MIRA INFORM REPORT

 

 

Report Date :

09.12.2014 

 

IDENTIFICATION DETAILS

 

Name :

AKI  ENTERPRISES

 

 

Registered Office :

C/o T.N.K. Gems

Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon,

 

 

Country :

Hong Kong.

 

 

Date of Incorporation :

17.09.2010

 

 

Com. Reg. No.:

52966965-000-09

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of jewellery and diamonds

 

 

No. of Employees :

04

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

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, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Hong Kong.

A1

A1

 

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 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'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, 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 12% of total system deposits in Hong Kong by the end of 2013. 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 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

 

Source : CIA

 

Company name and address

 

AKI  ENTERPRISES

 

 

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:            852-2314 7585

 

FAX:                 852-2723 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:       Diamond Trader.

 

Employees:                    4.  (Including affiliates)

 

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

 

Banking Relation:          Satisfactory.

 

ADDRESS

 

Registered Office:-

c/o T.N.K. Gems

Room 1215, 12/F., Fu Hang Industrial Building, 1 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

 

Associated/Affiliated Companies:-

Kokusai Shinju Co. Ltd., Japan.

Oasis Jewellery Ltd., Hong Kong.  (Dissolved)

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, Vasvdeo Terrace, 34 Kastur Park, Borivali 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.

 

Employees:                  4.  (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 small profits in past two years.

 

Condition:                     Business keeps on improving.

 

Facilities:                      Making rather 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 a Hong Kong ID holder and has got the right to reside in Hong Kong permanently.  However, his registered address is still in Mumbai, India.  He is also manager of the subject.

The subject commenced business in September 2010.  It is sharing the office with the following three firms: T.N.K. Gems, Moksh, and Profit Crown Enterprises Ltd. [Profit Crown].  All these firms are Hong Kong registered companies.  T.N.K. Gems and Moksh are the business names of Profit Crown.  Including the subject, the above-mentioned firms are owned and operated by the Shah family.

Having issued 5 million ordinary shares of HK$1.00 each, Profit Crown was equally owned by Mr. Bhaven Jhaveri and Mr. Hitesh R. Jhaveri.  Both of whom are Indian.  The latter is also the director of Profit Crown.

The contact person of T.N.K. Gems is Mr. Kuntal Shah.  He seems to be a family member of Mahavir Chetanmal Shah.

 

There was another firm Oasis Jewellery Ltd. [Oasis] located at the same operating address.  However, Oasis has been dissolved by deregistration.

The subject is a polished, loose diamond, gem and cut diamond trader.  It also trades in jewellery diamonds.  However, the subject is significant for its loose diamonds and white diamonds.

The subject’s products are marketed in Hong Kong and exported to Japan, China, South Korea, other Asian countries, Europe, North America, etc.

The subject’s business is mainly handled by Mr. Mahavir Chetanmal Shah himself.

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 2015” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2015.

 

The subject is fully supported by the Shah family which is originated in India.

The history of the subject in Hong Kong is just over four years and two months.  Business keeps on improving.

On the whole, consider the subject good for normal business engagements on L/C basis or in small credit amounts for the time being.

 

 

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.

-            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.61.93

UK Pound

1

Rs.96.37

Euro

1

Rs.76.10

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.