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Report Date : |
11.04.2012 |
IDENTIFICATION DETAILS
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Name : |
FIRESTAR DIAMOND LTD. |
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Registered Office : |
Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central |
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Country : |
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Date of Incorporation : |
09.09.2009 |
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Com. Reg. No.: |
51144017 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of
diamonds, etc. |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
FIRESTAR DIAMOND
LTD.
ADDRESS: Room 1603-1604, 16/F.,
Crawford House, 70 Queen’s Road Central,
PHONE: 2530 3677
FAX: 2530 9877
E-MAIL: ananavati@firestonediamond.com
Managing Director: Mr. Mihir
Rashmi Bhansali
Incorporated on: 9th September,
2009.
Organization: Private
Limited Company.
Capital: Nominal: HK$117,000,000.00
Issued: HK$117,000,000.00
Business Category: Diamond Trader.
Employees:
7.
Main Dealing Banker: Bank of
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central,
Holding Company:-
Firestar Holdings Ltd.,
Associated Companies:-
Firestar Diamond BVBA,
Firestar Diamond FZE, UAE.
Firestar Diamond Inc.,
Firestar Diamond LLC,
Firestone International Pvt. Ltd.,
51144017
1371302
Managing Director: Mr. Mihir
Rashmi Bhansali
Chief Executive Officer: Mr.
Aditya Nanavati
Nominal Share Capital: HK$117,000,000.00 (Divided into 117,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$117,000,000.00
(As per registry dated 26-03-2012)
|
Name |
|
No. of shares |
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Firestar Holdings Ltd., |
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117,000,000 ========= |
(As per registry dated 09-09-2011)
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Name (Nationality) |
Address |
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Mihir Rashmi BHANSALI |
211, |
|
Neeshal MODI |
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(As per registry dated 09-09-2011)
|
Name |
Address |
|
|
Louis Lai Co. Secretarial Services Ltd. |
9/F., |
0686503 |
The subject was incorporated on 9th September, 2009 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Firestone Diamond
Ltd., name changed to the present style on 1st April, 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds, etc.
Employees: 7.
Commodities Imported:
Markets: Europe,
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C, T/T, etc.
Nominal Share Capital: HK$117,000,000.00 (Divided into 117,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$117,000,000.00
Alternation of Capital:-
|
Initially |
paid up |
HK$ 58,656,000.00 |
|
26-03-2012 |
paid up |
HK$ 58,344,000.00 |
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–––––––––––––––––– |
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Total: |
paid up |
HK$ 117,000,000.00 ================ |
Increase of Nominal Capital:-
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From |
HK$58,656,000.00 |
to |
HK$117,000,000.00 |
on |
26-03-2012 |
Mortgage or Charge: (See
attachment)
Profit or Loss: Too early to offer an opinion.
Condition: Business
is under development.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Bank of
Union Bank of
Punjab National Bank, Hong Kong Branch.
Standard Chartered Bank (Hong Kong)
Ltd.,
Standing:
Having issued 117 million ordinary shares of HK$1.00 each, Firestar Diamond
Ltd. is a wholly owned subsidiary of Firestar Holdings Ltd. [Firestar] which is
a Hong Kong-registered firm. This firm
is also located at the same operating address as the subject.
The subject is a multinational diamond and jewellery manufacturing company. Its operations span the
Currently, Firestar has over 1,300 employees in its manufacturing
plants. Firestar has registered about 75
trademarks and ten patents.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in
The history of the subject in
On the whole, consider the subject good for normal business engagements in
small credit amounts.
Brief personal profile
of the principals:-
Mr. Mihir Rashmi BHANSALI, Managing Director of the subject, is the
Chief Executive Officer [CEO] of Jewelry Division and Head of the
Mr. Aditya NANAVATI, CEO of the subject, is the Head of Hong
Kong. Aditya plays a pivotal role in
leading sales of polished products and managing Firestar’s operations in
Mr. Neeshal MODI is the CEO of Diamond Division and Head of
Belgium. Neeshal leads Firestar’s
Diamond Division, travelling extensively to source the finest quality diamonds
from all over the world. In his role as
CEO of the Diamond Division, Neeshal manages the entire diamond manufacturing
process and has played a key role in setting up new manufacturing units in
|
Date |
Particulars |
Amount |
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11-02-2011 |
Instrument: Debenture Property: a) By way of first fixed charge,
all the plant, machinery, vehicles, computers and other equipment and other
installation or material b) By way of first fixed
charge, the uncalled capital and any uncalled premiums and any called but
unpaid capital or premiums, goodwill and all patents, patent applications,
inventions, trademarks, trade names, registered designs, copyrights, know-how
and other intellectual or industrial property rights and all ancillary rights
and benefits c) By way of first fixed
charge, all book and other debts reveues and claims d) By way of first fixed
charge, all present and future contracts or pllicies of insurance; and e) By way of first
floating charge, the undertaking and all the property, assets and rights Mortgagee: Union Bank of |
To secure all monies in respect of banking facilities |
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22-02-2011 |
Instrument: Charge on Deposit to secure the
Depositor’s Obligations Property: A sum of US$2,500,000.00 currently represented or evidenced by a
certificate of deposit dated 22-02-2011 bearing number 7141001019 Mortgagee: Punjab National Bank, Hong Kong
Branch. |
As a continuing security for the payment and discharge of the Secured
Obligations |
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24-02-2011 |
Instrument: Charge on Deposit Property: A sum of US$2,000,000.00 currently represented or evidenced by a
certificate of deposit dated 24-02-2011 bearing number 000013010000589 Mortgagee: Union Bank of |
All moneys |
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18-03-2011 |
Instrument: Letter of Set-off and Appropriation Property: Deal No. Date Amount Due Date 169350 18-03-2011 US$1,875,000.00 19-03-2012 Mortgagee: Bank of |
Advances and other banking facilities |
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05-09-2011 |
Instrument: Security Agreement over Bank Account Property: By way of a first fixed charge all of the Chargor’s rights in respect
of any amount standing to the credit of the Account Mortgagee: Standard Chartered Bank
(Hong Kong) Ltd., |
To secure the payment and satisfaction of all present and future
obligations and liabilities |
DIAMOND INDUSTRY –
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From time immemorial,
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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
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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
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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
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Indian Rupees |
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US Dollar |
1 |
Rs.51.20 |
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|
1 |
Rs.81.50 |
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Euro |
1 |
Rs.67.15 |
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.