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Report Date : |
08.12.2014 |
IDENTIFICATION DETAILS
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Name : |
KGK JEWELLERY
(HK) LTD. |
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Registered Office : |
18/F., |
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Country : |
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Date of Incorporation : |
19.02.2003 |
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Com. Reg. No.: |
33368774 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and Exporter of all kinds of gold and platinum jewellery,
gold and silver jewellery, diamond gold jewellery |
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No of Employees : |
35 (Including
associates in |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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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 |
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Source
: CIA |
KGK
JEWELLERY (HK) LTD.
ADDRESS: 18/F.,
PHONE: 852-2723 9828, 2733 2222
FAX: 852-2739 7584, 2721 2575
E-MAIL: kgkhk@kgkgroup.com
Managing
Director: Mr. Sanjay Navrattan Kothari
Incorporated
on: 19th
February, 2003.
Organization: Private
Limited Company.
Issued Share
Capital: HK$39,000,000.00
Business Category: Jewellery Trader.
Employees: 35. (Including associates in
Main Dealing
Banker: Standard
Chartered Bank (Hong Kong) Ltd.,
Banking
Relation: Satisfactory.
Registered Head Office:-
18/F.,
KGK Jewellery Manufacturing Ltd.
Panyu,
[Tel: (86-20) 3999 0700; Fax:
(86-20) 3480 6759]
Holding Company:-
United Pacific Excel Ltd.,
Associated/Affiliated Companies:-
KGK Group of Companies
Far East Gems Inc.,
K Jewels (Pty.) Ltd.,
K.G.K. Diamonds B.V.B.A.,
KGK
KGK Creation Guangzhou Ltd.,
KGK Creations (
KGK Creations Pvt. Ltd.,
KGK Diamond Israel Ltd.,
KGK Diamonds & Jewellery LLC, UAE.
KGK Diamonds (Far East) Inc.,
KGK Diamonds (HK) Ltd., Hong Kong.
KGK Diamonds (I) Pvt. Ltd.,
KGK Diamonds (
KGK Diamonds (
KGK Diamonds (SZ) Co. Ltd.,
KGK Diamonds (
KGK Diamonds
KGK Diamonds Co. Ltd.,
KGK Diamonds
KGK Enterprises,
KGK Entice (
KGK Entice Jewellery (Shenzhen) Ltd.,
KGK Gems (Far East) Ltd.,
KGK Gems (HK) Ltd., Hong Kong.
KGK Gems Ltd.,
KGK Gems,
KGK Infrastructure (
KGK Investment (HK) Ltd., Hong Kong.
KGK Investment
KGK Jewellery (
KGK Jewellery (HK) Ltd., Hong Kong.
KGK Jewellery Inc.,
KGK Jewellery Inc.,
KGK Jewellery
KGK Jewellery Manufacturing Ltd.,
KGK Jewelry Inc.,
KGK Jewelry Manufacturing Ltd.,
KGK Jewelry Pvt. Ltd.,
KGK Jewels (Pty) Ltd.,
KGK Mining (HK) Ltd., Hong Kong.
KGK Precious (HK) Ltd., Hong Kong.
KGK Properties (HK) Ltd., Hong Kong.
KGK Real Estate (HK) Ltd., Hong Kong.
KGK Resources (HK) Ltd., Hong Kong.
KGK Retail Holdings (HK) Ltd., Hong Kong.
Precious Trade Inc., US.
S. D. Diamond LLC,
Star Rough Diamonds (Pty) Ltd.,
etc.
33368774
0833804
Managing Director: Mr. Sanjay
Navrattan Kothari
HK$39,000,000.00
(As per registry dated 18-03-2014)
|
Name |
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No. of shares |
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United Pacific Excel Ltd. |
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36,199,998 |
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Sanjay Navrattan KOTHARI |
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2,800,001 |
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Manju KOTHARI |
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1 |
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––––––––– |
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Total: |
39,000,000 ======== |
(As per registry dated 19-02-2014)
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Name (Nationality) |
Address |
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Sanjay Navrattan KOTHARI |
House A, |
|
Manju KOTHARI |
House A, |
(As per registry dated 19-02-2014)
|
Name |
Address |
|
|
Louis Lai & Luk Co. Secretarial Services Ltd. |
9/F., |
0686503 |
The subject was incorporated on 19th February, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at 14/F., Chevalier House, 45-51
Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the present
address in March 2014.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Manufacturer
and Exporter.
Lines: All
kinds of gold and platinum jewellery, gold and silver jewellery, diamond gold
jewellery
Employees: 35. (Including associates in
Commodities Imported:
Markets:
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P, etc.
