|
Report Date : |
17.04.2014 |
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 |
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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 |
|
|
|
|
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 |
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 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.
-
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.
-
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.58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
PDT |
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.