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Report Date : |
06.04.2013 |
IDENTIFICATION DETAILS
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Name : |
KOWLOON
TRADING CO. |
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Registered Office : |
Flat F, 14/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
01.05.1987 |
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Com. Reg. No.: |
10973982-000-05 |
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Legal Form : |
Partnership |
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Line of Business : |
Trader of Diamond, gemstone and jade, sapphire, rube, emerald, coloured gemstone, etc. |
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No. of Employees : |
4 |
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 (31.03.2012) |
Current Rating (30.06.2012) |
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Hong Kong |
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 |
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 |
KOWLOON TRADING
CO.
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
Manager: Mr. Agrawal Anil
Establishment: 1st May, 1987.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond and Gemstone Trader.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
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.
10973982-000-05
Manager: Mr. Agrawal Anil
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.
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.
Activities: Diamond and Gemstone Trader.
Lines: Diamond, gemstone and jade, sapphire, rube, emerald, coloured gemstone, etc.
Brand Name: K.T.C.
Employees: 4.
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.
Hong Kong
Jewellery & Jade Manufacturers Association, Hong Kong.
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: Good.
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,
black diamond collections, yellow diamond collections 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 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, gold & 925 starling silver jewellery. The president of GRK is Mr. Kedar L. Gupta.
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 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. Besides, 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.
The
history of the subject in Hong Kong is over twenty-five years. Regular suppliers and customers have been
maintained. Business has been active.
On
the whole, in view of the subject’s history and background, consider it 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.
-
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.
-
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.