MIRA INFORM REPORT

 

 

Report Date :

15.02.2012

 

IDENTIFICATION DETAILS

 

Name :

A.R.  INT’L  (HK)  LTD.

 

 

Registered Office :

Room 902, 9/F., Diamond Exchange Building, 8-10 Duddell Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

17.05.1991

 

 

Com. Reg. No.:

10532902

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter, Manufacturers’ Representative of Machinery, apparatus and parts, vegetables, leather garments and other garments, sundry products, etc.

 

 

No. of Employees :

8

 

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

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

           

A.R.  INT’L  (HK)  LTD.

 

 

Company ADDRESS

 

Room 902, 9/F., Diamond Exchange Building, 8-10 Duddell Street, Central, Hong Kong.

 

PHONE:                  2523 5377,  2522 5480

FAX:                       2523 0767

E-MAIL:                  arintl@netvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mrs. Abiraami Arunachalam

 

 

SUMMARY

 

Establishment               : 17th May, 1991.  (Sole Proprietorship)

 

Incorporated on              : 2nd September, 1986.

 

Organization                  :  Private Limited Company.

 

Capital: Nominal            : HK$50,000,000.00

Issued:                          HK$50,000,000.00

 

Business Category         : Importer and Exporter, Manufacturers’ Representative.

 

Annual Turnover :  HK$85~90 million.

 

Employees                    :  8.  (Including associates)

 

Main Dealing Bankers    :Bank of India, Hong Kong Branch.

UCO Bank, Hong Kong Branch.

 

Banking Relation            :  Satisfactory.


Company name

 

A.R.  INT’L  (HK)  LTD.

 

 

Company ADDRESS

 

Registered Head Office:-

Room 902, 9/F., Diamond Exchange Building, 8-10 Duddell Street, Central, Hong Kong.

 

Affiliated/Associated Companies:-

A.R.Steel Ltd., Hong Kong.  [Dissolved]

Akshay Software Technologies Ltd., India.

ARA Investments & Finance Ltd., India.

ARA Securities Pvt. Ltd., India.

Asian Industrial & Commercial Corporation Ltd., Hong Kong.  (Same address)

Crown Labels Pvt. Ltd., India.

Jai Insurance Broking Pvt. Ltd., India.

K9 Technologies Pvt. Ltd., India.

L&T Fashion Incorporate, India.

Lanxin Engineering Pvt. Ltd., India.

Lumen Magnetic Wires Ltd., India.

Rachuman China Ltd., Hong Kong.

Seyyone Software Solutions Pvt. Ltd., India.

Subiksha Spinners Ltd., India.

Sunrise Plastech F.Z.C., UAE.

Vishnuram Textiles Pvt. Ltd., India.

Yoha Logistix Pvt. Ltd., India.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

10532902

 

 

COMPANY FILE NUMBER

 

0174266

 

 

MANAGEMENT

 

Managing Director:  Mrs. Abiraami Arunachalam


CAPITAL

 

Nominal Share Capital: HK$50,000,000.00 (Divided into 30,600,000 Ordinary shares and 19,400,000 Non-Cululative Redeemable Preference shares of HK$1.00 each)

 

Issued Share Capital: HK$50,000,000.00

 

 

SHAREHOLDERS

 

(As per registry dated 22-12-2011)

Name

 

No. of shares

 

 


Ordinary

Non-Cululative Redeemable Preference

Abiraami ARUNACHALAM

 

15,950,000

9,050,000

Arunachalam MUTHUVEERAPPAN

 

250,000

-

Fulltech Investments Ltd.

Skelton Building, Main Street, P.O. Box 3136, Road Town, Tortola, British Virgin Islands.

 

14,400,000

10,350,000

 

 

–––––––––

–––––––––

 

Total:

30,600,000

========

19,400,000

========

 

 

DIRECTORS

 

(As per registry dated 02-09-2011)

Name

(Nationality)

 

Address

Arunachalam MUTHUVEERAPPAN

   (British)

Flat C, 19/F., Block 2, Estoril Court, 55 Garden Road, Mid Levels, Hong Kong.

 

Abiraami ARUNACHALAM

   (Indian)

Flat C, 19/F., Block 2, Estoril Court, 55 Garden Road, Mid Levels, Hong Kong.

 

 

SECRETARY

 

(As per registry dated 02-09-2011)

Name

Address

Co. No.

EQ Secretaries Ltd.

