MIRA INFORM REPORT

 

 

Report Date :

31.03.2012

 

IDENTIFICATION DETAILS

 

Name :

STAROUGH  (H.K.)  LTD.

 

 

Registered Office :

Room 1204, 12/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

24.12.2004

 

 

Com. Reg. No.:

35220847

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, precious stones, etc.

 

 

No. of Employees :

4

 

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 – September 30, 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 and address

 

STAROUGH  (H.K.)  LTD.

 

 

ADDRESS:       Room 1204, 12/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

PHONE:            2739 3021,  2186 6196

 

FAX:                 2739 3121,  2186 6197

 

E-MAIL:            kotharip@netvigator.com

 

 

MANAGEMENT

 

Managing Director:  Mr. Priyank Kothari

 

 

SUMMARY

 

Incorporated on:             24th December, 2004.

 

Organization:                  Private Limited Company.

 

Capital:                         Nominal:           HK$2,440,000.00

Issued:              HK$2,440,000.00

 

Business Category:        Diamond Trader.

 

Employees:                   4.

 

Main Dealing Banker:     The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:            Satisfactory.


ADDRESS

 

Registered Head Office:-

Room 1204, 12/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.

 

Associated/Affiliated Companies:-

Harshit Diamonds Pvt. Ltd., India.

JKS, Hong Kong.  (Same address)

Luminas BVBA, Belgium.

Russel Diamonds FZCO, UAE.

Star-Rough (ISR) Ltd., Israel.

 

 

BUSINESS REGISTRATION NUMBER

 

35220847

 

 

COMPANY FILE NUMBER

 

0942223

 

 

MANAGEMENT

 

Managing Director:  Mr. Priyank Kothari

 

CAPITAL

 

Nominal Share Capital: HK$2,440,000.00 (Divided into 2,440,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$2,440,000.00

 

 

SHAREHOLDERS

(As per registry dated 31-01-2012)

 

Name

 

No. of shares

Russel Punit KOTHARI

 

1

Priyank KOTHARI

 

2,439,999

 

 

––––––––

 

Total:

2,440,000

=======

 

DIRECTORS

(As per registry dated 24-12-2011)

 

Name

(Nationality)

 

Address

Priyank KOTHARI

Flat G, 6/F., Kimberly 26, 26 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

 

Russel Punit KOTHARI

Flat G, 6/F., Kimberly 26, 26 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

 

 

SECRETARY

 

Priyank KOTHARI  (As per registry dated 24-12-2011)

 

 

HISTORY

 

The subject was incorporated on 24th December, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Last time, the subject was located at c/o Dhun’s Management Services Ltd., 7/F., Man On Commercial Building, 12-13 Jubilee Street, Central, Hong Kong, moved to the present address with effect from 23rd May, 2008.

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 jewellery products, precious stones, etc.

 

Employees:                   4.

 

Commodities Imported:   India, Belgium, Israel, other European and Asian countries, etc.

 

Markets:                       Japan, Korea, Southeast Asia, Europe, Middle East, etc.

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 


FINANCIAL INFORMATION

 

Nominal Share Capital: HK$2,440,000.00 (Divided into 2,440,000 shares of HK$1.00 each)

 

Issued Share Capital:     HK$2,440,000.00

 

Alternation of Capital:-

24-12-2004

paid up

HK$      2.00

31-01-2012

paid up

HK$      2,439,998.00

 

 

–––––––––––––––

Total:

paid up

HK$      2,440,000.00

==============

 

Increase of Nominal Capital:-

From

HK$100,000.00

to

HK$2,440,000.00

on

30-01-2012

 

Profit or Loss:                Making a small profit in the past years.

 

Condition:                      Keeping in a satisfactory condition.

 

Facilities:                      Making rather active 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

 

Having issued 2,440,000 ordinary shares of HK$1.00 each, Starough (H.K.) Ltd. is chiefly owned by Mr. Priyank Kothari.  Formerly the subject was equally owned by Mr. Russel Punit Kothari and Mr. Priyank Kothari while each of them held a single share of HK$1.00.  Now, Russel Punit Kothari has become a minor shareholder of the subject.

Mr. Priyank Kothari is a Hong Kong ID Card holder who has moved to Hong Kong for a long time.  He has got the right to reside in Hong Kong permanently.  He is also the individual secretary and Managing Director of the subject.  The two shareholders have got business concerns in Israel.

The subject is a member of the Kothari Group which includes the following firms apart from the subject:-

Harshit Diamonds Pvt. Ltd., India

Luminas BVBA, Belgium

Russel Diamonds FZCO, UAE

Star-Rough (ISR) Ltd., Israel

The headquarters of the Group seem to be in India and control by the Kothari family.

The subject has got a business partner Hausman Diamond in Ramat Gan, Israel.  Ramat Gan, Israel is the international headquarters of Hausman Diamond.  Hausman Diamond’s Hong Kong company is known as Hausman Diamond Manufacturers H.K. Ltd. [Hausman HK] which was incorporated on 23rd June, 2005.  Long time ago, the subject shared the same office with Hausman HK in Hong Kong.

The subject is a diamond importer, exporter and wholesaler.  It is trading in loose, cut and polished diamonds, emerald, precious stones, ruby jade, gem sets, semi-precious stones, blue or coloured sapphire, Tanzanite, etc.  Commodities are chiefly imported from India and Israel.  Now, the subject’s products are marketed in Hong Kong, exported to the other Asian countries, Europe, the Middle East and North America.  Business is rather active.

The subject’s business has become active since early June 2008.  Its business is chiefly handed by Priyank Kothari who is residing in Hong Kong.  Russel Punit Kothari is responsible for the business of Star-Rough (ISR) Ltd. which is an Israel-based firm.

Besides operating the subject, Priyank Kothari is also operating another firm JKS located at the same operating address.  JKS is also a diamond trader which was established on 9th May, 2011.

The subject is fully supported by the Kothari Group.  The history of the subject in Hong Kong is over seven years and three months.

On the whole, consider it good for normal 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.51.15

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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