MIRA INFORM REPORT

 

 

Report No. :

325122

Report Date :

04.06.2015

 

IDENTIFICATION DETAILS

 

Name :

A. R. TRADING CO. LTD.

 

 

Registered Office :

Room 1205, 12/F., Car Po Commercial Building, 18-20 Lyndhurst Terrace, Central

 

 

Country :

Hongkong

 

 

Date of Incorporation :

22.12.1983

 

 

Com. Reg. No.:

08758738

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer and Exporter of Electronic Products, Garments, Electrical Accessories, Stationery, Telecommunication Equipment.

 

 

No. of Employees :

7

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

HONGKONG - 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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

 

Source : CIA

 


Company name and address

 

A. R. TRADING CO. LTD.

 

ADDRESS:                   Room 1205, 12/F., Car Po Commercial Building, 18-20 Lyndhurst Terrace, Central,  Hong Kong.

 

PHONE:                        852-2545 3177,  2545 2875

FAX:                             852-2541 0519,  2541 6045

 

E-MAIL:                        lavi@artrdg.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Ashok Radhakrishin Khemaney

 

 

SUMMARY

 

Incorporated on:            22nd December, 1983.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$10,000,000.00

 

Business Category:       Importer and Exporter.

 

Annual Turnover:           HK$300-350 million.

 

Employees:                  7.

 

Main Dealing Bankers:UCO Bank, Hong Kong Branch.

                                    Standard Chartered Bank, Hong Kong Branch.

 

Banking Relation:          Good.

 

 

ADDRESS

 

Registered Head Office:-

Room 1205, 12/F., Car Po Commercial Building, 18-20 Lyndhurst Terrace, Central, Hong Kong.

 

Mailing Address:

G.P.O. Box 1948, Hong Kong.

 

Associated Company:-

Kingsmart Industries Ltd., Hong Kong.  (Same address)

 

 

BUSINESS REGISTRATION NUMBER

 

08758738

 

 

COMPANY FILE NUMBER

 

0131621

 

 

MANAGEMENT

 

Managing Director:        Mr. Ashok Radhakrishin Khemaney

Contact Person:            Mr. Lavi Khemaney

 

 

ISSUED SHARE CAPITAL

 

HK$10,000,000.00

 

 

SHAREHOLDERS

(As per registry dated 22-12-2014)

 

Name

 

No. of shares

Ashok Radhakrishin KHEMANEY

 

53,999

Rani Ashok KHEMANEY

 

46,001

 

 

–––––––

 

Total:

100,000

======

 

 

DIRECTORS

(As per registry dated 22-12-2014)

 

Name

(Nationality)

 

Address

Rani Ashok KHEMANEY

C-4, Alpine Court, 12 Kotewall Road, Hong Kong.

 

Love Kumar Ashok KHEMANEY

 

C-4, Alpine Court, 12 Kotewall Road, Hong Kong.

Prakash Ashok KHEMANEY

C-4, Alpine Court, 12 Kotewall Road, Hong Kong.

 

Ashok Radhakrishin KHEMANEY

C-4, Alpine Court, 12 Kotewall Road, Hong Kong.

 

 

SECRETARY

(As per registry dated 22-12-2014)

 

Name

Address

Co. No.

Buttar Secretarial Ltd.

Unit 13, 16/F., Asia Trade Centre, 79 Lei Muk Road, Kwai Chung, New Territories, Hong Kong.

2086550

 

 

HISTORY

 

The subject was incorporated on 22nd December, 1983 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.

 

 

OPERATIONS

 

Activities:                      Importer and Exporter.

 

Lines:                           Electronic products, garments, electrical accessories, stationery, telecommunication

                                    equipment.

 

Employees:                  7.

 

Commodities Imported :Imported from China and other Asian countries.

 

Markets:                        Europe, Indonesia, South Africa, Middle East, North America, Southeast Asia, etc.

