MIRA INFORM REPORT
|
Report Date : |
21.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
KOWLOON
TRADING CO. |
|
|
|
|
Registered Office : |
Flat F, 14/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
01.05.1987 |
|
|
|
|
Com. Reg. No.: |
10973982-000-05 |
|
|
|
|
Legal Form : |
Partnership Concern |
|
|
|
|
Line of Business : |
Importer and Exporter of Diamond, gemstone and jade, sapphire, rube, emerald, coloured gemstone, etc. |
|
|
|
|
No. of Employees
: |
5 persons |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Hong Kong |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
Company name
KOWLOON TRADING
CO.
Company ADDRESS
Flat F, 14/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2722 5540, 2721 7443
FAX: 2311 4456
E-MAIL: ktco@netvigator.com
MANAGEMENT
Manager: Mr. Agrawal Anil
SUMMARY
Establishment: 1st May, 1987.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond and Jewellery Trader.
Employees: 5.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS:
Head Office:-
Flat F, 14/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
· GRK Gems Inc., USA.
· Gupta Jewel Corporation, India.
BUSINESS REGISTRATION NUMBER
10973982-000-05
MANAGEMENT
Manager: Mr. Agrawal Anil
PARTNERS
Name: Mr. Agrawal ANIL
Residential Address: Flat 3, 10/F., Block C, Hankow Centre, 1C Middle Road, Tsimshatsui, Kowloon, Hong
Kong.
Name: Mr. Kumar Gupta ASHOK
Residential Address: 31/3 Soi 13 Silom Road, Bangkok, Thailand.
HISTORY
The
subject was established on 1st May, 1987 as a partnership concern jointly owned
by Mr. Agrawal Anil and Mr. Kumar Gupta Suresh
under the Hong Kong Business Registration Regulations. On 1st January, 2001, Mr. Kumar Gupta Suresh retired and a new partner Mr. Kumar Gupta
Ashok joined in. The subject remains to
be a partnership.
Initially the subject was located at Flat 3, 10/F., Block C, Hankow Centre, 1C Middle Road, Tsimshatsui, Kowloon, Hong Kong where is the residential address of Mr. Anil Agrawal, moved to Flat 4, 10/F., Block C of the same building in January 1992; to 10/F., Rear Portion, Ocean View Court, 41 Mody Road, Tsimshatsui, Kowloon, Hong Kong in December 1995; to Flat D, 16/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong in March 2001; and further moved to Flat F, 14/F. of the same building in July 2005.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Importer and Exporter.
Lines: Diamond, gemstone and jade, sapphire, rube, emerald, coloured gemstone, etc.
Brand Name: K.T.C.
Employees: 5.
Commodities Imported: India, Thailand, Europe, other Asian countries, etc.
Markets: Japan, South Korea, Taiwan, Thailand, other Asian countries, etc.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP
Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
GENERAL
Kowloon Trading Co. is a partnership jointly owned by Mr. Agrawal Anil and Mr. Kumar Gupta Ashok. Both of the partners are Indian while the latter is residing in Bangkok, Thailand. Anil is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject is trading in diamond, gemstone and jade, sapphire, ruby, emerald, coloured gemstone, etc. Loose diamonds are its main commodities.
Most of its products bear the brand name K.T.C.
Raw materials are imported from India, Thailand, Europe, etc. After processing in Hong Kong or China, finished, cut or polished products are marketed in Hong Kong, exported to Japan, South Korea, Taiwan, Thailand, Malaysia, China, other Asian countries, Spain, the United States, etc.
According to the subject, it has got affiliated companies or offices in Malaysia, Spain, Taiwan, Thailand, China, Taiwan, India and the United States. The main one in Thailand is administered by Mr. Kumar Gupta Ashok.
In Hong Kong, the subject set up a retailing outlet in Hong Kong on 1st May, 2007. However, this firm ceased business on 1st July, 2008. But, the subject has had associated retail outlets in the United States, Thailand, Taiwan and India. Business is rather active.
The subject’s business is chiefly handled by Anil who has been in Hong Kong for a very long time.
The subject in fact is an affiliated company of GRK Gems Inc. [GRK] which is a US-based firm. Its corporate office is in New York, the United States.
Established in 1977, GRK is a manufacturer and wholesale supplier of diamonds, precious and semi-precious gemstones. Its customers are all over the world. Besides the subject, GRK has got associated firms in Bangkok, Bombay and Jaipur of India.
To our knowledge, the subject is also an associated company of Gupta Jewel Corporation [Gupta]. Gupta was founded in 1970. It is a leading manufacturer, importer and exporter of a wide range of precious stones and semi-precious stones comprising of amethyst, citrine, lemon topaz, emerald, sapphire, garnet, diamond, aquamarine, etc. Gupta also deals in gold and silver jewellery. Today, Gupta is also a regular member of International Colored Association [ICA].
Gupta is engaged in manufacturing, importing and exporting of the following products:-
· Diamonds
o Loose Diamonds
o Princess Cut Diamonds
o Green Diamonds
o Fancy Diamonds
· Gemstones
o Emerald Gemstones
o Ruby Gemstones
o Pink Sapphire Gemstones
o Tanzanite Gemstones
o Aquamarine Gemstones
o Amethyst
o Tourmaline Gemstones
o Amethyst Gemstones
o Citrine Gemstones
o Blue Topaz Gemstones
o Lemon Topaz Gemstones
o Rodolite
o Garnet Gemstones
· Jewellery
o Gold Jewellery
o Silver Jewellery
The subject also trades in Gupta’s products such as those mentioned above.
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 “Hong Kong International Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period of 16th to 20th February, 2012.
The history of the subject in Hong Kong is over twenty-four years and seven months. Regular suppliers and customers have been maintained. Business has been active.
According to the subject, its business will grow further in the years ahead.
On the whole, in view of the subject’s history and background, consider it good for normal business engagements.
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.50.32 |
|
UK Pound |
1 |
Rs.77.96 |
|
Euro |
1 |
Rs.65.30 |
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.