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Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
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Name : |
GOODWILL FAR EAST CO. |
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Registered Office : |
Room F, 12/F., Block 6, Lily Mansions, Whampoa Garden, 8 Tak Fung Street, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.12.2000. |
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Com. Reg. No.: |
31456135-000-12 |
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Legal Form : |
Partnership. |
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Line of Business : |
Importer, Exporter and Wholesaler of Diamonds, textiles, luggage, sundry items, etc. |
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No. of Employees : |
2. (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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'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
GOODWILL FAR
EAST CO.
Address: Room F, 12/F.,
Block 6, Lily Mansions,
Whampoa
Garden,
8 Tak Fung
Street,
Kowloon,
Hong Kong.
(Formerly located at:
Room 804-805, 8/F., Peninsula Centre,
67 Mody Road, Tsimshatsui East,
Kowloon, Hong Kong. )
PHONE: 2312 0488, 2366 4987
FAX: 2366 4790
E-MAIL: goodwill@vinay.com.hk
Manager: Mr. Pradip Hiralal
Sachanandani
Establishment: 14th
December, 2000.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Importer, Exporter and Wholesaler.
Employees:
2. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Room F, 12/F., Block 6, Lily Mansions, Whampoa Garden, 8 Tak Fung
Street, Kowloon, Hong Kong.
Associated Company:-
Sunshine (Far East) Ltd., Hong Kong.
(Same address)
31456135-000-12
Manager: Mr. Pradip Hiralal
Sachanandani
Name: Pradip Hiralal SACHANANDANI
Residential Address: Room 1107,
11/F., Peninsula Centre, 67 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.
Name: Laju Kishinchand MIRPURI
Residential Address: Flat 4,
1/F., Block B, Parmar Paradise, Pune, India.
The subject was established on 14th December, 2000 as a partnership
concern jointly owned by Pradip Hiralal Sachanandani and Yogesh Kumar Puri
under the Hong Kong Business Registration Regulations.
The following
table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
|
Pradip Hiralal SACHANANDANI |
14-12-2000 |
- |
|
Yogesh Kumar PURI |
14-12-2000 |
02-09-2008 |
|
Laju Kishinchand MIRPURI |
01-09-2008 |
- |
Initially the subject was located at Room 1107, 11/F., Peninsula Centre,
67 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, moved to
Room 804-805 of the same building in August 2008, further moved to the
present address in April 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Diamonds,
textiles, luggage, sundry items, etc.
Employees: 2. (Including associate)
Commodities Imported: India, China, other Asian countries, etc.
Markets: Southeast
Asia, India, the Middle East, Africa, Europe, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: Various
Terms.
Capital: Not
disclosed.
Profit or Loss: Making a small profit every year.
Condition: Business
is normal.
Facilities: Making
fairly active use of general banking facilities.
Payment: Met as contracted.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Goodwill Far East Co. is a partnership jointly owned by Mr. Pradip
Hiralal Sachanandani and Mr. Laju Kishinchand Mirpuri, both of whom are
Indian. They are Hong Kong ID Card
holders and have got the right to reside in Hong Kong permanently.
The subject’s business is chiefly handled by Sachanandani who can be
reached at his mobile phone number 9809 0631.
The subject’s registered address is in a private building located at
Room F, 12/F., Block 6, Lily Mansions, Whampoa Garden, 8 Tak Fung Street,
Kowloon, Hong Kong. This is the
residence of Sachanandani who moved to this address in April 2011.
The residential building is not trespassed by outsiders.
The subject shares the same operating office with Sunshine (Far East)
Ltd. [Sunshine] which is a private limited company jointly owned by Mr. Laxman
Shabhunath Vaswani, holding 75.0%; Mr. Manju Laxman Vaswani, holding 12.5%; and
Mr. Vaswani Parshotam Shambhunath, also 12.5%. The last shareholder is residing in Jakarta, Indonesia. All the shareholders are Indian.
The subject is trading in the same commodities as Sunshine, more or
less. However, it also trades in
diamonds as well.
Sunshine is trading in textiles, garments, wax, batteries, household
electric appliances, luggage, sundry items, etc. Commodities are sourced from India, China,
other Asian countries, Europe. Prime
markets are Indonesia, Sri Lanka, the Middle East, Africa, etc. Business is rather active.
Sunshine has got an affiliated company Vinay Holdings Ltd. located at
the same operating address. However,
Vinay Holdings Ltd. is not a Hong Kong‑registered company.
Currently, the subject’s business is chiefly handled by Sachanandani
himself. He is also the contact person
of the subject. History in Hong Kong is
over twelve years.
On the whole, consider the subject good for normal business engagements
in moderate credit amounts.
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.
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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.54.34 |
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UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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.