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Report No. : |
310389 |
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Report Date : |
11.03.2015 |
IDENTIFICATION DETAILS
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Name : |
KUNMING TRADING COMPANY |
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Registered Office : |
Room 601-602, 6/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
17.11.1993 |
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Com. Reg. No.: |
17552882-000-11 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer, Exporter and Wholesaler of Emerald, Ruby, Sapphire Blue,
Other Coloured Gemstones, Diamonds. |
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No. of Employees : |
4 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hongkong |
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 |
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% 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 |
KUNMING TRADING COMPANY
ADDRESS: Room 601-602, 6/F., Chevalier House,
45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2368
5997
FAX: 852-2723 9408
E-MAIL: hongkong@ktcdiamond.com
Manager: Mr. Ajay
Maheshwari
Establishment: 17th November,
1993.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Importer, Exporter and Wholesaler.
Annual
Turnover: US$4.5~US$5.0 million.
Employees: 4.
Main Dealing Banker: Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Head Office:-
Room 601-602, 6/F.,
Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
Elegance Online
LLC, USA.
KTC Bangkok Co.
Ltd., Thailand.
VN Trading Co.
Ltd., Japan.
17552882-000-11
Manager: Mr.
Ajay Maheshwari
Contact
Person: Mr.
Deepa Maheshwari
Name: Mr. Ajay MAHESHWARI
Residential Address: 10/A
Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
Name: Mr. Deepa MAHESHWARI
Residential
Address: Flat B3, 14/F., Hankow
Centre, 47 Peking Road & 4A Ashley Road, Tsimshatsui, Kowloon, Hong Kong.
The subject was established on 17th November, 1993 as a partnership
concern jointly owned by Mr. Damodar Prasad Ramkishore Jakhotia and
Mr. Ajay Maheshwari under the Hong Kong Business Registration Regulations.
On 2nd May, 2003, Mr. Damodar Prasad Ramkishore Jakhotia retired and on
the same date, Mr. Deepa Maheshwari joined in as a partner. Now, the subject has been jointly owned by
the two Mr. Maheshwaris.
Formerly the subject was located at Flat B, 12/F., Alpha House, 27-33
Nathan Road, 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: Importer, Exporter and Wholesaler.
Lines: Emerald, ruby, sapphire blue, other coloured gemstones, diamonds
Employees: 4.
Commodities Imported: Imported from Europe, China, India, etc.
Markets: Taiwan, Japan, US, Europe, India, etc.
Annual Turnover: US$4.5~US$5.0 million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: Various terms.
Capital: Not disclosed.
Profit or Loss: Made small profits in the past years.
Condition: Business is normal.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Hang Seng Bank Ltd., Hong Kong.
Standing: Normal.
Kunming Trading Company was established on 17th November, 1993. It was jointly owned by Mr. Damodar Prasad
Ramkishore Jakhotia and Mr. Ajay Maheshwari.
On 2nd May 2003, Mr. Damodar Prasad Ramkishore Jakhotia retired and
replaced by Mr. Deepa Maheshwari. Now,
the subject is jointly owned by the current two Mr. Maheshwaris — Mr. Ajay
Maheshwari and Mr. Deepa Maheshwari.
The subject is also known as “KTC Diamond”.
Formerly the subject had an associated company known as Kunming Company
which was established on 1st March, 1983 and jointly owned by Mr. Damodar
Prasad Ramkishore Jakhotia and Mr. Ajay Maheshwari under Business Registration
No. 8268854. This firm was a gemstone
importer and exporter. On 31st December,
2004, this firm closed down formally.
The subject is a family-owned business established in Hong Kong. Ajay Jakhotia, the founding father of Kunming
Trading Company, is a leading international diamond trader and wholesaler. Initially dealing in semi-precious stones,
such as quality polished emeralds, rubies and sapphires, Ajay Jakhotia stepped
in to the world of jewels. As the firm
expanded, the subject began concentrating on the natural fancy colour diamonds.
Ajay Jakhotia was amongst the first to recognize the up-trend in demand
and market diversification in the natural coloured diamond and emerald sector.
The subject is specialized in natural colour fancy diamonds, beads and
briquettes in plenty of shapes, quality, sizes and colours.
The subject now has set up offices in Bangkok, Kofu, and Mumbai.
The subject’s business is chiefly administered by the two
Maheshwaris. Both of whom, belonging to
the same family, are Indian and have been in Hong Kong for a very long
time.
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 took part in
“HKTDC Hong Kong International Diamond, Gem & Pearl Show 2015” which had
been held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of
2nd to 6th March, 2015. Its booth No.
was AWE 2-H24.
The subject’s annual sales turnover ranges from US$4.5 to US$5.0
million. Small profits were made in the
past years.
Operating from a rented office, the subject has a history of over 21
years and three months.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.70 |
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1 |
Rs.94.55 |
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Euro |
1 |
Rs.67.66 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.