MIRA INFORM REPORT

Report Date :

06.02.2014

IDENTIFICATION DETAILS

Name :	GOODWILL FAR EAST CO.
Registered Office :	Room F, 12/F., Block 6, Lily Mansions, Whampoa Garden, 8 Tak Fung Street, Kowloon
Country :	Hong Kong
Date of Incorporation :	14.12.2000.
Com. Reg. No.:	31456135-000-12
Legal Form :	Partnership.
Line of Business :	Importer, Exporter and Wholesaler of Diamonds, textiles, luggage, sundry items, etc.
No. of Employees :	2. (Including associate)

NOTES :

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ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
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'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

Company name and address

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

MANAGEMENT

Manager: Mr. Pradip Hiralal Sachanandani

SUMMARY

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.

ADDRESS

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)

BUSINESS REGISTRATION NUMBER

31456135-000-12

MANAGEMENT

Manager: Mr. Pradip Hiralal Sachanandani

PARTNERS

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.

HISTORY

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.

OPERATIONS

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.

FINANCIAL INFORMATION

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.

GENERAL

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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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.

- 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.

- 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 30^th 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.

- 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.62.45
UK Pound	1	Rs.102.01
Euro	1	Rs.84.35

INFORMATION DETAILS

Report Prepared by :

NIS

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