Registration Regulations.

 

The subject’s partners have changed for many time.

 

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Mohamed Sathakathulla Thaika Sahib

26-11-1966

31-12-2009

Hameed Jalal

01-07-1969

01-09-1972

S.A. Seyed Abdul Kader

01-07-1969

01-04-1980

M.K.A. Seyed Ahmed Kabir

01-07-1969

01-04-1980

A.M. Mohamed Irufan

01-09-1971

01-06-1977

Mujeebur Rahman Habeeb

01-06-1977

---

Ahmed Husain Lafir

01-04-1982

01-04-1986

Habeeb Syed Abdul Kader

01-04-1982

01-04-1987

Ahmed Sadiq Habeeb

12-07-1990

30-12-2000

Mohamed Mukrim Habeeb Syed

01-10-1990

31-03-2008

Sabeeha

01-04-2002

31-03-2008

Riyaz Ahmed Kabir

01-04-2008

31-03-2013

Uzair Ahmed

01-04-2013

---

 

Initially the subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road Central, Hong Kong, moved to the present address in October 1995.

 

An old partner retired while a new partner joined in April 2013 respectively.

 

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, gems & watches.

 

Employees:                   5.

 

Commodities Imported:   India, Thailand, Belgium, other European countries, etc.

 

Markets:                       Japan, Southeast Asia, Europe, Middle East, North America, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

FINANCIAL INFORMATION

 

Capital:                         Not disclosed.

 

Profit or Loss:                Making a small profit every year.

 

Condition:                      Keeping in an active condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Satisfactory.

 

Banker:                         ABN AMRO Bank N.V., Hong Kong Branch.

 

Standing:                      Small.

 

 

GENERAL

Gem De Orient is jointly owned by two Indian, namely, Mr. Mujeebur Rahman Habeeb and Mr. Uzair Ahmed.  The former is a Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.  The Manager of the subject Mr. Mujeebur Rahman Habeeb joined in the subject in June 1977.  Uzair Ahmed joined in the subject on 1st April, 2013 and he is an India passport holder.

The subject formerly had a number of partners while most of them have retired.  Its operating address is located at Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong where is also the residential address of Mujeebur Rahman Habeeb.

The subject is a diamond and watch, classic watch trader.  It is also a polished and cut diamond importer and exporter.  Size of diamonds supplied range from 0.01 carat to 5.00 carat.

The subject also trades in gemstones such as emerald, jadeite, ruby & sapphire.  Other products carried are diamond and gold jewellery and gemset gold jewellery — 18 karat, and premium watches.  Raw materials and commodities are imported from Belgium, India, Israel, Russia, etc.  Prime markets are Japan, other Asian countries, the Middle East, etc.  Overall business is active.

The subject is also the Hong Kong sales agent for Mashreq International LLC [Mashreq] which is a Dubai-based firm.  Currently, Mashreq International LLC, Hong Kong Office is also located at the operating address of the subject.  Mashreq Hong Kong Office is a Hong Kong-registered firm.

The subject is a significant premium watch trader.  Most of its commodities are high-end.

Established in 1993 in Dubai, Mashreq started business in watches wholesaling in the year.

Mashreq, the management arm of the Mashreqworld Group is an independent limited liability concern incorporated under the laws of the United Arab Emirates.

Mashreq is a joint venture between Mr. Mohamed Mukrim Syed Habeeb of The Mashreqworld Group.  A 5th generation (entrepreneur coming from a business family with interests in Real Estate, Shipping, Jewellery, Retail Chain Stores, Asset Management, Construction, Land Development, etc.) and Mr. Majid Saif Ahmed Al Ghurair of The Saif Al Ghurair Group (A Fortune 500 Group with interests in Banking, Real Estate, Insurance, Manufacturing, Malls & Shopping Complexes, Land Development, Sugar Refining etc.)

Mashreq is trading in “ZENART” watches.

Now, Mashreq has had associated firms in Saudi Arabia, Shenzhen Special Economic Zone of China and Chennai of India, Bahrain, Oman and Qatar.

Mashreq introduced the sub-brands of “ZENART” in 2004:

“TRAZER”, “VERONA”, “LEROSKY”, “ARENDINO”, “SWISCARDIN”, “EPOK”, “QIDIZ”, “DGO”, “XETEX” and “FUSION.

The subject also trades in the above-mentioned brands.  Over the past years, it has developed a number of regular customers in Hong Kong and the United Arab Emirates.  Annual sales turnover is steady and significant.  Profit margin is usually good.

The subject is a member of the Gem de Orient Group of companies.  Its business is chiefly administered by the Habeeb family.  The subject is also fully supported by the Habeeb family in India.

The contact person of Mashreq Hong Kong Office is Mr. Ali who is also an Indian.

On the whole, since the history of the subject in Hong Kong is over forty seven years, consider it good for normal business engagements.

 

 

 

DIAMOND INDUSTRY – INDIA

 

-            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.

-            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.

-            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.

-            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.

-            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.60.77

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.