MIRA INFORM
REPORT
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Report Date : |
07.03.2012 |
IDENTIFICATION DETAILS
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Name : |
FINE
STAR HK LTD. |
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Registered Office : |
Room 1703, 17/F., |
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Country : |
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Date of Incorporation : |
04.10.2006 |
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Com. Reg. No.: |
37227469 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of diamonds and jewellery |
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No. of Employee: |
3 |
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 : |
Moderate |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
FINE STAR HK
LTD.
Room 1703, 17/F.,
PHONE: 2366 9577
FAX: 2366 9007
E-MAIL: finestarhk@rediffmail.com
Managing Director: Mr. Adit Bakul Shah
Incorporated on: 4th October, 2006.
Organization: Private Limited Company.
Capital: Nominal: HK$2,500,000.00
Issued: HK$2,500,000.00
Business Category: Jewellery Trader.
Employees: 3.
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd.,
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1703, 17/F.,
37227469
1078533
Managing Director: Mr. Adit Bakul Shah
Nominal Share Capital: HK$2,500,000.00 (Divided into 2,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,500,000.00
(As per registry dated 04-10-2010)
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Name |
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No. of shares |
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Adit Bakul SHAH |
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2,500,000 ======= |
(As per registry dated 04-10-2010)
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Name (Nationality) |
Address |
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Adit Bakul SHAH |
Flat Rear, 6/F., |
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Saloni Adit SHAH |
Flat Rear, 6/F., |
(As per registry dated 04-10-2010)
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Name |
Address |
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Elegant Secretaries Ltd. |
Room 804, 8/F., |
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 and Exporter.
Lines: All kinds of diamonds and jewellery.
Employees: 3.
Commodities Imported:
Markets:
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$2,500,000.00 (Divided into 2,500,000 shares of HK$1.00 each)
Issued Share Capital: HK$2,500,000.00
Mortgage or Charge: (See attachment)
Profit & Loss: Keeping a balance account in 2009.
Condition: Business keeps on improving.
Facilities: Adequate for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong &
Shanghai Banking Corp. Ltd.,
Commonwealth Finance
Corporation Ltd.,
Standing: Small.
Having
issued 2.5 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
The directors of the subject are Mr. Adit Bakul Shah and Mr. Saloni Adit Shah. Both of them belong to the Shah family.
The
subject is a diamond and jewellery product 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
The subject commenced business in October 2006 and it kept a balance account in 2009. Business keeps on improving.
In
order to penetrate the international market further, the subject has taken part
in fairs and exhibitions held in
The
Shah has had close business ties with a number of diamond and jewellery manufacturers
in
The
history of the subject in
On the whole, consider it good for normal business engagements.
COURT CASES: None per our.
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Date |
Particulars |
Amount |
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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., |
All sum of monies |
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10-12-2007 |
Instrument: Charge Over Deposit Property: Account No.: 20096 Mortgagee: Commonwealth Finance Corporation Ltd., |
All the indebtedness and the due and punctual performance and observance by the Depositor of all its obligations and liabilities |
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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., |
All sum of monies |
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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., |
Secured Indebtedness |
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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., |
All sum of monies |
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.03 |
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1 |
Rs.79.32 |
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Euro |
1 |
Rs.66.02 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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s>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.