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Report No. : |
326580 |
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Report Date : |
12.06.2015 |
IDENTIFICATION DETAILS
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Name : |
FORTUNEX LTD. |
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Registered Office : |
Unit 629, 6/F., Metro Centre II, 21 Lam Hing Street, Kowloon Bay, Kowloon |
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Country : |
Hong Kong
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Date of Incorporation : |
04.10.2002 |
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Com. Reg. No.: |
33053131 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of All Kinds of Garments. |
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No. of Employees : |
7 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Hong Kong |
A1 |
A1 |
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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
has no tariffs on imported goods, and it levies excise duties on only four
commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and
investment leaves it vulnerable to renewed global financial market volatility
or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong
by the end of 2013. 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 total trade 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 40.7 million
in 2013, 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 48.5% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. Credit expansion and tight housing supply conditions have caused Hong
Kong property prices to rise rapidly; consumer prices increased by more than 4%
in 2013. 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. In
2013, Hong Kong and China signed new agreements under the Closer Economic
Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong
and the mainland. The new measures, effective from January 2014, cover services
and trade facilitation, and will improve access to the mainland's service
sector for Hong Kong-based companies. As of year-end 2014, the Democracy
protests that began in late September probably will have some adverse effects
on economic growth, particularly retail sales.
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Source
: CIA |
FORTUNEX LTD.
ADDRESS: Unit 629, 6/F., Metro
Centre II, 21 Lam Hing Street, Kowloon Bay, Kowloon, Hong Kong.
PHONE: Not available
MANAGEMENT:
Managing Director: Mr. Solaiappan
Muthiah
Incorporated on: 4th October. 2002.
Organization: Private Limited Company.
Issued Share Capital: HK$1,000,000.00
Business Category: Importer,
Exporter and Wholesaler.
Employees: 7.
Main Dealing Banker: HBZ
Finance Ltd., Hong Kong.
Banking Relation: Satisfactory.
FORTUNEX LTD.
Registered
Office:-
Unit 8, 6/F., Hope Sea Industrial Centre, 26 Lam Hing Street,
Kowloon Bay, Kowloon, Hong Kong.
Operating Office:-
Unit 629, 6/F., Metro Centre II, 21 Lam Hing Street, Kowloon Bay,
Kowloon, Hong Kong.
Affiliated/Associated
Companies:-
Fortunex Ltd., Bangladesh.
Simba Fashions Ltd., Bangladesh.
Sterling Apparels Ltd., Bangladesh.
Sterling Creations Ltd., Bangladesh.
Sterling Denims Ltd., Bangladesh.
Sterling Design Ltd., Bangladesh.
Sterling Laundry Ltd., Bangladesh.
Sterling Stocks & Securities Ltd., Bangladesh.
Sterling Styles Ltd., Bangladesh.
Sterling Sweaters Ltd., Bangladesh.
33053131
0816485
Managing Director: Mr. Solaiappan
Muthiah
HK$1,000,000.00
(As per registry dated 04-10-2014)
|
Name |
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No. of shares |
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Navneet BHAGAT |
|
500,000 |
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Kanwal BHAGAT |
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500,000 |
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–––––––– |
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Total: |
1,000,000 ======= |
(As per registry dated 04-10-2014)
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Name (Nationality) |
Address |
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Kanwal BHAGAT |
House No. 16A, Road No. 84, Apartment No. 301, Dhaka, Bangladesh. |
|
Solaiappan MUTHIAH |
Unit C, 61/F., Tower 8, 28 Lok King Street, Shatin,
New Territories, Hong Kong. |
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Navneet BHAGAT |
House No. 16A, Road No. 84, Apartment No. 301, Dhaka, Bangladesh. |
(As per registry dated 04-10-2014)
|
Name |
Address |
Co. No. |
|
RJA Management Ltd. |
Room A & B, 2/F., Lee Kee Commercial Building, 221-227 Queen’s
Road, Central, Hong Kong. |
1044456 |
The subject was incorporated on 4th October. 2002 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Unit 8, 6/F., Hope Sea Industrial
Centre, 26 Lam Hing Street, Kowloon Bay, Kowloon, Hong Kong, moved to the
present address in early 2015, Apart from these, neither material change nor
amendment has been ever traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of garments.
Employees: 7.
Commodities Imported: China,
Bangladesh, other Asian countries.
