|
Report Date : |
27.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
HINI
STAR LTD. |
|
|
|
|
Registered Office : |
Unit 01-02, 10/F., Harbour Centre, Tower 2, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
08.08.2003 |
|
|
|
|
Com. Reg. No.: |
33862215 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds, gems and jewellery. |
|
|
|
|
No. of Employees : |
12 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
HONG KONG - ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international
trade and finance - the value of goods and services trade, including the
sizable share of re-exports, is about four times GDP. Hong Kong's open economy
left it exposed to the global economic slowdown that began in 2008. Although
increasing integration with China, through trade, tourism, and financial links,
helped it to make an initial recovery more quickly than many observers
anticipated, it again faces a possible slowdown as exports to the Euro zone and
US slump. The Hong Kong government is promoting the Special Administrative
Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong
Kong residents are allowed to establish RMB-denominated savings accounts;
RMB-denominated corporate and Chinese government bonds have been issued in Hong
Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB
conversion quota set by Beijing for trade settlements in 2010 due to the growth
of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of
total system deposits in Hong Kong by the end of 2011, an increase of over 59%
since the beginning of the year. The government is pursuing efforts to
introduce additional use of RMB in Hong Kong financial markets and is seeking
to expand the RMB quota. The mainland has long been Hong Kong's largest trading
partner, accounting for about half of Hong Kong's exports by value. Hong Kong's
natural resources are limited, and food and raw materials must be imported. As
a result of China's easing of travel restrictions, the number of mainland
tourists to the territory has surged from 4.5 million in 2001 to 28 million in
2011, outnumbering visitors from all other countries combined. Hong Kong has
also established itself as the premier stock market for Chinese firms seeking
to list abroad. In 2011 mainland Chinese companies constituted about 43% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the
Exchange's market capitalization. During the past decade, as Hong Kong's
manufacturing industry moved to the mainland, its service industry has grown
rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply
conditions caused Hong Kong property prices to rise rapidly in 2010 and
inflation to rise 5.3% in 2011. Lower and middle income segments of the
population are increasingly unable to afford adequate housing. Hong Kong
continues to link its currency closely to the US dollar, maintaining an
arrangement established in 1983
|
Source
: CIA |
HINI STAR LTD.
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 2724 4330
FAX: 2721 6516
E-MAIL: hini@karpgroup.com
Managing Director: Mr. Rameshkumar Bhikhabhai Virani
Incorporated on: 8th August, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$78,000,000.00
Issued: HK$78,000,000.00
Business Category: Diamond and Gem Trader.
Annual Revenue: US$200 - 220 million
Group Total Income: Rs. 13,000,000,000 (Year ended 31-03-2011) [Estimated]
Employees: 12.
Main Dealing Banker: Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office:-
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
Affiliated Factory
in India:-
8/A, Lal Darwaja, Surat-395008, Gujarat, India.
Associated/Affiliated
Companies:-
Karp Group of Companies
Hini Star (Bangkok) Ltd., Thailand.
Hini Star (Taiwan) Ltd., Taiwan.
Hini Star Diamonds LLC, UAE.
Karp Diamonds Pvt. Ltd., India.
Karp Impex HK Ltd., Hong Kong.
Karp Impex Ltd., India.
Karp Impex N.V., Belgium.
Karp Infotech, India.
Karp Jewellery Mfg. China Ltd., Hong Kong.
Karp Jewellery Mfg. HK Ltd., Hong Kong.
Karp Jewellery Pvt. Ltd., India.
Karp Jewellery Taiwan Ltd., Hong Kong.
Karp Jewellery Taiwan Ltd., Taiwan.
Karp Manufacturing Co., India.
Karp Suisse (Geneva), Switzerland.
Park Infotech, India.
etc.
33862215
0856743
Managing Director: Mr. Rameshkumar Bhikhabhai Virani
General Manager: Mr. Pankajkumar Vitthalbhai Khunt
Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$78,000,000.00
(As per registry
dated 08-08-2011)
|
Name |
|
No. of shares |
|
Rasila Ramesh VIRANI |
|
65,550,000 |
|
Rameshkumar Bhikhabhai
VIRANI |
|
11,700,000 |
|
Pankajkumar Vitthalbhai
KHUNT |
|
450,000 |
|
Karp Impex HK Ltd., Hong Kong. |
|
300,000 |
|
|
|
––––––––– |
|
|
Total: |
78,000,000 ======== |
(As per registry dated
08-08-2011)
|
Name (Nationality) |
Address |
|
Rameshkumar Bhikhabhai VIRANI |
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street,
Hunghom, Kowloon, Hong Kong. |
|
Rasila Ramesh VIRANI |
Unit 01-02, 10/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong. |
(As per registry
dated 08-08-2011)
|
Name |
Address |
Co.
