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Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
FLAWLESS (H.K.) COMPANY |
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Registered Office : |
Room 402, 4/F., Chevalier House, 45-51 Chatham Road, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
06.06.2005 |
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Com. Reg. No.: |
35695197-000-06 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of diamonds and
jewellery. |
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No. of Employees : |
5. (Including affiliated
company) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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,
and less than 2% in 2012. Credit expansion and tight housing supply conditions
caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in
2012. 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 |
FLAWLESS (H.K.)
COMPANY
Room 402, 4/F., Chevalier House, 45-51 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
PHONE: 2739 0443, 2739 0444
FAX: 2368 4939
E-MAIL: flawlesshk@flawlesscompany.com
Manager: Mr. Poonam Chand Kothari
Establishment: 6th June, 2005.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond
Trader.
Employees: 5. (Including affiliated company)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
FLAWLESS (H.K.)
COMPANY
Head Office:-
Room 402, 4/F., Chevalier House, 45-51 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Companies:-
Concorde International, India.
Flawless Co. Ltd., Thailand.
Affiliated
Company:-
Purity Company, Hong Kong. (Same
address)
35695197-000-06
Manager: Mr. Poonam Chand Kothari
Contact Person: Mr. Gaurav Sharma
Name: Mr. Poonam Chand KOTHARI
Residential Address: CD-8,
City Tower, 1867/59-60, Tridhos City, Marina Condo, Charoennakorn Road,
Klongsan, Bangkok 10600, Thailand.
Name: Mr. Sunil KOTHARI
Residential Address: CD-8,
City Tower, 1867/59-60, Tridhos City, Marina Condo, Charoennakorn Road,
Klongsan, Bangkok 10600, Thailand.
The subject was established on 6th June, 2005 as a partnership concern
jointly owned by Mr. Poonam Chand Kothari and Mr. Sunil Kothari under the
Hong Kong Business Registration Regulations.
Initially the subject was located at Rear Portion, 7R, 7/F., Ocean View
Court, 33 Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 808, 8/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong in
June 2006, and further moved to the present address in April 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and jewellery.
Employees: 5.
(Including affiliated company)
Commodities Imported: India,
Thailand, Europe, etc.
Markets: Hong Kong, China, Southeast Asia,
etc.
Terms/Sales: L/C, T/T, D/P, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a normal state.
Facilities: Making rather 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.
Flawless (H.K.) Company is a partnership jointly owned by two Indian:
Mr. Poonam Chand Kothari and Mr. Sunil Kothari. The latter is an India passport holder and
currently residing in Bangkok, Thailand most of the time while the former is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. He is also manager of the
subject.
The subject moved to the present address in April 2011.
The subject is trading in the following commodities:-
|
Product/Service |
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Fine Jewellery |
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Diamond |
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Precious and Semi-Precious Jewellery |
|
Jewellery – Diamond |
|
Watches and Clocks |
|
Watches |
|
Watch – Jewellery |
Commodities are imported from India and Thailand. Its diamonds are chiefly fancy shaped which
include marquise, pears, hearts and ovals.
It is also a major supplier of round brilliant cut diamonds (full cut in
white goods, China made in small sizes) in Collection Quality with or without
GIA/HRD Certificate.
According to the subject, its stock includes mainly the nice make and
well assorted parcel from different sizes and Pointers up to 90 cts. It has a wide range in the GIA certified
stones from 1 Cts up to 5cts. in D-H colour and IF‑SI clarity.
Most of its products bear the brand name of “Flawless”.
Currently the subject has got an affiliated company in Thailand known as
Flawless Co. Ltd. which is managed by the subject’s partner Mr. Sunil Kothari.
Besides, the subject also has had an associated company Concorde
International [Concorde] in India.
Concorde is managed by the third generation of the founder who has been
engaged in the business of manufacturing and exporting diamonds and colour
stones for a very long time. Its parent
company “Sobhagmull Gokalchand Jewellers” is in Jaipur, India. This firm has been in the business of
manufacturing and exporting precious stones since the last 100 years. It is engaged in manufacturing and exporting
all qualities, shapes, sizes and colours of precious stones.
Concorde manufactures small size diamonds in rounds starting from the
smallest -2 up to 0.20 points, If - I3 purity.
This firm carries in its stock white, off white (TTLB) and fancy colours
in all sizes, shapes and qualities (VVS-I3).
It also deals in old cut yellow (cape) diamonds and special big size
stones 1.00 cts up. Most of the products
of Concorde are GIA certified.
Concorde’s manufacturing facility is located at the main cutting centre
of Jaipur. It is specialised in
emeralds, sapphire and rubies in all qualities, shapes, sizes and cuts. It also deals in all kinds of semi-precious
stones. Concorde has had other foreign
marketing associates such as Allure Jewels LLC in Dubai of the United Arab
Emirates, and Allure Jewellery Manufacturing Co. Ltd. in Bangkok of Thailand.
The subject has had an affiliated company Purity Company [Purity]
located at its operating address. Purity
is a sole proprietorship set up and owned by Mr. Deepak Jain who is an
Indian. He is a Hong Kong ID Card holder
and has got the right to reside in Hong Kong permanently. He is also the manager of Purity. However, Deepak Jain is also the contact
person of the subject.
The subject is fully supported by its affiliated and associated firms in
India and Thailand.
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 “HKTDC Hong Kong International Jewellery Show 2014” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2014.
Its booth No. is 3G-E26.
The history of the subject in Hong Kong is over eight years and three
months.
On the whole, consider the subject 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.
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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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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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
|
1 |
Rs.100.47 |
|
Euro |
1 |
Rs.84.65 |
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 |
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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.