|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
KTL JEWELLERY TRADING LTD. |
|
|
|
|
Registered Office : |
Unit 1207, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
31.12.2008 |
|
|
|
|
Com. Reg. No.: |
50160783 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery and gems |
|
|
|
|
No. of Employees : |
30. (Including associates in
Hong Kong) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
KTL JEWELLERY
TRADING LTD.
ADDRESS: Unit 1207, 12/F., Fu Hang Industrial
Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2363 0022, 3925 5900
FAX: 852-2363 8787
E-MAIL: group@ktl.com.hk
Managing Director: Mr. Li Man
Chun
Incorporated on: 31st December, 2008.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Jewellery
Trader.
Group Annual Turnover: HK$200~250
million.
Employees: 30. (Including associates in Hong Kong)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
KTL JEWELLERY
TRADING LTD.
Registered Head
Office:-
Unit 1207, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
China Factory:-
1 Yinping Road, Shiqiao, Panyu, Guangdong Province, China.
[Tel: 86-20-8466 9466, Fax:
86-20-8480 3079]
Holding Company:-
Landclick Properties Ltd., British Virgin Islands.
Associated
Companies:-
KTL Group of Companies
Guangzhou KTL Jewellery Ltd., China.
K & A Gems Ltd., Hong Kong.
[Dissolved]
K.T.L. Development Co. Ltd., Hong Kong.
K.T.L. Jewellery Manufacturer (China) Ltd., Hong Kong. [Dissolved]
K.T.L. Jewellery Manufacturer Ltd., Hong Kong.
K’s Product Inc., USA.
KTL Brilliant Ltd., Hong Kong.
KTL Jewellery Trading Ltd., Hong Kong.
KTL Management Ltd., Hong Kong.
KTL Marketing Ltd., Hong Kong.
Lucigala Jewellery (Hong Kong) Ltd., Hong Kong.
Pippo, Italy.
50160783
1297593
Managing Director: Mr. Li Man Chun
Contact Person: Mr. Victor Kei York Pang
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 31-12-2013)
|
Name |
|
No. of shares |
|
Landclick Properties Ltd. P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola,
British Virgin Islands. |
|
10,000 ===== |
(As per registry dated 31-12-2013)
|
Name (Nationality) |
Address |
|
KEI York Pang, Victor |
House 23, TPTL 165 Area 38, 18 Shan Tong Road, JC Castle, Taipo, New
Territories, Hong Kong. |
|
LI Man Chun |
Flat 9, 8/F., Dynasty Villa 9, 2 Yin Ping Road, Beacon Hill, Kowloon,
Hong Kong. |
(As per registry dated 31-12-2013)
|
Name |
Address |
Co. No. |
|
SSHK Corporate Services Ltd. |
29/F., Edinburgh Tower, The Landmark, 15 Queen’s Road Central,
Hong Kong. |
1025514 |
The subject was incorporated on 31st December, 2008 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of jewellery and gems
Employees: 30. (Including associates in Hong Kong)
2,500. (China)
Materials/Commodities: Imports raw
materials from Europe, India, and finished products from China.
Markets: Hong
Kong, Japan, other Asian countries, Europe, US
Group Annual Turnover: HK$200~250
million.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Indebtedness: HK$211,128,394.00
(Total amount outstanding on all mortgages and charges as per last Annual
Return dated 31-12-2013)
Mortgage or Charge: (See attachment)
Profit or Loss: Operation
is profitable.
Condition: Maintaining
in an active condition.
Facilities: Making
rather active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Good.
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Standing: Good.
Having issued 10,000 ordinary shares of HK$1.00 each, KTL Jewellery
Trading Ltd. is a wholly-owned subsidiary of Landclick Properties Ltd. which is
a BVI-registered company.
The subject has had an associated company K.T.L. Jewellery Manufacturer
Ltd. [KTLJM] located at its operating address.
The subject is a member of the KTL Group of companies.
KTLJM is the holding company of KTL Group [KTL] which is located at the
same operating address.
One of the significant member of the Group is K & A Gems Ltd. which
is a Hong Kong-registered firm.
The subject has got a number of associated companies located at its
operating address.
KTL has been serving all jewellery traders in the world for about 20
years.
KTL’s main factory, owned by the Group, is in Panyu, Guangzhou,
Guangdong Province, China employing about 2,000 persons. The production capacity of this factory is
over 8,500,000 pieces of jewellery every year.
In order to maintain its production capacity and competitiveness, the
factory has employed experienced technicians in different departments to manage
each process. The factory manufactures
variety of products which include diamond, precious and semi-precious stone in
9K to 18K gold.
Every year, KTL invests about 10% of its total sales turnover in
research and development [R&D] for developing new products and new
manufacturing technology.
The factory has been equipped with the following Designing Software:
Jewel CAD, J-CAD3, Alias, etc., and has got the following Prototypes Machines:
EnvisionTEC, Meiko modelling system, Computerized Numerical Control, etc.
