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Report Date : |
13.11.2013 |
IDENTIFICATION DETAILS
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Name : |
FANCY CREATIONS CO. LTD. |
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Registered Office : |
Unit 306-A207, 3/F., Harbour Centre, Tower 1, |
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Country : |
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Date of Incorporation : |
04.06.2010 |
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Com. Reg. No.: |
52388050 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of All kinds of loose diamonds |
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No. of Employees : |
9 |
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
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Source
: CIA |
FANCY CREATIONS
CO. LTD.
Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street,
Hunghom, Kowloon, Hong Kong.
PHONE: 852-2334 5199
FAX: 852-2773 0390
Managing Director: Mr. Nilesh Valjibhai Khetani
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.,
Banking Relation: Satisfactory.
FANCY CREATIONS
CO. LTD.
Registered Head
Office:-
Unit 306-A207, 3/F., Harbour Centre, Tower 1, 1 Hok Cheung Street,
Hunghom, Kowloon, Hong Kong.
52388050
1464841
Managing Director: Mr. Nilesh
Valjibhai Khetani
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
(As per registry dated 04-06-2013)
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Name |
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No. of shares |
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Nilesh Valjibhai KHETANI |
|
7,800,000 ======= |
(As per registry dated 04-06-2013)
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Name (Nationality) |
Address |
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Nilesh Valjibhai KHETANI |
B/13, Mahan CHS Ltd., Opp. Krishna Tower, Link Road, Anand Nagar,
Dahisar (East), Mumbai 400 068, India. |
(As per registry dated 04-06-2013)
|
Name |
Address |
Co. No. |
|
Louis Lai & Luk Co. Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140‑142 Austin Road,
Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
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.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of loose diamonds
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.
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
Increase of Nominal Capital:-
|
From |
$10,000.00 |
to |
HK$7,800,000.00 |
on |
10-01-2012 |
Alternation of Issued Capital:-
|
04-06-2010 |
paid up |
HK$
10,000.00 |
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10-01-2012 |
paid up |
HK$7,790,000.00 |
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|
––––––––––––––– |
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Total: |
paid up |
HK$7,800,000.00 ============= |
Profit or Loss: Made
a very small profit in 2012.
Condition: Business
is improving.
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:
Normal.
Having issued 7.8 million ordinary shares of HK$1.00 each, Fancy Creations
Co. Ltd. is wholly-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. was a BVI-registered firm. But it has transferred all its shares to
Khetani since August 2013.
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 at the phone number 852-2334 5199.
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 improving. The subject has had nine employees.
The subject’s business is chiefly handled by Khetani himself. History in Hong Kong is over three years.
On the whole, consider the subject good for business engagements in
small credit amount for the time being.
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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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 –
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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.
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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.63.59 |
|
|
1 |
Rs.101.56 |
|
Euro |
1 |
Rs.85.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.