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Report No. : |
335103 |
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Report Date : |
04.08.2015 |
IDENTIFICATION DETAILS
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Name : |
LAXMI DIAMOND (HK) LTD. |
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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 : |
05.12.2003 |
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Com. Reg. No.: |
34135130 |
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Legal Form : |
Private Limited Company |
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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 Employee : |
5. (Including Associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
LAXMI DIAMOND
(HK) LTD.
ADDRESS: Room 802, 8/F,
Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong
Kong.
PHONE: 852-2311
9628, 2365 1223
FAX: 852-2311
4498
E-MAIL: laxmi@laxmidiamondhk.com
Managing Director: Mr. Monikaben Rakesh Gajera
Incorporated on: 5th December, 2003.
Organization: Private Limited
Company.
Issued Share Capital: HK$800,000.00
Business Category: Diamond
Trader.
Employees: 5. (Including associates)
Main Dealing Banker: Wing
Lung Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Cygnus Jewelry Inc., USA.
Komal Gems N.V., Belgium.
Komal Gems, Hong Kong. (Same
address)
L. D. Creations, Hong Kong. (Same
address)
Laxmi Dia Jewels Pvt. Ltd., India.
Laxmi Diamond (Shanghai) Ltd., China.
Laxmi Diamond Private Ltd., India.
Laxmi Jewel Pvt. Ltd., India.
Mili Star (N.Y.) Inc., USA.
Mili Star Co. Ltd., Thailand.
Shree Laxmi Infosolutions & Jewellery Ltd., India.
Shree Laxmi Jewelry LLC, UAE.
Shree Laxmi Jewels Pvt. Ltd., India.
Suberi Brothers LLC, USA.
etc.
34135130
0874076
Managing Director: Mr. Monikaben
Rakesh Gajera
HK$800,000.00
(As per registry dated 05-12-2014)
|
Name |
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No. of shares |
|
Monikaben Rakesh GAJERA |
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800,000 ====== |
(As per registry dated 05-12-2014)
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Name (Nationality) |
Address |
|
Monikaben Rakesh GAJERA |
Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated 05-12-2014)
|
Name |
Address |
Co. No. |
|
RC Corporate Services Ltd. |
Room 1003, 10/F., Tung Wai Commercial Building, 109-111 Gloucester
Road, Wanchai, Hong Kong. |
0467057 |
The subject was incorporated on 5th December, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Komal Gems Ltd.,
name changed to the present style on 19th November, 2005.
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.
Markets: Japan,
Thailand, other Asian countries, Middle East, North America.
Terms/Sales: L/C,
T/T.
Terms/Buying: L/C, Advanced T/T, D/P.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Issued Share Capital: HK$800,000.00
Mortgage or Charge:-
Date of Mortgage: 27-04-2012
Amount: All principal, interest
& other amounts from time to time owing by the Mortgagor to the Lender on
any current & other account & all other liabilities
Property: 5/718 part or shares of
and in Section E of Kowloon Marine, Lot No. 113 (Workshop Unit No. 2 on the 8/F.
of Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Mortgagee: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Profit or Loss: Making
a small profit every year.
Condition: Business
is rather active.
Facilities: Making
active use of general banking facilities.
Payment: Met as required.
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.
Having issued 800,000 ordinary shares of HK$1.00 each, Laxmi Diamond
(HK) Ltd. previously was jointly owned by four Indian. Of the four, Hirenkumar Ramsehbhai Khunt was
the largest shareholder holding 51% interests.
The subject was reshuffled on 23rd September, 2008 and the subject was
jointly owned by Laxmi Diamond Private Ltd. [Laxmi Diamond], an Indian
firm holding 20% interests, and Mr. Monikaben Rakesh Gajera, holding
80%. On 21stbn March, 2014,
Laxmi Diamond transferred all its shares to M. R. Gajera who has become
the sole shareholder since then.
M. R. Gajera is a Hong Kong ID Card holder and has got the
right to reside in Hong Kong permanently.
The subject is still an affiliated company of Laxmi Diamond. It is one of the major diamond wholesalers in
the Asia Pacific region.
Having more than 30 years experience in manufacturing diamonds products,
Laxmi Diamond is now one of the largest diamond manufacturing companies in
India. Laxmi Diamond is a sightholder of
the Diamond Trading Company [DTC] of India.
Laxmi Diamond is one of the major manufacturers and distributors of
polished diamonds and supplies loose polished to the jewellery trade
globally. The manufacturing facilities
in Surat and Amreli, in Gujarat, have been equipped with the latest in
high-tech machinery and equipment. It
also has had a plant in Thailand. The
total areas of the factories is over 100,000 sq.ft. Now, it has three diamond polishing factories
while the largest one has 7,000 employees.
The subject is trading in the products of Laxmi Diamond.
The subject is specialised in diamonds and precious stones such as the
following products:-
v Round Brilliant:
Natts -2, -6.5, +6.5, +11, +15.5;
TTLB -2, -6.5, +6.5, +11, +15.5 (All
Shades); &
White -2, -6.5, +11, +15.5.
v Fancy Sharp:
MQ;
Pear; &
Princess Cut.
v 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 exported
to Southeast Asia, Eastern Europe, Japan, South Korea, North America,
Scandinavia, Taiwan, Western Europe, etc.
The subject has got an associated company L. D. Creations located at its
operating address. L. D. Creations is a
sole proprietorship owned by Mr. Rakesh Girdharlal Gajera is an India
merchant belongs to the Gajera family.
L. D. Creations is also controlled by the Gajera family.
Besides L. D. Creations, the subject has had another associated company
Komal Gems located at the same address.
Komal Gems N.V. [Komal] is a Belgium-based firm which is a manufacturer
and wholesaler of diamonds and gems.
Komal is a subsidiary of Lamxi Diamond.
It is one of the largest diamond wholesalers in Southeast Asia.
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 is taking part the following exhibitions and shows:
v USA
JCK Las Vegas Show (May)
v Switzerland
Baselworld (Mar)
v Hong Kong
HK Int’l Jewellery Show (Mar)
HK Jewellery & Gem Fair (Jun)
HK Jewellery & Gem Fair (Sep)
v Mainland China
Shenzhen Int'l Jewellery Fair (Sep)
v Asia (other than
HK & China)
India Int’l Jewellery Show (Aug)
Bangkok Gems & Jewelry Fair, Thailand (Sep)
In Hong Kong, it is going to take part in “HKTDC Hong Kong International
Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong
AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March,
2015. Its booth No. is AWE 2-J18.
The subject operates from an office owned by itself. The premises had been mortgaged to Wing Lung
Bank Ltd. but was discharged on 27th April, 2012.
The overall business of the subject is satisfactory. History in Hong Kong is over eleven years and
a month.
On the whole, consider the subject good for normal business engagements.
Property Location: Workshop Unit No. 2, 8/F., Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, 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 |
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27-04-2012 |
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Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.96 |
|
|
1 |
Rs.99.93 |
|
Euro |
1 |
Rs.70.16 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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.