36/F., Tower 2, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

0099444

 

HISTORY

 

The subject, previously known as A.R. International, was first established on 17th May, 1991 as a sole proprietorship concern owned by Mrs. Abiraami Arunachalam under the Hong Kong Business Registration Regulations.

The limited company was originally registered under the name of Wakash Ltd. which was incorporated on 2nd September, 1986 under the Hong Kong Companies Ordinance.  Name changed to A.R. International Ltd. on 5th May, 1992, changed to A.R. Int’l Ltd. on 25th March, 1993, and further to the present style on 24th June, 2005.

The subject’s office once was located at Room 902, 9/F., China Building, 29 Queen’s Road Central, Hong Kong, moved to Room 1506, 15/F. of the same building with effect from 15th August, 1997.  The name of “China Building” was changed to “Aon China Building” in 2000.  With effect from 25th April, 2002, the subject moved to Room 901, 9/F., Diamond Exchange Building, 8-10 Duddell Street, Central, Hong Kong.  In February 2004, the subject moved to the next door at Room 902.

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

 

 

OPERATIONS

 

Activities                       :Importer and Exporter, Manufacturers’ Representative.

 

Lines                            : Machinery, apparatus and parts, vegetables, leather garments and other garments, sundry products, etc.

 

Employees                    :  8.  (Including associates)

 

Commodities Imported:-

Raw materials – India, Europe, etc.

Finished products – China, etc.

 

Markets                                    : Asian countries, Middle East, Sri Lanka, US, etc.

 

Annual Turnover : HK$85~90 million.

 

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

 

Terms/Buying                :  Various terms.

 

 

MEMBERSHIP

 

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital                : HK$50,000,000.00 (Divided into 30,600,000 Ordinary shares and 19,400,000 Non-Cululative Redeemable Preference shares of HK$1.00 each)

 

Issued Share Capital                  : HK$50,000,000.00

 

Indebtedness                             :  HK$339,809,638.00  (Total amount outstanding on all mortgages and charges as per last Annual Return dated 02-09-2011)

 

Mortgage or Charge (since 2011):  (See attachment)

 

Profit or Loss                             : Made profits in the past years.

 

Condition                                   : Keeping in an active state.

 

Facilities                                   : Making active use of general banking facilities.

 

Payment                                   :  So far so good.

 

Commercial Morality                  :  Satisfactory.

 

Bankers:-

Bank of India, Hong Kong Branch.

UCO Bank, Hong Kong Branch.

BNP Paribas, Hong Kong Branch.

Credit Agricole Corporate & Investment Bank, Hong Kong Branch.

Indo Hong Kong International Finance Ltd., Hong Kong.

Bank of Baroda, Hong Kong Branch.

HBZ Finance Ltd., Hong Kong.

Indian Overseas Bank, Hong Kong Branch.

Punjab National Bank, Hong Kong Branch.

 

Standing:  Normal.

 

 

GENERAL

 

Previously known as A.R. Int’l Ltd., A.R. Int’l (HK) Ltd. is an Indian company set up in May 1992.  It has taken over the business of A.R. International which was a sole proprietorship owned by Mrs. Abiraami Arunachalam.  The sole proprietorship was originally established in May 1991.

Initially, the subject’s issued share capital was HK$2,000,000.00, increased to HK$4,000,000.00 in 1994, to HK$7,900,000.00 in March 1999, to HK$10,000,000.00 in June 1999.  Now, its issued share capital is HK$50,000,000.00.

Mrs. A. Arunachalam, remains to be the major shareholder of the subject, is holding 50.0% interest.  She is the wife of Mr. Muthu Veerappan Arunachalam who is the Managing Director of Asian Industrial & Commercial Corporation Ltd. [AICC].  The other two shareholders of the subject are: Fulltech Investments Ltd. [Fulltech], a BVI-registered firm, holding 49.5%, and Arunachalam Muthuveerappan, holding 0.5%.

The subject is a member of the ARI Group which has got its corporate office in Trichy, India.

Fulltech is also the holding company of AICC which is also controlled by the Arunachalam family.  The subject and AICC are engaged in the same lines of business, more or less.

Also located at the operating address of the subject, AICC and the subject import and export the following products and trading in the following products:-

·         Textiles – Raw materials, fabrics, yarns, threads, fibres

·         Clothing – Woven and leather garments

·         Vegetables, fruits and nuts

·         Rice/cereals, oils, sugar, coffee, tea, cocoa and spices

·         Printed matter

·         Electrical and mechanical machinery, heavy machinery, apparatus and parts

·         Base metals and articles of base metal, steel, etc.

