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Report Date : |
06.05.2013 |
IDENTIFICATION DETAILS
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Name : |
PROFIT CROWN ENTERPRISES LTD. |
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Registered Office : |
Room 1215, 12/F., Fu |
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Country : |
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Date of Incorporation : |
15.06.1993 |
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Com. Reg. No.: |
18624066-000 |
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Legal Form : |
Private Limited Company |
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Line of business : |
Importer, exporter and wholesaler of all kinds of diamonds jewellery and jewellery products |
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No. of Employees : |
4. (Including associates) |
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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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
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 |
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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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
PROFIT CROWN
ENTERPRISES LTD.
ADDRESS: 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 address)
T.N.K. Gems, Hong Kong. [BR
No.: 18624066-001]
Moksh, Hong Kong. [BR No.:
18624066-003]
Affiliated/Associated Companies:-
Aki Enterprises, Hong Kong. (Same
address)
Kokusai Shinju Co. Ltd., Japan.
Oasis Jewellery Ltd., Hong Kong.
(Same address)
Tanvirkuma Diamonds Ltd., India.
18624066-000
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 15-06-2012)
|
Name |
|
No. of shares |
|
Bhaven JHAVERI |
|
2,500,000 |
|
Hitesh R. JHAVERI |
|
2,500,000 |
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|
–––––––– |
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Total: |
5,000,000 ======= |
(As per registry dated 23-11-2012)
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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 15-06-2012)
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: Operation is conducted on a profitable basis.
Condition: Maintained
in an active manner.
Facilities: Is
making use of general banking facilities.
Payment: Met as agreed.
Commercial Morality: Satisfactory.
Banker: The Royal Bank of Scotland N.V.,
Hong Kong Branch.
Standing:
Good.
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
Fancy Cut
Diamonds, Round Diamonds
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.
In order to penetrate the international market further, T.N.K. Gems and
Moksh have taken part in fairs and exhibitions held in Hong Kong and other
foreign large cities. For instance, they
are going to take part in “HKTDC Hong Kong International Jewellery Show 2013”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai,
Hong Kong during the period of 5th to 9th March, 2013.
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 nineteen years and
seven months, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
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.53.95 |
|
UK Pound |
1 |
Rs.70.50 |
|
Euro |
1 |
Rs.83.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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 |
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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.