|
Report Date : |
02.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
AKASAKA LTD. |
|
|
|
|
Registered Office : |
Flat G, 2/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street,
Central |
|
|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
13.01.1989 |
|
|
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Com. Reg. No.: |
12528907 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Importer, Exporter and Wholesaler of Diamond, jewellery and electronic
products |
|
|
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|
No. of Employees : |
12 |
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 : |
Good |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 levies excise duties on only four commodities, namely: 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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. 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 exports 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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.
|
Source
: CIA |
AKASAKA LTD.
ADDRESS: Flat G, 2/F., Ho Lee
Commercial Building, 38-44 D’Aguilar Street, Central, Hong Kong.
PHONE: 852-2525 0395, 3105 1111,
2525 0398
FAX: 852-2536
4900, 2810 5387, 2536 4908
E-MAIL: sales@kjgroup.net
bkk@kjgroup.com.hk
newwave@kjgoup.net
nimon@kjgroup.net
Managing Director: Mr. Bhagwan
Kishinchand Khemlani
Incorporated on: 13th January, 1989.
Organization: Private Limited Company.
Capital: Nominal: HK$1,500,000.00
Issued: HK$1,500,000.00
Business Category: Diamond
and Jewellery.
Employees: 12.
Main Dealing Banker: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Satisfactory.
AKASAKA LTD.
Registered Head
Office:-
Flat G, 2/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street,
Central, Hong Kong.
Associated
Companies:-
Heera Moti Inc., US.
New Wave FZ Co., UAE.
12528907
0238792
Managing Director: Mr. Bhagwan
Kishinchand Khemlani
Nominal Share Capital: HK$1,500,000.00
(Divided into 1,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,500,000.00
(As per registry dated 13-01-2013)
|
Name |
|
No. of shares |
|
Bhagwan Kishinchand KHEMLANI |
|
765,000 |
|
Shobha Bhagwan KHEMLANI |
|
735,000 |
|
|
|
–––––––– |
|
|
Total: |
1,500,000 ======= |
(As per registry dated 26-02-2013)
|
Name (Nationality) |
Address |
|
Bhagwan Kishinchand KHEMLANI |
Flat G, 2/F., Ho Lee Commercial Building 38-44 D’Aguilar Street,
Central, Hong Kong. |
|
Shobha Bhagwan KHEMLANI |
Flat G, 2/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street,
Central, Hong Kong. |
|
Nimon Bhagwan KHEMLANI |
Flat G, 2/F., Ho Lee Commercial Building, 38-44 D’Aguilar Street,
Central, Hong Kong. |
(As per registry dated 13-01-2013)
|
Name |
Address |
|
Shobha Bhagwan KHEMLANI |
Flat G, 2/F., Ho Lee Commercial Building 38-44 D’Aguilar Street,
Central, Hong Kong. |
The subject was incorporated on 13th January, 1989 as a private limited
liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Diamond,
jewellery and electronic products
Employees: 12.
Commodities Imported: India,
Belgium, Thailand
Markets: Asian
countries, Middle East, North America, Central & South America, Europe
Terms/Sales: L/C or
as per contracted.
Terms/Buying: As per contracted.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$1,500,000.00
(Divided into 1,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$1,500,000.00
Mortgage or Charge (since 2005):
(See attachment)
Profit or Loss: Making
a small profit every year.
Condition: Keeping in a
satisfactory manner.
Facilities: Making active
use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:- Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
DBS Bank
(Hong Kong) Ltd., Hong Kong.
Standing: Good.
Having issued 1.5 million ordinary shares of HK$1.00 each, Akasaka Ltd.
is jointly owned by Bhagwan Kishinchand Khemlani, holding 51% interests; and
Mr. Shobha Bhagwan Khemlani, holding 49%.
The subject is owned by the Khemlani family who have been in Hong Kong
for a very long time.
The subject is trading in all kinds of diamond products such as diamond
rings, diamond ear-rings. It is trading
in the following products:
“Heera Moti” fine diamond jewelry in 14K
& 18K, solitaires and loose diamonds, diamond rings, diamond bracelets,
earrings, necklaces, bangles, pendants, diamond & emerald jewellery set.
Most of the products bear the brand namea of “Heera Moti”, “New Wave”, “KM5”, Its products are exported to Central &
South America, the Middle East, Western Europe,
Business is active.
The subject has had a manufacturing factory in China.
With an extensive network of manufacturing facilities throughout the Indian
sub-continent and China, coupled with a vast distribution network within the
United States and Europe, the subject is able to lever on the considerable
scale and synergies created by the “Heera
Moti” brand of fine diamond
jewellery products. All jewellery
products are distributed worldwide under its subsidiary company New Wave.
In New York, the United States the subject has had an associated company
Heera Moti, Inc. which is trading in all kinds of diamond jewellery.
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. For instance, it is going to
take part in “HKTDC Hong Kong International Jewellery Show 2014” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 5th to 9th March, 2014.
Besides trading in diamonds and jewellery, the subject also trades in
electronic products.
The subject belongs to the Kishinchand Jhangimal Group [KJ Group]. KJ Group is a group of companies initially
formed in Hong Kong, in 1947. Now, more
than 60 years later, the group spans throughout the world diversifying, and
investing in a wide range of products, and business processes from
manufacturing, to wholesale and distribution, to final point of sale with a
single goal to add value to our partners and clients.
The Group also trades in consumer electronic products. It trades in moble phones, audio and video
products, DVD players, TVs, TV/DVD Combo. The Group’s manufacturing
facilities/partner factories are in Shenzhen Special Economic Zone, China.
The products are in full compliance with various international standard
such as UL, CE, CB and SAA.
Most of the consumer electronic products are exported to North, Central
& South America, and throughout Europe and the Middle East.
On the whole, as the history of the subject is over twenty-four years in
Hong Kong, consider it good for normal business engagements.
(Since 2005)
|
Date |
Particulars |
Amount |
|
25-01-2005 |
Instrument: Charge on Cash
Deposit to secure Liabilities of the Depositor Property: 1) By way of first fixed
charge and agreement to charge: the Deposit and all right, title and interest
of the Company 2) By way of set-off: any
sum standing to the credit of any one or more of the accounts of the Company
with the Bank Mortgagee: DBS Bank
(Hong Kong) Ltd., Hong Kong. |
All sums of money and liabilities |
|
14-03-2007 |
Instrument: Security over Deposit
in respect of Obligations of the Depositor Property: By way of first fixed charge to the Chargee the account no.
702600005350 and all deposits Mortgagee: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong. |
All monies and liabilities |
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
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.
-
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.62.39 |
|
|
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.