MIRA
INFORM REPORT
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Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
BUTANI JEWELLERY
LTD. |
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Registered Office : |
Room 510-512, 5/F., Houston Centre, 63 Mody Road, Tsimshatsui East,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
27.02.1981. |
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Com. Reg. No.: |
7389695 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Wholesaler, Retailer and Exporter of all kinds of Jewellery and Precious Stones. |
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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Maximum Credit Limit : |
US$500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name of the company
BUTANI
JEWELLERY LTD.
ADDRESS
Room 510-512, 5/F.,
Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.
PHONE: 2369 8245, 2369 8246
FAX: 2721 9561
E-MAIL: info@butani.com
Credit Request: Good for credit of US$500,000 against D/A
terms
MANAGEMENT
Managing
Director: Mr. Papu Udharam Butani
SUMMARY
Incorporated on: 27th February, 1981.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Jewellery Trader.
Annual Turnover: HK$115-120 million.
Employees: 15.
Main Dealing Banker: China Construction Bank (Asia) Corporation Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered Head Office:-
Room 510-512, 5/F.,
Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.
Operating Company:-
Diamex
International, Hong Kong.
Associated with:-
Butani Jewellers
1. No.4 Maho Shopping
Plaza, Cinnamon Grove, St. Maarten, Netherlands Antilles.
[Tel: (5995) 452-158; Fax: (5995)
432-119]
2. 98 Front Street,
Philipsburg, St. Maarten, Netherlands Antilles.
[Tel: (5995) 432-118; Fax: (5995)
432–119]
BUSINESS REGISTRATION NUMBER
7389695
COMPANY FILE NUMBER
94027
MANAGEMENT
Managing
Director: Mr. Papu Udharam Butani
CAPITAL
Nominal Share
Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share
Capital: HK$1,000,000.00
SHAREHOLDERS
(As per registry dated 27-02-2008)
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Name |
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No. of shares |
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Lachmi Papu BUTANI |
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10,000 |
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Papu Udharam BUTANI |
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90,000 |
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––––––– |
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Total: |
100,000 ====== |
DIRECTORS
(As per registry dated 27-02-2008)
|
Name (Nationality) |
Address |
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Lachmi
Papu BUTANI |
House No. C-3, Flamingo Garden, Sai Kung,
New Territories, Hong Kong. |
|
Papu Udharam
BUTANI |
House No. C-3, Flamingo Garden, Sai Kung,
New Territories, Hong Kong. |
SECRETARY
(As per registry dated 27-02-2008)
|
Name |
Address |
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Betty
CRUZ |
14A, Block 8, Whampoa Garden, Site 9, Kowloon, Hong Kong. |
HISTORY
The subject was
incorporated on 27th February, 1981 as a private limited liability company
under the Hong Kong Companies Ordinance.
Originally the subject
was registered under the name of Mukumoj Jewellery Ltd., name changed to the
present style on 13th May, 1983.
Formerly the
subject’s office was located at Room 512, 5/F., Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong, moved to Room 1312-1313, 13/F. of the
same building in 2000; and moved back to Room 510-512, 5/F. of the same
building in November 2005.
Apart from these,
neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Wholesaler, Retailer and Exporter.
Lines: All kinds of jewellery and precious stones.
Employees: 15.
Commodities Imported: Imported from Europe, South Africa, Indo-China, etc.
Markets: Hong Kong, Middle East, Caribbean, US, Europe, etc.
Annual Turnover: HK$115-120 million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P and T/T.
MEMBERSHIP
Hong Kong Jewelry
Manufacturers’ Association, Hong Kong.
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKB0152]
The Indian Chamber
of Commerce Hong Kong, Hong Kong.
FINANCIAL INFORMATION
Nominal Share
Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)
Issued Share Capital: HK$1,000,000.00
Indebtedness: HK$44,622,928.00 (Total amount outstanding on all mortgages and charges as per last Annual Return dated 27-02-2008)
Mortgage or Charge: (See attachment)
Profit & Loss: Traded at a profitable angle.
Condition: Keeping in a satisfactory state.
Facilities: Making active use of general banking facilities.
Payment: Met as required.
Commercial Morality: Satisfactory.
Bankers:-
China Construction Bank (Asia) Corporation Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
American Express Bank Ltd., Hong Kong Branch.
Bank of America N.A., Hong Kong Branch.
Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
GENERAL
Butani Jewellery Ltd.,
whose business name is Diamex International, is a private limited company
jointly owned by Papu Udharam Butani, holding 90% interest, and Lachmi Papu
Butain, holding 10%. Being directors of
the subject, the Butains have been in Hong Kong for a very long time.
The subject is
dealing in all kinds of jewellery, precious and semi-precious stones, gemsets,
opal jewellery, pearl jewellery, etc.