No. |
|
RC Corporate Services Ltd. |
Room 2109, 21/F., China Resources Building, 26 Harbour Road, Wanchai, Hong Kong. |
0467057 |
The subject was incorporated on 8th August, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.
The subject moved to the present address in December 2005.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, gems and jewellery.
Employees: 12.
Commodities Imported: Belgium, India, Israel, US, etc.
Markets: Europe, Japan, Israel, Thailand, US, etc.
Company Revenue: US$196,665,755 (Year ended 31-12-2008)
US$190,182,476 (Year ended 31-12-2009)
US$205,757,420 (Year ended 31-12-2010)
US$220,000,000 (Year ended 31-12-2011) [Estimated]
Group Total Income: Rs. 10,297,778,000 (Year ended 31-03-2008)
Rs. 11,273,929,000 (Year ended 31-03-2009)
Rs. 12,152,986,000 (Year ended 31-03-2010)
Rs. 13,000,000,000 (Year ended 31-03-2011) [Estimated]
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Hong Kong Jewelry Manufacturers’ Association, Hong Kong.
Nominal Share Capital: HK$78,000,000.00 (Divided into 78,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$78,000,000.00
Indebtedness: US$588,136.25
(Total amount outstanding on all mortgages and charges as per last Annual Return dated 08-08-2011)
Mortgage or Charge: (See attachment)
Company Net Profit: US$ 879,615 (Year ended 31-12-2008)
US$ 900,971 (Year ended 31-12-2009)
US$2,335,852 (Year ended 31-12-2010)
US$2,000,000 (Year ended 31-12-2011) [Estimated]
Profit or Loss: Business is profitable.
Condition: Keeping in an active and steady condition.
Facilities: Making active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Good.
Bankers:-
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
The Royal Bank of
Scotland N.V., Hong Kong Branch.
The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standard Chartered Bank
(Hong Kong) Ltd., Hong Kong.
Standing: Very Good.
Having issued 78 million ordinary shares of HK$1.00 each, Hini Star Ltd. is chiefly owned by Mr. Rasila Ramesh Virani who is holding 84.04% stake of the subject. The subject is a member of the Karp Group which is an Indian group in India trading in jewellery and diamonds. The Group is owned by the Virani family.
The subject is an importer, exporter and wholesaler of fancy cut diamonds, polished diamonds, and round diamonds. Most of the products bear the brand name of “Tri-Star” and “Sky-Star”. Most of its commodities are supplied by Karp Impex Ltd. [Karp Impex] which is an India-based firm. Karp Impex is a main member of the Karp Group.
With offices in worldwide, the subject provides customers with a full spectrum of polished diamonds, round cut diamonds, loose diamonds, fancy cut diamonds including taper, baguette, marquise, pear, oval, princess, heart, trillion, round pointer, heart-shape, and brilliant cut diamonds from 0.01 to 10 carats, also “Hearts & Arrows” ideal cut with GIA/HRD/IGI certificate.
The Karp Group has got an affiliated company Karp Impex HK Ltd. which is also located at the operating address of the subject. It is also a holding company of the subject holding 0.38% stake. From 2004 to 2008, Karp Impex HK Ltd. had got the “Best of Show Award of Hong Kong Jewellery Design Competition”.
The Group was formed in the early 60’s in India. Now, the Group is controlled by the third generation of the Virani family.
KARP has been privileged to be a DTC Sightholder since 1993. While such privilege ensures access to reliable and consistent supplies of rough diamonds across a wide range of sizes, it also reflects the kind of responsibilities that KARP accepts. These represent KARP’s commitment to its suppliers, channel partners, eventual consumers and its own social conscience.
KARP is recognized by the Government of India as a “Star Trading House”. Being one of the well respected diamond companies in India and in the world, the Group has received the prestigious awards awarded by the Indian Diamond Council (Gems & Jewellery Export Promotion Council [GJEPC]) and the Government of India for its export achievements.
Mr. Rameshkumar Bhikhabhai Virani who is residing in Hong Kong is one of the key personnel of the Karp Group.
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 such as Las Vegas of the United States, Basel of Switzerland, Hyderabad of India, Macau, Shenzhen of China, etc.
It took part in the Hong Kong Jewellery & Gem Fair which had been held between 4th to 8th March, 2011 in Hong Kong and took part in the BaselWorld 2011 The World Watch & Jewellery Show which had been held between 24th to 31st March, 2011 in Basel.
Over the past years, the subject has taken part in the following exhibitions and fairs:-
United
States
· JCK Las Vegas Show;
Europe
· BaselWorld, Switzerland;
Hong
Kong
· Hong Kong International Jewellery Show;
· Hong Kong Jewellery & Gem Fair;
· Hong Kong Jewellery & Gem Fair;
· Hong Kong International Jewelry Manufacturers’ Exhibition;
Mainland
China
· Jewelry Shanghai;
· Beijing International Jewellery Fair;
· Shenzhen International Jewellery Fair;
· China International Jewellery Fair, Beijing.
