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Report Date : |
08.02.2014 |
IDENTIFICATION DETAILS
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Name : |
OM GEM CREATIONS LTD. |
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Registered Office : |
Room 707, 7/F., Fu |
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Country : |
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Date of Incorporation : |
17.09.2004 |
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Com. Reg. No.: |
34953758 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of Fine jewellery, diamonds |
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No. of Employees : |
5. (Including associates) |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 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 |
OM GEM CREATIONS
LTD.
ADDRESS: Room 707, 7/F., Fu Hang Industrial Building,
1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2723 0097
FAX: 852-2311 1884
E-MAIL: ogc@omgem.com.hk
omgem@biz.netvigator.com
Managing Director: Mr. Shailesh
Kumar Vallabh Bahi Patel
Incorporated on: 17th September, 2004.
Organization: Private Limited Company.
Capital: Nominal: HK$3,000,000.00
Issued: HK$2,000,000.00
Business Category: Diamond
Trader.
Employees: 5. (Including associates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
OM GEM
CREATIONS LTD.
Registered Head
Office:-
Room 707, 7/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Affiliated/Associated
Companies:- (Same address)
Om Gem (HK) Ltd., Hong Kong.
Om Gem Creations, Hong Kong.
V K Dimon (HK) Co., Hong Kong.
VK Dimon (HK) Ltd., Hong Kong.
34953758
0923114
Managing Director: Mr. Satish
Vithalbhai Goyani
Nominal Share Capital: HK$3,000,000.00
(Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
(As per registry dated 17-09-2013)
|
Name |
|
No. of shares |
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Shailesh Kumar Vallabh Bhai PATEL |
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2,000,000 ======= |
(As per registry dated 17-09-2013)
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Name (Nationality) |
Address |
|
Shailesh Kumar Vallabh Bhai PATEL |
Room 707, 7/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hung Hom, Kowloon, Hong Kong. |
(As per registry dated 17-09-2013)
|
Name |
Address |
Co. No. |
|
Top Honour Secretarial Services Ltd. |
Unit 2501, 25/F., 113 Argyle Street, Mongkok, Kowloon, Hong Kong. |
1312187 |
The subject was incorporated on 17th September, 2004 as a private
limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Fine
jewellery, diamonds
Employees: 5. (Including associates)
Commodities Imported: India,
Europe
Markets: Japan,
Southeast Asia
Terms/Sales: L/C, T/T
Terms/Buying: L/C, D/P
Hong Kong Gemstone Manufacturers’ Association Ltd., Hong Kong.
Nominal Share Capital: HK$3,000,000.00
(Divided into 3,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a steady
condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Bank of Baroda,
Hong Kong Branch.
Standing: Good.
Having issued 2 million ordinary shares of HK$1.00 each, OM Gem
Creations Ltd. was equally owned by Shailesh Kumar Vallabh Bhai Patel and
Satish Vithalbhai Goyani. On 19th
September, 2012, the latter transferred all his shares to the former and since
then, the subject has been wholly-owned by Shailesh Kumar Vallabh Bhai
Patel. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.
According to the subject its predecessor was established in 1993. It is a member of the “Hong Kong Gemstone
Manufacturers’ Association Ltd.”. It is
specialized in manufacturing and wholesaling polished and cut diamonds. Its main products are baguettes; tapers;
princess; marquise; single cut, full cut diamonds, etc.
The subject has had a factory in India manufacturing different colours
and sizes of diamonds to satisfy its customers’ requirement. Moreover, its sales team is based in Hong
Kong providing its customers with professional sales service such as diamonds
assorting and grading.
The subject has claimed to be an ‘experienced and reliable supplier’.
The major markets of the subject are Japan, South Korea, China, Hong
Kong, Taiwan, other Asian countries, etc.
Overall business is satisfactory.
The subject’s business is chiefly handled by Patel himself.
The subject has had affiliated companies VK Dimon (HK) Ltd. [VK Dimon]
and V K Dimon (HK) Co. located at its operating office.
Having issued 10,000 ordinary shares of HK$1.00 each, VK Dimon is wholly
owned by Mr. Dharmendra Sahadev Shedge who is also an Indian. He is an India passport holder and does not
have the right to reside in Hong Kong permanently. Shedge is the only director of VK Dimon. VK Dimon is the business partner of the
subject.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it is going to
take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2014”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 3rd to 7th March, 2014. Its booth No. is AWE 1-D25.
The history of the subject in Hong Kong is over nine years and four
months.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
27-11-2007 |
Instrument: Memorandum Property: Distinctive 91220300000240 10-07-2007 US$
65,398.44 10-01-2008 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other facilities |
|
20-04-2010 |
Instrument: Memorandum Property: Distinctive 91220300000238 06-03-2010 US$254,205.57 07-03-2011 Mortgagee: Bank of Baroda, Hong Kong Branch. |
Loan or credit or other 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
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.32 |
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|
1 |
Rs.101.78 |
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Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.