MIRA INFORM REPORT

 

 

Report Date :           

21.11.2011

 

IDENTIFICATION DETAILS

 

Name :

SHINE  STAR

 

 

Registered Office :

C/o Worldwide Executive Ltd., Room 2301, 23/F., World Wide House, 19 Des Voeux Road Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.07.2005

 

 

Com. Reg. No.:

35845146-000-07

 

               

Legal Form :

Sole Proprietorship

 

 

Line of Business :

subject was a Diamond Importer, Exporter and Wholesaler

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Ceased Operation

Payment Behaviour :

---

Litigation :

---

 

 

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)

Hong Kong

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

SHINE  STAR

 

 

Company ADDRESS

 

Registered Office:-

c/o Worldwide Executive Ltd.

Room 2301, 23/F., World Wide House, 19 Des Voeux Road Central, Hong Kong.

 

 

BUSINESS REGISTRATION NUMBER

 

35845146-000-07

 

 

ESTABLISHMENT

 

21st July, 2005.

 

 

SOLE PROPRIETOR

 

Name:                           Mr. Vipulkumar Bachubhai BOTADARA

Residential Address:      Flat B, 9/F., Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon, Hong

Kong.

 

 

GENERAL

 

Please be advised that Shine Star has ceased business since 13th September, 2010.

Before cessation, the subject was a sole proprietorship owned by Vipulkumar Bachubhai Botadara.

The subject was established on 21st July, 2005 as a sole proprietorship concern owned by Mr. Nilesh Manharlal Chauhan under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name

Incoming Date

Outgoing Date

Nilesh Manharlal CHAUHAN

21-07-2005

31-03-2007

Vipulkumar Bachubhai BOTADARA

21-09-2006

13-09-2010

Nilesh Gajanan RANE

09-09-2008

01-12-2009

 

When the subject commenced business, the subject was located at Flat B, 9/F., Golden Glory Mansion, 16 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1006, 10/F., World Wide House, 19 Des Voeux Road Central, Hong Kong where is the office of Worldwide Executive Ltd. in August 2005; and further moved to Room 2301, 23/F. of the same building in August 2009.  Before cessation, the subject’s registered office was located at Room 2301, 23/F., World Wide House, 19 Des Voeux Road Central, Hong Kong.

Worldwide Executive Ltd. had handled the subject’s correspondences.  We considered the subject’s operating address had been located at the residence of Botadara in Hong Kong.

The subject was a diamond importer, exporter and wholesaler.  Raw materials, rough diamonds, polished or cut diamonds were imported from India, Belgium and other European countries, etc.  However, India was its main supplying country as most of its products were imported from Mumbai, India.  Prime market was Hong Kong.

We can reach nobody at your given mobile phone number 6306 3263.  It was a voice mail box when we called it.

The subject was just a one-man company.  Business was not active in the past years.

Since the subject has ceased business, on the whole, consider it not suitable for any business engagements.

 

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.

-          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 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.

-          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.51.35

UK Pound

1

Rs.80.97

Euro

1

Rs.68.26

 

 

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%)

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.