MIRA INFORM REPORT

 

 

Report Date :

20.06.2013

 

IDENTIFICATION DETAILS

 

Name :

MEGA  FORTUNE  (ASIA)  LTD.

 

 

Registered Office :

c/o Cheung’s Management Service Co. Ltd.

Flat A, 22/F., Guangdong Investment Tower, 148 Connaught Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

30.09.2010

 

 

Com. Reg. No.:

53082198

 

 

Legal Form :

Private Limited Liability Company

 

 

LINE OF BUSINESS :

THE SUBJECT TRADED IN GOLD AND SILVER AND OTHER COMMODITIES

 

 

No. of Employees :

No employees in Hong Kong

 

[It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.]

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No Operating office In Hong Kong

Payment Behaviour :

--

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 Hong Kong

A2

A2

 

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 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

 


 

Company name

 

MEGA  FORTUNE  (ASIA)  LTD.

 

ADDRESS

 

Registered Office:-

c/o Cheung’s Management Service Co. Ltd.

Flat A, 22/F., Guangdong Investment Tower, 148 Connaught Road Central, Hong Kong.

[Tel: 852-2544 7081;  Fax: 852-2815 1975]

 

 

Holding Company

 

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

 

 

BUSINESS REGISTRATION NUMBER

 

53082198

 

 

COMPANY FILE NUMBER

 

1510676

 

 

DATE OF INCORPORATION

 

30th September, 2010.

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$5,002.00

 

 

 

 

SHAREHOLDER

(As per registry dated 30-09-2012)

Name

 

No. of shares

General Industries Ltd., Hong Kong.

 

5,002

 

 

–––––

 

Total:

5,002

====

 

 

DIRECTOR

(As per registry dated 28-12-2012)

Name

Address

Co. No.

General Industries Ltd.

Flat A, 22/F., Guangdong Investment Tower, 148 Connaught Road Central, Hong Kong.

0323773

 

 

SECRETARY

(As per registry dated 28-12-2012)

Name

Address

Co. No.

Cheung’s Management Service Co. Ltd.

Flat A, 22/F., Guangdong Investment Tower, 148 Connaught Road Central, Hong Kong.

0065680

 

 

HISTORY

 

The subject was incorporated on 30th September, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Room 1503, 15/F., Queen’s Place, 74 Queen’s Road Central, Hong Kong where was the operating address of a commercial service provider Axiom Ltd.  It moved to Room 2907, West Tower, Shun Tak Centre, 168-200 Connaught Road in May 2012.  This address was the old operating address of Cheung’s Management Service Co. Ltd. which is the subject’s new secretarial firm.  Cheung’s Management Service Co. Ltd. moved to the present address with effect from 28th December, 2012, so did the subject.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

 

 

 

MORTGAGE OR CHARGES

 

Date of Charge on Deposits: 10-05-2013

 

Amount: To secure all monies in respect of banking facilities owing at any time plus interest and all expenses.

 

Property:The Chargor, as beneficial owner, hereby charges and agrees to charge to the Bank by way of first fixed charge:

 

(a) the Chargor’s entire right, title and interest in and to the Deposit and

 

(b) all rights and benefits accruing to or arising in connection with the Deposit.

 

Mortgagee: China Minsheng Banking Corporation Ltd., Hong Kong.

 

 

GENERAL

 

Having issued 5,002 ordinary shares of HK$1.00 each, Mega Fortune (Asia) Ltd. was almost wholly-owned by Mr. Vimal Puranmal Bansal who was an Indian.  He transferred all his shares to a Hong Kong-registered firm General Industries Ltd. [GIL] on 23rd December, 2011.  Now, GIL has become the parent company of the subject.

The old director of the subject was Pratibha Vinod Bansal but now has become GIL as well.

The subject does not have its own operating office.  Its registered office is in the operating address of Cheung’s Management Service Co. Ltd. [CMS] which is located at Flat A, 22/F., Guangdong Investment Tower, 148 Connaught Road Central, Hong Kong.  CMS is also the corporate secretary of the subject.  CMS is an associated company of Charles H. C. Cheung & CPA Ltd. which is an accountant firm.  This firm is also located at the above-mentioned address.

The subject has no employees in Hong Kong.

To our knowledge, the subject traded in gold and silver and other commodities as entrusted by customers when it was operated by Pratibha Vinod Bansal.  Its commodities were sourced from India, Europe, etc.  Prime markets were Hong Kong, Asian countries and the Middle East.  The subject had some connection with M D Overseas Group which is an India-based firm.  The Group is trading in multiple commodities.

Now, the subject’s new holding company GIL seems to be a nominee company and the subject might have become a shelf company.

The history of the subject in Hong Kong is just over two years and eight months.  Business in Hong Kong is not active.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

NOTE :

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 

 

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.58.74

UK Pound

1

Rs.91.98

Euro

1

Rs.78.69

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.