MIRA INFORM REPORT
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Report Date : |
18.10.2011 |
IDENTIFICATION DETAILS
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Name : |
AKI
ENTERPRISES |
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Registered Office : |
c/o T.N.K. Gems, 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 : |
17.09.2010 |
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Com. Reg. No.: |
52966965-000-09 |
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Legal Form : |
Sole
Proprietorship |
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Line of Business : |
Importer, Exporter
and Wholesaler of all kinds of
jewellery and diamonds, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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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 |
Company name
AKI ENTERPRISES
Company ADDRESS
c/o
T.N.K. Gems
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East,
Hunghom, Kowloon, Hong Kong.
PHONE: 2314 7585
FAX: 2723 7585
E-MAIL: tnkgems@netvigator.com
MANAGEMENT
Manager: Mr. Mahavir Chetanmal
Shah
SUMMARY
Establishment: 17th September, 2010.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Jewellery
Trader.
Employees: 3. (Including affiliates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
c/o T.N.K. Gems
Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Affiliated
Companies:-
· Kokusai Shinju Co. Ltd., Japan.
· Oasis Jewellery Ltd., Hong Kong. (Same address)
· Profit Crown Enterprises Ltd., Hong Kong. [Trading as T.N.K. Gems and Moksh] (Same address)
· Tanvirkuma Diamonds Ltd., India.
BUSINESS REGISTRATION NUMBER
52966965-000-09
MANAGEMENT
Manager: Mr. Mahavir Chetanmal Shah
SOLE PROPRIETOR
Name: Mr. Mahavir Chetanmal SHAH
Residential Address: 210C, Vasudeo Terrace, 34 Kastur Park, Boriyali West, Mumbai 400092, India.
HISTORY
The subject was established on 17th September, 2010 as a sole proprietorship concern owned by Mr. Mahavir Chetanmal Shah under the Hong Kong Business Registration Regulations.
Initially the subject was located at Room 375, 3/F., Conic Investment Building, 13 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong, moved to the present address in November 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of jewellery and diamonds, etc.
Employees: 3. (Including affiliates)
Commodities
Imported: India, Belgium, other European
countries, etc.
Markets: Hong
Kong, Japan, other Asian countries, etc.
Terms/Sales: L/C,
T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not
disclosed.
Profit or Loss: Made
a small loss in 2010.
Condition: Business
is under development.
Facilities: Making
fairly active use of general banking facilities.
Payment: Met
trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
AKI Enterprises is a sole
proprietorship set up and owned by Mr. Mahavir Chetanmal Shah who is an
Indian. He is an India passport holder
and does not have the right to reside in Hong Kong permanently.
The subject commenced
business in September 2010. It is
sharing the office with the following four firms: T.N.K. Gems, Moksh, Oasis
Jewellery Ltd. [Oasis] and Profit Crown Enterprises Ltd. [Profit Crown]. All these firms are Hong Kong registered
firms. T.N.K. Gems and Moksh is the
business name of Profit Crown.
Including the subject, the above-mentioned three firms are owned and
operated by the Shah family.
The subject is a polished,
loose diamond, gem and cut diamond trader, rough diamond supplier and jewellery
manufacturer.
Oasis is also the agent of
Eternity Jewels which is an India-based firm.
To our knowledge, Eternity Jewels has got other liaison centres
such as in the United States, Japan, Thailand and associated offices throughout
the world.
Oasis also has got an
affiliated factory Tanvirkuma Diamonds Ltd. [TDL] which is an India-based
firm. TDL is the main India supplier of
Oasis and the subject.
The subject’s products are
marketed in Hong Kong and exported to Japan, South Korea, other Asian
countries, Europe, North America, etc.
The subject’s business is
mainly handled by Mr. Mahavir Chetanmal Shah himself.
The history of the subject
in Hong Kong is just over a year.
Business is improving.
On the whole, consider the
subject good for normal business engagements on secured basis for the time
being.
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis the Indian diamond industry
has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a
dozen diamond firms in Surat. Until about two months ago, they had not
repaid these dues. Bankers believe many diamantaires borrowed money
during the economic downturn two years ago and diverted funds to businesses
like real estate and capital markets. Many of themselves made money from these
businesses but their diamond companies have gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.89 |
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UK Pound |
1 |
Rs.77.31 |
|
Euro |
1 |
Rs.67.79 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.