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Report No. : |
308668 |
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Report Date : |
19.02.2015 |
IDENTIFICATION DETAILS
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Name : |
KOMAL GEMS |
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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 : |
23.12.1991 |
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Com. Reg. No.: |
15157882-000-12 |
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Legal Form : |
Sole Proprietorship Concern |
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Line of Business : |
· Engaged in trading in Diamond, Diamond Jewellery & Emerald products · Subject product ranges includes Diamond Bracelets, Diamond Earrings, Diamantes & Pearl Ornaments, 925 Silver Diamonds, White Diamond Brooches, Diamond Bangles & Diamond Pins. |
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No of Employees : |
06 (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 : |
Exists |
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) |
|
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% 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 |
KOMAL GEMS
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: 6. (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:-
Cygnus Jewelry Inc., USA.
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 |
--- |
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
diamond, diamond jewellery & emerald products
Employees: 6. (Including
associates)
Commodities Imported: India, other Asian countries, Belgium,
Israel, etc.
Markets: Japan, Belgium,
South Korea, Thailand, India, other Asian countries, Europe, North America,
etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying : L/C, T/T, D/P,
etc.
Capital: Not
disclosed.
Profit or Loss: Maintaining
a small profit every year.
Condition: Business
is active and normal.
Facilities: Making
use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Wing Lung Bank Ltd., Hong Kong.
Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.
Standing: Good.
Komal Gems
formerly was a partnership jointly owned by Mr. Vipulkumar Kesubhai Boghani and
Mr. Rakesh Girdharlal Gajera. However,
Boghani retired 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.
The subject has
got an associated concern 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 concern of an India diamond manufacturer Laxmi.
The subject also
has got another associated concern 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.
The subject is trading in Diamond, Diamond Jewellery
& Emerald products. 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. Products are exported to Japan,
South Korea, India, the other Asian countries, North America, Europe, etc.
Located at
Hoveniersstraat, Internal Postal Box 347 BP 347 2018, Antwerpen, Belgium, Komal
is one of the significant diamond traders in Belgium.
Komal is also a
subsidiary of Laxmi. It is one of the
largest diamond wholesalers in Southeast Asia.
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
Concern [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.
Komal is also
trading in uncut diamonds. It is a
diamond importer while Laxmi is an exporter and manufacturer.
Besides the
subject, Laxmi has got affiliated companies in India, Belgium, China, Thailand
and the United States.
Laxmi has had
three jewellery brands, namely, “Cygnus” in India, “Noor” in the United
States and a branded diamond “Gabrielle”
also in the United States.
Currently, the
Chairman of Laxmi Diamond Group is Mr. Vasant Gajera.
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 concern L. D. Creations
which is also located at the same address.
This concern is also a diamond trader.
The subject operates
from a self-owned office in Hong Kong.
The premises are owned by Laxmi Diamond.
As the history of
the subject in Hong Kong is over twenty-two years and eight months, 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-concern 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.62.25 |
|
|
1 |
Rs.95.57 |
|
Euro |
1 |
Rs.71.01 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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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.