Sharing the same operating office with Karp Impex HK Ltd., the subject is fully supported by the Karp Group and the VIRANI family.
The subject has had the following three main affiliated companies:-
Hini Star (Bangkok) Ltd., Thailand
Hini Star (Taiwan) Ltd., Taiwan
Hini Star Diamonds LLC, Dubai, UAE
The subject had got the GJEPC awards from 1996 to 2002.
Karp Impex, an affiliate of the subject, is in Surat, Gujarat of India. It is accommodating 2,500 craftsmen and is the No. 1 premiere diamond polishing factory in the world equipped with state-of-the-art technology. It is one of KARP’s versatile diamond cutting centres which has got advanced diamond cutting and polishing technology. It is supplying the subject with its products.
Another main firm of the Group Karp Diamonds Pvt. Ltd. which is in Jasdan, Gujarat, India, is spread across 88 acres with the manufacturing premises housed in 31,000 sq.ft.
At present, the Group employs over 8,000 personnel at its diamond cutting and polishing factories. The factories are well equipped with diamond processing technology such as VibFree console; Hi‑Gain, 5-axes laser technology, Auto-Pol console and Russian Pacor technology for the production of both fancy and brilliant cut diamonds as well as personalised cuts.
KARP has developed in-house ERP & CRM software to manage the complexities of the diamond trade.
An Indian known as Mr. Pankaj Khunt (alias Patrick) is responsible for the subject’s business. He can be reached at his mobile phone number 9400 1431 in Hong Kong.
For the year ended 31st December, 2011, the revenues of the subject amounted to US$220.0 million, increased by 6.9% as compared with US$205.8 million in FY 2010; profit after tax was about US$2.5 million in the year.
Over the past three years, the revenues of the subject were significant but its profit margins were rather low. The low profit margins were attributable to the high overhead charges of sales.
As at 31st December, 2011, the net assets and total equity of the subject amounted to US$20.0 million (2010: US$18.0 million).
The overall financial position of the subject is satisfactory.
On the whole, in view of the background and parentage of the subject, consider it good for normal business engagements.
REMARKS:
Property information of the company:-
Property Location: Workshop
Unit No. 01 & 02 on 10/F., Harbour Centre Tower 2,
8 Hok Cheung Street, Kowloon, Hong Kong.
Owner: Hini Star Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount Consideration |
Mortgagee |
Nature |
|
01-09-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
Mortgage to secure general banking facilities |
|
07-09-2007 |
- |
- ditto - |
Deed of variation and further charge to secure general banking facilities |
|
Date |
Particulars |
Amount |
|
01-09-2005 |
Instrument: Mortgage Property: 103/5,767th parts or shares of and in The Remaining Portion of Kowloon Marine Lot No. 113 (Workshop Unit No. 01 & 02 on 10/F. of Harbour Centre Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure the Secured Indebtedness |
|
07-09-2007 |
Instrument: Deed of Variation and Further Charge Property: 103/5,767th parts or shares of and in The Remaining Portion of Kowloon Marine Lot No. 113 (Workshop Unit No. 01 & 02 on 10/F. of Harbour Centre Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong. |
To secure all moneys in respect of general banking facilities |
|
17-02-2012 |
Instrument: Letter of Lien Property: Any credit Balance in the Company’s current/Savings Account Date of Deposit Amount 16.02.2012 US8,000,000 Mortgagee: Bank of India, Hong Kong Branch. |
US$8,000,000.00 |
|
17-02-2012 |
Instrument: Hypothecation of Tangible Moveable Property Property: All tangible moveable assets including therein the stocks thereof for time being whether raw or manufactured or in process of manufacture. Mortgagee: Bank of India, Hong Kong Branch. |
US8,000,000.00 |
|
17-02-2012 |
Instrument: Charge and Hypothecation of Book Debts Property: Hypothecation and charge to the Bank by way of charge on all the book debts outstanding, moneys receivable, claims and bills Mortgagee: Bank of India, Hong Kong Branch. |
US8,000,000.00 |
|
17-02-2012 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and/or invoices, or any other documents representing or relating to goods. Mortgagee: Bank of India, Hong Kong Branch. |
All the money now granted by the Bank and the company now owing to the bank |
|
26-04-2012 |
Instrument: The instrument abovementioned contains a restriction on the creation of any mortgage or charge on the property comprised in this security or any dealing therewith or disposition thereof or any interest therein without written consent of the persons entitled to the charge. Property: Harbour centre tower 2, No.8 Hok Cheung Street, Kowloon, 3, 10/F of the building. Mortgagee: Dah Sing Bank Ltd., Hong Kong. |
to secure “all moneys” in respect of general banking facilities and interest thereon. |
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.55.69 |
|
|
1 |
Rs.89.19 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.