Amended Report
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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
FLAWLESS (H.K.) COMPANY |
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Registered Office : |
Room 402, 4/F., Chevalier House, |
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Country : |
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Date of Incorporation : |
06.06.2005 |
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Com. Reg. No.: |
35695197-000-06 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery, etc. |
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No. of Employees : |
06 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Hong Kong |
A2 |
A2 |
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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 |
FLAWLESS (H.K.) COMPANY
Room 402, 4/F., Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2739 0443, 2739 0444
FAX: 2368 4939
E-MAIL: flawlesshk@flawlesscompany.com
Manager: Mr. Poonam Chand Kothari
Establishment: 6th June, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Jewellery Trader.
Employees: 6.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room 402, 4/F., Chevalier House, 45-51 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
Affiliated
Companies:-
Concorde International, India.
Flawless Co. Ltd., Thailand.
35695197-000-06
Manager: Mr. Poonam Chand Kothari
Contact Person: Mr. Gaurav Sharma
Name: Mr. Poonam Chand KOTHARI
Residential
Address: CD-8, City Tower,
1867/59-60, Tridhos City, Marina Condo, Charoennakorn Road, Klongsan, Bangkok
10600, Thailand.
Name: Mr. Sunil KOTHARI
Residential
Address: CD-8, City Tower,
1867/59-60, Tridhos City, Marina Condo, Charoennakorn Road, Klongsan, Bangkok
10600, Thailand.
The subject was established on 6th June, 2005 as a partnership concern jointly owned by Mr. Poonam Chand Kothari and Mr. Sunil Kothari under the Hong Kong Business Registration Regulations.
Initially the subject was located at Rear Portion, 7R, 7/F., Ocean View Court, 33 Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 808, 8/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in June 2006, and further moved to the present address in April 2011.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery, etc.
Employees: 6.
Commodities Imported: India, Thailand, etc.
Markets: China, Southeast Asia, 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: Keeping in a normal state.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Flawless (H.K.) Company is a partnership jointly owned by two Indian: Mr. Poonam Chand Kothari and Mr. Sunil Kothari. The latter is an India passport holder and currently residing in Bangkok, Thailand most of the time while the former is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject moved to the present address in April 2011.
The subject is trading in the following commodities:-
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Product/Service |
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Fine Jewellery |
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Diamond |
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Precious and Semi-Precious Jewellery |
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Jewellery – Diamond |
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Watches and Clocks |
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Watches |
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Watch – Jewellery |
Commodities are imported from India and Thailand. Its diamonds are chiefly fancy shaped which include marquise, pears, hearts and ovals. The subject’s loose diamonds in round shape mainly in -2, +2-6.5 and +6.5-11, and fancy shapes in collection quality from 0.05 pt to 1.00 ct. It also provides customers with GIA certified round from 0.30 to 2.00 ct. Most of its products bear the brand name of “Flawless”.
Currently the subject has got an affiliated company in Thailand known as Flawless Co. Ltd. which is managed by the subject’s partner Mr. Sunil Kothari.
Besides, the subject also has had an associated company Concorde International [Concorde] in India. Concorde is managed by the third generation of the founder who has been engaged in the business of manufacturing and exporting diamonds and colour stones for a very long time. Its parent company “Sobhagmull Gokalchand Jewellers” is in Jaipur, India. This firm has been in the business of manufacturing and exporting precious stones since the last 100 years. It is engaged in manufacturing and exporting all qualities, shapes, sizes and colours of precious stones.
Concorde manufactures small size diamonds in rounds starting from the smallest -2 up to 0.20 points, If - I3 purity. This firm carries in its stock white, off white (TTLB) and fancy colours in all sizes, shapes and qualities (VVS-I3). It also deals in old cut yellow (cape) diamonds and special big size stones 1.00 cts up. Most of the products of Concorde are GIA certified.
Concorde’s manufacturing facility is located at the main cutting centre of Jaipur. It is specialised in emeralds, sapphire and rubies in all qualities, shapes, sizes and cuts. It also deals in all kinds of semi-precious stones. Concorde has had other foreign marketing associates such as Allure Jewels LLC in Dubai of the United Arab Emirates, and Allure Jewellery Manufacturing Co. Ltd. in Bangkok of Thailand.
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 going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
The subject is fully supported by its affiliated and associated firms in India and Thailand.
The history of the subject in Hong Kong is over six years and five months.
On the whole, consider the subject 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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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.68 |
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UK Pound |
1 |
Rs.85.12 |
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Euro |
1 |
Rs.69.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.