|
Report Date : |
14.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
KGK JEWELLERY (HK) LTD. |
|
|
|
|
Registered Office : |
14/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
19.02.2003 |
|
|
|
|
Reg. No.: |
33368774 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of All kinds of gold and platinum jewellery,
gold and silver jewellery, diamond gold jewellery, etc. |
|
|
|
|
No. of Employees : |
33. (Including associates in
Hong Kong) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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'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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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.
|
Source : CIA |
KGK JEWELLERY (HK)
LTD.
14/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 2723 9828
FAX: 2739 7584
E-MAIL: kgkhk@kgkgroup.com
Managing Director: Mr. Sanjay
Navrattan Kothari
Incorporated on: 19th February, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$30,000,000.00
Issued: HK$23,860,002.00
Business Category: Jewellery
Trader.
Employees: 33. (Including associates in Hong Kong)
Main Dealing Banker: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong.
Banking Relation: Satisfactory.
KGK JEWELLERY(HK)
LTD.
Registered Head
Office:-
14/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong.
China Factory:-
KGK Jewellery Manufacturing Ltd.
Panyu, Guangdong Province, China.
[Tel: (86-20) 3999 0700; Fax:
(86-20) 3480 6759]
Holding Company:-
United Pacific Excel Ltd., British Virgin Islands.
Associated/Affiliated
Companies:-
KGK Group of Companies
Far East Gems Inc., China.
K.G.K. Diamonds B.V.B.A., Belgium.
KGK Creation Guangzhou Ltd., China.
KGK Creations (India) Pvt. Ltd., India.
KGK Creations Pvt. Ltd., India.
KGK Diamond Israel Ltd., Israel.
KGK Diamonds & Jewellery LLC, UAE.
KGK Diamonds (Far East) Inc., Japan.
KGK Diamonds (I) Pvt. Ltd., India.
KGK Diamonds (India) Pvt. Ltd., India.
KGK Diamonds (Shanghai) Ltd., China.
KGK Diamonds (SZ) Co. Ltd., China.
KGK Diamonds Co. Ltd., Thailand.
KGK Diamonds LLC, USA.
KGK Enterprises, India.
KGK Entice Jewellery (Shenzhen) Ltd., China.
KGK Gems (Far East) Ltd., Hong Kong.
KGK Gems (HK) Ltd., Hong Kong.
KGK Gems Ltd., Thailand.
KGK Gems, India.
KGK Investment USA (HK) Ltd., Hong Kong.
KGK Jewellery (China) Ltd., Hong Kong.
KGK Jewellery Inc., Japan.
KGK Jewellery Inc., USA.
KGK Jewellery LLC, USA.
KGK Jewellery Manufacturing Ltd., Hong Kong.
KGK Jewelry Inc., China.
KGK Jewelry Manufacturing Ltd., Japan.
KGK Jewelry Pvt. Ltd., India.
KGK Jewels (Pty) Ltd., South Africa.
KGK Mining (HK) Ltd., Hong Kong.
KGK Precious (HK) Ltd., Hong Kong.
KGK Properties (HK) Ltd., Hong Kong.
KGK Real Estate (HK) Ltd., Hong Kong.
KGK Resources (HK) Ltd., Hong Kong.
M.B.K. Diamonds GmbH, Germany.
Precious Trade Inc., US.
S. D. Diamond LLC, Russia.
Star Rough Diamonds (Pty) Ltd., South Africa.
etc.
33368774
0833804
Managing Director: Mr. Sanjay
Navrattan Kothari
Nominal Share Capital: HK$30,000,000.00 (Divided into 30,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$23,860,002.00
(As per registry dated 19-02-2012)
|
Name |
|
No. of shares |
|
United Pacific Excel Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola,
British Virgin Islands. |
|
21,060,000 |
|
Sanjay Navrattan KOTHARI |
|
2,800,001 |
|
Manju KOTHARI |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
23,860,002 ======== |
(As per registry dated 19-02-2012)
|
Name (Nationality) |
Address |
|
Sanjay Navrattan KOTHARI |
House A, 8623 Tai Po Road, Shatin, New Territories, Hong Kong. |
|
Manju KOTHARI |
House A, 8623 Tai Po Road, Shatin, New Territories, Hong Kong. |
(As per registry dated 19-02-2012)
|
Name |
Address |
Co. No. |
|
Louis Lai Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui,
Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 19th February, 2003 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: Manufacturer
and Exporter.
Lines: All kinds of gold and
platinum jewellery, gold and silver jewellery, diamond gold jewellery, etc.
Employees: 33. (Including associates in Hong Kong)
Commodities Imported: India,
Europe, etc.
Markets: Japan,
US, UAE, Korea, Australia, Middle East, South Africa, etc.
Terms/Sales: L/C or
as per contracted.
Terms/Buying: L/C,
D/P, etc.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKK0333]
Nominal Share Capital: HK$30,000,000.00 (Divided into 30,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$23,860,002.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Standard Chartered Bank (Hong Kong) Ltd., Hong
Kong
Standing: Good.
KGK Jewellery (HK) Ltd. is a subsidiary company of United Pacific Excel
Ltd. which is a BVI-registered firm. The
subject has increased its issued share capital from HK$16,060,002 to
HK$23,860,002. United Pacific Excel is
holding 88.3% of the subject’s interests.
The minor shareholders are Sanjay Navrattan Kothari and Manju Kothari. The former is holding 11.7% interests.
