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Report Date : |
23.09.2013 |
IDENTIFICATION DETAILS
|
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 : |
Hong Kong |
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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 jewellery and
jewellery products. |
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No. of Employees : |
4 (Including associates) |
RATING & COMMENTS
|
MIRA’s 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 |
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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 |
PROFIT CROWN ENTERPRISES
LTD.
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
PHONE: 852-2314
7585
FAX: 852-2723
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.
PROFIT CROWN
ENTERPRISES LTD.
Registered Head
Office:-
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
Mailing Address:-
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 15-06-2013)
|
Name |
|
No. of shares |
|
Bhaven JHAVERI |
|
2,500,000 |
|
Hitesh R. JHAVERI |
|
2,500,000 |
|
|
|
–––––––– |
|
|
Total: |
5,000,000 ======= |
(As per registry dated 15-06-2013)
|
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 15-06-2013)
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 profitable.
Condition: Maintaining
in an active manner.
Facilities: Making
rather active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Royal Bank of Scotland N.V.,
Hong Kong Branch.
The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
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 as he is a Hong Kong ID holder.
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, supplier and jewellery
manufacturer. It is trading in the
following commodities:-
The subject is also the agent of Eternity Jewels which is an India-based
firm. Eternity Jewels has got the other
liaison offices in the United States, Japan, Thailand and affiliated firm in
other countries of the world.
The subject has had an affiliated company Aki Enterprises [Aki] located
at the same address. Established on 17th
September, 2010, Aki is also a diamond and jewellery trader. This firm is owned and operated by
Mr. Mahavir Chetanmal Shah who is a family member of Kuntal Shah.
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, it
is going to take part in “HKTDC Hong Kong International Jewellery Show 2014”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 5th to 9th March, 2014.
The subject’s products are exported to Japan, South Korea, other Asian
countries, Europe, North America, etc.
Business is rather active.
The subject’s business is mainly handled by Bhaven Nayan Jhaveri. Long term business ties have been developed
with some of the local and foreign buyers.
As the history of the subject in Hong Kong is over twenty years, on the
whole, consider it good for normal business engagements.
MORTGAGE OR CHARGE
|
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
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
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. India’s 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.62.24 |
|
|
1 |
Rs.99.90 |
|
Euro |
1 |
Rs.84.23 |
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.