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Report Date : |
12.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
KOMAL
GEMS |
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|
|
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Registered Office : |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
23.12.1991 |
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Com. Reg. No.: |
15157882-000-12 |
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Legal Form : |
Sole Proprietorship. |
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|
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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 |
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|
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|
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 |
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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 31st, 2014
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Hong Kong |
A1 |
A1 |
|
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 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 |
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.
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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 –
-
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.59.33 |
|
|
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.80.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.