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Report Date : |
22.04.2014 |
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 : |
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) |
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 |
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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
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 |
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|
|
–––––––– |
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|
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:-
·
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 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
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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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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. 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.60.34 |
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|
1 |
Rs.101.41 |
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Euro |
1 |
Rs.83.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.