 

Annual Turnover:           HK$300-350 million.

 

Terms/Sales:                 L/C, T/T and D/P.

 

Terms/Buying:    L/C, D/P, D/A, T/T, etc.

 

 


MEMBERSHIP

 

The Hong Kong General Chamber of Commerce, Hong Kong.

The Indian Chamber of Commerce Hong Kong, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$10,000,000.00

 

Mortgage or Charge (Since July 2011):  (See attachment)

 

Profit or Loss:               Made good profits in the past years.

 

Condition:                     Business is steady and active.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Good.

 

Bankers:-

UCO Bank, Hong Kong Branch.

Australia and New Zealand Banking Group Ltd., Hong Kong.

Bank of India, Hong Kong Branch.

Canara Bank, Hong Kong.

China CITIC Bank International Ltd., Hong Kong.

Commonwealth Finance Corporation Ltd., Hong Kong.

Crédit Agricole Indosuez, Hong Kong Branch.

DBS Bank Ltd., Hong Kong Branch.

Shanghai Commercial Bank Ltd., Hong Kong.

Standard Chartered Bank, Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Incorporated in December 1983, A. R. Trading Co. Ltd. is jointly owned by two Indian, namely, Mr. Ashok Radhakrishin Khemaney and Ms. Rani Ashok Khemaney.  Having issued 100,000 ordinary shares of HK$100.00 each, Mr. A. R. Khemaney holds 53,999 shares, accounting for 54%, while Ms. R. A. Khemaney holds 46,001 shares, accounting for 46%.

 

The subject is importing and exporting the following commodities:-

Imports — Audio and video products such as speakers, earphones, headphones, garments and accessories, premium, novelties and gift items, telecommunication equipment, children’s wear, jeans, games & toys, non‑electronic toys, watches, electric appliances, etc.

 

Exports — Audio and video products, electrical and electronic products n.e.s, premium, novelties and gift items, toys and dolls, watches, clocks and components, stationery, telecommunication equipment (excluding mobile phones), children’s wear, jeans, games & toys, non-electronic toys, watches, electric appliances, etc.

 

Commodities are sourced from China, Japan and the other Asian countries.  Prime markets are the United Kingdom, other European countries, Indonesia, Malaysia, South Africa, the Middle East, North America, Taiwan, India, other Asian countries, etc.  Long term business ties have been developed with a number of suppliers and customers.  Business has been active and steady.  Its annual sales turnover ranges from HK$300 to 350 million.

The subject’s business is mainly handled by Mr. A. R. Khemaney and Ms. R. A. Khemaney and their family members such as Mr. Prakash Ashok Khemaney, Mr. Lavi Khemaney, etc.

 

The subject operates from a self-owned premises in Central District, Hong Kong.

 

The history of the subject in Hong Kong is over 31 years.  Regular suppliers and customers have been maintained.

 

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

            Property information of the company:-

1.         Property Location:         Room 1205 on 12/F., Car Po Commercial Building,
37-43 Pottinger Street & 18-20 Lynhurst Terrace, Hong Kong.

Owner:  A. R. Trading Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

19-10-2000

-

DBS Kwong On Bank Ltd., Hong Kong.  [Merged into DBS Bank (Hong Kong) Ltd.]

Unlimited first legal charge to secure general banking facilities

 

2.         Property Location:         Room 1206 on 12/F., Car Po Commercial Building,
37-43 Pottinger Street & 18-20 Lynhurst Terrace, Hong Kong.

Owner:  A. R. Trading Co. Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

08-04-2002

-

Citicorp Commercial Finance (H.K.) Ltd., Hong Kong.

Legal charge to secure general banking facilities

08-04-2002

-

Citibank N.A., Hong Kong Branch.

