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Report Date : |
15.07.2014 |
IDENTIFICATION DETAILS
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Name : |
GOLD STAR JEWELLERY |
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Registered Office : |
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon |
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Country : |
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Date of Incorporation : |
13.10.2004 |
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Com. Reg. No.: |
34986470-000-10 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds |
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No. of Employees : |
1 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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 |
GOLD STAR
JEWELLERY
ADDRESS: Flat D, 14/F., Block 8, Oak Mansions, Site
5, Whampoa Garden, 7 Tak Fung Street, Hunghom, Kowloon, Hong Kong.
(Formerly located at:-
Block A2, 4/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon,
Hong Kong.)
PHONE: 852-6478 7378
E-MAIL: rajeshpatdl2u@yahoo.co.in
Manager: Mr. Rajubhai Jivrajbhai
Savani
Establishment: 13th October, 2004.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond
and Jewellery Trader.
Annual Turnover: US$5.0~5.5 million.
Employee: 1.
Main Dealing Banker: Hang Seng
Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
GOLD STAR
JEWELLERY
Head Office:-
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung
Street, Hunghom, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 92015, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Wala Diam (HK), Hong Kong.
[Also owned by Mr. Rajubhai Jivrajbhai Savani] (Same address)
Waladiam Co. Ltd., Thailand.
Walam Diamonds, India.
34986470-000-10
Manager: Mr. Rajubhai Jivrajbhai
Savani
Name: Mr. Rajubhai Jivrajbhai SAVANI
Residential Address: Block A2,
4/F., Prat Mansion, 26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 13th October, 2004 as a sole
proprietorship concern owned by Mr. Rajubhai Jivrajbhai Savani under the Hong
Kong Business Registration Regulations.
The following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
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Rajubhai Jivrajbhai Savani |
13-10-2004 |
23-06-2005 |
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Pareshkumar Khimjibhai Diyora |
18-05-2005 |
12-02-2009 |
Initially the subject was located at Flat 6B, Block 9, Luxury Court, 9
Hau Fook Street, Kowloon, Hong Kong, moved to Block A2, 4/F., Prat Mansion,
26-36 Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in September 2005; and
further moved to the present address in August 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds.
Employee: 1.
Commodities Imported: Imported
from Belgium, India, other Asian countries
Markets: Belgium,
Japan, Philippines, Taiwan, Thailand, US
Annual Turnover: US$5.0~5.5 million.
Terms/Sales: L/C, T/T, D/P
Terms/Buying: L/C, D/P, T/T
Capital: Not
disclosed.
Profit or Loss: Made
a very small profit in the past years.
Condition: Keeping in a fairly active
manner.
Facilities: Making fairly active use of
general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:- Hang
Seng Bank Ltd., Hong Kong.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Gold Star Jewellery is a sole proprietorship owned by an India merchant
Mr. Rajubhai Jivrajbhai Savani. He
is a Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. He founded the subject in
October 2004 but retired in June 2005.
In February 2009, he joined in the subject again. Now, he is the manager of the subject.
The subject’s registered address is in a residential building located at
Flat D, 14/F., Block 8, Oak Mansions, Site 5, Whampoa Garden, 7 Tak Fung
Street, Hunghom, Kowloon, Hong Kong.
This address is also the new residential address of the sole
proprietor. The subject moved to this
address in August 2009.
The subject’s telephone number and fax number have not registered with
local telephone company nor listed on telephone directories. However, Savani can be reached at his Hong
Kong mobile phone number
852-6478 7378.
The subject is trading in all kinds of jewellery and diamond. It is a loose, polished and cut diamond
importer, exporter and wholesaler. Size
of diamonds handled range from 0.01 carat to 1.00 carat. Diamonds are imported from India, the other
Asian countries and Belgium. However,
India is the main supplying country.
The subject’s products include: tapers, baguettes, marquise, princess,
round brilliant, etc. Finished products
are exported to Belgium, Japan, the Philippines, India, Taiwan, Thailand, the United
States, etc. Principal customers are
jewellery manufacturers. Business has
been steady and normal.
The subject has had affiliated companies known as Walam Diamonds in
Mumbai and Surat of India and Waladiam Co. Ltd. in Bangkok of Thailand. Walam Diamonds is also an importer and
exporter of polished diamonds. The key
personnel is Mr. Nileshitaliya. The one
in Mumbai is Walam Diamonds’ head office while the one on Surat is its branch
office. Walam Diamonds’ manufacturing
unit is also in Surat. This firm is
supposed to be the main supplier of the subject.
Walam Diamonds, a member of GJEPC (The Gem and Jewellery Export
Promotion Council), is promoted by Mr. D. D. Savani, a leading manufacturer and
exporter of diamond jewellery from India.
It was established as a government recognised export house and has been
catering to both Indian and international markets such as Belgium, the United
Kingdom, the United States, France, Hong Kong, Thailand, Singapore, the United
Arab Emirates, etc. Walam Diamonds has
been in this trade for about 40 years.
The manufacturing units of Walam Diamonds located at Surat are well
equipped with modern and sophisticated laser polishing machines. Walam Diamonds seems to be the main supplier
of the subject.
Besides the subject, Savani is operating another firm Wala Diam (HK)
[Wala] which is also located at the same address. Wala was established on 1st August,
2000. Also owned and operated by Savani,
this firm is also a diamond trader.
The subject and Wala have just one employee in Hong Kong. However, the businesses of these two
companies are chiefly handled by Savani himself,
The annual sales turnover of the subject and Wala ranges from US$5.0 to
5.5 million. Making a very small profit
in the past years.
The history of the subject in Hong Kong is over nine years and ten
months in Hong Kong. On the whole,
consider it good for normal business engagements in small credit amounts.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.01 |
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1 |
Rs.102.72 |
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Euro |
1 |
Rs.81.60 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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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.