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Report No. : |
340710 |
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Report Date : |
15.09.2015 |
IDENTIFICATION DETAILS
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Name : |
CROWN AIM
LTD. |
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Registered Office : |
Room 5B, 5/F., Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.12.2010 |
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Com. Reg. No.: |
53762154 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is importer, exporter and wholesaler of all kinds of jewellery and diamonds |
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No. of Employee : |
10 (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 |
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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 |
|
Insignificant |
A1 |
|
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 |
CROWN
AIM LTD.
Room 5B, 5/F.,
Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong
Kong.
PHONE: 852-5321 6201, 3152 3834
Managing
Director: Mr. Harshil Vipul Shah
Incorporated
on: 9th
December, 2010.
Organization: Private
Limited Company.
Issued Share
Capital: US$6,000,000.00
Business Category:
Importer, Exporter and Wholesaler.
Group
revenue: INR 114,810.62
million (Year ended 31-03-2015)
Employees: 10. (Including associates)
Main Dealing
Banker: The Hongkong & Shanghai
Banking Corp. Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Registered Head Office:-
Room 5B, 5/F.,
Block A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong
Kong.
Holding Company:-
Aston Luxury Group
Ltd., Hong Kong. (Same address)
Ultimate Holding Company:-
Gitanjali Gems
Ltd., India.
Associated Companies:-
Gitanjali Group of
Companies
Abbeycrest
(Thailand) Ltd., Thailand.
Alfred Terry Ltd.,
UK.
Asmi Jewellery
India Ltd., India.
D’Damas Jewellery
(India) Private Ltd., India.
Decent Investment
& Finance Private Ltd., India.
Decent Securities
& Finance Private Ltd., India.
Diamlink Inc., US.
Diamlink Jewelery
Inc., US.
eGitanjali Ltd.,
India.
Eureka Finstocks
Private Ltd., India.
GGL Diamonds LLC.,
US.
Giantti Jewellery
(Shanghai) Co. Ltd., China.
Gili India Ltd.,
India.
Gitanjali Brands
Ltd., India.
Gitanjali Exports
Corporation Ltd., India.
Gitanjali
Infratech Ltd., India.
Gitanjali
Jewellery Retail Ltd., India.
Gitanjali Jewels
LLC, U.A.E.
Gitanjali
Lifestyle Ltd., India.
Gitanjali USA
Inc., US.
Gitanjali Ventures
DMCC, U.A.E.
Hyderabad Gems SEZ
Ltd., India.
Imacbc, Hong Kong.
Jewelry Marketing
Co LLC., US.
Leading Italian Jewels
SRL, Italy.
Leading Jewels of
Japan Kabushiki Kaisha, Japan.
LJOW Holdings
LLC., US.
Maya Retail Ltd.,
India.
MMTC Gitanjali
Ltd., India.
MobileNxt
Teleservices Private Ltd., India.
N&J Finstocks
Private Ltd., India.
Nakshatra Brands
Ltd., India.
Nashik Multi
Services SEZ Ltd., India.
Samuels Jewelers
Inc., US.
Spectrum Jewellery
Ltd., India.
Tianxin Diamonds
(Shanghai) Co. Ltd., China.
Tri-star Worldwide
LLC, US.
Vidarbha Multi
Products SEZ Ltd., India.
53762154
1538177
Managing
Director: Mr. Harshil Vipul Shah
US$6,000,000.00
(As
per registry dated 09-12-2014)
|
Name |
|
No.
of shares |
|
Aston Luxury Group Ltd., Hong Kong. |
|
6,000,000 ======= |
(As
per registry dated 13-04-2015)
|
Name (Nationality) |
Address |
|
Jay Paresh SHAH |
A-1, 1/F., Austin Mansion, 15A Austin
Avenue, Tsimshatsui, Kowloon, Hong Kong. |
|
Harshil Vipul
SHAH |
Flat A, 1/F., Austin Mansion, 15A Austin Avenue,
Tsimshatsui, Kowloon, Hong Kong. |
(As
per registry dated 09-12-2014)
|
Name |
Address |
Co.
No. |
|
Buttar
Secretarial Ltd. |
Unit 13, 16/F., Asia Trade Centre, 79 Lei Muk Road, Kwai Chung, New
Territories, Hong Kong. |
2086550 |
The
subject was incorporated on 9th December, 2010 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room 1001-1004A, 10/F., Champion Building, 287-291
Des Voeux Road Central, Hong Kong where is the operating office of Gateway
Registrations Ltd., moved to Room 1101, 11/F., Guardforce Centre, 3 Hok Yuen
Street East, Hunghom, Kowloon, Hong Kong with effect from 6th July, 2011,
and further to the present address in June 2014.
