|
Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
GANDHI JEWELS |
|
|
|
|
Registered Office : |
Room F2-10, 2/F., Hang Fung Industrial Building, Phase 2, 2G Hok Yuen Street, Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
20.06.2005 |
|
|
|
|
Com. Reg. No.: |
35741483-000-06 |
|
|
|
|
Legal Form : |
Partnership Concern |
|
|
|
|
Line of Business : |
supplier, importer and exporter of diamonds in a wide variety like rose cuts diamonds & rose cut heart Subject also trades in emerald, ruby, sapphire, aquamarine, taurmaline amythist blue topaz, and other coloured stones. Subject products ranges include round brilliant, princess, banguette, square, taper, briolette, pear, rose & beval cut |
|
|
|
|
No. of Employees : |
03 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
GANDHI JEWELS
ADDRESS: Room F2-10, 2/F., Hang Fung Industrial Building,
Phase 2, 2G Hok Yuen Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2722 6272
FAX: 852-3690 1550
E-MAIL: infohk@gemporium.net
Manager: Mr. Vikash Gandhi
Establishment: 20th June, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Gemstone
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room F2-10, 2/F., Hang Fung Industrial Building, Phase 2, 2G Hok Yuen
Street, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
Embassy International (H.K.) Ltd., Hong Kong.
Embassy International, Hong Kong.
H.K. Dia Trading, Hong Kong.
Sunrays, Hong Kong.
Associated
Companies:-
Gandhi Enterprises Co. Ltd., Thailand.
Gandhi Enterprises, India.
Gandhi Gems, India.
Gemporium Inc., USA.
Gemporium, India.
35741483-000-06
Manager: Mr. Vikash Gandhi
Name: Mr. Vimal Prakash GANDHI
Residential Address: Saichol
Mansion 11L, 1349/145 Charoen Niakorn Klongsan BKK 10600, Thailand.
Name: Mr. Vikash GANDHI
Residential Address: Room B,
6/F., Dorfu Court, 5 Hau Fook Street, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 20th June, 2005 as a partnership concern
jointly owned by Mr. Vikash Gandhi and Mr. Peeyush Daga under the
Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Mr. Vimal Prakash GANDHI |
28-09-2007 |
-- |
|
Mr. Vikash GANDHI |
20-06-2005 |
-- |
|
Mr. Peeyush DAGA |
20-06-2005 |
28-09-2007 |
At the very beginning, the subject was located at Flat B, 11/F., 15
Austin Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to Flat H, 6/F., Star
Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong in May 2006, and
further to the present address in September 2010.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler; Commission Agent.
Lines: All
kinds of diamonds and gemstones
Brand Names: Gandhi & Gemporium.
Employees: 3.
Commodities Imported: India, etc.
Markets: Hong
Kong, Southeast Asia, Europe, US
Terms/Sales: L/C, Advanced T/T
Terms/Buying: L/C, D/P, O/A
Capital: Not
disclosed.
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
condition.
Facilities: Making rather active use of
general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Normal.
Gandhi Jewels is a partnership jointly owned by Mr. Vimal Prakash Gandhi and Mr. Vikash Gandhi. Both of whom are Indian and belonging to the same family. The latter is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also manager of the subject. He can be reached at his Hong Kong mobile phone number 852-9490 9781.
The subject is a
diamond and precious stone importer, exporter and wholesaler. It is also a commission agent.
The subject is the
supplier, importer and exporter of diamonds in a wide variety like rose cuts
diamonds & rose cut heart. It also trades in emerald, ruby, sapphire,
aquamarine, taurmaline amythist blue topaz, and other coloured stones. The followings are its main products: round
brilliant, princess, banguette, square, taper, briolette, pear, rose &
beval cut
Most of the
subject’s products bear the brands names of “Gandhi” and “Gemporium”.
Its diamonds and gemstones
are imported from India, Belgium and the other European countries, etc. Some of the commodities are polished and cut
diamonds. Finished products and polished
diamonds are marketed in Hong Kong or exported or re-exported to Japan,
India, Taiwan, the other Asian countries, the Middle East, Australia, the
United States, Central & South America.
Business is normal.
The subject has
had associated companies in Thailand, India and the United States. Its main associated concern Gandhi
Enterprises Co. Ltd. [Gandhi Enterprises] is in Thailand.
Gandhi Enterprises
was established in Bangkok by Vimal Gandhi and now run by Vimal Gandhi and his
son Vikas Gandhi. It started with
manufacturing sapphire & rubies in all shapes and sizes and colours. Having over 3 decades of experience, Gandhi
Enterprises pioneered the art of cutting precious gemstones. It opened an office in New York by the name
of Gemporium Inc. and in Jaipur by the name of Gandhi Gems.
As its strengths
in rubies and sapphire grew, it soon started to manufacture emeralds and
tanzanites as well followed by spessartite and tsavorite garnets. Its strong sourcing of raw materials gives it
a competitive edge to supply to its customers premium quality and reasonably
priced goods. Products supplied range
from high end exclusive single pieces & calibrated sizes to commercial
quality.
Gandhi
Enterprises, the subject and Gemporium of India have a passion for gemstones
& jewellery. They are manufacturers
and wholesalers of various gemstones.
Their inventory includes sapphire with blue, pink, yellow, white, black,
fancy colours and ruby, emerald, tanzanite, tsavorite, spessartite &
various semi-precious gems. They also
manufacture jewellery on order basis.
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 took part in “HKTDC Hong
Kong International Jewellery Show 2014” which had been held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th
to 9th March, 2014. Its booth No. was
3D-D34. It will take part in the same
exhibition in 2015.
As the history of
the subject is over eight years in Hong Kong, on the whole, 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-concern 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.59.47 |
|
|
1 |
Rs.99.70 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.