MIRA INFORM REPORT

 

 

Report Date :

23.04.2012

 

IDENTIFICATION DETAILS

 

Name :

FANCY CREATIONS  CO.  LTD.

 

 

Registered Office :

Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

04.06.2010

 

 

Com. Reg. No.:

52388050

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of loose diamonds, etc.

 

 

No. of Employees :

09

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (31.12.2011)                  

Current Rating

(31.03.2012)

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

 

FANCY  CREATIONS  CO.  LTD.

 

 

Company ADDRESS

 

Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

PHONE:            2334 5199

FAX:                 2773 0390

 

 

MANAGEMENT

 

Managing Director:  Mr. Nilesh Valjibhai Khetani

 

 

SUMMARY

 

Incorporated on:             4th June, 2010.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$7,800,000.00

Issued:              HK$7,800,000.00

 

Business Category:        Diamond Trader.

 

Employees:                     9.

 

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

 

Banking Relation:            Satisfactory.


company ADDRESS

 

Registered Head Office:-

Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

52388050

 

 

COMPANY FILE NUMBER

 

1464841

 

 

MANAGEMENT

 

Managing Director:  Mr. Nilesh Valjibhai Khetani

 

 

CAPITAL

 

Nominal Share Capital: HK$7,800,000.00 (Divided into 7,800,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$7,800,000.00

 

 

SHAREHOLDERS

(As per registry dated 10-01-2012)

 

Name

 

No. of shares

Onstar Capital Ltd.

Omar Hodge Building, Wickhams Cay, Road Town, Tortola, British Virgin Islands.

 

10,000

Nilesh Valjibhai KHETANI

 

7,790,000

 

 

–––––––––

 

Total:

7,800,000

========

 

 

 

DIRECTOR    

(As per registry dated 04-06-2011)

 

Name

(Nationality)

 

Address

Nilesh Valjibhai KHETANI

Unit 306-A207, 3/F., Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 04-06-2011)

 

Name

Address

Co. No.

Louis Lai Company Secretarial Services Ltd.

9/F., Surson Commercial Building, 140‑142 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

0686503

 

 

HISTORY

 

The subject was incorporated on 4th June, 2010 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, Exporter and Wholesaler.

 

Lines:                           All kinds of loose diamonds, etc.

 

Employees:                   9.

 

Commodities Imported:   India, etc.

 

Markets:                       Hong Kong, China, Japan and other Asian countries.

 

Terms/Sales:                  L/C, T/T, etc.

 

Terms/Buying:                L/C, T/T, etc.

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital:   HK$7,800,000.00 (Divided into 7,800,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$7,800,000.00

 

Alternation of Capital:-

04-06-2010

paid up

HK$     10,000.00

10-01-2012

paid up

HK$7,790,000.00

 

 

–––––––––––––––

Total:

paid up

HK$7,800,000.00

=============

 

Increase of Nominal Capital:-

From

$10,000.00

to

HK$7,800,000.00

on

10-01-2012

 

Profit or Loss:                Keeping a balance account.

 

Condition:                      Business is under development.

 

Facilities:                      Making fairly use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:      Satisfactory.

 

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

 

Standing:                      Small.

 

 

GENERAL

 

Having issued 7.8 million ordinary shares of HK$1.00 each, Fancy Creations Co. Ltd. is chiefly owned by Mr. Nilesh Valjibhai Khetani who is an Indian.  He is an India passport holder and does not have the right to reside in Hong Kong permanently.  He is also the only director of the subject.  The minor shareholder of the subject Onstar Capital Ltd. is a BVI-registered firm.

The subject’s office is in a business centre located at Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

We can reach Khetani as per your given phone number 852-2334 5199.  However, he is always busy.

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose, fancy, polished and cut diamonds.  Most of the commodities are imported from India.  Prime markets are Hong Kong, China, Japan and the other Asian countries.  Business is still under development.  According to Khetani, the subject has had nine employees.

The subject’s business is chiefly handled by Khetani himself.  History in Hong Kong is just over a year and nine months.

Since the subject’s history in Hong Kong is short, consider it good for business engagements on L/C basis 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.

-          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.

-          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 –

 

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.

-          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.51.99

UK Pound

1

Rs.83.54

Euro

1

Rs.63.40

 

 

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.