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Report Date : |
17.12.2014 |
IDENTIFICATION DETAILS
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Name : |
NAVKAR EXPORTS |
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Registered Office : |
Room 505, 5/F., |
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Country : |
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Date of Incorporation : |
26.10.2000 |
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Com. Reg. No.: |
31323225-000-10 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of All Kinds of Diamonds. |
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No of Employees : |
3 [Including Associates] |
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) |
|
|
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 |
NAVKAR EXPORTS
ADDRESS: Room
505, 5/F.,
PHONE: 852-2368
2700, 2301 1100
FAX: 852-2368
2706
Manager: Mr. Rajesh Kumar Kothari
Establishment: 26th October, 2000.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category:Diamond
Trader.
Employees: 3.
(Including associates)
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd.,
Banking
Relation: Satisfactory.
NAVKAR
EXPORTS
Head Office:-
Room 505, 5/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
Associated Company:-
Arts Impex, Hong
Kong. (Same address)
31323225-000-10
Manager: Mr. Rajesh Kumar Kothari
Name: Mr. Rajesh Kumar KOTHARI
Residential Address: Room A,
15/F., Kok Pah Mansion,
58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was
established on 26th October, 2000 as a sole proprietorship concern owned by Mr.
Rajesh Kumar Kothari under the Hong Kong Business Registration Regulations.
At the very
beginning, the subject is located at Room A, 15/F., Kok Pah Mansion, 58-60
Cameron Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room A2, 12/F., China
Insurance Building, 48 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in
August 2001, moved to Room 1307, 13/F., Hart Avenue Plaza, 5-9 Hart Avenue,
Tsimshatsui, Kowloon, Hong Kong in July 2005, to Room 1306, 13/F., Rise
Commercial Building, 5‑11 Granville Circuit, Tsimshatsui, Kowloon, Hong
Kong in May 2008 and further moved to the present address in December 2012.
Apart from these,
neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds.
Employees: 3.
(Including associates)
Commodities
Imported: India, Belgium, other European
countries, etc.
Markets: Hong Kong, Japan, other Asian
countries
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Capital: Not disclosed.
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking
facilities.
Payment: Met trade commitments as required.
Commercial
Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Navkar Exports is a
sole proprietorship set up and owned by Mr. Rajesh Kumar Kothari who is an
India merchant. He is an India passport
holder and does not have the right to reside in Hong Kong permanently. He is also manager of the subject.
Business commenced
in October 2000, the subject shares the office with another firm Arts
Impex. The subject and Arts Impex are
engaged in the same lines of business.
Arts Impex is also owned and operated by R K Kothari.
The subject is a
jewellery and diamond trader, so does Arts Impex. It is also a commission agent.
The subject is a
diamond importer, exporter and wholesaler.
It is engaged in manufacturing loose diamonds like marquise, pears,
tappers, buggets and rose cut diamonds range from 0.05 cts to 0.60 cts.
Commodities are chiefly
imported from India and other Asian countries.
After processing in Hong Kong or China, finished products are marketed
in Hong Kong and exported to Japan, Taiwan and the other Asian countries. Business is improving.
The subject’s
business is chiefly handled by Kothari himself.
History in Hong Kong is over fourteen years.
On the whole,
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.41 |
|
|
1 |
Rs.99.31 |
|
Euro |
1 |
Rs.79.00 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
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.