MIRA INFORM REPORT
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Report Date : |
12.01.2012 |
IDENTIFICATION DETAILS
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Name : |
RIO
STAR |
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Registered Office : |
Flat H, 13/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
27.03.2007 |
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Com. Reg. No.: |
37757426-000-03 |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importer, Exporter and Wholesaler of
ll kinds of diamonds and gems. |
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No. of Employees
: |
Not Available |
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 Concern |
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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
RIO STAR
Company ADDRESS
Flat H, 13/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2723 7775
FAX: 2723 7072, 3904 4305
E-MAIL: info@riostarhk.com
MANAGEMENT
Manager: Mr. Lalit Jivraj Patel
SUMMARY
Establishment: 27th March, 2007.
Organization: Sole Proprietorship.
Capital: Not disclosed.
Business Category: Diamond Trader.
Employees: Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Company ADDRESS
Head Office:-
Flat H, 13/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong.
Affiliated
Companies:- (Same address)
· Raha Impex H.K., Hong Kong.
· Vriti Diam, Hong Kong.
· Vriti Diam (HK) Ltd., Hong Kong.
· Zenia, Hong Kong.
BUSINESS REGISTRATION NUMBER
37757426-000-03
MANAGEMENT
Manager: Mr. Lalit Jivraj Patel
SOLE PROPRIETOR
Name: Mr. Lalit Jivraj PATEL
Residential Address: Flat D, 11/F., Windsor Mansion, 29-31 Chatham Road, Tsimshatsui, Kowloon, Hong
Kong.
HISTORY
The subject was established on 27th March, 2007 as a sole proprietorship concern owned by Mr. Lalit Jivraj Patel under the Hong Kong Business Registration Regulations.
Originally the subject was located at Flat D, 11/F., Windsor Mansion, 29‑31 Chatham Road, Tsimshatsui, Kowloon, Hong Kong where is the residential address of the proprietor, moved to Room 404B, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong in October 2008, and further to the present address in March 2010.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds and gems.
Employees: Nil.
Commodities Imported: India, Europe, etc.
Markets: Hong Kong, Japan, India, Southeast Asia, etc.
Terms/Sales: L/C, etc.
Terms/Buying: L/C, T/T, D/P, etc.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Made a small profit in past three years.
Condition: Business is normal.
Facilities: Trying to make use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
GENERAL
Rio Star is a sole proprietorship owned by an Indian Mr. Lalit Jivraj Patel. The subject’s old registered address was the residence of Patel. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.
The subject’s latest operating address is in a private building at Flat H, 13/F., Kimberley Mansion, 15 Austin Avenue, Tsimshatsui, Kowloon, Hong Kong. This office is not in a commercial building but a residential building. It is likely that Mr. Patel has moved to this new address but does not make any amendments on the subject’s registration materials. It seems that the subject’s operating address is also Mr. Patel’s new residential address. Patel moved to this new address in March 2010. The residential building is not trespassed by outsiders.
Formerly the subject was located at Room 404, 4/F., Fu Hang Industrial Building, 1 Hok Yuen Street, Hunghom, Kowloon, Hong Kong where the following firms are also housed:-
Raha Impex H.K.
Vriti Diam
Vriti Diam (HK) Ltd.
Zenia
It is likely that the above-mentioned firms are the business partners of the subject.
Vriti Diam and Vriti Diam (HK) Ltd. are owned and operated by Bhavesh Narasi Patel. It seems that Bhavesh Narasi Patel and Lalit Jivraj Patel belong to the same family.
Business commenced in March 2007, the subject is a diamond and gem importer, exporter and wholesaler. It is trading in loose diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones, etc. According to the subject, it is specialised in the following diamonds:-
· Colour: White, TTLB, TTLC White Natts
· Shape:
o Full Cut — Round, Marquise, Princes, Tappers and Buggets
o Single Cut — Round
o Rose Cut — Round, Marquise, Pear, Oval
o Size — from 0.01 - 3.00 cts size GIA, HRD
o Clarity — VVS, VS, SI, I1, I2, I3
Raw materials are imported from India, Belgium and other European countries. Some of the raw diamonds are polished or processed in Hong Kong or China. Finished products and polished diamonds are exported or re-exported to Japan, India and other Asian countries. Business is improving. It has had a manufacturing factory in India.
According to the subject, it has got sales offices in the United States, Thailand and Mumbai of India. Its markets now include the United States, China, Thailand, Japan, Taiwan, Vietnam, the Philippines, Indonesia, Malaysia, etc.
The subject’s business is chiefly handled by Mr. Lalit Jivraj Patel himself.
Since the history of the subject is over four years and nine months, on the whole, consider it good for normal business engagements in small credit amounts.
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.51.75 |
|
UK Pound |
1 |
Rs.80.01 |
|
Euro |
1 |
Rs.65.99 |
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 |
|
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.