|
Report No. : |
352989 |
|
Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
KOWLOON RESOURCES AND SUPPLIES LTD. |
|
|
|
|
Registered Office : |
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hongkong |
|
|
|
|
Date of Incorporation : |
11.03.2008 |
|
|
|
|
Com. Reg. No.: |
39066219 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter and
Wholesaler of all kinds of jewellery and diamond products. |
|
|
|
|
No. of Employees : |
4. (Including associate) |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
HONGKONG - 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 12.5% of total system deposits in Hong
Kong by the end of 2014. 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 47.3 million
in 2014, 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 2014 mainland Chinese companies constituted about 50% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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
4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic
liberalization of trade in services in Guangdong Province under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from March 2015, cover
a negative list and a most-favored treatment provision, and will improve access
to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
KOWLOON RESOURCES
AND SUPPLIES LTD.
ADDRESS: Flat
B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2522
3014~5, 2524 0842
FAX: 852-2845
3821
E-MAIL: gare10@hotmail.com
Managing Director:
Mr. Gautam Shantilal Jhaveri
Incorporated on: 11th March, 2008.
Organization: Private Limited Company.
Issued Share Capital: HK$100.00
Business Category: Diamond
Trader.
Employees: 4. (Including associate)
Main Dealing Banker: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road,
Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
* Arihant
Enterprise Ltd., Hong Kong. (Dissolved)
* One Six
Ltd., Hong Kong.
* Surya
Star Ltd., Hong Kong. (Dissolved)
* Vijay
Orient Star Ltd., Hong Kong.
(* Same address)
39066219
1216892
Managing Director:
Mr. Gautam Shantilal Jhaveri
(Hong Kong Mobile Phone No. : 852-9198 3985)
HK$100.00
(As per registry dated 11-03-2015)
|
Name |
|
No. of shares |
|
Holdas Nominees Ltd, Hong Kong. |
|
100 === |
(As per registry dated 11-03-2015)
|
Name (Nationality) |
Address |
|
Gautam Shantilal JHAVERI |
Flat F, 8/F., King Cheung Mansion, 5 King Kwong Street,
Happy Valley, Hong Kong. |
(As per registry dated 11-03-2015)
|
Name |
Address |
Co. No. |
|
Benta Nominees Ltd. |
20/F., Tung Wai Commercial Building, 109‑111
Gloucester Road, Wanchai, Hong Kong. |
0042671 |
The subject was incorporated on 11th March, 2008 as a private
limited liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat C, 12/F., Block
5, Greenfield Garden, Tsing Yi, New Territories, Hong Kong, moved to the
present address in October 2012.
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 diamond products.
Employees: 4. (Including associate)
Commodities Imported: India,
Europe, other Asian countries, etc.
Markets: Hong
Kong, China, Japan, South Korea, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: CAD, L/C, T/T or as per
contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital: HK$100.00
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a steady
condition.
Facilities: Adequate for current
running.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Satisfactory.
Banker: Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing: Normal.
Having issued 100
ordinary shares of HK$1.00 each, Kowloon Resources And Supplies Ltd. is wholly
owned by Holdas Nominees Ltd. which is a Hong Kong-registered nominee
firm. Its registered address is in the
address of the subject’s company secretary known as Benta Nominees Ltd.
The only director of
the subject Mr. Gautam Shantilal Jhaveri is an Indian who has been in Hong Kong
for a very long time. He is a Hong Kong
ID Card holder and has got the right to reside in Hong Kong permanently. He can be reached at his Hong Kong mobile
phone number 852-9198 3985.
The subject has got
an affiliated company known as Vijay Orient Star Ltd. [VOSL] which is located
at the same address in Hong Kong. The
subject and VOSL are engaged in the same lines of business.
Incorporated on
28th April, 1978, VOSL is jointly owned by Jhaveri, Mr. David
Klagsbrun, Mr. Pradyot R. Kothari and Mr. Renuka Galitam Jhaveri. The second has passed away while the third is
residing in Antwerp, Belgium. All the
shareholders are India merchants.
The subject’s
business is chiefly handled by Mr. Gautam Shantilal Jhaveri and Mr. Renuka
Galitam Jhaveri. The latter is a family
member of the former.
The subject and VOSL
are trading in the following products:-
|
Product/Service |
Product/Service Remarks |
|
Fine Jewellery |
|
|
Precious and Semi-Precious Jewellery |
From India (Importer) |
|
Jewellery – Semi-Precious Stone |
From India (Importer) From India (Exporter) |
|
Jewellery – Platinum |
From India (Importer) From India (Exporter) |
|
Jewellery – Pearl |
From India (Importer) From India (Exporter) |
|
Jewellery – Gemset |
From India (Importer) From India (Exporter) |
The subject’s
products include loose diamonds like marquise, pears, tappers, buggets and rose
cut diamonds range from 0.05 cts to 0.60 cts.
Most of the subject’s commodities are imported from India. Its jewellery products are marketed in Hong
Kong, China, and exported to India, Japan, South Korea, Southeast Asia, Europe,
the Middle East, etc. Business has been
steady. It seems that Belgium has been a
significant market of the subject.
Another associated
company Arihant Enterprise Ltd. is also located at the same address. This company was incorporated on 28th
October, 1975 and is also operated by Gautam Shantilal Jhaveri. This company is also a diamond trader.
The subject has been
a significant and polished diamond exporter and wholesaler. History in Hong Kong is over seven years and
eight months. Regular suppliers and
customers have been maintained.
On the whole,
consider it good for normal business engagements.
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.66.80 |
|
|
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52 |
|
HKD |
1 |
Rs.8.62 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.