|
Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
LINK FAI LTD. |
|
|
|
|
Registered Office : |
Room B, 13/F., Kok Pah Mansion, 58 Cameron Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
29.07.2010 |
|
|
|
|
Com. Reg. No.: |
52725947 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Diamond & Watch Trader of All kinds of diamonds, watches,
jewellery |
|
|
|
|
No. of Employees : |
4. (Including associate) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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) |
|
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 |
LINK FAI LTD.
Room B, 13/F., Kok Pah Mansion, 58 Cameron Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 852-6147 3425
FAX: 852-3014 4524
Managing Director: Mr. Saurabh Pandit
Incorporated on: 29th
July, 2010.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond & Watch Trader.
Employees:
4. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
LINK FAI LTD.
Operating Office:-
Room B, 13/F., Kok Pah Mansion, 58 Cameron Road, Tsimshatsui, Kowloon,
Hong Kong.
Registered
Address:-
c/o KNG Consultants
Unit 605, 6/F., Stag Building, 148-150 Queen’s Road Central,
Hong Kong.
Associated
Company:-
Skylight Ltd., Hong Kong. (Same
address)
52725947
1486635
Managing Director: Mr. Saurabh
Pandit
Contact Person: Mr. Shorabh Bhai
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 29-07-2013)
|
Name |
|
No. of shares |
|
Saurabh PANDIT |
|
10,000 ===== |
(As per registry dated 29-07-2013)
|
Name (Nationality) |
Address |
|
Saurabh PANDIT |
Flat 602, Deema Building, Street 11B, Mankhool, Dubai, UAE. |
(As per registry dated 29-07-2013)
|
Name |
Address |
Co. No. |
|
Central Dynamic Secretarial Ltd. |
Unit 705-706, 7/F., Greenfield Tower, Concordia Plaza, 1 Science
Museum Road, Tsimshatsui, Kowloon, Hong Kong. |
0563433 |
The subject was incorporated on 29th July, 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: Diamond
& Watch Trader.
Lines: All
kinds of diamonds, watches, jewellery.
Employees: 4. (Including associate)
Commodities Imported: US, UAE, India, Europe, etc.
Markets: Hong
Kong, UAE, India, etc.
Terms/Sales:
As per contracted.
Terms/Buying: Various
terms.
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Made
a small profit in 2012.
Condition: Business keeps on improving.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing: Small.
Having issued 10,000 ordinary shares of HK$1.00 each, Link Fai Ltd. is
wholly owned by Mr. Saurabh Pandit 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. Currently he is in the United
Arab Emirates.
The subject commenced business in July 2010.
The subject’s address is in a private building located at Room B, 13/F.,
Kok Pah Mansion, 58 Cameron Road, Tsimshatsui, Kowloon, Hong Kong. The residential building is not trespassed by
outsiders.
However, the registered address of the subject has been changed to Unit
605, 6/F., Stag Building, 148-150 Queen’s Road Central, Hong Kong where is the
operating office of a consulting firm KNG Consultants.
The subject has had an representative in Hong Kong known as Shorabh
Bhai, an Indian, who can be reached at his mobile phone number 852-6147 3425.
According to Shorabh Bhai, the subject is trading in the following
commodities:-
Diamonds, jewellery, watches, precious stones, etc.
The subject’s commodities are imported from the United States, the
United Arab Emirates, Europe, etc. Prime
markets are India, the United Arab Emirates, the other Asian countries,
etc. Business keeps on improving.
According to Shorabh Bhai, the subject has 4 employees in Hong Kong.
The subject has had an associated company Skylight Ltd. [Skylight]
located at the same office. Skylight and
the subject are engaged in the same lines of business and carrying the same
commodities. Saurabh Pandit is one of
the directors of it. The business of
Skylight is also handled by Shorabh Bhai.
In order to penetrate the international market further, the subject will
take part in fairs and exhibitions which are held in Hong Kong.
The subject’s business is chiefly handled by Shorabh Bhai. History in Hong Kong is just over three
years.
On the whole, since the history of the subject is short, consider it
good for normal business engagements on L/C basis for the time being.
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.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.