Second legal charge to secure general banking facilities

 

 

MORTGAGE OR CHARGE

(Since July 2011)

 

Date

Particulars

Amount

26-07-2011

Instrument:        Charge Over Deposit

Property:

Account Nos.:   15118
Deposit Nos.:   026290
Principal Amount:          US$120,302.00

Mortgagee:        Commonwealth Finance Corporation Ltd., Hong Kong.

All the indebtedness and the due and punctual performance and observance by the depositor of all its obligations & liabilities to the Bank

26-07-2011

Instrument:        Letter of Hypothecation for Trade Finance

Property:

Hypothecation of Goods and Product represented by any of such documents as bills of exchange, bills of lading, shipping documents, warrants, delivery order, wharfingers or other warehouse keeper’s certificates or receipts and Invoices or other documents representing or relating to Goods or to which any such documents relate and all policies of insurance relating thereto and proceeds deriving therefrom

Mortgagee:        Commonwealth Finance Corporation Ltd., Hong Kong.

All sum of Monies which may be now or may hereafter from time to time become due or owing to the lender

29-07-2011

Instrument:        Undertaking Relating to Deposits

Property:

1)         Receipt No.:      2009 FD 129 2

Date of Receipt:            7-09-2010
Amount of Deposit:       US$40,721.71
Rate of Interest:            0.83%
Maturity:           07-09-2011

2)         Receipt No.:      2009 FD 111 3
Date of Receipt:            25-07-2011
Amount of Deposit:       US$66,061.38
Rate of Interest:            0.75%
Maturity:           24-07-2012

3)         Receipt No.:      2010 FD 123 1
Date of Receipt:            08-11-2010
Amount of Deposit:       HK$1,930,815.24
Rate of Interest:            0.65%
Maturity:           08-11-2011

Mortgagee:        Canara Bank, Hong Kong Branch.

All any liabilities, sole or joint, actual or contingent quantified or not, now or hereafter owing or incurred to the Bank by the Depositor or the Third Party

12-12-2011

Instrument:        Charge Over Accounts

Property:

The Depositor charges the charged assets as beneficial owner and by way of a first fixed charge, in favour of ANZ as continuing security for the due and punctual payment of all moneys and performance of all other obligations that the depositor and borrower, in any capacity and whether alone or with any other person, is or at any time becomes actually or contingently liable to pay or perform to, for or on account of ANZ in any manner or on any account whatsoever pursuant to or in connection with the Secured Facilities

Mortgagee:        Australia & New Zealand Banking Group Ltd., Hong Kong Branch.

All obligations owing to the Bank acting through its head office or at any other branch by the depositor on any account, whether present or future, actual or contingent, and whether as principal or surety or in some other capacity

26-07-2013

Instrument:        Trade Finance Security Assignment

Property:

The Borrower as beneficial owner:

(a)        Assigns and agrees to assign absolutely to the Bank all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) Export Credits; (ii) Export Collection Bills; (iii) Sales Contracts; (iv) Invoice Receivables; (v) Insurances; (vi) Trade Documents; and (vii) all claims, remedies and proceeds in connection with any of the foregoing; and

(b)        Charges and agrees to charge to the Bank by way of first fixed charge all the present and future rights, title, interests and benefits of the Borrower in and to the following assets: (i) the Goods together with their proceeds; and (ii) the Deposit; and

(c)        Pledges & agrees to pledge to the Bank the Pledged Goods and the Trade Documents which are now or may in the future be in the Bank’s possession

Mortgagee:        China CITIC Bank International Ltd., Hong Kong.

As security for the payment of all secured liabilities

28-01-2014

Instrument:        Charge Over Deposit

Property:

Account Nos.:   15118
Deposit Nos.:   2010 FD 26030
Principal Amount:          US$176,566.91

Mortgagee:        Commonwealth Finance Corporation Ltd., Hong Kong.

All the indebtedness and the due and punctual performance and observance by the depositor of all its obligations & liabilities to the Bank


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.85

UK Pound

1

Rs.98.12

Euro

1

Rs.71.28

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.