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Report No. : |
353180 |
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Report Date : |
12.12.2015 |
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 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 Employee : |
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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
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 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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
PROFIT CROWN ENTERPRISES LTD.
(Business names: T.N.K. GEMS and MOKSH)
ADDRESS: 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
MANAGEMENT:
Managing Director: Mr. Bhaven Nayan Jhaveri
Incorporated on: 15th
June, 1993.
Organization:
Private Limited
Company.
Issued Share Capital: HK$5,000,000.00
Business Category: Jewellery Trader.
Employees:
4. (Including associates)
Main Dealing Banker: Axis Bank, Hong Kong.
Banking Relation: Good.
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:-
Kokusai Shinju Co. Ltd., Japan.
Tanvirkuma Diamonds Ltd., India.
18624066
0427263
Managing Director: Mr. Bhaven Nayan Jhaveri
Contact Person: Mr. Kuntal Shah
HK$5,000,000.00
(As per registry dated 15-06-2015)
|
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 15-06-2015)
|
Name (Nationality) |
Address |
|
Hitesh R. JHAVERI |
Flat J, 10/F., Block 2, Royal Peninsula,
Hunghom, 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 15-06-2015)
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
Markets: Hong
Kong, China, Japan, South Korea, other Asian countries, Europe, North America,
Terms/Sales: CAD,
L/C, T/T
Terms/Buying:
L/C, T/T, D/P,
Advanced payment
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKP0555]
Issued Share Capital: HK$5,000,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Business is profitable.
Condition: Keeping
in an active condition.
Facilities: Making
rather active use of general banking facilities.
Payment:
No
complaints
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:
Very Good.
Having issued 5 million ordinary shares of
HK$1.00 each, Profit Crown Enterprises Ltd. formerly 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. They are also directors of the subject. Mr. Bhaven Nayan Jhaveri is the individual
secretary of the subject. He is also the
managing director of the subject as well.
The contact person of the subject is Mr.
Kuntal Shah.
The subject has been operating two companies,
namely, 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 products:-
o Finished
Jewellery
o
Diamond Jewellery
·
White Diamond Jewellery
·
Colour Diamond Jewellery
·
Fancy Cut Diamonds, Round
Diamonds; &
·
Pearls
The subject’s products are marketed in Hong
Kong, China and exported to Japan, South Korea, India, other Asian countries,
Europe, North America. Business is
active.
The subject is also the agent of Eternity
Jewels which is an India-based firm.
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 are going to take part in
“HKTDC Hong Kong International Jewellery Show 2016” which will be held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th
to 9th March, 2016.
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-two years and five 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.
-
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.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
HKD |
1 |
Rs.8.66 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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 |
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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 |
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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 |
|
<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.