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Report Date : |
26.02.2014 |
IDENTIFICATION DETAILS
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Name : |
FULL FORTUNE ENTERPRISE LTD. |
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Registered Office : |
Flat B, 32/F., Block 9, Parc Palais, 18 Wylie Road, King’s Park, Yau
Ma Tei, Kowloon |
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Country : |
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Date of Incorporation : |
04.01.2008 |
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Com. Reg. No.: |
38862854 |
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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 : |
Not Available |
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 – 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 |
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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
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 |
FULL FORTUNE
ENTERPRISE LTD.
Flat B, 32/F., Block 9, Parc Palais, 18 Wylie Road, King’s Park, Yau Ma
Tei, Kowloon, Hong Kong.
PHONE: 852-2314 8514
FAX: 852-2736 9446
E-MAIL: fullfortune.hk@gmail.com
Managing Director: Ms. Binita Rajiv Somani
Incorporated on: 4th
January, 2008.
Organization: Private
Limited Company.
Capital: Nominal: HK$6,100,000.00
Issued: HK$6,100,000.00
Business Category: Diamond Trader.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
FULL FORTUNE
ENTERPRISE LTD.
Registered Head
Office:-
Flat B, 32/F., Block 9, Parc Palais, 18 Wylie Road, King’s Park, Yau Ma
Tei, Kowloon, Hong Kong.
Associated
Companies: (Same address)
Eternity Diamonds Co., Hong Kong.
Suashish Diamonds (HK) Ltd., Hong Kong.
38862854
1200662
Managing Director: Ms. Binita
Rajiv Somani
Nominal Share Capital: HK$6,100,000.00
(Divided into 6,100,000 shares of HK$1.00 each)
Issued Share Capital: HK$6,100,000.00
(As per registry dated 04-01-2013)
|
Name |
|
No. of shares |
|
Binita Rajiv SOMANI |
|
1,600,000 |
|
Rajiv Mafatlal SOMANI |
|
2,900,000 |
|
Pratik Rajiv SOMANI |
|
1,600,000 |
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|
|
–––––––– |
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Total: |
6,100,000 ======= |
(As per registry dated
04-01-2013)
|
Name (Nationality) |
Address |
|
Binita Rajiv SOMANI |
32/B, Tower 9, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong
Kong. |
|
Pratik Rajiv SOMANI |
32/B, Tower 9, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong
Kong. |
|
Rajiv Mafatlal SOMANI |
32/B, Tower 9, Parc Palais, 18 Wylie Road, Ho Man Tin, Kowloon, Hong
Kong. |
(As per registry dated 04-01-2013)
|
Name |
Address |
Co. No. |
|
Taxbase Consultants Ltd. |
Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong
Kong. |
0411324 |
The subject was incorporated on 4th January, 2008 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: Nil.
Commodities Imported: India, etc.
Markets: Hong
Kong, other Asian countries, Europe, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$6,100,000.00 (Divided into 6,100,000 shares
of HK$1.00 each)
Issued Share Capital: HK$6,100,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Made very small profits in 2011 & 2012.
Condition: Business
is fairly active.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Having issued 6.1 million ordinary shares of HK$1.00 each, Full Fortune
Enterprise Ltd. is jointly owned by Somani family: Ms. Binita Rajiv Somani, holding
26.2% interests; Mr. Rajiv Mafatlal Somani, holding 47.6%; Mr. Pratik
Rajiv Somani, also 26.2%. They are also
directors of the subject. Being Hong
Kong ID Card holders, they have got the right to reside in Hong Kong
permanently.
The subject’s registered address and operating address is in a private
building located at Flat B, 32/F., Block 9, Parc Palais, 18 Wylie Road, King’s
Park, Yau Ma Tei, Kowloon, Hong Kong.
This is the residence of the shareholders. Parc Palais is a luxury residential building
in Hong Kong.
The subject is a loose diamond trader.
It has had the following associated companies located at the same
address:-
Eternity Diamonds Co. [Eternity], Hong Kong;
Suashish Diamonds (HK) Ltd. [Suashish], Hong Kong.
Both are Hong Kong-registered firms.
Eternity was established on 22nd June, 2005 as a sole proprietorship
owned by Ms. Binita Rajiv Somani.
Incorporated on 23rd June, 1994, Suashish is also operated by the Somani
family. It is a subsidiary of Suashish
Diamond Ltd.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. The followings are some of its
products:-
·
1.50 Carat Diamond;
·
2.01 Carat Diamond;
·
Carat Size Diamonds;
·
Loose Diamonds;
·
Round Brilliant Cut Diamond Series; &
·
Round Brilliant Cut Diamonds.
Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and
the other Asian countries. Business is
just fair.
The subject’s business is chiefly handled by the Somani family. History in Hong Kong is over five years.
Since the registered office of the subject is in a residential building,
on the whole, consider it good for normal business engagements on L/C basis or
in very small credit amounts.
|
Date |
Particulars |
Amount |
|
20-05-2008 |
Instrument: Mortgage Property: All Those 235/341,874 part of share of and in All That piece or parcel
of ground registered in the Land Registry as Kowloon Inland Lot No. 11118 and
of and in the whole of the development construncted thereon and now known as
Parc Palais together with the sole and exclusive right and privilege to hold
use occupy and enjoy first all that Flat B on the 32/F. of Block 9 of the
Development and Second all that Private Carparking Space No. 186 on Level 3
of the Development Mortgagee: Bank of China (Hong Kong) Ltd.,
Hong Kong. |
To secure all moneys in respect of general banking facilities and
interest thereon |
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.61.98 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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 |
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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 |
|
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 |
|
<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.