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
diamonds
Employees: 10.
(Including associates)
Commodities
Imported: China, Europe, US, etc.
Group
Turnover: INR 93,772.90 million (Year ended 31-03-2011)
INR 124,982.76
million (Year ended 31-03-2012)
INR 164,184.96
million (Year ended 31-03-2013)
INR 124,360.00
million (Year ended 31-03-2014)
INR 114,810.62 million (Year ended 31-03-2015)
Markets: Asian countries, Middle East,
Europe, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C,
T/T, etc.
Issued Share
Capital: US$6,000,000.00
Group profit after
tax: INR
3,548.11 million (Year ended 31-03-2011)
INR 4,872.51
million (Year ended 31-03-2012)
INR 5,916.92
million (Year ended 31-03-2013)
INR 3,352.20
million (Year ended 31-03-2014)
INR 9,549.70
million (Year ended 31-03-2015)
Profit or Loss: Made small profits in past four years.
Condition: Business is normal.
Facilities: Making active use of general
banking facilities.
Payment: No
Complaints.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 6,000,000 ordinary shares of US$1.00 each, Crown Aim Ltd. is wholly owned by Aston Luxury Group Ltd. [Aston], a Hong Kong-registered firm also located at the same address. The ultimate holding company Gitanjali Gems Ltd. [Gitanjali] is an India-based company.
The subject moved to the current operating address in June 2014. It is a diamond and jewellery trader.
The managing director of the subject Harshil Vipul Shah is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The directors of the subject are newly appointed.
Aston is a wholly owned subsidiary of Gitanjali of India. Gitanjali has acquired 100% stake in the subject for an undisclosed amount. Gitanjali, a listed-firm in India, is a member of the Gitanjali Group [Group].
The Group acquired the subject that has strong distribution network to Hong Kong, China, Japan, the Unit States, the Middle East and Europe.
The Group also acquired a Chinese company that manufactures and distributes jewellery to the United States, Italy, Japan, the United Kingdom, the UAE, the Middle‑East and Australia. This acquisition strengthened the Group’s international manufacturing base and facilitated access to the Chinese market.
The subject has a jewellery manufacturing unit in China.
The subject also owns a 100% subsidiary called Alfred Terry Holdings Ltd. and a step-down subsidiary called Alfred Terry Ltd., located in London, for jewellery distribution in the United Kingdom. Alfred Terry Ltd., a 45 year old company, has a wide distribution networks catering to chain stores and standalones in the United Kingdom. The network covers nearly 2,000 jewellery shops.
The Group also has set up Aston Luxury Group in Hong Kong to explore and expand the international business of the Group in the Asia Pacific region.
Incorporated in 1966, Surat-based Gitanjali Group is one of the largest branded jewellery companies in India with interests in diamond jewellery, retail and lifestyle businesses. The Group has set up the following three segments:-
Branded Jewellery & Retail Segment;
Diamond & Jewellery Manufacturing Segment; & International Distribution & Retail Segment.
The Group operates across the United States, the United Kingdom, Belgium, Italy and the Middle East, as well as in Thailand, Southeast Asia, China and Japan. The bouquet of brands owned by the Group in Italy includes “Stefan Hafner”, “iO Si”, “Novelle Bague”, “Porrati” and “Valente”. The Gitanjali Group also owns speciality retail chain in the United States under the brands of “Samuels” and “Rogers”.
Gitanjali is now a majestic figure in the global gems and jewellery industry. It is present in every major jewellery market of the world namely, the United States (which alone accounts for 30 % of the global jewellery market), India, Japan, China and the Middle-East.
Gitanjali operates through 10 global offices and has 6 regional offices. It employs over 6,000 people.
The annual turnover of the Gitanjali Group is around US$2 billion.
For the year ended 31st March, 2015, the revenue of the Group amounted to INR 114,810.62 million (2014: INR 124,360.00 million), decreased by 7.7% as compared with previous year. Group profit after tax in the year amounted to INR 9,549.70 million (2014: INR 3,352.20 million), grew by 184.9%.
According to the Group, the annual revenue of the subject ranges from INR 5,000 – 6,000 million.
The subject is fully supported by the Gitanjali Group. History in Hong Kong is just over four years and nine months.
On the whole, consider the subject good for normal business engagements.
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.66.37 |
|
|
1 |
Rs.102.54 |
|
Euro |
1 |
Rs.75.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
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|
Report Prepared
by : |
ASH |
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.