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Report No. : |
353924 |
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Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
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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 : |
Hong Kong
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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
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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
4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from March 2015, cover
a negative list and a most-favored treatment provision, 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
MANAGEMENT:
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.
L. D. CREATIONS
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 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.
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.
Markets: Hong Kong, China, Japan,
Thailand, other Asian countries, Europe.
Terms/Sales: CAD,
L/C, T/T.
Terms/Buying: L/C,
T/T, D/P.
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.
He has been in Hong
Kong for a very long time as he has got his Hong Kong ID before setting up 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.
As a diamond
trader, the subject has got associated companies Laxmi Diamond (HK) Ltd. 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 Pvt. Ltd.
[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.
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 is active.
On the whole, as
the history of the subject in Hong Kong is over nine years and eight months,
consider it good for normal business engagements.
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 –
-
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.66.99 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.73.47 |
|
HKD |
1 |
Rs.8.65 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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.