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Report No. : |
353923 |
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Report Date : |
16.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
KOMAL GEMS |
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|
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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 : |
23.12.1991 |
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Com. Reg. No.: |
15157882-000-12 |
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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 |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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|
|
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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) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
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 |
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 12.5% 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 |
KOMAL GEMS
ADDRESS: Room
802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon,
Hong Kong.
PHONE: 852-2311
9628, 2367 0121
FAX: 852-2311
4498
E-MAIL: komal@komalgems.com
Manager: Mr. Rakesh Girdharlal Gajera
Establishment: 23rd December, 1991.
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.
Associated/Affiliated
Companies:-
Balmukund Diamond Pvt. Ltd., India.
Cygnus Jewelry Inc., USA.
Dahanamal Silk Mills Ltd., India.
Komal Gems N.V., Belgium.
L. D. Creations, Hong Kong. (Same address)
Laxmi Dia Jewels Pvt. Ltd., India.
Laxmi Diamond (HK) Ltd., Hong Kong. (Same address)
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.
15157882-000-12
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 23rd December, 1991 as a partnership concern jointly owned by
Mr. Rajeshkumar Chandanmal Shah and Mr. Ashok Kumar Haribhai Gajera under the
Hong Kong Business Registration Regulations.
The following table shows the changes of the partners:-
Name |
Incoming Date |
Outgoing Date |
|
Rajeshkumar Chandanmal SHAH |
23-12-1991 |
22-02-2006 |
|
Ashok Kumar Haribhai GAJERA |
23-12-1991 |
29-12-1993 |
|
Girdharbhai H. GAJERA |
05-05-1995 |
29-10-2002 |
|
Kiran Shambhu VAGHASHIYA |
28-06-1995 |
24-05-2000 |
|
Lalit Jivraj PATEL |
24-05-2000 |
01-06-2008 |
|
Vipulkumar Kesubhai BOGHANI |
03-01-2002 |
30-11-2009 |
|
Rakesh Girdharlal GAJERA |
21-02-2006 |
--- |
Now, the subject is a sole proprietorship just owned by
Rakesh Girdharlal Gajera.
Initially the subject
was located at Room 2208, 22/F., Melbourne Plaza, 33 Queen’s Road Central,
Hong Kong, moved to Room 404, 4/F., Block C, Lip Seng Mansion, 15-19 Carnarvon
Road, Tsimshatsui, Kowloon, Hong Kong in March 1992; to Room 914, 9/F.,
Carnarvon Plaza, 20 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong
in May 1993; to Room 906, 9/F., Hang Seng Bank Building, 18 Carnarvon Road,
Tsimshatsui, Kowloon, Hong Kong in August 1994; to Room 807, 8/F. of the
same building in August 2000; and further moved to the present address in June
2004.
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,
other Asian countries, Belgium, Israel, etc.
Markets: Hong Kong, China, Japan, Belgium,
South Korea, Thailand, India, other Asian countries, Europe, North America, etc.
Terms/Sales: CAD, L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, O/A, etc.
Capital: Not
disclosed.
Profit or Loss:
Making a small profit every year.
Condition: Business
is active.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality:
Good.
Bankers:-
Wing Lung
Bank Ltd., Hong Kong.
Antwerpse DiamantBank
NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Very Good.
Komal Gems formerly
was a partnership jointly owned by Mr. Vipulkumar Kesubhai Boghani and Mr.
Rakesh Girdharlal Gajera while both are India merchants. However, Boghani outwent on 30th November,
2009, since then the subject has become a sole proprietorship solely owned by
the latter. R. G. Gajera is a Hong Kong
ID holder and has got the right to reside in Hong Kong permanently. He is also manager of the subject.
The subject is a
member of the Laxmi Group. It has got an
associated company Laxmi Diamond (HK) Ltd. [Laxmi Diamond] located at its
operating address. The directors of Laxmi
Diamond are Monikaben Rakesh Gajera and Ashokkumar Haribhai Gajera. The Gajeras are the family member of R. G.
Gajera. Laxmi Diamond is a subsidiary
company of an India diamond manufacturer Laxmi.
The subject is
trading in Diamond and Diamond Jewellery.
The followings are some of its major products: Diamond bracelets,
diamond earrings, diamantes & pearl ornaments, 925 silver diamonds, white
diamond brooches, diamond bangles, diamond pins, etc.
Products are marketed
in Hong Kong, China and exported to Japan, South Korea, India, the other Asian
countries, North America, Europe, etc.
Having more than 30
years’ experience in manufacturing diamonds products, Laxmi is now one of the
largest diamond manufacturing companies in India. It became a “sightholder” of the Diamond
Trading Company [DTC] of India in 1995.
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. This
firm is controlled by Girdharbhai H. Gajera who is in Belgium most of the
time. He was one of the old partners of
the subject.
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.
Komal is also trading
in uncut diamonds. It is a diamond
importer while Laxmi is an exporter and manufacturer.
The subject is fully
supported by Laxmi and the Gajera family.
Business is chiefly handled by R. G. Gajera himself in Hong Kong. Overall business is active and satisfactory.
Besides operating the
subject, R. G. Gajera is also operating another company L. D. Creations which
is also located at the same address.
This company is also a diamond trader.
The subject operates
from a self-owned office in Hong Kong.
The premises are owned by Laxmi Diamond.
The subject is able
to maintain a number of regular suppliers and foreign customers. Overall business is active. It has had sufficient working capital to
support the current operating level.
Annual sales turnover is significant.
As the history of the
subject in Hong Kong is about twenty-four years, on the whole, consider it good
for normal business engagements.
Court
case record:-
|
Action Date |
Case No. |
Plaintiff |
Defendant |
Cause |
Amount |
|
Aug. 2003 |
H21 |
Antwerpse DiamantBank NV (also known as Antwerp Diamond
Bank NV) |
Komal Gems |
Assignment of Receivable |
Not stated |
Property information of affiliate:-
Property Location: Unit
No. 2 on 8/F., Guardforce Centre, 3 Hok Yuen Street East, 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 |
|
29-01-2008 |
- |
Wing Lung Bank 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 –
-
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.67.04 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.73.93 |
|
HKD |
1 |
Rs.8.63 |
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 : |
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.