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Report Date : |
08.05.2012 |
IDENTIFICATION DETAILS
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Name : |
LITTLE
STAR LTD. |
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Registered Office : |
Room 1606, 16/F., |
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Country : |
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Date of Incorporation : |
07.02.2003 |
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Com. Reg. No.: |
33348809 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler
of all kinds of diamonds and jewellery products, emerald, precious stones,
etc. |
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No. of Employees : |
4. (Including
associate) |
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) |
|
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 |
LITTLE STAR
LTD.
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2191 9494, 2192 9493
FAX: 2191 9492
E-MAIL: info@littlestarltd.com
Managing Director: Mr. Alpesh Babulal Mehta
Incorporated on: 7th February, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$50,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Employees: 4. (Including associate)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
· Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
· P.O. Box 91115, Tsimshatsui, Kowloon, Hong Kong.
Associated/Affiliated
Companies:-
Belga Diam Co. Ltd., Thailand.
Dream Creations Jewelery, Hong Kong. (Same address)
Hiralal Chhaganlal & Co., India.
33348809
0832712
Managing Director: Mr. Alpesh Babulal Mehta
Nominal Share Capital: HK$50,000.00 (Divided into 50,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated
07-02-2012)
|
Name |
|
No.
of shares |
|
Alpesh
Babulal MEHTA |
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9,000 |
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Ramesh Hiralal MEHTA |
|
1,000 |
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|
–––––– |
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Total: |
10,000 ===== |
(As per registry
dated 07-02-2012)
|
Name (Nationality) |
Address |
|
Alpesh Babulal
MEHTA |
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry
dated 07-02-2012)
|
Name |
Address |
|
Thouleckarsabioudine
KAMALDEEN |
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
The
subject was incorporated on 7th February, 2003 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room 801, 8/F., Lee Wai Commercial Building, 1-3
Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in
March 2010.
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 products, emerald, precious stones, etc.
Employees: 4. (Including associate)
Commodities Imported: India, Belgium, Thailand, other European countries, etc.
Markets: Hong Kong, China, Australia, Japan, Southeast Asia, Europe, Middle East, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$50,000.00 (Divided into 50,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Making a small profit in the past years.
Condition: Business is rather active.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having
issued 10,000 ordinary shares of HK$1.00 each, Little Star Ltd. is jointly
owned by two Indians: Mr. Alpesh Babulal Mehta and Mr. Ramesh Hiralal
Mehta. The former is holding 90% while
the latter, 10%. The former is a Hong
Kong ID Card holder and has got the right to reside in Hong Kong permanently
while the latter is residing in Bangkok, Thailand. Mr. Alpesh Babulal Mehta is also the only
director of the subject.
The
subject is known to acquire and supply diamonds in an extensive assortment of
round and fancy shapes and sizes including single cut diamonds, loose diamonds,
specialized in round brilliant, tapers and baguettes, etc. The subject is originated in India. Now, the affiliated company of the subject in
India is Hiralal Chhaganlal & Co. while the one in Thailand is Belga Diam
Co. Ltd.
According
to the subject, it is owned by the Indian Mehta family who has been engaged in
diamond business since 1957. Business
has been expanded to Hong Kong and Thailand.
The
subject has had an associated company Dream Creations Jewelery located at the
same operating address. This firm is a
sole proprietorship set up and owned by Alpesh Babulal Mehta.
The
subject’s products are chiefly imported from India, prime marketed are Hong
Kong, China, Australia, Japan, Southeast Asia, Europe, the Middle East,
etc. Business is rather active. The subject is fully supported by Mehta
family.
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
history of the subject in Hong Kong is about nine years and three months.
On
the whole, consider it good for normal business engagements.
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.53.34 |
|
UK Pound |
1 |
Rs.86.09 |
|
Euro |
1 |
Rs.69.37 |
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 |
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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.