MIRA INFORM REPORT
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Report Date : |
22.12.2011 |
IDENTIFICATION DETAILS
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Name : |
STAR
GEMS |
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Registered Office : |
Room 502, 5/F., Hang Seng Bank Building, 18 Carnarvon Road, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
02.03.2005 |
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Com. Reg. No.: |
35375975-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamond and jewellery products, precious stones, etc. |
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No. of Employees
: |
2 persons |
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
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 |
Company Name
STAR GEMS
Company ADDRESS
Room 502, 5/F., Hang Seng Bank Building, 18
Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2890
6584
FAX: 2894
8414
E-MAIL: sales@stargems.com.hk
MANAGEMENT
Manager:
Mr. Nilaybhai Bhupatbhai Shah
(Mobile: 9757 0845)
SUMMARY
Establishment: 2nd
March, 2005.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
2.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Room 502, 5/F., Hang Seng Bank Building, 18 Carnarvon Road, Tsimshatsui,
Kowloon, Hong Kong.
Associated
Company:-
Excel Overseas Pvt. Ltd.
347, 3/F., Panchratna
Building, Opera House, Charni Road, Mumbai‑400004, India.
[Tel: 91-22-6635
9700; Fax: 91-22-6635 9800]
BUSINESS REGISTRATION NUMBER
35375975-000-03
MANAGEMENT
Manager: Mr. Nilaybhai Bhupatbhai
Shah
SOLE PROPRIETOR
Name: Mr. Nilaybhai Bhupatbhai SHAH
Residential Address: Flat H,
13/F., Windsor Mansion, 29-31 Chatham Road South, Tsimshatsui, Kowloon,
Hong Kong.
HISTORY
The subject was established
on 2nd March, 2005 as a sole proprietorship concern owned by Mr. Nilaybhai
Bhupatbhai Shah under the Hong Kong Business Registration Regulations.
Initially the subject was
located at Flat H, 13/F., Windsor Mansion, 29‑31 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong, moved to Room 908, 9/F., Hang Seng Bank
Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in March 2007 and
further to Room 502, 5/F. of the same building in June 2011.
Apart from these, neither
material change nor amendment has been ever traced and noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamond and jewellery products, precious stones, etc.
Employees: 2.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Japan, Southeast Asia, Europe, Middle East, Scandinavia, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/A, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
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 obligations on time.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Star
Gems is a sole proprietorship set up and owned by Mr. Nilaybhai Bhupatbhai
Shah. He is an India passport holder and
does not have the right to reside in Hong Kong permanently. Shah can be reached at your given mobile
phone number 9757 0845.
The
subject commenced business in March 2005.
Formerly
the subject’s operating office was located at the residence of the subject’s
sole proprietor, moved to Room 908, 9/F., Hang Seng Bank Building, 18 Carnarvon
Road, Tsimshatsui, Kowloon, Hong Kong in March 2007
and further to Room 502, 5/F. of the same building in June 2011.
The subject is a diamond importer, exporter and wholesaler. It is engaged in manufacturing loose diamonds
like marquise, pears, tappers, buggets and rose cut diamonds. It also carries white and colour
diamonds. Most of the commodities are
imported from India, Belgium and the other European countries. It also imported rough diamonds from Thailand
and the United States. However,
India is its main supplying country.
Prime markets are Hong Kong, Japan, Southeast Asia, Europe, the Middle
East, Scandinavia, etc. Business,
chiefly handled by Shah, is rather active.
The subject has had an associated company in India known as Excel Overseas Pvt. Ltd. [Excel Overseas]. Excel Overseas is more than a two decades old
diamond company, having manufacturing affiliates in Russia. This company is engaged in manufacturing,
importing and exporting rough and polished diamonds. The subject is said to be the “Hong Kong
Office” of Excel Overseas.
The subject has developed business ties with a number of suppliers
in India and foreign customers. Overall
business is active.
Since the history of the subject is over six years and nine months
in Hong Kong, on the whole, consider it good for normal business
engagements.
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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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.
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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 –
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.
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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.52.67 |
|
UK Pound |
1 |
Rs.82.53 |
|
Euro |
1 |
Rs.69.13 |
RATING EXPLANATIONS
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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 |
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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.