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MIRA INFORM REPORT
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Report No. : |
486204 |
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Report Date : |
16.01.2018 |
IDENTIFICATION DETAILS
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Name : |
BUTANI JEWELLERY LIMITED |
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Registered Office : |
Room 510-512, 5/F., Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
27.02.1981 |
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Com. Reg. No.: |
07389695 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Wholesaler, Retailer and Exporter of all kinds of Jewellery
and Precious Stones. |
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No. of Employees : |
35. (Including Retailing
Outlets) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Hongkong |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
HONGKONG - 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 4.4% in 2014, but slowed to 2.9% in 2015. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.
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Source
: CIA |
Company
name and address
BUTANI JEWELLERY
LIMITED
ADDRESS: Room
510-512, 5/F., Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon,
Hong Kong
PHONE: 852-2369
8245, 2369 8246
FAX: 852-2721
9561
E-MAIL: info@butani.com
MANAGEMENT
Managing Director:
Mr. Papu Udharam Butani
SUMMARY
Incorporated on: 27th February, 1981.
Organization: Private Limited Company.
Issued Share Capital: HK$1,000,000.00
Business Category: Jewellery
Trader.
Annual Turnover: HK$300-400 million.
Employees: 35. (Including retailing outlets)
Main Dealing Banker: China
Construction Bank (Asia) Corporation Ltd., Hong Kong.
Banking Relation: Satisfactory.
ADDRESS
Registered Head
Office:-
Room 510-512, 5/F., Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong.
Business Name:-
Diamex International, Hong Kong.
Associated
Companies:-
Butani Jewellers
No.4 Maho Shopping Plaza, Cinnamon Grove, St. Maarten,
Netherlands Antilles.
[Tel: (5995) 452-158; Fax: (5995)
432-119]
98 Front Street, Philipsburg, St. Maarten, Netherlands
Antilles.
[Tel: (5995) 432-118; Fax: (5995)
432–119]
Butani Ltd., Hong Kong.
Butani Jewellery LLC, United Arab Emirates.
BUSINESS
REGISTRATION NUMBER
07389695
COMPANY
FILE NUMBER
0094027
MANAGEMENT
Managing Director:
Mr. Papu Udharam Butani
ISSUED
SHARE CAPITAL
HK$1,000,000.00 (100,000 fully paid ordinary shares)
SHAREHOLDERS
(As per registry dated 27-02-2017)
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Name |
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No. of shares |
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Lachmi Papu BUTANI |
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10,000 |
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Papu Udharam BUTANI |
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90,000 |
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––––––– |
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Total: |
100,000 ====== |
DIRECTORS
(As per registry dated 27-02-2017)
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Name (Nationality) |
Address |
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Lachmi Papu BUTANI |
House No. C-3, Flamingo Garden, Sai Kung, New Territories,
Hong Kong. |
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Papu Udharam BUTANI |
House No. C-3, Flamingo Garden, Sai Kung,
New Territories, Hong Kong. |
SECRETARY
(As per registry dated 27-02-2017)
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Name |
Address |
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Betty CRUZ |
Room 510-512, 5/F., Houston Centre, 63 Mody Road, Tsimshatsui
East, Kowloon, Hong Kong. |
HISTORY
The subject was
incorporated on 27th February, 1981 as a private limited liability company
under the Hong Kong Companies Ordinance.
Originally the
subject was registered under the name of Mukumoj Jewellery Ltd., name changed
to the present style on 13th May, 1983.
Formerly the
subject’s office was located at Room 512, 5/F., Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong, moved to Room 1312-1313, 13/F. of the
same building in 2000; and moved back to Room 510-512, 5/F. of the same
building in November 2005.
Apart from these,
neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer,
Wholesaler, Retailer and Exporter.
Lines: All
kinds of jewellery and precious stones.
Brand Name: Butani.
Employees: 35. (Including retailing outlets).
Commodities Imported: Imported
from Europe, South Africa, Indo-China, etc.
Markets: Hong
Kong, Middle East, Caribbean, US, Europe, etc.
Annual Turnover: HK$300-400
million.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, D/P and T/T.
MEMBERSHIP
Hong Kong Jewelry Manufacturers’ Association,
Hong Kong.
The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKB0152]
The Indian Chamber of Commerce Hong Kong, Hong Kong.
FINANCIAL
INFORMATION
Issued Share Capital: HK$1,000,000.00
(100,000 fully paid ordinary shares)
Indebtedness: HK$64,990,049.25 (Total amount
outstanding on all mortgages and charges as per last
Annual Return
dated 27-02-2017)
Mortgage or Charge:
(See attachment)
Profit or Loss: Business
is profitable.
Condition: Keeping
in a good state.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as
required.
Commercial Morality:
Satisfactory.
Bankers:-
China Construction
Bank (Asia) Corporation Ltd., Hong Kong.
Bank of India,
Hong Kong Branch.
American Express Bank
Ltd., Hong Kong Branch.
Bank of America N.A.,
Hong Kong Branch.
