MIRA INFORM REPORT

Report No. :	491337
Report Date :	15.02.2018

IDENTIFICATION DETAILS

Name :	KOTHARI TRADING (HK) LIMITED
Registered Office :	7/F., Silver Fortune Plaza, 1 Wellington Street, Central, Hong Kong.
Country :	Hong Kong
Date of Incorporation :	16.12.2002
Com. Reg. No.:	33218272
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of Diamonds, precious and semi-precious stones
No. of Employees :	7.

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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, which took effect in 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.

Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Note

(Formerly located at:

6/F., Hang Shun Building,

10-12 Wyndham Street, Central, Hong Kong.)

Company name and address

KOTHARI TRADING (HK) LIMITED

ADDRESS: 7/F., Silver Fortune Plaza, 1 Wellington Street, Central, Hong Kong.

PHONE: 852-2525 5003

FAX: 852-2525 5013

E-MAIL: kothari@biznetvigator.com

info@kothari.hk

MANAGEMENT:

Managing Director: Mr. Manak Chand Rajendra Kumar Kothari

SUMMARY

Incorporated on: 16th December, 2002.

Organization: Private Limited Company.

Issued Share Capital: HK$3,000,000.00

Business Category: Diamond Trader.

Employees: 7.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS:

Registered Head Office:-

7/F., Silver Fortune Plaza, 1 Wellington Street, Central, Hong Kong.

Postal Address:-

G.P.O. Box 469, Central, Hong Kong.

Associated Company:-

Kothari Trading Co. Ltd.

5-16-8 Ueno Taito-Ku, Sunrise Building, 3B, Tokyo, Japan.

[Tel: 81-3-3837 3847; Fax: 81-3-3837 3848]

BUSINESS REGISTRATION NUMBER

33218272

COMPANY FILE NUMBER

0825973

MANAGEMENT

Managing Director: Mr. Manak Chand Rajendra Kumar Kothari

Contact Person: Mr. Raju Kothari

ISSUED SHARE CAPITAL

HK$3,000,000.00

SHAREHOLDERS

(As per registry dated 16-12-2017)

Name		No. of shares
Manak Chand Rajendra Kumar KOTHARI		2,000,001
Manak Chand Surendar Kumar KOTHARI		999,999
		––––––––
	Total:	3,000,000 =======

DIRECTORS

(As per registry dated 16-12-2017)

Name (Nationality)	Address
Manak Chand Rajendra Kumar KOTHARI	Flat D, 10/F., Medallion Heights, 45 Conduit Road, Mid-Levels, Hong Kong.
Manak Chand Surendar Kumar KOTHARI	Flat B, 19/F., Tower 8, Marinella, 9 Welfare Road, Aberdeen, Hong Kong.

SECRETARY

(As per registry dated 16-12-2017)

Name	Address	Co. No.
Newone Consultants Ltd.	2/F., Hong Kong Trade Centre, 161-167 Des Voeux Road Central, Hong Kong.	1883112

HISTORY

The subject was incorporated on 16th December, 2002 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at ‘6/F., Hang Shun Building,
10-12 Wyndham Street, Central, Hong Kong’, moved to the present address in November 2015.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: Diamonds, precious and semi-precious stones.

Employees: 7.

Commodities

Imported: India, Belgium, other European countries, Asian countries, etc.

Markets: Hong Kong, China, Japan, Southeast Asia, Europe, Middle East, etc.

Terms/Sales: CAD, L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

MEMBERSHIP

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

FINANCIAL INFORMATION

Issued Share Capital: HK$3,000,000.00

Mortgage or Charge:-

Date of Legal Charge/Mortgage: 21-01-2011

Amount: To secure the due & punctual payment of the Secured Indebtedness

Property: All those 3,828/142,919th parts or shares of and in Section A, B; C; D; G; J of Inland Lot No. 80, Silver Fortune Plaza, 1 Wellington Street, Central, Hong Kong. All that office & ancillary areas on the Seventh Floor.

Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Making a small profit every year.

Condition: Keeping in an active manner.

Facilities: Making active use of general banking facilities.

Payment: Slow but Correct.

Commercial Morality: Satisfactory.

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Standing: Very Good.

GENERAL

Having issued 3 million ordinary shares of HK$1.00 each, Kothari Trading (HK) Limited formerly was a subsidiary company of Kothari Trading Co. Ltd. [KTCL]. KTCL, a Japan-based firm, had held one third of the stakes of the subject. The balance two thirds were held by Mr. Manak Chand Rajendra Kumar Kothari. On 18th December, 2008, KTCL transferred all its shares to Mr. Manak Chand Surendar Kumar Kothari.

Now the subject is wholly‑owned by the Kothari family. However, the subject remains to be a business partner of KTCL.

The directors of the subject are also shareholders of the subject. Both are Hong Kong ID holders and have got the right to reside in Hong Kong.

KTCL is located in Tokyo, Japan while its director is Mr. Suren Kothari.

The subject is dealing in fine coloured diamonds, pearls, rare gemstones, etc. Products include natural fancy coloured diamonds, unusual rose cut and briolette cut diamonds, unheated sapphire, Paraiba stones, 14.75-Carat emerald, etc.

According to the subject, it is trading in the following categories:-

· Diamonds (including loose or polished, fancy or natural coloured diamonds);

· Emerald;

· Jewellery, jewellery sets;

· Natural pearls;

· Paraiba Stones;

· Rubies;

· Sapphires (including unheated); &

· Other fine coloured precious stones.

Its jewellery products include crystal bracelets, diamond earrings, diamonte & pearl ornaments, 925 silver diamond rings, emerald rings, pink sapphire rings, etc.

Many of the subject’s products such as fancy diamonds, cut and polished diamonds are imported from India, other Asian countries, Belgium and other European countries, etc. Finished products and polished diamonds are marketed in Hong Kong, China and exported to Japan, Taiwan, India, South Korea, other Asian countries, Australia, the Middle East, North America, Europe, Africa, Central & South America, etc. However, Japan is its main market. Business is active. KTCL is responsible for marketing the subject’s products in Japan.

According to the subject it has got offices in Japan and Bangkok of Thailand.

The Kothari family has had affiliated factories engaged in diamond trading and manufacturing in India.

In order to penetrate the international market further, the subject and KTCL have taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2018” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 27th February to 3rd March, 2018.

The history of the subject in Hong Kong is over 15 years and a month. Regular suppliers and foreign customers have been maintained. Business is active.

The subject operates from its own office in Hong Kong.

On the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.13
UK Pound	1	INR 89.17
Euro	1	INR 79.39
HKD	1	INR 8.17

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.