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Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
RAJAB GEM
CORPORATION |
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|
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Registered Office : |
Flat E, 9/F., Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
16.08.1973 |
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Com. Reg. No.: |
03937206-000-08 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of Precious stones, gems |
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|
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No. of Employees |
2 |
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 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 |
RAJAB
GEM CORPORATION
ADDRESS:
Flat E, 9/F.,
Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2366 8552, 3119 7291
FAX: 852-2366 5744
E-MAIL: rajab@netvigator.com
salihurakin@netvigator.com
Manager: Mr. Seyed Ahamed Seyed Mohamed Salihu
Establishment: 16th August, 1973.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Precious Stone Trader.
Employees: 2. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
RAJAB
GEM CORPORATION
ADDRESS:
Head
Office:-
Flat E, 9/F.,
Harilela Mansion, 81 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
Associated
Companies:-
* My Creations, Hong Kong.
* Rajab Traders Ltd., Hong Kong.
* Rajab Traders, Hong Kong.
Su-Raj Inter Gold
(HK), Hong Kong.
Su-Raj Inter Gold
DMCC, UAE.
Su-Raj Inter Gold
Inc., USA.
Su-Raj
Inter Gold Pvt. Ltd., Thailand.
(* same address)
03937206-000-08
Manager: Mr. Seyed Ahamed Seyed Mohamed Salihu
Name: Mr. Seyed Ahamed Seyed Mohamed Salihu
Residential
Address:
7/F., 44 Hankow Road,
Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Seyed Mohamed Salihu Seyed Ahamed
Residential
Address:
Flat F, 13/F.,
Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Mohamed Noohu Seyed Mohamed Salihu
Residential Address:
Flat F, 13/F.,
Gold Crown Court, 66-70 Nathan Road, Tsimshatsui, Kowloon, Hong Kong.
The
subject was established on 16th August, 1973 as a sole proprietorship concern
owned by Mr. Seyed Ahamed Seyed Mohamed Salihu under the Hong Kong Business
Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Seyed Ahamed Seyed Mohamed Salihu |
16-08-1973 |
--- |
|
S. M. Mohamed Ali |
15-08-1975 |
15-08-1975 |
|
Saltari Abdul Cadas Ilyas Nowfer |
01-10-1980 |
30-09-1984 |
|
Sahul Hameed Mohamed Yusuf |
01-04-1985 |
30-11-1997 |
|
Mohamed Noohu Seyed Mohamed Salihu |
09-08-1995 |
01-06-2006 |
|
Mohamed Ali Bakar Sahib |
01-12-1999 |
30-11-2002 |
|
Ahamed Segu Jalaldeen |
01-12-2002 |
29-02-2004 |
|
Seyed Mohamed Salihu Seyed Ahamed |
01-06-2006 |
--- |
|
Mohamed Noohu Seyed Mohamed Salihu |
01-06-2006 |
--- |
At
the very beginning, the subject was located at 9/F., Wang Kee Building, 34-36 Connaught
Road Central, Hong Kong, moved to 7/F., Howard Building, 42-44 Hankow Road,
Tsimshatsui, Kowloon, Hong Kong in June 1979; to Room 908, 9/F., Star
Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong in October 1996; to
Flat D2, 12/F, Block D, Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshatsui,
Kowloon, Hong Kong in June 2002; to Flat F, 13/F., Golden Crown Court, 66-70
Nathan Road, Tsimshatsui, Kowloon, Hong Kong in August 2005; moved to Flat B4,
12/F., Tsim Sha Tsui Mansion, 83 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong in October 2011; and further to the present address in February
2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: Precious stones, gems.
Employees: 2. (Including associates)
Commodities Imported: India, Thailand, Belgium, Israel, Sri Lanka, etc.
Markets: Japan, Taiwan, other Asian countries, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP: Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Rajab
Gem Corporation is a partnership jointly owned by three Indian, namely, Mr.
Seyed Ahamed Seyed Mohamed Salihu, Mr. Seyed Mohamed Salihu Seyed Ahamed and
Mr. Mohamed Noohu Seyed Mohamed Salihu.
The
subject moved to the present address in February 2013.
It
shares the office with the following three firms:-
·
My Creations;
·
Rajab Traders; &
·
Rajab Traders Ltd.
The
subject is a diamond trader. One of the
partners can be reached at his Hong Kong mobile phone number 852‑9323 0191.
Business
commenced in August 1973, the subject is trading in loose diamonds, emerald,
precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured
sapphire, Tanzanite, imitation jewellery, 18K gold metal jewellery, etc. Main products are bracelets, brooches,
earrings, necklaces, rings, pendants, etc.
The
subject is one of the oldest India precious stone traders in Hong Kong.
Some
of the commodities are imported from India.
Other supplying countries are Thailand, Belgium, Israel, Sri Lanka, etc.
The
followings are the subject’s trading terms:-
·
Delivery Term — FOB Hong Kong;
·
Delivery Time — All the orders can be delivered
within 3 to 4 weeks after the order is confirmed;
·
Minimum Order — The minimum quantity per design should
be 10 dozens or more and shipment value not below US$3,000.00.;
·
Payment Terms — 50% in advance and the balance
should pay once the product will ready to ship; &
·
Sample — Samples would be charged first and the fee
of the samples will be refunded to customers if they place it an order with a
certain quantity of products.
Most
of the products have been exported to Thailand, the Middle East, India, Europe,
etc. Business is rather active.
The
subject has had affiliated companies Su-Raj Inter Gold (HK), My Creations and
Rajab Traders in Hong Kong.
Rajab
Traders is a gemstone and imitation jewellery supplier in Hong Kong. It was established in 1975. Major products are gemstones, imitation
jewellery, fashion products, 18K gold jewellery, etc.
Su-Raj
Inter Gold (HK) is trading in 18K gold jewellery with studded diamond. It is a member of Hong Kong Jewellery &
Jade Manufacturers Association, Hong Kong.
Established
on 16th December, 2005, My Creations is a partnership jointly owned by three
Indian, namely, Mr. Rakesh Kanakraj Kothari, Mr. Rajeev Bharat Mehta and Mr.
Prakesh Madhusudhan Doshi.
My
Creations and the subject are engaged in the same lines of business, more or
less.
Besides,
the subject has had another associated company known as Rajab Traders Ltd. [RTL]
located at its operating office. Having
issued 100,000 ordinary shares of HK$1.00 each, RTL is wholly owned by Seyed
Ahamed Seyed Mohamed Salihu.
Incorporated in July 2011, RTL is trading in the following commodities:
mobile phones, battery, memory card of mobile phones, etc.
The
subject’s business is chiefly handled by the three partners. Overall business is active. Regular suppliers and customers have been
maintained. According to the subject it
will take part in exhibitions or fairs which will be held in Hong Kong in order
to penetrate the markets further.
On
the whole, since the history of the subject in Hong Kong is over 40 years and
eight months, 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.
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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.
-
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.58.59 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
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|
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 |
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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 |
|
|
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.