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Report Date : |
16.08.2014 |
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 |
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Legal Form : |
Private Limited Liability 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 |
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 |
|
Status : |
Good |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 has no tariffs
on imported goods, and it levies excise duties on only four commodities,
whether imported or produced locally: 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, its continued reliance on foreign trade and investment
leaves it vulnerable to renewed global financial market volatility or a slowdown
in the global economy. 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 12% of total system deposits in Hong
Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong
Kong property prices to rise rapidly; consumer prices increased by more than 4%
in 2013. 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. In
2013, Hong Kong and China signed new agreements under the Closer Economic
Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong
and the mainland. The new measures, effective from January 2014, cover services
and trade facilitation, and will improve access to the mainland's service sector
for Hong Kong-based companies.
|
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: Axis Bank, Hong Kong.
Banking Relation: Good.
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
0427263
Managing
Director: Mr. Bhaven Nayan Jhaveri
Contact
Person: Mr. Bhavin Shah (Mobile:
852-6386 7700)
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, Advanced payment, etc.
MEMBERSHIP: The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKP0555]
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: Business 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:-
Axis Bank, Hong Kong.
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
contact person of the subject Mr. Bhavin Shah can be reached at his Hong Kong
mobile phone number 852-6386 7700.
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;
o
Diamond Jewellery
§
White Diamond Jewellery
§
Colour Diamond Jewellery
·
Fancy Cut Diamonds, Round
Diamonds; &
·
Pearls, etc.
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, both took part in
“HKTDC Hong Kong International Jewellery Show 2014” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
5th to 9th March, 2014. They will take
part in the same exhibition in 2015.
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.
The
subject joined in the Hong Kong General Chamber of Commerce, Hong Kong, as
a member in 2014.
As
the history of the subject in Hong Kong is over twenty years, 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
-
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.
-
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 –
-
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.61.06 |
|
|
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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.