·         Software

·         Building materials

·         Leather goods

AICC’s main line of business is leather garments manufacturing and trading.  Currently, AICC has got its own leather garment factory in China known as Nanhai Hing Shing Leather Garment Factory Ltd.  It also has set up a garment factory and a tannery in India.  Besides these two, AICC has set up a liaison office in Seoul, South Korea.  Employing over ten persons, the Korean office is importing garments, textiles, leather from China and India.  Products are marketed in South Korea.  Business is quite active.

Besides AICC, the following firms and offices are also located at the subject’s operating address:-

A.R.Steel Ltd., Hong Kong

ARA Investments & Finance Ltd. [ARA I&F], Hong Kong Office

ARA Securities Pvt. Ltd. [ARA Securities], Hong Kong Office

ARA I&F and ARA Securities are India-based firms but have not registered in Hong Kong.  ARA I&F is a stock and share broking finance company.  It has been engaged in this line of business for a very long time.  It has got two main members: The National Stock Exchange India Ltd. and The Stock Exchange Mumbai, both are India-based firms.

ARA Securities is one of the market leaders in the Indian securities market.  It also offers clients with the following consultancy services: securities, life insurance, corporate and municipal bonds, mutual funds, certificates of deposit, annuities, and other investments.

A.R.Steel Ltd. was a metal and steel trader but has been dissolved.

The subject, AICC and the above three firms are chiefly controlled by the Arunachalam family.  At present, Mr. M. Arunachalam has set up a factory in India for manufacturing solar street lights, solar water heaters, etc.

The subject’s annual sales turnover ranges from HK$85 to 90 million.  Business is rather active.  History in Hong Kong is over twenty years.

On the whole, in view of the subject’s background, consider it good for normal business engagements.

 


MORTGAGE OR CHARGE

(Since 2011)

 

Date

Particulars

Amount

20-09-2011

Instrument:      Memorandum

Property:

Distinctive
No. of Receipts         Date of Issue           Amount             Due Date

91210300004574       25-05-2011            504,717.30       25-11-2011
91210300004573       25-05-2011       US$  15,316.98        25-11-2011
91210300004703       30-06-2011       US$  55,759.50        30-12-2011
91210300005081       23-08-2011       US$  51,046.52        09-01-2012
91210300005100       08-09-2011       US$941,077.12        22-09-2011
91210300005101       08-09-2011       US$600,000.00        08-03-2012

Mortgagee:      Bank of Baroda, Hong Kong Branch.

Loan or credit or other facilities

11-10-2011

Instrument:      Undertaking Relating to Deposits

Property:

Distinctive              Date of        Amount                   Rate of      Maturity
No. of Receipt        Receipt       of Deposit                Interest         Date   

2011 FD 1573     26-09-2011             75,785.66     0.8125%    27-10-2011
2011 FD 1701     04-08-2011     US$ 150,000.00     0.6900%    31-01-2012
2011 FD 1951     15-08-2011     US$   80,000.00     0.5500%    14-11-2011
2011 FD 2181     08-09-2011     CHF171,300.00      0.3500%    06-03-2012
2011 FD 2401     26-09-2011     US$   75,000.00     0.7900%    26-03-2012

Mortgagee:      Indian Overseas Bank, Hong Kong Branch.

All and any liabilities

13-10-2011

Instrument:      Charge on Deposit to secure the Depositor’s Obligations

Property:

A sum of US$1,000,000.00 and US$1,000,000.00 currently evidenced by a certificate of deposit dated 04-10-2011 and 06‑10‑2011 bearing Number 7141001192 and 7141001195

Mortgagee:      Punjab National Bank, Hong Kong Branch.

As a continuing security for the payment and discharge of the Secured Obligations

30-12-2011

Instrument:      Undertaking Relating to Deposits

Property:

Distinctive              Date of        Amount                 Rate of     Maturity
No. of Receipt        Receipt       of Deposit              Interest       Date      

2011 FD 3671     28-12-2011     US$200,000.00      1.05%    25-06-2012
2011 FD 3681     29-12-2011     US$  80,000.00      1.06%    26-06-2012
2011 FD 3751     30-12-2011     US$120,000.00      1.06%    27-06-2012

Mortgagee:      Indian Overseas Bank, Hong Kong Branch.

All and any liabilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.33

UK Pound

1

Rs.77.41

Euro

1

Rs.64.83

 

 

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%)

 

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.