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Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Flat F, 14/F., |
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Country : |
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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 : |
Subject is trading in diamond, gemstone and jade,
sapphire, ruby, emerald, coloured gemstone |
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No. of Employees |
04 |
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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Hong Kong |
A1 |
A1 |
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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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies
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Source
: CIA |
KOWLOON TRADING
CO
ADDRESS: Flat F, 14/F., Far East Mansion, 5-6 Middle Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2722 5540, 2721 7443
FAX: 852-2311 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., US.
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.
MEMBERSHIP: Hong Kong Jewellery & Jade Manufacturers Association, Hong Kong.
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Business is normal.
Facilities: Making active use of general banking facilities.
Payment: Met 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 India merchants while the latter is residing in Bangkok, Thailand. Anil is a Hong Kong ID 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. However, loose diamonds, black diamond collections, yellow diamond collections, multi-coloured sapphire are the main commodities carried.
Most of its products bear the brand name K.T.C.
Raw materials are imported from India, Thailand, Europe, etc. Commodities 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.
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, 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
Loose Diamonds
Princess Cut Diamonds
Green Diamonds
Fancy Diamonds
Gemstones
Emerald Gemstones
Ruby Gemstones
Pink Sapphire Gemstones
Tanzanite Gemstones
Aquamarine Gemstones
Amethyst
Tourmaline Gemstones
Amethyst Gemstones
Citrine Gemstones
Blue Topaz Gemstones
Lemon Topaz Gemstones
Rodolite
Garnet Gemstones
Jewellery
Gold Jewellery
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 “HKTDC Hong Kong International Jewellery Show 2015” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 4th to 8th March, 2015.
The history of the subject in Hong Kong is over twenty-seven years. Regular suppliers and customers have been maintained. Business is 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.
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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.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.86 |
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1 |
Rs.102.67 |
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Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.