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Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
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Name : |
COMMONWEALTH FINANCE CORPORATION LTD. |
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Formerly Known As : |
BUSINESS INTERNATIONAL FINANCE LTD. |
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Registered Office : |
11/F., Wyndham Place, 40-44 Wyndham Street, Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
29.06.1979 |
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Com. Reg. No.: |
06211368 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Deposit Taking Company. |
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No. of Employees : |
8 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Hong Kong |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 - 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 levies excise duties on only four commodities, namely: 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, 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 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. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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
COMMONWEALTH FINANCE
CORPORATION LTD.
ADDRESS: 11/F., Wyndham Place, 40-44 Wyndham Street, Central, Hong Kong.
PHONE: 852-2801 7073
FAX: 852-2522 3533
E-MAIL: cfcl@cfclhk.com
cfcl@netvigator.com
Managing Director: Mr. Arjandas Hiranand Melwani
Incorporated on: 29th June, 1979.
Organization: Private Limited Company.
Capital: Nominal: US$11,000,000.00
Issued: US$11,000,000.00
Business Category: Deposit Taking Company.
Interests Income: US$2,188,755 (Year ended 31-12-2012)
Employees: 8.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
11/F., Wyndham Place, 40-44 Wyndham Street, Central, Hong Kong.
Holding Company:-
Pariwar Co. Ltd., British Virgin Islands.
BUSINESS REGISTRATION NUMBER: 06211368
COMPANY FILE NUMBER: 0070893
Managing Director: Mr. Arjandas Hiranand Melwani
Nominal Share Capital: US$11,000,000.00 (Divided into 110,000 shares of US$100.00 each)
Issued Share Capital: US$11,000,000.00
(As per registry dated 29-06-2013)
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Name |
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No. of shares |
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Pariwar Co. Ltd. Trident Chambers, P.O. Box 146, Road Town, Tortola, British Virgin Islands. |
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109,999 |
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Haresh Arjandas MELWANI |
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1 |
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––––––– |
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Total: |
110,000 ====== |
(As per registry dated 29-06-2013)
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Name (Nationality) |
Address |
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Christopher Guy HOWSE |
Flat 2, 11/F., Block D, Villa Monte Rosa, 41A Stubbs Road, Hong Kong. |
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Michael Sane KELLY |
Room D, 2/F., Carol Mansion, 40 Lyttelton Road, Hong Kong. |
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Pawan Kumar BAJAJ |
A-34, Kundan Maker Gardens, Juhu Tara Road, Near Sndt College Santacruz (W), Mumbai 400054, India. |
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Arjandas Hiranand MELWANI |
A1 Woodland Heights, 2 Wong Nei Chong Gap Road, Hong Kong. |
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Haresh Arjandas MELWANI |
A1 Woodland Heights, 2 Wong Nei Chong Gap Road, Hong Kong. |
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Sugata Kumar DATTA |
B-122, Diamond Court, 40, Napean Sea Road, Malabar Hill, Mumbai 400006, India. |
(As per registry dated 29-06-2013)
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Name |
Address |
Co. No. |
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Asia Pacific Financial Consultants Ltd. |
Room 1109-1110, 11/F., C.C. Wu Building, 302 308 Hennessy Road, Wanchai, Hong Kong. |
0428028 |
The subject was incorporated on 29th June, 1979 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of J. J. Investment Ltd., name changed to Business International Finance Ltd. on 29th May, 1981 and further to the present style on 22nd June, 1982.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities & Lines: Deposit Taking Company.
Employees: 8.
Commodities Imported: Not applicable.
Business Territories: Hong Kong, other Asian countries, Europe, North America, etc.
Interests Income: US$2,153,438 (Year ended 31-12-2009)
US$2,138,995 (Year ended 31-12-2010)
US$2,565,210 (Year ended 31-12-2011)
US$2,188,755 (Year ended 31-12-2012)
Terms/Sales/Services: As per contracted.
Terms/Buying: Various terms.
The Indian Chamber of Commerce Hong Kong, Hong Kong.
