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Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
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Name : |
PROFIT CROWN ENTERPRISES LTD. |
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Registered Office : |
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon |
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Country : |
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Date of Incorporation : |
15.06.1993 |
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Com. Reg. No.: |
18624066 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of jewellery
and jewellery products |
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No. of Employees : |
4. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
A2 |
A2 |
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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 |
PROFIT CROWN ENTERPRISES LTD.
(Business names: T.N.K. GEMS and MOKSH)
Room 1215, 12/F., Fu Hang Industrial Building,
1 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
PHONE: 2314 7585
FAX: 2723 7585
E-MAIL: tnkgems@netvigator.com
Managing Director: Mr. Bhaven
Nayan Jhaveri
Incorporated on: 15th
June, 1993.
Organization: Private
Limited Company.
Capital: Nominal: HK$5,000,000.00
Issued: HK$5,000,000.00
Business Category: Jewellery Trader.
Employees:
4. (Including associates)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
P.O. Box 98085, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Business Names:- (Same BR No. and
same address)
T.N.K. Gems, Hong Kong.
Moksh, Hong Kong.
Associated Companies:-
Aki Enterprises, Hong Kong. (Same
address)
Kokusai Shinju Co. Ltd., Japan.
Oasis Jewellery Ltd., Hong Kong.
(Same address)
Tanvirkuma Diamonds Ltd., India.
18624066
0427263
Managing Director: Mr. Bhaven
Nayan Jhaveri
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
(As per registry dated 15-06-2011)
|
Name |
|
No. of shares |
|
Bhaven JHAVERI |
|
2,500,000 |
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Hitesh R. JHAVERI |
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2,500,000 |
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–––––––– |
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Total: |
5,000,000 ======= |
(As per registry dated 23-11-2011)
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Name (Nationality) |
Address |
|
Hitesh R. JHAVERI |
Flat A, 10/F., Garden Mansion, 154-156 Austin Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Bhaven Nayan JHAVERI |
Flat J, 10/F., Block 2, Royal Peninsula, Hunghom, Kowloon, Hong Kong. |
Bhaven Nayan JHAVERI (As per
registry dated 15-06-2011)
The subject was incorporated on 15th June, 1993 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 jewellery products.
Employees: 4.
(Including associates)
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, South Korea, other Asian
countries, Europe, North America, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$5,000,000.00 (Divided into 5,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$5,000,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making a small
profit every year.
Condition: Keeping in an active condition.
Facilities: Making active use of general banking
facilities.
Payment:
Met trade
commitments on time.
Commercial Morality: Satisfactory.
Banker:
The Royal
Bank of Scotland N.V., Hong Kong Branch.
Standing:
Normal.
Having issued 5 million ordinary shares of HK$1.00 each, Profit Crown
Enterprises Ltd. was equally owned by Mr. Kuntal Shah and Mr. Hitesh R.
Jhaveri. However, the former transferred
his shares to Mr. Bhaven Jhaveri on 9th February, 2011. Now, the subject is equally owned by Mr.
Bhaven Jhaveri and Mr. Hitesh R. Jhaveri.
Both of whom are Indian. The
latter is also the director of the subject.
The new director of the subject Mr. Bhaven Nayan Jhaveri is also the
individual secretary of the subject. He
is also the managing director of the subject.
The subject is sharing the office with Oasis Jewellery Ltd. [Oasis]
which is a Hong Kong-registered firm.
Oasis is chiefly owned by Mr. Jigesh Satish Shah who is holding 95%, and
the balance 5% is held by Mr. Minal Kuntal Shah. Recently, the registered address of Oasis has
changed to the residential address of its directors. All the Shahs belong to the same family.
The subject has been operating two companies T.N.K. Gems and Moksh which
are also located at the same operating office.
T.N.K. Gems, Moksh and the subject are engaged in the same lines of
business.
The subject is a polished and cut diamond trader, rough diamond supplier
and jewellery manufacturer. It is trading
in the following commodities:-
Finished Jewellery
·
Diamond Jewellery
·
White Diamond Jewellery
·
Color Diamond Jewellery
Overall business has been active.
The subject is also the agent of Eternity Jewels which is an India-based
firm. Eternity Jewels has got other
liaison offices in the United States, Japan, Thailand and affiliated firm in
other countries of the world.
The subject also has got an affiliated factory Tanvirkuma Diamonds Ltd.
which is an India-based firm. Tanvirkuma
Diamonds Ltd. is the subject’s main supplier.
The subject’s products are exported to Japan, South Korea, other Asian
countries, Europe, North America, etc.
Business is active.
The subject’s business is mainly handled by Bhaven Nayan Jhaveri. Long term business ties have been developed
with some local and foreign buyers.
As the history of the subject in Hong Kong is over eighteen years and
six months, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
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02-04-2002 |
Instrument: Charge on All Deposits to secure
Obligations of the Chargor Property: All the right, title and interest of the Company whatsoever, present
and future, in and to: (a) the Deposits; (b) all interest accruing from time
to time on the Deposits; (c) without limitation of the foregoing, any rights
the Company may have individually or any rights the Company may have through
the Bank now or hereafter arising in or to any deposit account of the Company
with the Bank; and (d) any certificate or other instruments relating to any
or all of the above Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. [Now known as The Royal Bank
of Scotland N.V.] |
All moneys and obligations and liabilities |
|
15-07-2004 |
Instrument: Debenture Property: All the Company’s undertaking and property and assets Mortgagee: ABN AMRO Bank N.V., Hong Kong
Branch. [Now known as The Royal Bank
of Scotland N.V.] |
In consideration of the Bank agreeing to grant general banking
facilities to the Company |
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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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.05 |
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|
1 |
Rs.81.09 |
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Euro |
1 |
Rs.67.39 |
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.