MIRA INFORM REPORT

 

 

Report No. :

499368

Report Date :

27.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

THE  CROWN  COMMERCIAL  HOUSE

 

 

Registered Office :

Room 1114, 11/F., Beverley Commercial Centre, 87-105 Chatham Road, Tsimshatsui, Kowloon,

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

25.09.1968

 

 

Com. Reg. No.:

02546026-000-09

 

 

Legal Form :

Partnership

 

 

Line of Business :

Importer and Exporter; Commission Agent of Silk fabrics, silk yarns, chemicals, aluminium ingots, computers, footwear, household and kitchen utensils, mica and micanite, pharmaceuticals, spices, steels, umbrellas and other

light industrial products

 

 

No. of Employees :

5.

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong.

A1

A1

 

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 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, which took effect in 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 2.6% in 2016, but slowed to 2.0% in 2017. 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. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

 

Source : CIA

 

Company name and address

 

THE  CROWN  COMMERCIAL  HOUSE

 

 

ADDRESS:       Room 1114, 11/F., Beverley Commercial Centre, 87-105 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            852-2723 5654

 

FAX:                 852-2369 0786

 

E-MAIL:            crown@crownhk.com

 

MANAGEMENT:

 

Manager:  Mr. Kailash Chandra Khatuwala

 

 

SUMMARY

 

Establishment:                          25th September, 1968.

 

Organization:                 Partnership.

 

Capital:                         Not disclosed.

 

Business Category:       Importer and Exporter; Commission Agent.

 

Employees:                   5.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:          Satisfactory.

 

ADDRESS

 

Registered Address:-

Room 1114, 11/F., Beverley Commercial Centre, 87-105 Chatham Road, Tsimshatsui, Kowloon, Hong Kong.

 

Associated Companies:-

Trans Oceanic Co., Hong Kong.  (Same address)

[A partnership firm established on 1st June, 1973 under Business Registration No. 02546026-001-09]

Globex Trading Company, Hong Kong.  (Same address)

[A partnership firm established on 23rd June, 2016 under Business Registration No. 02546026-002-09]

BUSINESS REGISTRATION NUMBER

 

  02546026-000-09

 

 

MANAGEMENT

 

Manager:  Mr. Kailash Chandra Khatuwala

 

 

PARTNERS

 

Name:  Mr. Kailash Chandra KHATUWALA

Residential Address:     Flat A, 7/F., Block B3, Perth Apartments, 31 Perth Street, Homantin, Kowloon, Hong Kong.

 

Name:  Mr.  Vikash KHATUWALA

Residential Address:     Flat A, 7/F., Block B3, Perth Apartments, 31 Perth Street, Homantin, Kowloon, Hong Kong.

 

 

HISTORY

 

The subject was originally established on 25th September, 1968 as a sole proprietorship concern owned by Mr. Bhagwatilal Khatuwala under the Hong Kong Business Registration Regulations.  Reorganised into a partnership company in late 1978.

 

Subsequent changes of the partners are listed hereunder:-

            Name

Date admitted

Date retired

Bhagwatilal KHATUWALA

25-09-1968

07-12-1989

Kailash Chandra KHATUWALA

22-12-1978

---

Shiw Ratan KHATUWALA

01-04-1986

23-04-2007

Vikash KHATUWALA

01-04-2009

---

 

The subject was initially located at Flat E, 17/F., Far East Mansion,
5-6 Middle Road, Kowloon, Hong Kong.  Moved to Flat D, 6/F., Princess Court, 14 Kimberley Road, Kowloon, Hong Kong in November 1984; to Flat I, 7/F., Wing Lee Building, 33 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong in September 1987; to Room 9C, Lees Tower, 2-2A Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in November 1989; to Room 1625, Beverley Commercial Centre, 87-105 Chatham Road, Tsimshatsui, Kowloon, Hong Kong in June 1991; moved to ‘Room 1112’ of the same building in May 1993, and further moved to ‘Room 1114’ of the same building in April 2009.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:          Importer and Exporter; Commission Agent.

 

Lines:               Silk fabrics, silk yarns, chemicals, aluminium ingots, computers, footwear, household and

kitchen utensils, mica and micanite, pharmaceuticals, spices, steels, umbrellas and other

light industrial products.

 

Employees:      5.

 

Commodities

Imported:          Mainly bought from China and in Hong Kong.

 

Markets:           India, Pakistan, Bangladesh, Africa, Middle East, Europe, North America, etc.

 

Terms/Sales:      L/C or as per contracted.

 

Terms/Buying:  L/C, D/P and D/A.

 

 

FINANCIAL INFORMATION 

 

Capital:                         Not disclosed.

 

Profit or Loss:               Business is profitable.

 

Condition:                      Keeping in a satisfactory manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      No Complaints.

 

Commercial Morality:   Satisfactory.

 

Banker:

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong

Indian Overseas Bank, Hong Kong Branch.

 

Standing:  Normal.

 

 

GENERAL

 

The Crown Commercial House is a partnership concern jointly owned by two India merchants who are the members of the Khatuwala family.  The two partners are Kailash Chandra Khatuwala and Vikash Khatuwala.

The subject is an importer, exporter and commission agent.  It is trading in the following commodities:

Silk fabrics, silk yarns, chemicals, footwear, household and kitchen utensils, mica and micanite, pharmaceuticals, spices, steels, umbrellas, paper & paper products, newsprint, broadcasting equipment, DVD player, electric appliances, food & beverage, oven - micro wave, piecegoods, sauce & seasoning, TV & video equipment, washing machine, etc.

Commodities are mainly purchased in Hong Kong or imported from China.  India is its prime market.

The other markets are the following countries and districts:

Africa, Australasia, China, Eastern Europe, the Middle East, North America, other Asian Countries, Southeast Asia, Western Europe, etc.

Located at the same office, the subject has got an associate Trans Oceanic Co. which commenced business on 1st June, 1973.  Trans Oceanic is engaged in the same lines of business as the subject, more or less.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong.

For instance, it is going to take part in “HKTDC Hong Kong Gifts & Premium Fair 2018” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 27th to 30th April, 2018.

The subject has developed close business ties with many firms in India.  History in Hong Kong is over 49 years and five months.  Business is chiefly handled by the two partners.

On the whole, consider it good for normal credit requirements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.91

UK Pound

1

INR 91.87

Euro

1

INR 80.26

HKD

1

INR 8.25

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

KET

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.