The subject in fact is a member of the KGK Group. The KGK Group is a global corporation based
in India with fully integrated operations in diamonds, coloured gemstones and
jewellery. From procurement to
manufacturing and from marketing to retailing, the Group is present across the
full value chain of the industry with offices spread across the world.
Currently,
the subject is trading in the following commodities:-
|
Product/Service |
|
Fine Jewellery |
|
Precious and Semi-Precious Jewellery |
|
Jewellery – Semi-Precious Stone |
|
Jewellery – Platinum |
|
Jewellery – Pearl |
|
Jewellery – Gemset |
|
Jewellery – Diamond |
The subject is engaged in manufacturing and exporting jewellery studded
with Diamonds, Precious & Semi Precious stones. Prime markets are Japan, the United States, South
Korea, Australia, the Middle East, South Africa, Russia, etc.
The subject creates tailored, unique and original designs for its
clients, having a wide range of High-end Jewellery including Necklace sets,
Earrings, Rings, Pendants, Bracelets and Bangles. Unit price ranges from US$5,000 to 5,00,000.
The Group now has set up a factory in Panyu Guangdong Province, China
employing about 300 persons. Products
are exported to Japan, the Middle East, North America and Western Europe.
In China, the Group has had the following firms:-
The foundation of the KGK Group was laid in the year 1905, when Mr. Shri
Keshrimalji Kothari started trading in coloured gemstones simultaneously from
India and Burma. Assisted by his son,
Mr. Shri Ghisilalji Kothari, the business expanded from Jaipur to Chennai, and
then to Hong Kong. By the 1970’s with
new leadership at the helm of the Group, the business operations diversified
into diamonds and to new global locations such as the United States,
Thailand, Japan, etc. Now KGK Group has
had business concerns in fourteen countries of the world.
In July 2009, Martin Flyer Ltd. [Martin Flyer], a US-based firm,
confirmed its partnership and strategic alliance with KGK Group. This partnership has given Martin Flyer
access to additional diamond supplies to fulfil its needs and grow its brands
according to future plans.
In order to penetrate the international market further, KGK Group has taken
part in fairs and exhibitions held in Hong Kong and other foreign large cities.
It has taken part in the following shows:-
JCK Las Vegas Show
Baselworld, Switzerland
HK International Jewellery Show
HK Jewellery & Gem Fair
Shenzhen International Jewellery Fair
Bangkok Gems & Jewelry Fair, Thailand
Bangkok Gems & Jewelry Fair, Thailand
India International Show
International Jewellery Tokyo, Japan
Jaipur Jewellery Show
Middle East
Dubai International Jewellery Show
The subject is fully supported by the Group. History in Hong Kong is over nine years and
nine months.
On the whole, consider the subject good for normal business engagements.
Property information of
director and affiliate:-
1. Property Location: 8/F., Robinson Garden Apartments, 3B
Robinson Road, Hong Kong.
Owner: Sanjay Navrattan Kothari
Date of Purchase: 25-05-1988
Purchased Price: HK$1,700,000 pt.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
23-01-1996 |
- |
Belgian Bank, Hong Kong Branch.
[Business was taken over by Industrial & Commercial Bank of China
(Asia) Ltd.] |
Legal charge to secure banking facilities |
|
16-09-2003 |
- |
Fortis Bank Asia HK, Hong Kong Branch. [Name changed to Belgian Bank but the
business was taken over by Industrial & Commercial Bank of China (Asia)
Ltd.] |
Deed of variation of M/N 6509498 and legal further charge |
2. Property Location: Flat 8 on 14/F. and Flat I on 18/F.,
Star Mansion, 3 Minden Row, Kowloon, Hong Kong.
Owner: KGK Diamonds (HK) Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
23-05-2008 |
- |
ABN AMRO Bank N.V., Hong Kong Branch. |
Mortgage to secure general banking facilities granted to KGK Diamonds
(HK) Ltd. and KGK Jewellery Manufacturing Ltd. |
|
Date |
Particulars |
Amount |
|
22-08-2006 |
Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book
debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch. |
HK$24,000,000 |
|
22-08-2006 |
Instrument: Hypothecation of Tangible Moveable
Property Property: All tangible moveable assets of borrower including in particular
Furniture, Fixture, Plant and Machinery and stocks of all goods etc.,
wheresoever situate and/or in transit Mortgagee: Bank of India, Hong Kong Branch. |
HK$24,000,000 |
|
07-11-2007 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents
representing or relating to goods Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank and the Company now owing to the
Bank |
|
07-11-2007 |
Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book debts
outstanding, moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch. |
HK$30,000,000 |
|
07-11-2007 |
Instrument: Hypothecation of Tangible Moveable
Property Property: All tangible moveable assets of borrower including in particular
Furniture, Fixture, Plant and Machinery and stocks of all goods etc.,
wheresoever situate and/or in transit Mortgagee: Bank of India, Hong Kong Branch. |
HK$30,000,000 |
|
03-12-2008 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents
representing or relating to goods Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank and the Company now owing to the
Bank |
|
22-07-2011 |
Instrument: Debenture made betweer and Bank as
lender & as trustee for itself and each SCB Group Company Property: By way of first floating charge all the undertaking, property, assets
and rights of the Borrower whatsoever and wheresoever both present and future
including, but not limited to its uncalled capital and goodwill Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong. |
As a continuing security for the due and punctual payment of the
Secured Indebtedness |
DIAMOND INDUSTRY –
INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.23 |
|
|
1 |
Rs.87.53 |
|
Euro |
1 |
Rs.70.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.