The main products of the factory are all carat of gold set with diamond,
precious and semi-precious stones.
Products are marketed in Hong Kong, exported to Japan, other Asian
countries, Italy, other European countries, the United States, etc.
KTL has got ISO:9001 certification.
Currently, KTL has set up offices in Italy and the United States,
overall business is rather active.
Annual sales turnover of the Group ranges from HK$200 to 250 million.
In order to penetrate the international market further, KTLJM has taken
part in fairs and exhibitions held in Hong Kong and other foreign large cities
such as Las Vegas, Basel, Vicenzaoro, including Shenzhen Special Economic Zone,
China, etc. Besides, KTLJM 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.
Recently, the subject has set up a branch company in Guangzhou known as
Guangzhou KTL Jewellery Ltd. which is responsible for the China market. This firm is retailing those jewellery
products bearing the brand name of Luci de Gala.
The subject has had 6 sales teams in Hong Kong including around 30
employees.
According to the Group, a new production factory was just completed in
Nansha, Guangdong Province, China. The
production capacity of the Group will grow substantially when the Nansha
factory is put into operation by the end of February 2014.
The history of the subject is over five years in Hong Kong.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
17-03-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set-Off Property: By way of Fixed Charge to the Bank all the Company’s estate, right,
title, claim, benefit and interest to and in the Deposit (Account No.
012-662-5-062853-8) in the principal amount of HKD2,000,000.00 Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities of whatever nature
and in whatever currency or currencies to any extent Bank of China (Hong
Kong) Ltd., shall think fit granted or to be granted to KTL Jewellery Trading
Ltd. on such terms, conditions, manner and from and for so long as the Bank
may at its sole discretion think fit together with interest accrued thereon |
|
17-03-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set-Off Property: By way of Fixed Charge to the Bank all the Company’s estate, right,
title, claim, benefit and interest to and in the Deposit (Account No.
012-662-5-062853-8) in the principal amount of HKD2,000,000.00 Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities of whatever nature and in whatever currency or currencies to any
extent Bank of China (Hong Kong) Ltd., shall think fit granted or to be
granted to K.T.L. Jewellery Manufacturer Ltd. on such terms conditions,
manner and form and for so long as the Bank may as its sole discretion think
fit together with interest accrued thereon |
|
01-11-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set-Off Property: All the Company’s estate, right, title, claim, benefit and interest to
and in the Deposit (Customer No. 012-4440571-4) and all interest from time to
time payable thereon and together with all title deeds or documents relating
thereto Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities of whatever nature
and in whatever currency or currencies to any extent Bank of China (Hong
Kong) Ltd., shall think fit granted or to be granted to Alan’s Jewellery Co.,
Ltd. on such terms, conditions, manner and form and for so long as the Bank
may at its sole discretion think fit together with interest accrued thereon |
|
01-11-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set-Off Property: All the Company’s estate, right, title, claim, benefit and interest to
and in the Deposit (Customer No. 012-4440571-4) and all interest from time to
time payable thereon and together with all title deeds or documents relating
thereto Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities of whatever nature
and in whatever currency or currencies to any extent Bank of China (Hong
Kong) Ltd., shall think fit granted or to be granted to KTL Jewellery Trading
Ltd. on such terms, conditions, manner and form and for so long as the Bank
may at its sole discretion think fit together with interest accrued thereon |
|
01-11-2010 |
Instrument: Deed of Indemnity, Charge Over Deposit
and Set-Off Property: All the Company’s estate, right, title, claim, benefit and interest to
and in the Deposit (Customer No. 012-4440571-4) and all interest from time to
time payable thereon and together with all title deeds or documents relating
thereto Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
All moneys in respect of general banking facilities of whatever nature
and in whatever currency or currencies to any extent Bank of China (Hong
Kong) Ltd., shall think fit granted or to be granted to K.T.L Jewellery
Manufacturer Ltd. on such terms, conditions, manner and form and for so long
as the Bank may at its sole discretion think fit together with interest
accrued thereon |
|
24-06-2012 |
Instrument: Charge Over Deposits (3-Parties) Property: All monies and deposit now or hereafter in time deposit Account No.
773-879416-201 and 773-879416-001 kept by the company to Hang Seng Bank Ltd. Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all monies and liabilities which are now or at anytime hereafter
may be outstanding owing or payable by the company, Alan’s Jewellery Co.
Ltd., and K.T.L. Jewellery Manufacturer Ltd. to Hang Seng Bank Ltd. |
|
02-07-2013 |
Instrument: Charge Over Deposits (3-Parties) Property: All monies and deposits now or hereafter in time deposit Account No.
773-879416 kept by the Company to Hang Seng Bank Ltd. Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all monies and liabilities which are now or at anytime
hereafter may be outstanding owing or payable by KTL Jewellery Trading Ltd.,
K.T.L. Jewellery Manufacturer Ltd. and Alan’s Jewellery Co. Ltd. to Hang Seng
Bank Ltd. |
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
---- |
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.