|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
CROWN
AIM LTD. |
|
|
|
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Registered Office : |
Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East,
Hunghom, Kowloon |
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|
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Country : |
Hong Kong |
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|
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Financials (as on) : |
31.03.2013 |
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|
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Date of Incorporation : |
09.12.2010 |
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Com. Reg. No.: |
53762154 |
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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 diamonds |
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No. of Employees : |
08 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
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 re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.
|
Source : CIA |
CROWN AIM LTD.
Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-5321 6201, 3152 3834
Managing Director: Mr. Kuldeep Singh
Incorporated on: 9th December, 2010.
Organization: Private Limited Company.
Capital: Nominal: US$100,000,000.00
Issued: US$6,000,000.00
Business Category: Importer, Exporter and Wholesaler.
Company Turnover: INR 4,633.26 million (Year ended 31-03-2013)
Group revenue: INR 164,184.96 million (Year ended 31-03-2013)
Employees: 8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Holding Company:-
Aston Luxury Group Ltd., Hong Kong. (Same address)
Ultimate Holding
Company:-
Gitanjali Gems Ltd., India.
Associated
Companies:-
Gitanjali Group of Companies
Alfred Terry Ltd., UK.
Asmi Jewellery India Ltd., India.
BLU SRL, Italy.
DDamas Jewellery (India) Private Ltd., India.
Decent Investment & Finance Private Ltd., India.
Decent Securities & Finance Private Ltd., India.
Diamlink Inc., US.
Diamlink Jewelery Inc., US.
eGitanjali Ltd., India.
Eureka Finstocks Private Ltd., India.
GGL Diamonds LLC., US.
Gili India Ltd., India.
Gitanjala Infratech Ltd., India.
Gitanjali Brands Ltd., India.
Gitanjali Capital Private Ltd., India.
Gitanjali Exports Corporation Ltd., India.
Gitanjali Jewellery Retail Ltd., India.
Gitanjali Lifestyle Ltd., India.
Gitanjali Resources BVBA, Belgium.
Gitanjali USA Inc., US.
Gitanjali Ventures DMCC, U.A.E.
Hyderabad Gems SEZ Ltd., India.
Jewelry Marketing Co LLC., US.
Leading Italian Jewels (Singapore) Pte. Ltd., Singapore.
Leading Italian Jewels SRL, Italy.
Leading Jewels of Japan Kabushiki Kaisha, Japan.
LJOW Holdings LLC., US.
Maya Retail Ltd., India.
MMTC Gitanjali Ltd., India.
MobileNxt Teleservices Private Ltd., India.
N&J Finstocks Private Ltd., India.
Nakshatra Brands Ltd., India.
Nashik Mukti Services SEZ Ltd., India.
Samuels Jewelers Inc., US.
Spectrum Jewellery India Ltd., India.
Tri-star Worldwide LLC, US.
53762154
1538177
Managing Director: Mr. Kuldeep Singh
Nominal Share Capital: US$100,000,000.00 (Divided into 100,000,000 shares of US$1.00 each)
Issued Share Capital: US$6,000,000.00
(As per registry
dated 18-03-2013)
|
Name |
|
No.
of shares |
|
Aston Luxury Group Ltd.,
Hong Kong. |
|
6,000,000 ======= |
(As per registry
dated 18-10-2013)
|
Name (Nationality) |
Address |
|
Harshil Vipul
SHAH |
Flat A, 1/F., Austin Mansion,
15A Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Vikram HALWAN |
Flat A, 12/F., Hayon Building,
8 Tak Cheong Lane, Yau Ma Tei, Kowloon, Hong Kong. |
|
Kalpen Kiran
DOSHI |
Flat A, 1/F., Austin Mansion,
15A Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry
dated 09-12-2012)
|
Name |
Address |
Co.
No. |
|
Buttar.HK Ltd. |
1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street,
Jordan, Kowloon, Hong Kong. |
0975326 |
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.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of jewellery and diamonds
Employees: 8.
