|
Report Date : |
03.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
KOMAL
GEMS |
|
|
|
|
Registered Office : |
Room 802, 8/F., Guardforce Centre, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
23.12.1991 |
|
|
|
|
Com. Reg. No.: |
15157882-000-12 |
|
|
|
|
Legal Form : |
Sole Proprietorship. |
|
|
|
|
Line of Business : |
Importer and Exporter of all kinds of Diamond and Diamond Jewellery products such as diamond bracelets, diamond earrings, diamonte & pearl ornaments, 925 silver diamonds, white diamond brooches, diamond bangles & diamond pins |
|
|
|
|
No. of Employees : |
05. (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 |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source : CIA |
KOMAL GEMS
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2311 9628, 2367 0121
FAX: 852-2311 4498
E-MAIL: komal@komalgems.com
Manager: Mr. Rakesh Girdharlal Gajera
Establishment: 23rd December, 1991.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: 5. (Including associates)
Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Associated
Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
L. D. Creations, Hong Kong. (Same address)
Laxmi Dia Jewels Pvt. Ltd., India.
Laxmi Diamond (HK) Ltd., Hong Kong. (Same address)
Laxmi Diamond (Shanghai) Ltd., China.
Laxmi Diamond Pvt. Ltd., India.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Jewelry LLC, UAE.
15157882-000-12
Manager: Mr. Rakesh Girdharlal Gajera
Name: Mr. Rakesh Girdharlal GAJERA
Residential Address: Flat 8C, 8/F., Tower 12A, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon,
Hong Kong.
The subject was established on 23rd December, 1991 as a partnership concern jointly owned by Mr. Rajeshkumar Chandanmal Shah and Mr. Ashok Kumar Haribhai Gajera under the Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
Name |
Incoming Date |
Outgoing Date |
|
Rajeshkumar Chandanmal SHAH |
23-12-1991 |
22-02-2006 |
|
Ashok Kumar Haribhai GAJERA |
23-12-1991 |
29-12-1993 |
|
Girdharbhai H. GAJERA |
05-05-1995 |
29-10-2002 |
|
Kiran Shambhu VAGHASHIYA |
28-06-1995 |
24-05-2000 |
|
Lalit Jivraj PATEL |
24-05-2000 |
01-06-2008 |
|
Vipulkumar Kesubhai BOGHANI |
03-01-2002 |
30-11-2009 |
|
Rakesh Girdharlal GAJERA |
21-02-2006 |
--- |
Initially the subject was located at Room 2208, 22/F., Melbourne Plaza, 33 Queen’s Road Central, Hong Kong, moved to Room 404, 4/F., Block C, Lip Seng Mansion, 15-19 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in March 1992; to Room 914, 9/F., Carnarvon Plaza, 20 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in May 1993; to Room 906, 9/F., Hang Seng Bank Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in August 1994; to Room 807, 8/F. of the same building in August 2000; and further moved to the present address in June 2004.
Apart from these, neither material change nor amendment has
been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds and jewellery products & emerald.
Employees: 5. (Including associates)
Commodities Imported: India, other Asian countries, Belgium, Israel, etc.
Markets: Japan, Belgium, South Korea, Thailand, India, other Asian countries, Europe, North
America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Maintaining a small profit every year.
Condition: Business is active and steady.
Facilities: Is making use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
Wing Lung Bank Ltd., Hong Kong.
Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Good.
Komal Gems was a partnership jointly owned by Mr. Vipulkumar Kesubhai Boghani and Mr. Rakesh Girdharlal Gajera. However, Boghani retired on 30th November, 2009, since then the subject has become a sole proprietorship owned by the latter. R. G. Gajera is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
One of the old partners of the subject Girdharbhai H. Gajera was a Belgium passport holder besides holding an India passport.
The subject has got an associated company Laxmi Diamond (HK) Ltd. [Laxmi Diamond] located at its operating address. The directors of Laxmi Diamond are Monikaben Rakesh Gajera and Ashokkumar Haribhai Gajera. The Gajeras are the family member of R. G. Gajera. Laxmi Diamond is a subsidiary company of an India diamond manufacturer Laxmi.
The subject also has got another associated company Komal Gems N.V. [Komal] which is a Belgium-based firm. Komal is a manufacturer and wholesaler of diamonds and gems. This firm is controlled by Girdharbhai H. Gajera who is in Belgium most of the time.
The subject is trading in Diamond and Diamond Jewellery. The followings are some of its major products: diamond bracelets, diamond earrings, diamonte & pearl ornaments, 925 silver diamonds, white diamond brooches, diamond bangles & diamond pins.
Products are exported to Japan, South Korea, India, the other Asian countries, North America, Europe, etc.
Located at Hoveniersstraat, Internal Postal Box 347 BP 347 2018, Antwerpen, Belgium, Komal is one of the significant diamond traders in Belgium.
Komal is a subsidiary of Lamxi. It is one of the largest diamond wholesalers in Southeast Asia.
Having more than 30 years experience in manufacturing diamonds products, Laxmi is now one of the largest diamond manufacturing companies in India.
Laxmi becomes a “sightholder” of the Diamond Trading Company [DTC] of India in 1995.
Komal is specialised in manufacturing star and melee from white to “TTLB”. It also produces a wide range of diamond in round, princess cut, taper and marquise. Possessing substantial stocks, Komal is able to supply customers with diamonds in large quantities on diamonds. The major markets of Komal are the United States, China, Singapore, Thailand, the Philippines, Taiwan, Belgium, Japan and Europe.
Komal is also trading in uncut diamonds. It is a diamond importer while Laxmi is an exporter and manufacturer.
Besides the subject, Laxmi has got affiliated companies in India, Belgium, China, Thailand and the United States.
Laxmi has had three jewellery brands, namely, “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.
The subject is fully supported by Laxmi. Business is chiefly handled by R. G. Gajera himself. Overall business is active and satisfactory.
Besides operating the subject, R. G. Gajera is also operating another company L. D. Creations which is also located at the same address. This company is also a diamond trader.
The subject operates from a self-owned office in Hong Kong.
As the history of the subject in Hong Kong is over twenty-two years, on the whole, consider it good for normal business engagements.
REMARKS:
Court case
record:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
Aug.
2003 |
H21 |
Antwerpse DiamantBank NV (also
known as Antwerp Diamond Bank NV) |
Komal Gems |
Assignment of Receivable |
Not
stated |
Property
information of affiliate:-
Property Location: Unit No. 2 on 8/F., Guardforce Centre, 3 Hok Yuen Street East, 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 |
|
29-01-2008 |
- |
Wing Lung Bank Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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.61.90 |
|
|
1 |
Rs.102.74 |
|
Euro |
1 |
Rs.85.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.