|
Report Date : |
03.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
KGK DIAMONDS
(HK) LTD. |
|
|
|
|
Registered Office : |
14/F., Chevalier House, |
|
|
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|
Country : |
|
|
|
|
|
Date of Incorporation : |
27.10.2000 |
|
|
|
|
Com. Reg. No.: |
31329946 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
Manufacturer and Exporter of all kinds of diamonds |
|
|
|
|
No. of Employees : |
32 |
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 : |
Good |
|
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 30, 2011
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
KGK DIAMONDS
(HK) LTD.
ADDRESS: 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: 27th October, 2000.
Organization: Private Limited Company.
Capital: Nominal: HK$90,000,000.00
Issued: HK$89,700,002.00
Business Category: Diamond Trader.
Employees: 32. (Including associates in Hong Kong)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Good.
KGK DIAMONDS
(HK) LTD.
ADDRESS:
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) 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 (Shanghai) Ltd., China.
KGK Diamonds (SZ) Co. Ltd., China.
KGK Diamonds Co. Ltd., Thailand.
KGK Diamonds LLC, USA.
KGK Enterprises, India.
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 Properties (HK) Ltd., Hong Kong.
KGK Real Estate (HK) Ltd., Hong Kong.
M.B.K. Diamonds GmbH, Germany.
Precious Trade Inc., USA.
S. D. Diamond LLC, Russia.
Star Rough Diamonds (Pty) Ltd., South Africa.
etc.
31329946
0735843
Managing
Director: Mr. Sanjay Navrattan Kothari
Nominal Share
Capital: HK$90,000,000.00 (Divided into 90,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$89,700,002.00
(As per registry dated 27-10-2011)
|
Name |
|
No.
of shares |
|
United Pacific Excel Ltd. 263 Main Street,
P.O. Box 2196, Road Town, Tortola, British Virgin Islands. |
|
88,000,000 |
|
Sanjay
Navrattan KOTHARI |
|
1,700,001 |
|
Manju KOTHARI |
|
1 |
|
|
|
––––––––– |
|
|
Total: |
89,700,002 ======== |
(As per registry dated 21-02-2012)
|
Name (Nationality) |
Address |
|
Manju KOTHARI |
Flat B & C, 8/F., Robinson Garden
Apartments, 3 Robinson Road, Central, Hong Kong. |
|
Sanjay Navrattan
KOTHARI |
Flat B & C, 8/F., Robinson Garden Apartments,
3 Robinson Road, Central, Hong Kong. |
(As per registry dated 27-10-2011)
|
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 27th October, 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 diamonds.
Employees: 32. (Including associates in Hong Kong)
Raw Materials: Imported from India, other Asiann countries, Europe, etc.
Markets: Japan, USA, UAE, Korea, Australia, Middle East, South Africa, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Diamond Federation
of Hong Kong, China Ltd., Hong Kong.
The Indian Chamber
of Commerce Hong Kong, Hong Kong.2
Nominal Share
Capital: HK$90,000,000.00 (Divided into 90,000,000 shares of HK$1.00 each)
Issued Share
Capital: HK$89,700,002.00
Alternation
of Capital:-
|
Initially |
paid up |
HK$ 46,800,002.00 |
|
27-02-2009 |
paid up |
HK$ 11,700,000.00 |
|
04-03-2010 |
paid up |
HK$ 31,200,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$ 89,700,002.00 ============== |
Increase
of Nominal Capital:-
|
From |
HK$60,000,000.00 |
to |
HK$90,000,000.00 |
on |
04-01-2010 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small profit every year.
Condition: Keeping in an active condition.
Facilities: Making very active use of general banking facilities.
Payment: Met obligations as contracted.
Commercial Morality: Good.
Bankers:-
The Royal Bank of Scotland N.V., Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Standing: Good.