The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKC0657]
Nominal Share Capital: US$11,000,000.00 (Divided into 110,000 shares of US$100.00 each)
Issued Share Capital: US$11,000,000.00
Net Profit: US$ 604,566 (Year ended 31-12-2009)
US$ 738,800 (Year ended 31-12-2010)
US$1,025,975 (Year ended 31-12-2011)
US$ 974,518 (Year ended 31-12-2012)
Profit or Loss: Making a small profit every year.
Condition: Keeping in a satisfactory manner.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Commonwealth Finance Corporation Ltd. [CFCL] is a wholly-owned subsidiary of Pariwar Co. Ltd. which is a BVI-registered firm.
The subject is a Hong Kong based deposit taking company. It started business in August 1982. It is privately owned. Its customer base comprises of local trading and manufacturing companies/firms. The subject is supervised by the Hong Kong Monetary Authority.
Its major business is extending trade finance related credit facilities like loans, purchase of bills, bill collection, opening, advising and negotiation of L/Cs, import loans, packing loans, etc. The subject enjoys global correspondent relationship with prime banks all over the world. Its correspondent banks are Bank of India, Wachovia Bank, N.A., New York International Branch, New York, and Hong Kong Shanghai Banking Corporation Ltd., Hong Kong, etc.
The subject’s core business is Trade Finance. It extends financial support to the Hong Kong based business community in its export, import business. The subject extends finance by way of granting Loans, Packing Loans, Opening of L/Cs, Financing of Imports, purchase of Bills and negotiation of Bills under L/Cs, etc. The subject is also engaged in Factoring of Receivables.
Besides, the subject has joined Hong Kong Government sponsored scheme of financing Small and Medium Enterprises [SMEs].
The subject is a member of Hong Kong Management Association, Hong Kong General Chamber of Commerce and Indian Chamber of Commerce, Hong Kong.
The subject is also engaged in foreign exchange activities. It is a significant deposit taking company operated by Indian merchants and bankers in Hong Kong.
For the year ended 31st December, 2012, the interests income of the subject amounted to US$2,188,755 (2011: US$2,565,210); net profit for the year was US$974,518 (2011: US$1,025,975). Business was good.
As the history of the subject is over 34 years in Hong Kong, on the whole, consider it good for normal credit requirements.
The followings are the brief personal profiles of the Directors of the subject:-
Mr. Arjandas H. Melwani is Chairman of the Company. He has over 50 years business experience, earlier running a global family business in trading and manufacturing. In 1982, he founded CFCL and has ensured that since inception the Company has been professionally managed by a leading commercial bank and has maintained exacting standards of corporate governance.
Mr. Haresh A. Melwani has served as Executive Director since 1992. He has previously worked for Drexel Burnham Lambert Inc. in institutional equity sales and E D & F Man Pacific (Holdings) Limited, a Hong Kong listed company, as Executive Director focusing on mergers and acquisitions and private equity. He is a graduate of the Harvard Business School.
Mr. Chris G. Howse was the Senior Partner of the Hong Kong Office of Richards Bulter since 1983 specializing in shipping, commercial litigation and arbitration, medical and professional indemnity law. Presently Partner in the Howse Williams Bowers. He has been an Independent Director of CFCL since 1997.
Mr. Shane Kelly, previously a senior partner in an accounting firm and an international tax specialist, is Executive Director of Expo Consultancy Ltd., Hong Kong. He has over 30 years experience in providing professional consultancy services in Hong Kong and internationally. He has been an independent Director of CFCL since December 2006.
Mr. Pawan Kumar Bajaj is employed as General Manager of a large Indian Public Sector Bank and has over 34 years commercial banking experience. He has held various positions in the Bank and corporate level assignments as General Manager such as Treasury & Investments. Being a Certified Associate of Indian Institute of Bankers, Mr. Bajaj has been on the Board since March 2012.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 65.67 |
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1 |
Rs. 102.20 |
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Euro |
1 |
Rs. 87.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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.