Commodities Imported: China, Europe, US, etc.
Company Turnover: INR 4,633.26 million (Year ended 31-03-2013)
Group Turnover: INR 93,772.90 million (Year ended 31-03-2011)
INR 124,982.76 million (Year ended 31-03-2012)
INR 164,184.96 million (Year ended 31-03-2013)
Markets: Asian countries, Middle East, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, etc.
Nominal Share Capital: US$100,000,000.00 (Divided into 100,000,000 shares of US$1.00 each)
Issued Share Capital: US$6,000,000.00
Alternation of
Issued Capital:-
|
Initially |
paid up |
US$4,000,000.00 |
|
18-03-2013 |
paid up |
US$2,000,000.00 |
|
|
|
|
|
Total: |
paid up |
US$6,000,000.00 ============= |
Group profit after tax: INR 3,548.11 million (Year ended 31-03-2011)
INR 4,872.51 million (Year ended 31-03-2012)
INR 5,916.92 million (Year ended 31-03-2013)
Profit or Loss: Made a small profit in 2011 & 2012.
Condition: Business is normal.
Facilities: Making 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: Normal.
Having issued 6,000,000 ordinary shares of US$1.00 each, Crown Aim Ltd. is wholly owned by Aston Luxury Group Ltd. [Aston], a Hong Kong-registered firm also located at the same address. The ultimate holding company Gitanjali Gems Ltd. [Gitanjali] is an India-based company.
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.
Your given mobile phone number 852-6319 658 is incorrect as there are only 7 digits.
Aston is a wholly owned subsidiary of Gitanjali of India. Gitanjali has acquired 100% stake in the subject for an undisclosed amount. Gitanjali, a listed-firm in India, is a member of the Gitanjali Group [Group].
The Group acquired the subject that has strong distribution network to Hong Kong, China, Japan, the US, Middle East and Europe.
The Group also acquired a Chinese company that manufactures and distributes jewellery to the USA, Italy, Japan, the UK, the UAE, the Middle‑East and Australia. This acquisition strengthened the Groups international manufacturing base and facilitated access to the Chinese market. It also enhanced the Groups merchandising capabilities as well as the ability to capture additional profits.
The subject 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.
The Group also has set up Aston Luxury Group in Hong Kong to explore and expand the international business of the Group in the Asia Pacific region.
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 has set up the following three segments:-
· Branded Jewellery & Retail Segment;
Diamond & Jewellery
Manufacturing Segment; &
International
Distribution & Retail Segment.
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.
Gitanjali is now a majestic figure in the global gems and jewellery industry. It is present in every major jewellery market of the world namely, the USA (which alone accounts for 30 % of the global jewellery market), India, Japan, China and the Middle-East. Its appetite for innovation and for the enhancement of customer delight has swelled further. It operates through 10 global offices and has 6 regional offices. It employs over 6,000 people.
For the year ended 31st March, 2013, the revenue of the Group amounted to INR 164,184.96 million (2012: INR 124,982.76 million), grew by 31.4% as compared with previous year. Group profit after tax in the year amounted to INR 5,916.92 million (2012: INR 4,872.51 million), grew by 21.4%.
For the year ended 31st March, 2013, the revenue of the subject amounted to INR 4,633.26 million, profit after taxation was INR 14.66 million.
The subject is fully supported by the Gitanjali Group. History in Hong Kong is just over three years.
On the whole, consider the subject good for normal business engagements.
FINANCIAL
HIGHLIGHTS OF THE SUBJECT: (Year ended
31-03-2013)
|
Item |
INR
million |
|
Turnover |
4,633.26 |
|
Reserves |
37.90 |
|
Total Assets |
3,868.88 |
|
Total Liabilities |
3,868.88 |
|
Profit before taxation |
18.37 |
|
Provision for Taxation |
3.71 |
|
Profit After Taxation |
14.66 |
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. Indias 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.99 |
|
UK Pound |
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 SCs 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.