MIRA INFORM REPORT

 

 

Report Date :

14.02.2012

 

IDENTIFICATION DETAILS

 

Name :

CROWN AIM LTD

 

 

Registered Office :

Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.12.2010

 

 

Com. Reg. No.:

53762154

 

 

Legal Form :

Private Limited Liability

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of jewellery and diamonds, etc.

 

 

No. of Employees :

5.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small company

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

CROWN AIM LTD

 

 

Company ADDRESS

 

Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

PHONE:                  3152 3834

FAX:                       Not available

 

 

MANAGEMENT

 

Managing Director:  Mr. Kuldeep Singh

 

 

SUMMARY

 

Incorporated on              :  9th December, 2010.

 

Organization                  : Private Limited Company.

 

Capital: Nominal            : US$100,000,000.00

Issued                           : US$4,000,000.00

 

Business Category         : Importer, Exporter and Wholesaler.

 

Employees                    : 5.

 

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

 

Banking Relation            :  Satisfactory.


Company name

 

CROWN AIM LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

Holding Company:-

Able Era Holdings Ltd., Hong Kong.  (Same address)

 

Penultimate Holding Company:-

Aston Luxury Group Ltd., Hong Kong.  (Same address)

 

Ultimate Holding Company:-

Gitanjali Gems Ltd., India.

 

Associated Companies:-

Alfred Terry Holdings Ltd., UK.

Alfred Terry Ltd., UK.

Alliance Jewellers Pvt. Ltd., Lebanon.

Brightest Circle Jewellery Pvt. Ltd., India.

DIT Group SpA, Italy.

Gitanjali Lifestyle Ltd., India.

Morellato India Pvt. Ltd., India.

Salasar Retail Ltd., India.

 

 

BUSINESS REGISTRATION NUMBER 

 

53762154

 

 

COMPANY FILE NUMBER 

 

1538177

 

MANAGEMENT

 

Managing Director:  Mr. Kuldeep Singh

CAPITAL

 

Nominal Share Capital: US$100,000,000.00 (Divided into 100,000,000 shares of US$1.00 each)

 

Issued Share Capital: US$4,000,000.00

 

 

SHAREHOLDER

 

(As per registry dated 09-12-2011)

Name

 

No. of shares

Able Era Holdings Ltd., Hong Kong.

 

4,000,000

=======

 

 

DIRECTORS  

 

(As per registry dated 09-12-2011)

Name

(Nationality)

 

Address

Sajeed Ahamed Baba Sahab DESAI

Springs 1, ST 2, Villa-30-2, Bedrooms, Dubai, UAE.

 

Kuldeep SINGH

Flat H, 27/F., Tower 6, Phase 2, Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

 

 

SECRETARY 

 

(As per registry dated 09-12-2011)

Name

Address

Co. No.

Buttar.HK Ltd.

1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.

0975326

 

 

HISTORY

 

The subject was incorporated on 9th December, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 1001-1004A, 10/F., Champion Building, 287-291 Des Voeux Road Central, Hong Kong where is the operating office of Gateway Registrations Ltd., moved to the present address with effect from 6th July, 2011.

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

 

OPERATIONS

 

Activities                       : Importer, Exporter and Wholesaler.

 

Lines                            : All kinds of jewellery and diamonds, etc.

 

Employees                    : 5.

 

Commodities Imported    : China, Europe, US, etc.

 

Markets                                    : Asian countries, Middle East, Europe, etc.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital    : US$100,000,000.00 (Divided into 100,000,000 shares of US$1.00 each)

 

Issued Share Capital      : US$4,000,000.00

 

Profit or Loss                 : Too early to offer an opinion.

 

Condition                       : Business is under development.

 

Facilities                       : Making fairly active use of general banking facilities.

 

Payment                       :  Met trade commitments as contracted.

 

Commercial Morality      :  Satisfactory.

 

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

 

Standing                       :  Small.

 

 

GENERAL

 

Having issued 4,000,000 ordinary shares of US$1.00 each, Crown Aim Ltd. is wholly owned by Able Era Holdings Ltd., a Hong Kong-registered firm located at the same operating address.  The penultimate holding company is Aston Luxury Group Ltd. [Aston], a Hong Kong-registered firm also located at the same address.  The subject moved to the current operating address in early July 2011.

The Hong Kong director of the subject Kuldeep Singh is an Indian.  He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

Aston, a wholly owned subsidiary of jewellery retailer Gitanjali Gems Ltd. of India, has acquired 100% stake in the subject for an undisclosed amount.

The subject is trading in all kinds of diamonds and jewellery products.  It is a distributor of jewellery to China, Japan, the United States, the Middle East and Europe.  Additionally, it has a jewellery manufacturing unit in China and plans to set up jewellery retailing in that country.

The subject also owns a 100% subsidiary called Alfred Terry Holdings Ltd. and a step-down subsidiary called Alfred Terry Ltd., located in London, for jewellery distribution in the United Kingdom.  Alfred Terry Ltd., a 45-year-old company, has a wide distribution networks catering to chain stores and standalones in the United Kingdom.  The network covers nearly 2,000 jewellery shops.

Incorporated in 1966, Surat-based Gitanjali Group is one of the largest branded jewellery companies in India with interests in diamond jewellery, retail and lifestyle businesses.  The Group operates across the United States, the United Kingdom, Belgium, Italy and the Middle East, as well as in Thailand, Southeast Asia, China and Japan.  The bouquet of brands owned by the Group in Italy includes “Stefan Hafner”, “iO Si”, “Novelle Bague”, “Porrati” and “Valente”.  The Gitanjali Group also owns speciality retail chain in the United States under the brands of “Samuels” and “Rogers”.

In February of 2011, the Group paid an undisclosed sum and took over DIT Group SpA, the Italian unit of Dubai jewellery maker Damas International that owns brands like “Stefan Hafner”, “IO Si”, “Roberta Porrati” and “Nouvelle Bague”.

The latest acquisition of the Group was just about a year after it had acquired the remaining 50% stake in its Indian joint venture Morellato India Pvt. Ltd. for an undisclosed sum.

In December 2009, the Group, through its subsidiary Gitanjali Lifestyle Ltd., also acquired majority stake in Salasar Retail Ltd., a Delhi-based retailer with 10 stores in northern India.

The subject is fully supported by the Gitanjali Group.  History in Hong Kong is just over a year and two months.

On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis for the time being.

 


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.

-          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.

-          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 –

 

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.

-          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.49.31

UK Pound

1

Rs.77.84

Euro

1

Rs.65.35

 

 

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%)

 

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.