Hong Kong Jewelry Manufacturers’ Association,
The Hong Kong General Chamber of Commerce,
[Membership No. HKK0333]
The Italian Chamber of Commerce,
The Indian Chamber of Commerce Hong Kong,
Issued Share Capital: HK$39,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a satisfactory
condition.
Facilities: Making active use of general
banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: Standard Chartered Bank (Hong Kong) Ltd.,
Standing: Good.
KGK Jewellery (HK) Ltd. is a subsidiary company of United Pacific Excel
Ltd. which is a BVI-registered firm. The
subject has increased its issued share capital from HK$16,060,002 to
HK$23,860,002 and further to HK$39,000,000.
United Pacific Excel is holding 92.82% of the subject’s interests. The minor shareholders are Sanjay Navrattan
Kothari and Manju Kothari. The former is
holding 7.18% interests.
The subject in fact is a member of the KGK Group which was established
in 1905. The KGK Group is a global
corporation based in
KGK Group is a DTC Sight Holder since 1997. KGK has cutting and
manufacturing facilities for diamond roughs into polished diamonds in
Currently, the subject is trading in the following commodities:-
|
Product/Service |
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Fine Jewellery |
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Precious and Semi-Precious Jewellery |
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Jewellery – Semi-Precious Stone |
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Jewellery – Platinum |
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Jewellery – |
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Jewellery – Gemset |
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Jewellery – Diamond |
The subject is engaged in manufacturing and exporting jewellery studded
with Diamonds, Precious & Semi Precious stones. The subject is significant for its diamond
necklaces, diamond bangles, earrings.
Prime markets are
The subject creates tailored, unique and original designs for its
clients, having a wide range of High-end Jewellery including Necklace sets,
Earrings, Rings, Pendants, Bracelets and Bangles. Unit price ranges from US$6,000 to 5,00,000.
The Group now has set up a factory in
In
The foundation of the KGK Group was laid in the year 1905, when Mr. Shri
Keshrimalji Kothari started trading in coloured gemstones simultaneously from
In July 2009, Martin Flyer Ltd. [Martin Flyer], a US-based firm,
confirmed its partnership and strategic alliance with KGK Group.
In order to penetrate the international market further, KGK Group has
taken part in fairs and exhibitions held in
It has taken part in the following shows:-
Asia (other than Hong Kong and
The Group has set up associated companies in large cities of the world.
The subject is fully supported by the Group. History in
On the whole, consider the subject good for normal business engagements.
Property information of
director and affiliate:-
1. Property Location: 8/F., Robinson Garden Apartments, 3B
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 |
Legal charge to secure banking facilities |
|
16-09-2003 |
- |
Fortis Bank |
Deed of variation of M/N 6509498 and legal further charge |
2. Property Location: Flat 8 on 14/F. and Flat I on 18/F.,
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. |
Mortgage to secure general banking facilities granted to KGK Diamonds
(HK) Ltd. and KGK Jewellery Manufacturing Ltd. |
|
Date |
Particulars |
Amount |
|
22-08-2006 |
Instrument: Charge and
Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book
debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of |
HK$24,000,000 |
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22-08-2006 |
Instrument: Hypothecation of
Tangible Moveable Property Property: All tangible moveable assets of borrower including in particular
Furniture, Fixture, Plant and Machinery and stocks of all goods etc.,
wheresoever situate and/or in transit Mortgagee: Bank of |
HK$24,000,000 |
|
07-11-2007 |
Instrument: General Letter
of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents
representing or relating to goods Mortgagee: Bank of |
All the money now granted by the Bank and the Company now owing to the
Bank |
|
07-11-2007 |
Instrument: Charge and
Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book
debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of |
HK$30,000,000 |
|
07-11-2007 |
Instrument: Hypothecation
of Tangible Moveable Property Property: All tangible moveable assets of borrower including in particular Furniture,
Fixture, Plant and Machinery and stocks of all goods etc., wheresoever
situate and/or in transit Mortgagee: Bank of |
HK$30,000,000 |
|
03-12-2008 |
Instrument: General Letter
of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents
representing or relating to goods Mortgagee: Bank of |
All the money now granted by the Bank and the Company now owing to the
Bank |
|
22-07-2011 |
Instrument: Debenture made
betweer and Bank as lender & as trustee for itself and each SCB Group
Company Property: By way of first floating charge all the undertaking, property, assets
and rights of the Borrower whatsoever and wheresoever both present and future
including, but not limited to its uncalled capital and goodwill Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., |
As a continuing security for the due and punctual payment of the
Secured Indebtedness |
DIAMOND INDUSTRY –
-
From time immemorial,
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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,
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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.61.85 |
|
|
1 |
Rs.96.73 |
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Euro |
1 |
Rs.76.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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Report Prepared
by : |
SMN |
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 |
-- |
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.