|
Report Date : |
14.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
KGK JEWELLERY MANUFACTURING LTD. |
|
|
|
|
Registered Office : |
14/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
22.09.2000 |
|
|
|
|
Reg. No.: |
31272329 |
|
|
|
|
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, coloured gemstones, gemset gold jewellery, gemset platinum jewellery (including bracelet, brooch, earring, necklace, pendant, ring, and others). |
|
|
|
|
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
MANUFACTURING LTD.
14/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 2723 9828, 2733 0700
FAX: 2739 7584
E-MAIL: kgk.hk@kgkmail.com
kgkhk@kgkgroup.com
Managing Director: Mr. Sanjay
Navrattan Kothari
Incorporated on: 22nd September, 2000.
Organization: Private Limited Company.
Capital: Nominal: HK$60,000,000.00
Issued: HK$59,780,000.00
Business Category: Jewellery
Manufacturer and Trader.
Employees: 33. (Including associates in Hong Kong)
Main Dealing Banker: The Royal
Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
KGK JEWELLERY
MANUFACTURING LTD.
Registered Head
Office & Workshop:-
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) 3480 6744, 3999 0700
Fax: (86-20) 3480 6749, 3480 6759
E-mail: jewchina@kgkgroup.com
entice@kgkmail.com]
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 (HK) Ltd., Hong Kong.
KGK Jewellery Inc., Japan.
KGK Jewellery Inc., USA.
KGK Jewellery LLC, USA.
KGK Jewellery Manufacturing Ltd., China.
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.
31272329
0732323
Managing Director: Mr. Sanjay
Navrattan Kothari
Nominal Share Capital: HK$60,000,000.00 (Divided into 60,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$59,780,000.00
(As per registry dated 22-09-2012)
|
Name |
|
No. of shares |
|
United Pacific Excel Ltd. 263 Main Street, P.O. Box 2196, Road Town, Tortola, British Virgin
Islands. |
|
58,500,000 |
|
Sanjay Navrattan KOTHARI |
|
652,800 |
|
Manju KOTHARI |
|
627,200 |
|
|
|
––––––––– |
|
|
Total: |
59,780,000 ======== |
(As per registry dated 22-09-2012)
|
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 22-09-2012)
|
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 22nd September, 2000 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, coloured
gemstones, gemset gold jewellery, gemset platinum jewellery (including
bracelet, brooch, earring, necklace, pendant, ring, and others).
Employees: 33. (Including associates in Hong Kong)
Commodities Imported: Sourced from
India, Belgium, UK, etc.
Markets: Japan,
US, UAE, South Korea, Australia, Middle East, South Africa, Russia, India, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$60,000,000.00 (Divided into 60,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$59,780,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making a small
profit every year.
Condition: Keeping in an active
and satisfactory manner.
Facilities: Making active use of
general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Bankers:-
The Royal Bank of Scotland N.V., Hong Kong Branch.
ICICI Bank Ltd., Hong Kong Branch.
Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV),
Hong Kong Branch.
Standing: Good.
KGK Jewellery Manufacturing Ltd. is a subsidiary of United Pacific Excel
Ltd. which is a BVI-registered firm.
In January 2010, the subject has increased its issued share capital from
HK$40,280,000.00 to HK$59,780,000.00.
United Pacific Excel Ltd. is holding 97.9% of the subject’s
interests. The minor shareholders are
Sanjay Navrattan Kothari and Manju Kothari.
They are holding 2.1% in total.
The subject is trading in diamond jewellery and gemset jewellery.
The subject is in fact 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, KGK has set up offices
throughout the world.
The KGK Group was founded in 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 of the Group has expanded from Jaipur to Chennai, and
then to Hong Kong. By the 1970’s, the
Group had been under new leadership and the business diversified into diamonds
and to new global locations such as the United States, Thailand and Japan.
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.
Established in 1905, KGK group is one of the oldest Gemstone Houses of
India. It has its own manufacturing
setup in India, China, South Africa and Russia.
Being a DTC Sightholder, KGK receives its rough directly from DTC.
KGK has its presence in 14 countries, covering major market
globally. KGK deals in diamonds of all
sizes, cut and clarity. KGK also has its fine Jewellery manufacturing units
which is specialized in commercial to high end range products.
