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Report Date : |
05.12.2012 |
IDENTIFICATION DETAILS
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Name : |
KOTHARI TRADING
(HK) LTD. |
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Registered Office : |
6/F., Hang Shun
Building, |
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Country : |
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Date of Incorporation : |
16.12.2002 |
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Reg. No.: |
33218272 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Importer and
Exporter of Diamonds, precious and semi-precious stones. |
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No. of Employees : |
5 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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Source : CIA |
KOTHARI TRADING (HK) LTD.
6/F., Hang Shun
Building,
PHONE: 2525
5003
FAX: 2525
5013
E-MAIL: kothari@biznetvigator.com
Managing
Director: Mr. Manak Chand Rajendra Kumar
Kothari
Incorporated
on: 16th
December, 2002.
Organization: Private
Limited Company.
Capital: Nominal: HK$3,000,000.00
Issued: HK$3,000,000.00
Business Category: Diamond Trader.
Employees: 5.
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
KOTHARI TRADING (HK) LTD.
Registered Head Office:-
6/F., Hang Shun
Building, 10-12 Wyndham Street, Central, Hong Kong.
Postal
Address: G.P.O. Box 469, Hong Kong.
Associated Company:-
Kothari Trading Co.
Ltd.
5-16-8 Ueno
Taito-Ku, Sunrise Building, 3B, Tokyo, Japan.
[Tel: 81-3-3837
3847 Fax: 81-3-3837 3848]
33218272
0825973
Managing
Director: Mr. Manak Chand Rajendra Kumar
Kothari
Contact
Person: Mr. Raju Kothari
Nominal Share
Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$3,000,000.00
(As per registry
dated 16-12-2011)
|
Name |
|
No. of shares |
|
Manak Chand
Rajendra Kumar KOTHARI |
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2,000,001 |
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Manak Chand
Surendar Kumar KOTHARI |
|
999,999 |
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–––––––– |
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Total: |
3,000,000 ======= |
(As per registry
dated 16-12-2011)
|
Name (Nationality) |
Address |
|
Manak Chand
Rajendra Kumar KOTHARI |
6/F., Hang Shun
Building, 10-12 Wyndham Street, Central, Hong Kong. |
|
Manak Chand
Surendar Kumar KOTHARI |
Sunrise Building,
3B, Ueno 5-16-8, Taiko-Ku, Tokyo 110-0005, Japan. |
(As per registry
dated 16-12-2011)
|
Name |
Address |
Co. No. |
|
Vercos Ltd. |
Room 206, 2/F.,
Alliance Building, 130-136 Connaught Road Central, Hong Kong. |
0110986 |
The subject was
incorporated on 16th December, 2002 as a private limited liability company
under the Hong Kong Companies Ordinance.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: Diamonds, precious
and semi-precious stones.
Employees: 5.
Commodities
Imported: India, Belgium, other European
countries, Asian countries, etc.
Markets: Japan, Southeast Asia,
Europe, Middle East, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share
Capital: HK$3,000,000.00 (Divided into 3,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$3,000,000.00
Mortgage or Charge:-
Date of Legal
Charge/Mortgage: 21-01-2011
Amount: To secure the due & punctual
payment of the Secured Indebtedness
Property: All those 3,828 equal undivided
142,919 parts or shares of and in Section A, B; C; D; G; J of Inland Lot No. 80,
Silver Fortune Plaza, No. 1 Wellington Street, Central, Hong Kong. All that
office & ancillary areas on the Seventh Floor
Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong.
Profit & Loss: Making a small profit every
year.
Condition: Keeping in an active
condition.
Facilities: Making active use of
general banking facilities.
Payment: Met
obligations as contracted.
Commercial
Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong.
Standing: Good.
Having issued 3
million ordinary shares of HK$1.00 each, Kothari Trading (HK) Ltd. was a
subsidiary company of Kothari Trading Co. Ltd. [KTCL]. KTCL, a Japan-based firm, had held one third
of the stakes of the subject. The
balance two thirds were held by Mr. Manak Chand Rajendra Kumar Kothari. On 18th December, 2008, KTCL transferred
all its shares to Mr. Manak Chand Surendar Kumar Kothari. Now the subject is wholly‑owned by the
Kothari family. However, the subject
remains to be a business partner of KTCL.
The subject is
dealing in fine coloured diamonds, pearls, rare gemstones, etc. Products include natural fancy coloured
diamonds, unusual rose cut and briolette cut diamonds, unheated sapphire,
paraiba stones, 14.75-Carat emerald, etc.
It is trading in the following categories:-
·
Diamonds
(including loose or polished);
·
Emerald;
·
Jewellery,
jewellery sets;
·
Natural
pearls;
·
Paraiba
Stones;
·
Rubies;
&
·
Sapphire
(including unheated).
Its jewellery
products include crystal bracelets, diamond earrings, diamonte & pearl
ornaments, 925 silver diamond rings, emerald rings, pink sapphire rings, etc.
Fancy diamonds, cut
and polished diamonds are imported from India, other Asian countries, Belgium
and other European countries, etc.
Finished products and polished diamonds are exported to Japan, China,
Taiwan, South Korea, other Asian countries, Australia, the Middle East, North
America, Europe, Africa, Central & South America, etc. However, Japan is its main market. Business is active. KTCL is responsible for marketing the
subject’s products in Japan.
The subject’s
business is chiefly handled by Mr. Manak Chand Rajendra Kumar Kothari and Mr.
Manak Chand Surendar Kumar Kothari, both of whom are directors of the
subject. The former is a Hong Kong ID
Card holder and has got the right to reside in Hong Kong permanently. The latter is an India passport holder and
currently in Japan handling the business of KTCL.
The Kothari family
has had affiliated factories engaged in diamond trading and manufacturing in
India.
In order to
penetrate the international market further, the subject and KTCL have taken
part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it took part in
“HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
16th to 20th February, 2012. It is going
to take part in “HKTDC Hong Kong International Jewellery Show 2013” which will
be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong
during the period of 5th to 9th March, 2013.
KTCL will also take
part in the above-mentioned exhibition in 2013.
The history of the
subject in Hong Kong is about ten years.
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 |
|
US Dollar |
1 |
Rs.54.94 |
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|
1 |
Rs.88.42 |
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Euro |
1 |
Rs.71.71 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.