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Report Date : |
10.12.2012 |
IDENTIFICATION DETAILS
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Name : |
FABRIKANT HONG
KONG LTD. |
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Formerly Known As : |
ASH LTD |
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Registered Office : |
c/o Mayee
Management Ltd., 19/F., |
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Country : |
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Date of Incorporation : |
30.04.1971 |
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Com. Reg. No.: |
03486873 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject traded in all kinds of jewellery products (gem-set
gold jewellery, 14-karat, 18-karat, etc.) and raw materials for manufacturing
jewellery. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
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Status : |
Dissolved |
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Payment Behaviour : |
-- |
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Litigation : |
--- |
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 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 |
FABRIKANT HONG
KONG LTD.
Registered Office:-
c/o Mayee Management
Ltd.
19/F., Seaview
Commercial Building, 21-24 Connaught Road West, Hong Kong.
[Tel: 2815
9988; Fax: 2805 2556]
Formerly located at:
Flat A2, 11/F.,
Kaiser Estate, Phase 1,
41 Man Yue Street,
Hunghom,
Kowloon,
Hong Kong.)
Note: Your ‘Flat 42’ is
a mistake.
C. Fabrikant
(H.K.) & Co. Ltd., Hong Kong. (Same
address)
Fabrikant H.K.
Trading Ltd., Hong Kong. (Same address)
03486873
0023692
30th April, 1971.
Nominal Share
Capital: HK$50,000.00 (Divided into 5,000 shares of HK$10.00 each)
Issued Share
Capital: HK$37,500.00
(As per registry dated 30-04-2006)
|
Name |
|
No.
of shares |
|
Marjorie
Katz FORTGANG |
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3,000 |
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Philip Joshua HAHN [Deceased] |
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750 |
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|
––––– |
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Total: |
3,750 ==== |
(As per registry dated 01-08-2006)
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Name (Nationality) |
Address |
|
Charles
Fabrikant FORTGANG |
One Rockefeller Plaza, New York 10020,
U.S.A. |
|
Marjorie Katz
FORTGANG |
One Rockefeller Plaza, New York 10020,
U.S.A. |
(As per registry dated 30-04-2006)
|
Name |
Address |
Co. No. |
|
Mayee
Management Ltd. |
19/F., Seaview Commercial Building, |
0039244 |
The
subject was incorporated on 30th April, 1971 as a private limited liability
company under the Hong Kong Companies Ordinance.
Originally
the subject was registered under the name of Ash Ltd., name changed to
Fabrikant Hong Kong Ltd. on 26th August, 1988.
The
subject was formerly located at Flat E, 2/F., Kaiser Estate, Phase 1,
41 Man Yue Street, Hunghom, Kowloon, Hong Kong, moved to Flat C, 6/F. of
the same building in October 1998, moved to Flat C-1, 6/F. of the same building
with effect from 26th August, 2002, and further to Flat A2, 11/F. of the same
building in October 2005.
The
subject was under compulsory winding up in November 2006 under court
order. Its registered address moved to
19/F., Seaview Commercial Building, 21-24 Connaught Road Central, Hong Kong in
the same month and year.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Date of Security
Over Deposits with the Bank (Limited Company ‑ Under Seal): 12-09-2005
Amount:To secure general banking facilities
Property:US$1,000,000.00 and all monies of the time being
and hereafter standing to the credit of the company’s deposit
no. 002-879179 and subsequent renewal and any further sums hereafter
standing to the credit of any deposit account of the company with the Bank
Mortgagee:The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Please
be advised that Fabrikant Hong Kong Ltd. has been dissolved under the mode of
compulsory winding up. In April 2007, a
Liquidator was appointed to monitor the winding up procedures.
The
subject was a subsidiary of M. Fabrikant & Sons Inc. [Fabrikant] with its
head office in the United States. It was
jointly owned by Mr. Marjorie Katz Fortgang, holding 80% stake, and
Mr. Philip Joshua Hahn, holding 20%.
Both of them were American merchants residing in New York, the United
States.
Like
its parent, the subject traded in all kinds of jewellery products (gem-set gold
jewellery, 14-karat, 18-karat, etc.) and raw materials for manufacturing
jewellery.
Established
in 1895, Fabrikant was one of the oldest diamond and jewellery companies in the
world.
The
subject’s diamonds were sourced from Israel, Belgium, and India.
The
Fabrikant Group of companies had employed over 1,000 people in
10 countries around the world.
Rough diamonds were chiefly acquired from the Diamond Trading Company
(De Beers) by its Israeli manufacturing partnership, Fabrikant and Salant. Many of the polished diamonds were sent to
Fabrikant’s New York offices and are put up for sale in the New York diamond
markets.
The
subject’s business had been handled by Ms. Wendy Ng who was a
Hongkongnese. It had two associated
factories in China (in Shenzhen SEZ and Panyu, Guangzhou, Guangdong
respectively).
In
2007, the unsecured creditors of M. Fabrikant and Sons filed a lawsuit against
the institutions that funded the liquidating diamond company for at least
US$118 million, alleging fraudulent conduct by the lenders, writes National
Jeweler. According to a lawsuit filed on
1 Octoberin the US Bankruptcy Court for the Southern District of New York, the
defendants knew money they were lending to M. Fabrikant and Sons and its
domestic affiliate Fabrikant-Leer International was not being used for its
interest, but being transferred to companies affiliated with the Fortgang
family, which controlled the two companies.
The
defendants named in the lawsuit were ABN Amro Bank NV, Antwerpse Diamantbank
NV, Bank Leumi USA, Bank of America NA, HSBC Bank USA NA, Israel Discount Bank
(IDB) of New York, J.P. Morgan Chase Bank NA and Sovereign Precious Metals LLC.
Court
papers stated that Charles Fortgang, chairman of the company at the time, and
Matthew Fortgang, chief executive officer, had permitted “massive transfers
over US$175 million from MFS (M. Fabrikant and Sons Inc.) to Fortgang
affiliates” and had been acting “in their own personal interests and not in the
interests of MFS or FLI (Fabrikant-Leer International).”
The
creditors claimed these Fortgang affiliates—47 companies, including Alpha
Diamond Co., Diamfab PVBA, the subject and Fabrikant Trading India—used
transfers to reduce their own debt to their lenders, namely, defendants ABN
Amro, HSBC and IDB.
This
was the reason why the subject was order by Hong Kong court to be dissolved by
compulsory winding up.
Since
the subject was dissolved by compulsory winding up, consider it not suitable
for any business engagements.
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.54.20 |
|
UK Pound |
1 |
Rs.86.99 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
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-- |
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.