Markets: Asian
countries, Europe, Middle East, North America.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P.
Issued Share Capital: HK$1,000,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making a small
profit every year.
Condition: Keeping in a
satisfactory manner.
Facilities: Making rather active
use of general banking facilities.
Payment: Met trade commitments as
required.
Commercial Morality:
Satisfactory.
Bankers:-
HBZ Finance Ltd., Hong Kong.
Dah Sing Bank Ltd., Hong Kong.
Standing: Normal.
Having issued 1 million ordinary shares of HK$1.00 each, Fortunex Ltd. is
equally owned by Mr. Navneet Bhagat and Mr. Kanwal Bhagat, both of whom are
Bangladesh merchants.
The two shareholders and Mr. Solaiappan Muthiah are directors of the
subject.
The subject is a garment trader.
It has had an associated company in Dhaka, Bangladesh bearing the same
name [Fortunex].
The subject and Fortunex are engaged in the same lines of business.
Established in 2002, Fortunex is a buying agent. It is specialized in men’s shirts, ladies’
blouses, sweaters, dresses, trousers, shorts, jackets, casual wear and formal
wear for men, women and denim in both men’s and ladies’ with fancy washes.
Navneet Bhagat came to Bangladesh in 1994 and in a short span of seven
years founded his own sourcing company Fortunex. This company is catering largely to US
retailers like JC Penney, Walmart, Sears, Academy, Kohl’s and Indian retailers
like ITC (John Players), Arvind Retail, etc.
Today, in addition to the buying operations, Fortunex has two
manufacturing units – Sterling Style and Simba Fashions, catering to H&M,
Zara and Gap producing value added garments for them.
Fortunex realized the huge potential in manufacturing and entered a
partnership with local entrepreneur Fazbul Haq to initiate Sterling Style.
Spurted by the success of Sterling Style, Fortunex started the second
independent unit, Simba Fashions in 2011.
While Sterling Style has 16 lines, Simba has 8 lines and there are plans
to double capacity in both units over the next two years.
The annual turnover of Fortunex is US$40 million and manufacturing
annual turnover is US$35 million.
The prime markets of Fortunex are the United States and India, and has
recently started to target the South American market with Mexico and Brazil the
focus, and is even exploring Australia, Canada and Japan to take the advantage
of duty-free regime.
The subject’s business is chiefly handled by Mr. Solaiappan Muthiah who
is a Hong Kong ID holder. The history of
the subject in Hong Kong is over twelve years and eight months. Its business is satisfactory.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
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25-05-2009 |
Instrument: Lien and Set-Off Agreement Property: Fixed Deposit DFN1030515 30.03.2009 US$57,635.50 30.06.2009 Mortgagee: HBZ Finance Ltd., Hong Kong. |
Loans, credit financial accommodation & facilities granted to
Fortunex Ltd. |
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09-08-2010 |
Instrument: Lien and Set-Off Agreement Property: Fixed Deposit DFN2071139 20.07.2010 US$
86,013.14 20.10.2010 Mortgagee: HBZ Finance Ltd., Hong Kong. |
Loans, credit financial accommodation & facilities granted to
Fortunex Ltd. |
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06-11-2012 |
Instrument: Charge On Deposit Property: The Customer charges the Deposit all the rights, titles and interests
to the Bank; Secured indebtedness: all moneys, obligations and liabilities; Persons: one or more individual(s), firm(s) or any incorporated or unincorporated
association(s) and; 4 Principal: the
person(s) Mortgagee: Dah Sing Bank Ltd., Hong Kong. |
General banking facilities |
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08-11-2012 |
Instrument: Lien and Set-Off Agreement Property: Fixed Deposit 1244 17.10.2012 US$101,386.25 17.01.2013 Mortgagee: HBZ Finance Ltd., Hong Kong. |
Loans, credit financial accommodation & facilities granted to
Fortunex Ltd. |
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12-11-2012 |
Instrument: Mortgage Property: 5/1,000th parts or shares of and in New Kowloon Inland Lot No. 5854 (Unit
No. 8 on 6/F. , Hope Sea Industrial Centre, Kowloon, Hong Kong.) Mortgagee: Dah Sing Bank Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities and
interest |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
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|
1 |
Rs.98.89 |
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Euro |
1 |
Rs.72.31 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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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.