Industrial &
Commercial Bank of China (Asia) Ltd., Hong Kong.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Very Good.
GENERAL
Butani Jewellery
Limited, bearing a business name of Diamex International, is a private limited
company jointly owned by Papu Udharam Butani, holding 90% interests, and Lachmi
Papu Butain, holding 10%. Being
directors of the subject, the Butains have been in Hong Kong for a very long
time.
The business name of
the subject is ‘Diamex International’.
The subject is
dealing in the following commodities:
Jewellery
products, precious and semi-precious stones, gemsets, opal jewellery, pearl
jewellery, diamond necklaces, diamond jewellery set, diamond rings, diamond
earrings, 18K gold necklace, sapphire earrings, Butani jewellery, etc.
Most of its products
bear the brand name Butani.
Raw materials are
imported from India, Europe, South Africa, Indo-China, etc. The subject exports its products to the
United States, the Caribbean Islands, the Middle East, Australia, Asian
countries and Europe. Its retail
businesses include two retailing stores in St. Maarten, Netherlands Antilles,
which have been operating for the past 12 years, catering predominately to the North
American market. According to the
subject, it has set up more than 100 points of distribution worldwide.
In Hong Kong, the
subject’s retailing outlet known as ‘Butani Boutiques’ is located at ‘The
Peninsula Hong Kong’ hotel which is in Tsimshatsui, Kowloon, Hong Kong. It also has two retailing outlets in Macau.
In addition to this,
the subject has had an exclusive “By appointment only” boutique in Hong Kong.
In order to penetrate
the international market further, the subject has taken part in fairs and
exhibitions held in Hong Kong and other foreign large cities. Over the past years, it took part in the
following fairs:-
· Hong Kong Jewellery & Watch Fair, Hong Kong.
· Jewellery Arabia.
· International Jewellery Dubai.
· Hong Kong International Jewellery Show, Hong Kong.
· Couture, Las Vegas, the United States.
· JCK Las Vegas Show, the United States.
· Basel Jewellery Fair, Switzerland.
In 2017, the subject
took part in ‘Baselworld Jewellery Show’ which was held in Switzerland.
It is also going to take
part in “HKTDC Hong Kong International Jewellery Show 2018” which will be held
in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the
period of 1st to 5th March, 2018. Its
booth No. is CEC GH-C02.
The subject’s annual
sales turnover ranges from HK$300 to 400 million. Overall business is satisfactory. History in Hong Kong is about 37 years.
The subject operates
from its own offices in Hong Kong.
On the whole,
consider it good for normal business engagements.
REMARKS
Property
information of the company:-
1. Property
Location: Unit No. 10 on 5/F.,
Houston Centre, 63 Mody Road, Kowloon, Hong Kong.
Owner: Butani
Jewellery Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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30-09-2004 |
- |
Bank of America (Asia) Ltd., Hong Kong. [Now known as China Construction Bank
(Asia) Corporation Ltd.] |
Mortgage to secure general banking facilities |
2. Property
Location: Unit No. 12 on 5/F.,
Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.
Owner: Butani
Jewellery Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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16-12-1986 |
- |
The Bank of Canton Ltd., Hong Kong. [Renamed to Security Pacific Asian Bank
Ltd., to Bank of America (Asia) Ltd. and further to China Construction Bank
(Asia) Corporation Ltd.] |
Mortgage to secure general banking facilities |
3. Property
Location: Room 513 & 514 on
5/F. of Tower B, Mandarin Plaza (also known as New Mandarin Plaza), 14 Science
Museum Road, Kowloon, Hong Kong.
Owner: Butani
Jewellery Ltd.
Date of Purchase:
n.a.
Purchased Price:
n.a.
Incumbrances:-
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Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
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28-02-2005 |
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The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
MORTGAGE
OR CHARGE
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Date |
Description
of Instrument |
Mortgagee |
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16-12-1986 |
Mortgage |
Bank of Canton Ltd., Hong Kong. [Renamed to Security Pacific Asian Bank
Ltd. and further to Bank of America (Asia) Ltd.] |
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17-03-1998 |
Letter of Set Off |
Bank of India, Hong Kong Branch. |
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19-02-2004 |
Letter of Set Off |
Bank of India, Hong Kong Branch. |
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19-02-2004 |
General Letter of Hypothecation |
Bank of India, Hong Kong Branch. |
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30-09-2004 |
Mortgage |
Bank of America (Asia) Ltd., Hong Kong. [Now known as China Construction Bank
(Asia) Corporation Ltd.] |
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30-09-2004 |
Assignment of Rentals |
Bank of America (Asia) Ltd., Hong Kong. [Now known as China Construction Bank
(Asia) Corporation Ltd.] |
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28-02-2005 |
Mortgage |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
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06-09-2010 |
Letter of Lien |
Bank of India, Hong Kong Branch. |
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28-04-2014 |
Charge over Account |
China Construction Bank (Asia) Corporation Ltd.,
Hong Kong. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.41 |
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1 |
INR 87.18 |
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Euro |
1 |
INR 77.45 |
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HKD |
1 |
INR 8.14 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.