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Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
L. D. CREATIONS |
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Registered Office : |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
25.03.2006 |
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Com. Reg. No.: |
36669282-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer and Exporter
of all kinds of Diamonds and Jewellery Products, Emerald. |
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No. of Employees : |
5. (Including
Associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
HONGKONG - 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 |
L. D. CREATIONS
ADDRESS: Room
802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2365
1223, 2311 9628
FAX: 852-2311 4498
E-MAIL: komal@komalgems.com
Manager: Mr.
Rakesh Girdharlal Gajera
Establishment: 25th
March, 2006.
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.
Cygnus Jewelry
Inc., USA.
Komal Gems N.V.,
Belgium.
Komal Gems, Hong
Kong. (Same owner and 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.
Suberi Brothers
LLC, USA.
etc.
36669282-000-03
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 25th March, 2006 as a sole proprietorship concern owned by Mr.
Neelang Arvind Popat under the Hong Kong Business Registration Regulations.
The following table
shows the changes of the partners:-
Name |
Incoming Date |
Outgoing Date |
|
Neelang Arvind
Popat |
25-03-2006 |
01-06-2008 |
|
Vipulkumar
Kesubhai Boghani |
28-02-2007 |
19-06-2008 |
|
Rakesh Girdharlal
Gajera |
01-06-2008 |
--- |
Initially the
subject was located at Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street
East, Hunghom, Kowloon, Hong Kong, moved to Flat F, 14/F., Union Mansion, 33-35
Chatham Road, Tsimshatsui, Kowloon, Hong Kong in October 2006; and further
moved back to Guardforce Centre in June 2008.
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, Belgium, Israel, etc.
Markets: Hong Kong, Japan,
Thailand, other Asian countries, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Business is active and
steady.
Facilities: Making active 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: Normal.
L. D. Creations is
a sole proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an Indian. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
Gajera is also the manager of the subject.
The subject is a
diamond trader. It is specialised in the
following products:-
Round Brilliant:
· White -2, -6.5, +11, +15.5
· TTLB -2, -6.5, +6.5, +11, +15.5 (All Shades)
· Natts -2, -6.5, +6.5, +11, +15.5
Fancy Sharp:
· Princess Cut
· MQ
· Pear
Special Cut:
· Gabrielle Diamond (105 facet)
The subject’s
products include SI diamond, TTLB diamond, diamond earrings, diamond pendant,
loose diamond and white diamond which are marketed in Hong Kong, exported to
Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
As a diamond
trader, the subject has got associated companies Laxmi Diamond (HK) Ltd. [Laxmi
Diamond] and Komal Gems located at its operating address. Komal Gems is also a sole proprietorship
owned by Mr. Rakesh Girdharlal Gajera
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. Komal is a subsidiary of Lamxi Diamond. It is also one of the largest diamond
wholesalers in Southeast Asia.
Having more than 30
years experience in manufacturing diamonds products, Laxmi Diamond is also one
of the largest diamond manufacturing companies in India. Laxmi Diamond become 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. The subject also has had the same
markets. Komal is also trading in rough
diamonds. It is a diamond importer while
Laxmi Diamond is an exporter.
Besides the
subject, Laxmi Diamond has got affiliated companies in India, Belgium, China,
Thailand and the United States.
Laxmi Diamond has
had three jewellery brands: “Cygnus” in India, “Noor” in the
United States and a branded diamond “Gabrielle” also in the United
States. In 2007, Laxmi Diamond’s brand
name “CYGNUS Gold’” was launched in India. In 2008, the trade mark “Noor” was
launced in India. In 2009, the Gem &
Jewellery Export Promotion Council of India conferred Laxmi Diamond the title
of the “Third Largest Exporter of Cut and Polished from India”.
Above all, Laxmi
Diamond has had an associated company Lorenzo International which is a NASDAQ
listed company in the United States. In
recent years, Laxmi Diamond has set up associated companies in the United Arab
Emirates and Belgium.
Currently, the
Chairman of Laxmi Diamond Group is Mr. Vasant Gajera.
The subject is
fully supported by Laxmi Diamond and the Gajera family. Overall business keeps on improving and
satisfactory. It would recruit more
staff members in the years ahead.
On the whole, as
the history of the subject in Hong Kong is over eight years and six 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.
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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.
-
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.
-
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.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.