Raw materials are imported from India, Europe, South Africa, Indo-China,
etc. The subject exports its products to
the United States, the Caribbean Islands, the Middle East, some Asian countries
and Europe. Its retail businesses
include two retailing stores in St. Maarten, Netherlands Antilles, which have
been operating for the past ten years, catering predominately to the North
American market. According to the
subject, it has set up more than 100 points of distribution worldwide.
In addition to
this, the subject has had an exclusive “By appointment only” boutique in Hong
Kong.
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. Over the past years, it took part in the
following fairs:-
·
Hong Kong Jewellery & Watch Fair, Hong Kong
·
Jewellery Arabia
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International Jewellery Dubai
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Hong Kong International Jewellery Show, Hong Kong
·
Couture, Las Vegas, the United States
·
JCK Las Vegas Show, the United States
·
Basel Jewellery Fair, Switzerland
The subject’s
annual sales turnover ranges from HK$115 to 120 million. Overall business is satisfactory.
On the whole,
consider the subject good for normal business engagements.
REMARKS
Court Cases: None per our.
Property
information of the company:-
1. Property Location: Unit No. 10 on 5/F., Houston Centre, 63 Mody Road, Kowloon,
Hong Kong.
Owner: Butani Jewellery Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
30-09-2004 |
- |
Bank of America (Asia) Ltd., Hong Kong. [Now known as China Construction Bank (Asia) Corporation Ltd.] |
Mortgage to secure general banking facilities |
2. Property Location: Unit No. 12 on 5/F., Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong.
Owner: Butani Jewellery Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
16-12-1986 |
- |
The Bank of Canton Ltd., Hong Kong. [Renamed to Security Pacific Asian Bank Ltd., to Bank of America
(Asia) Ltd. and further to China Construction Bank (Asia) Corporation Ltd.] |
Mortgage to secure general banking facilities |
3. Property Location: Room 513 & 514 on 5/F. of Tower B, Mandarin Plaza (also known
as New Mandarin Plaza), 14 Science Museum Road, Kowloon, Hong Kong.
Owner: Butani Jewellery Ltd.
Date of
Purchase: n.a.
Purchased
Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
28-02-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
MORTGAGE OR CHARGE
|
Date |
Particulars |
Amount |
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16-12-1986 |
Instrument: Mortgage Property: 22/8,410th parts or shares of and in Kowloon
Inland Lot No. 10588 (Unit No. 12 on 5/F. of Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong.) Mortgagee: Bank
of Canton Ltd., Hong Kong.
[Renamed to Security Pacific Asian Bank Ltd. and further to Bank of
America (Asia) Ltd.] |
To secure general banking facilities |
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17-03-1998 |
Instrument: Letter
of Set Off Property: Short deposit of US$326,956 dated
02-03-1998 due on 02‑04-1998 Mortgagee: Bank
of India, Hong Kong Branch. |
All moneys now or which shall at anytime hereafter be owing from the
company to the bank to the extent of HK$7,500,000 |
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19-02-2004 |
Instrument: Letter
of Set Off Property: Short Fixed Deposit of US$412,532.47 dated
18-02-2004 due on 18-08-2004 Mortgagee: Bank
of India, Hong Kong Branch. |
All moneys now or which shall at anytime hereafter be owing from the
Company to the Bank to the extent of HK$9,480,000 |
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19-02-2004 |
Instrument: General
Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any
other documents representing or relating to goods Mortgagee: Bank
of India, Hong Kong Branch. |
All the money now granted by the Bank and the Company now owing to the
Bank, and inclusive of the monies |
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30-09-2004 |
Instrument: Mortgage Property: 38/8,410th parts or shares of and in
Kowloon Inland Lot No. 10588 (Unit No. 10 on 5/F. of Houston Centre, 63 Mody
Road, Kowloon, Hong Kong.) Mortgagee: Bank
of America (Asia) Ltd., Hong Kong.
[Now known as China Construction Bank (Asia) Corporation Ltd.] |
To secure all moneys in respect of general banking facilities |
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30-09-2004 |
Instrument: Assignment
of Rentals Property: 38/8,410th parts or shares of and in Kowloon
Inland Lot No. 10588 (Unit No. 10 on 5/F. of Houston Centre, 63 Mody Road,
Kowloon, Hong Kong.) Mortgagee: Bank
of America (Asia) Ltd., Hong Kong.
[Now known as China Construction Bank (Asia) Corporation Ltd.] |
Secured Indebtedness |
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28-02-2005 |
Instrument: Mortgage Property: 110/1,000th parts or shares of and in
875/30,000thh parts or shares of and in Kowloon Inland Lot No. 10599 [Room
513 & 514 on 5/F. of Tower B of Mandarin Plaza (also known as New
Mandarin Plaza), 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong
Kong.] Mortgagee: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all sums in respect of general
banking facilities |
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.72 |
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UK Pound |
1 |
Rs.84.81 |
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Euro |
1 |
Rs.67.60 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)