KGK’s diamond operation started in 1969 with diamonds trading and
diamond manufacturing activities began in 1982.
Initially KGK was sourcing its rough diamonds from Antwerp which is the
world’s diamond capital. In 1997, KGK
became the DTC Sightholder and started getting rough diamonds directly from
London in addition to Antwerp. In 2005,
KGK got sight in South Africa. This has
facilitated KGK to produce more competitive and cost effective polish diamonds.
KGK has set up marketing offices in all important cities in the world,
and has set up manufacturing units in India, Thailand, China, South Africa and Russia. These factories have modern machines for
diamond cutting and polishing operated by trained craftsmen. The stones are then assorted and graded into
different lots as per their cut, colour, clarity and size. The Group sources its diamonds and colour
stones from different parts of the world through its offices in Antwerp,
London, Russia and South Africa. The
Group opened its offices in the UAE, Germany, Spain, London, etc.
KGK Group is headed by Mr. Navrattan Kothari, who is the Group
Chairman. Each division of the group is
headed by senior members of the Kothari family who have wide ranging experience
in the industry. The Gemstones business
is managed by Mr. Vinay Kothari and Mr. Prakash Kothari, while the Diamonds and
Jewellery business is under the supervision of Mr. Surendra Kothari,
Mr. Sanjay Kothari, Mr. Sandeep Kothari and Mr. Prashant Kothari.
The Group now has set up a factory in Panyu Guangdong Province, China
employing about 300 persons. The factory
is specialised in diamond jewellery, magnetics and reversibles. In 2004, the subject developed its own brand
name “Entice” which is widely known in Hong Kong, the Middle East and
Belgium.
Besides the Panyu factory, the Group’s other diamond manufacturing
plants are located in India and South Africa.
In these factories, KGK is able to manufacture quality diamonds in a
range of sizes (0.005 to 5.00 ct.), shapes, qualities (VVS1 to PK), colour and
clarity.
The Group’s gemstones such as emeralds, tanzanite, rubies and sapphires
are manufactured by its factories in Jaipur, Thailand and Sri Lanka.
The Jaipur factory of the Group produces jewellery for KGK’s own
showroom and the domestic market.
The Group’s products are exported to Japan, other Asian countries, the
Middle East, North America and Western Europe.
Overall business is active.
The subject’s business in Hong Kong is also satisfying. Annual sales turnover is rather
significant. History in Hong Kong is
over twelve years.
On the whole, consider it 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. [Now known as The Royal Bank of Scotland
N.V.] |
Mortgage to secure general banking facilities granted to KGK Diamonds
(HK) Ltd. and KGK Jewellery Manufacturing Ltd. |
|
Date |
Particulars |
Amount |
|
06-11-2007 |
Instrument: Debenture Property: (A) the property, assets,
rights and other things charged, assigned or otherwise secured in favour of
the Bank pursuant to the Deed (B) by way of a floating charge
all shares, stock, bonds, debentures, certificates of deposit, promissory
notes, warrants, futures, options, funds, units, notes and other securities (C) by way of floating
charge all book debts and other debts now and in the future owing to the Customer
and the proceeds of payment or realisation of each of them until the payment
of such proceeds into the account(s) of the Customer maintained from time to
time with the Bank (D) By way of floating
charge all negotiable instruments at any time drawn (E) By way of floating
charge all funds standing to the credit of the Customer from time to time on
any account (F) By way of floating
charge all chooses in action and claims now and in the future belonging to
the Customer Mortgagee: ICICI Bank Ltd., Hong Kong
Branch. |
All monies |
|
22-05-2008 |
Instrument: Debenture Property: All the Company’s undertaking and property and assets whatsoever and
wheresoever both present and future including all book and other debts revenues
and claims both present and future due or owing or which may become due or
owing to the Company, all its uncalled capital, goodwill and all patents,
patent applications, trade marks, trade names, registered designs and
copyrights and all licences and ancillary and connected rights relating to
the intangible property both present and future of the Company Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. |
General banking facilities |
|
11-10-2011 |
Instrument: Debenture made between the Borrower
and Bank Property: By way of first floating charge all the undertaking, property, assets
& 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.