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Report Date : |
28.05.2012 |
IDENTIFICATION DETAILS
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Name : |
VIJAY ORIENT STAR LTD. |
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Registered Office : |
Flat B, 11/F., |
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Country : |
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Date of Incorporation : |
28.04.1978 |
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Com. Reg. No.: |
05558618 |
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Legal Form : |
Private Limited Company. |
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Line of Business : |
Exporter and Wholesaler of all kinds of jewellery and diamond products |
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No. of Employees : |
4. (Including associate) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
VIJAY ORIENT STAR LTD.
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 2522 3014~5
FAX: 2845 3821
E-MAIL: gare10@hotmail.com
Managing Director: Mr. Gautam
Shantilal Jhaveri
Incorporated on: 28th
April, 1978.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000,000.00
Issued: HK$1,000,000.00
Business Category: Jewellery Trader.
Employees:
4. (Including associate)
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd.,
Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated
Companies:-
Kowloon Resources And Supplies Ltd., Hong Kong.
London Star Diamond Co., India.
Surya Star Ltd., Hong Kong. (Same
address)
05558618
0059855
Managing Director: Mr. Gautam
Shantilal Jhaveri
Director & General Manager:
Mr. Renuka Galitam Jhaveri
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares of
HK$100.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 28-04-2011)
|
Name |
|
No. of shares |
|
Gautam Shantilal JHAVERI |
|
3,990 |
|
David KLAGSBRUN [Deceased] |
|
3,000 |
|
Pradyot R. KOTHARI |
|
3,000 |
|
Renuka Gautam JHAVERI |
|
10 |
|
|
|
–––––– |
|
|
Total: |
10,000 ===== |
(As per registry dated 28-04-2011)
|
Name (Nationality) |
Address |
|
Gautam Shantilal JHAVERI |
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Renuka Gautam JHAVERI |
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui,
Kowloon, Hong Kong. |
|
Devanshi Gautam JHAVERI |
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 28-04-2011)
|
Name |
Address |
Co. No. |
|
Dhun’s Management Services Ltd. |
7/F., Man On Commercial Building, 12-13 Jubilee Street, Central, Hong
Kong. |
0027006 |
The subject was incorporated on 28th April, 1978 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 1307, 13/F., Tak Shing House,
20 Des Voeux Road Central, Hong Kong, moved to the present address in June
2002.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Exporter
and Wholesaler.
Lines: All
kinds of jewellery and diamond products.
Employees: 4. (Including associate)
Commodities Imported: India, Europe, etc.
Markets: Japan,
South Korea, Southeast Asia, Europe, Middle East, etc.
Terms/Sales:
L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$10,000,000.00 (Divided into 100,000 shares
of HK$100.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage
or Charge:-
Date of Charge
Over Deposits: 29-04-1988
Amount: To
secure the repayment of all moneys obligations and liabilities
Property: All
the deposit of US$65,000
Mortgagee: Belgian
Bank, Hong Kong Branch. [Business
was taken over by Industrial & Commercial Bank of
China (Asia) Ltd.]
Profit or Loss: Making a small profit every year.
Condition:
Keeping in an
active and steady condition.
Facilities:
Adequate for
current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker:
Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Standing:
Normal.
Vijay Orient Star Ltd. is
jointly owned by Mr. Gautam Shantilal Jhaveri, Mr. David Klagsbrun, Mr.
Pradyot R. Kothari, and Mr. Renuka Galitam Jhaveri. The second has passed away while the third is
residing in Antwerp, Belgium.
The subject’s business is
chiefly handled by Gautam Shantilal Jhaveri and Renuka Galitam Jhaveri. Belong to the same family, the two Jhaveris
are Hong Kong ID Card holders and have got the right to reside in Hong Kong
permanently.
The subject is trading in
the following commodities:-
|
Product/Service |
Product/Service Remarks |
|
Fine Jewellery |
|
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Precious and Semi-Precious Jewellery |
Form India (Importer) |
|
Jewellery – Semi-Precious Stone |
From India (Importer) From India (Exporter) |
|
Jewellery – Platinum |
From India (Importer) From India (Exporter) |
|
Jewellery – Pearl |
From India (Importer) From India (Exporter) |
|
Jewellery – Gemset |
From India (Importer) From India (Exporter) |
Most of the subject’s
commodities are imported from India.
After processing in Hong Kong or China, the subject’s jewellery products
are exported to Japan, South Korea, Southeast Asia, Europe, the Middle East,
etc. Business is rather active and
steady. It seems that Belgium has been a
significant market of the subject.
The subject has had an
associated company Surya Star Ltd. [Surya Star] located at its operating
address. Having issued 100 ordinary
shares of HK$1.00 each, Surya Star is wholly-owned by Holdas Nominees Ltd.
which is a Hong Kong-registered firm.
The director of Surya Star Gautam Shantilal Jhaveri is also the Managing
Director of the subject.
The subject has had an
associated company Kowloon Resources And Supplies Ltd. [Kowloon Resources]
located at a different address.
Having issued 100 ordinary
shares of HK$1.00 each, Kowloon Resources is wholly owned by Benta Nominees Ltd.
which is a Hong Kong-registered nominee firm. The only director of Kowloon Resources is
also Gautam Shantilal Jhaveri. This firm
is also a diamond trader.
Besides, the subject has
had an associated company known as London Star Diamond Co. [London Star] in
India. It is likely that London Star is
the subject’s main supplier.
The subject has been a
significant and old polished diamond exporter and wholesaler. History in Hong Kong is about thirty-three
years and eight months.
Regular suppliers and customers
have been maintained.
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.
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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.55.73 |
|
UK Pound |
1 |
Rs.87.26 |
|
Euro |
1 |
Rs.69.89 |
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 |
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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 |
|
<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.