KGK
Diamonds (HK) Ltd. is a subsidiary company of United Pacific Excel Ltd. which
is a BVI-registered firm. The subject in
fact is a member of the KGK Group which is trading in diamond and related
products. It increased its issued share
capital in March 2010.
The
subject is trading in the Group’s products.
It has got a main affiliated company located at its operating address
known as KGK Jewellery (HK) Ltd., a Hong Kong-registered firm managed by the
same persons. The subject has set up at least
six retailing outlets in Hong Kong which are retailing the products 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.
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.
Currently,
the subject is manufacturing the following commodities and offering clients
with the following services:-
|
Product/Service |
Product/Service
Remarks |
|
Jewellery –
Diamond |
Include
precious stones from India, Thailand, Belgium and Israel (Importer) |
|
Gemstones and
Jade |
Precious
stones (Manufacturer) Precious
stones (Exporter) Precious
stones from India and Thailand (Importer) |
|
Diamond |
From
India, Thailand, Belgium and Israel (Importer) |
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 China, the Group has had the following
firms:-
KGK
Diamonds (Shanghai) Ltd.
KGK
Diamonds (SZ) Co. Ltd.
KGK
Jewellery Manufacturing Ltd.
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, tanzanites, 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
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:-
United States
·
JCK Las Vegas Show
Europe
·
Baselworld, Switzerland
Hong Kong
·
HK International Jewellery Show
·
HK Jewellery & Gem Fair
China
·
Shenzhen International Jewellery
Fair
Asia (other than Hong
Kong and China)
·
International Jewellery Tokyo, Japan
·
Bangkok Gems & Jewelry Fair, Thailand
·
Jaipur Jewellery Show
·
India International Show
·
Bangkok Gems & Jewelry Fair,
Thailand
Middle East
·
Dubai International Jewellery Show
The
overall business of the subject in Hong Kong is active and satisfactory. The
subject is fully supported by the KGK Group.
It is sharing the same office with its associated companies KGK
Jewellery Manufacturing Ltd. and KGK Jewellery (HK) Ltd.
To
our knowledge, the total income of
KGK Diamonds (India) Pvt. Ltd. ranges from Rs. 6,500 to 7,000 million. Profit after tax ranges from Rs 80 to 100
million. Profit margins are usually low.
The
consolidated turnover of the Group is very significant. However, the profit margin of the Group is
also low.
The
history of the subject in Hong Kong is over eleven years and six months.
On the whole,
consider it good for normal business engagements.
Property
information of the company and director:-
1. 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. |
2. 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 |
|
Date |
Particulars |
Amount |
|
27-05-2005 |
Instrument: Debenture Property: All the Company’s undertaking and rpoperty
and assets whatsoever and wheresoever both present and future including all
book and other debts revenues and claims Mortgagee: ABN
AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.] |
In consideration of ABN AMRO Bank N.V. agreeing to grant general
banking facilities to KGK Diamonds (HK) Ltd. |
|
23-05-2008 |
Instrument: Mortgage Property: 20/4,070th parts or shares of and in
Kowloon Inland Lot No. 9401 (Flat 8 on 14/F. and Flat I on 18/F. of Star
Mansion, 3 Minden Row, Kowloon, Hong Kong.) Mortgagee: ABN
AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.] |
In consideration of ABN AMRO Bank N.V. agreeing to grant general
banking facilities to KGK Jewellery Manufacturing Ltd. |
|
23-05-2008 |
Instrument: Mortgage Property: 20/4,070th parts or shares of and in
Kowloon Inland Lot No. 9401 (Flat 8 on 14/F. and Flat I on 18/F. of Star
Mansion, 3 Minden Row, Kowloon, Hong Kong.) Mortgagee: ABN
AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.] |
In consideration of ABN AMRO Bank N.V. agreeing to grant general
banking facilities to KGK Diamonds (HK) Ltd. |
-
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.52.93 |
|
|
1 |
Rs.85.85 |
|
Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.