|
Report Date : |
15.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
FINE STAR HK LTD. |
|
|
|
|
Registered Office : |
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong. |
|
|
|
|
Date of Incorporation : |
04.10.2006 |
|
|
|
|
Com. Reg. No.: |
37227469 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
line of business
: |
Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery. |
|
|
|
|
No. of Employees : |
3. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong. |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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'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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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 |
FINE STAR HK LTD.
ADDRESS
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
PHONE: 2366 9577
FAX: 2366 9007
E-MAIL: finestarhk@rediffmail.com
Managing Director: Mr. Adit Bakul Shah
(Mobile: 6933 4990)
Incorporated on: 4th October, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$5,700,000.00
Issued: HK$5,700,000.00
Business Category: Diamond
Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
FINE STAR HK
LTD.
Registered Head
Office:-
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
37227469
1078533
Managing Director: Mr. Adit Bakul
Shah
Nominal Share Capital: HK$5,700,000.00 (Divided into 5,700,000 shares of
HK$1.00 each)
Issued Share Capital: HK$5,700,000.00
(As per registry dated 04-10-2012)
|
Name |
|
No. of shares |
|
Adit Bakul SHAH |
|
5,700,000 ======= |
(As per registry dated 04-10-2012)
|
Name (Nationality) |
Address |
|
Adit Bakul SHAH |
Flat J, 15/F., Tower 2, Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated 04-10-2012)
|
Name |
Address |
Co. No. |
|
Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6-8 Pottinger Street, Central, Hong
Kong. |
0418716 |
The subject was incorporated on 4th October, 2006 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat Rear, 6/F., Ocean View Court,
25A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in November 2008.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery.
Employees: 3.
Commodities Imported: India,
Thailand, Belgium, other Asian and European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East, Scandinavia, Hong Kong, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$5,700,000.00 (Divided into 5,700,000 shares of
HK$1.00 each)
Issued Share Capital: HK$5,700,000.00
Alternation of
Capital:-
|
Initially |
paid up |
HK$ 2,500,000.00 |
|
30-05-2011 |
paid up |
HK$ 3,200,000.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$ 5,700,000.00 ============== |
Increase of
Nominal Capital:-
|
From |
HK$2,500,000.00 |
to |
HK$5,700,000.00 |
on |
30-05-2011 |
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit in the past two years.
Condition: Business
is normal.
Facilities: Adequate
for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Commonwealth Finance Corporation Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
Standing: Small.
Having issued 5.7 million ordinary shares of HK$1.00 each, Fine Star HK
Ltd. is an Indian company wholly owned by Mr. Adit Bakul Shah. Shah is an India passport holder whose native
land is Mumbai, India.
The subject has increased its issued share capital from HK$2.5 million
to HK$5.7 million which is the present one.
The directors of the subject were Mr. Adit Bakul Shah and Mr. Saloni
Adit Shah. Both of them belonged to the
Shah family and were Hong Kong ID Card holders and had got the right to reside
in Hong Kong permanently. Now, Mr.
Saloni Adit Shah has retired. Mr. Adit
Bakul Shah has become the only director of the subject.
The subject is a diamond trader.
It is trading in loose diamonds, single cut diamonds, tapper cut
diamonds, full cut diamonds, etc. Raw
materials and polished white and colour diamonds are imported from Thailand, India,
Belgium and the other Asian and European countries. The subject also trades in black and brown
stones. Finished products and polished
diamonds are exported or re-exported to Japan, Southeast Asia, Europe, the
Middle East, Scandinavia, etc., as well as marketed in Hong Kong.
The subject commenced business in October 2006 and made small profits in
the past four years. Business is normal.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong and other foreign large
cities. For instance, it took part in
“HKTDC Hong Kong International Jewellery Show 2012” which had been held in Hong
Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of
16th to 20th February, 2012. Besides, it
is going to take part in “HKTDC Hong Kong International Jewellery Show 2013”
which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong
Kong during the period of 5th to 9th March, 2013.
The Shahs have had close business ties with a number of diamond and
jewellery manufacturers and suppliers in Mumbai, India.
The history of the subject in Hong Kong is over six years.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
07-12-2007 |
Instrument: Letter of Hypothecation for Trade
Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth Finance Corporation Ltd.,
Hong Kong. |
All sum of monies |
|
10-12-2007 |
Instrument: Charge Over Deposit Property: Account No.: 20096 Mortgagee: Commonwealth Finance Corporation Ltd.,
Hong Kong. |
All the indebtedness and the due and punctual performance and
observance by the Depositor of all its obligations and liabilities |
|
06-10-2009 |
Instrument: Letter of Hypothecation for Trade
Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth Finance Corporation Ltd.,
Hong Kong. |
All sum of monies |
|
25-06-2010 |
Instrument: Assignment of Life Insurance Property: (i) All the Assignor’s claims, options, privileges, right, title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s
claims and rights against the issuer of the Policy in respect of the Policy
upon the terms herein set out as a continuing security for the due and
pucntual payment of the Secured Indebtedness and the due and punctual performance
and observance by the Borrower of all other obligations of the Borrower
contained in the Facility Letter Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Secured Indebtedness |
|
27-08-2010 |
Instrument: Letter of Hypothecation for Trade
Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth Finance Corporation Ltd.,
Hong Kong. |
All sum of monies |
|
07-07-2011 |
Instrument: Letter of Lien Property: Nature of Deposit: TDR TDR Mortgagee: Bank of India, Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: Charge and Hypothecation of Book Debts
(CC.531) Property: Hypothecate and charge to the Bank by way of charge on all the book
debts outstanding, moneys receivable, claims and bills which are now due and
owing or which may at any time hereafter during the continuance of this
security becomes due and owing to “the Borrower” in the course of its
business by any person, company or by the Government or any local or public
body or authority (all of which are hereinafter collectively referred to as
“the said debts”) as security for the due payment to the Bank at any time on
demand at Hong Kong. Mortgagee: Bank of India, Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: Hypothecation of Tangible Moveable
Property (L448) Property: All tangible movable assets of borrower including in particular stocks
of all goods of diamonds, gem, precious stones, jewellery, gold, furniture
and fixtures and plant & machinery etc., wheresover situate and/or in
transit. Including therein the stocks
thereof for time being whether raw or manufactured or in process of manufacture. And also all procedures gods and any and
every tangible moveable property of the Borrower whether now lying or at any
time hereafter during the continuance of this security lying or being in or
about the Borrower’s premises and godowns at Flat 1703, 17/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong or wherever else the
same may be or be held by any party anywhere to the order and disposition of
the Borrower or in course of transit to the Borrower (all or which are hereinafter
called “the hypothecated goods”) Mortgagee: Bank of India, Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: General Letter of Hypothecation Property: Bills or exchange, and/or invoices, or any other documents
representing or relating to goods. The
company agree that the same and all goods thereby represented or to which the
documents relate shall be hypothecated by way of first charge as a continuing
security for all sums in which the company from time to time be actually or
contingently indebted or liable to bank on any account. Mortgagee: Bank of India, Hong Kong Branch. |
All the money |
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.54.39 |
|
UK Pound |
1 |
Rs.87.78 |
|
Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.