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Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
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Name : |
AARAV (HK) LTD. |
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Registered Office : |
Room 910, 9/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.07.2007. |
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Com. Reg. No.: |
38179821 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products. |
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No. of Employees : |
3. (Including subsidiary) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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
AARAV (HK)
LTD.
ADDRESS: Room 910, 9/F., Tower A, Hunghom
Commercial Centre, 39 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong.
PHONE: 2333 6078
FAX: 2333 6768
Managing Director: Mr. Rakesh
Manilal Barot
Incorporated on: 17th
July, 2007.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$3.00
Business Category: Diamond and Jewellery Trader.
Employees:
3. (Including subsidiary)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Fair.
Registered Head Office:-
Room 910, 9/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai Road,
Hunghom, Kowloon, Hong Kong.
Subsidiary:-
Aarohi Diamonds Ltd., Hong Kong. (Same address)
[Trading as Classic Jewels
Receiver has been appointed]
Associated/Affiliated Companies:-
Classic Diamonds Group of Companies
Aarohi Diamonds Inc., USA.
Aarohi Diamonds Israel Ltd., Israel.
Ankur Diamonds N.V., Belgium.
Armaan D & J DMCC, Dubai.
Classic Diamonds (India) Ltd., India.
Diamond Direct LLC, USA.
etc.
38179821
1150236
Managing Director: Mr. Rakesh
Manilal Barot
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$3.00
(As per registry dated 17-07-2011)
|
Name |
|
No. of shares |
|
Devang Hasmukhlal SHAH |
|
1 |
|
Nirav Atulkumar SHAH |
|
1 |
|
Rakesh Manilal BAROT |
|
1 |
|
|
|
–– |
|
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Total: |
3 = |
(As per registry dated 17-07-2011)
|
Name (Nationality) |
Address |
|
Rakesh Manilal BAROT |
8110, Borabazar Street, 5/F., Abovee Saipooja Reestaurant, Fort,
Mumbai 400 001 MS, India. |
(As per resigned dated 28-02-2012)
|
Name |
Address |
Co. No. |
|
Essex Corporate Advisory Ltd. |
Room 606, 6/F., Tower A, Hunghom Commercial Centre, 39 Ma Tau Wai
Road, Hunghom, Kowloon, Hong Kong. |
0605716 |
The subject was incorporated on 17th July, 2007 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 913, 9/F., Heng Ngai Jewelry
Centre, 4 Hok Yuen Street, Hunghom, Kowloon, Hong Kong, moved to the present
address with effect from 15th June, 2009.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds
and jewellery products.
Employees: 3.
(Including subsidiary)
Commodities Imported: India, Europe and other Asian countries.
Markets: India, other Asian countries,
Europe, USA, etc.
Terms/Sales:
As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$3.00
Alternation of Capital:-
|
17-07-2007 |
paid up |
HK$ 1.00 |
|
20-05-2009 |
paid up |
HK$ 2.00 |
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|
|
––––––––– |
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Total: |
paid up |
HK$ 3.00 ======== |
Profit & Loss: Keeping a
balance account in 2012.
Condition: Business has become inactive.
Facilities: Making fairly active use of general
banking facilities.
Payment:
Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Royal Bank of Scotland N.V.,
Hong Kong Branch.
ICICI Bank Ltd., Hong Kong Branch.
Indian Overseas Bank, Hong Kong Branch.
RBS Coutts Bank Ltd., Hong Kong Branch.
Standing:
Small.
Having issued 3 ordinary shares of HK$1.00 each, Aarav (HK) Ltd. is
equally-owned by Mr. Devang Hasmukhlal Shah, Mr. Nirav Atulkumar Shah and Mr.
Rakesh Manilal Barot. All are Indian
while the third is also the only director of the subject. He is a Hong Kong ID Card holder and has got
the right to reside in Hong Kong permanently.
The subject is the holding company of Aarohi Diamonds Ltd. [Aarohi]
which is located at the same operating address.
The subject is holding 51% interests of Aarohi while the rest 49% is
held by Classic Diamonds (India) Ltd. [Classic Diamonds].
The subject moved to the present address with effect from 15th June,
2009.
Aarohi’s business name is “Classic Jewels” [CJ] which traded in the
products of Classic Diamonds, a rather significant India-based firm.
To our knowledge, Aarohi has been received. A receiver has been appointed since 14th
March, 2012.
The corporate secretary of the subject Essex Corporate Advisory Ltd.
resigned on 28th February, 2012.
The director of the subject Barot seemed also has resigned, but the
resignation has not been shown in the annual return of Companies Registry of
Hong Kong.
Aarohi traded in jewellery-24 K fine gold, jewellery-diamond, jewellery‑gemset,
jewellery-pearl, diamond, etc.
Commodities were exported to Africa, Asian countries, North, Central
& South America, Western and Eastern Europe, etc.
One of Aarohi’s director Nirav Kumar Bhansali is also a director of
Classic Diamonds.
Aarohi also has got an affiliated company Ankur Diamonds N.V.
[Ankur Diamonds] which is in Antwerpe, Belgium. Ankur Diamonds is trading in all kinds of
diamonds, including industrial diamonds.
In order to penetrate the international market further, Aarohi has taken
part in fairs and exhibitions held in Hong Kong and other foreign countries
such as Israel.
Since the subsidiary company of the subject Aarohi has been received and
the director of the subject has resigned, on the whole, consider it good for
normal business engagements on fully secured terms.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
|
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.