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Report Date : |
12.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
HINI STAR LTD. |
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Registered Office : |
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street,
Hunghom, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
08.08.2003 |
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Com. Reg. No.: |
33862215 |
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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, gems and
jewellery. |
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No. of Employees : |
10. (Including associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
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
Total Income of Group: Rs. 1,862.65
crore (Year ended 31-03-2012)
Employees: 10. (Including associates)
Main Dealing Banker: Industrial
& Commercial Bank of China (Asia) Ltd., Hong Kong.
Banking Relation: Good.
HINI STAR LTD.
Registered Head
Office:-
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street,
Hunghom, Kowloon, Hong Kong.
Associated 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.
Hini Star, Hong Kong. (Same address)
Karp Diamonds Pvt. Ltd., India.
Karp Impex HK Ltd., Hong Kong. (Same address)
Karp Impex Ltd., India.
Karp Impex N.V., Belgium.
Karp Infotech, India.
Karp Jewellery Mfg. China Ltd., Hong Kong. (Same address)
Karp Jewellery Mfg. HK Ltd., Hong Kong. (Same address)
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 08-08-2012)
|
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 08-08-2012)
|
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 08-08-2012)
|
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: 10. (Including associates)
Commodities Imported: Belgium,
India, Israel, US, etc.
Markets: Europe,
Japan, Israel, Thailand, US, etc.
Annual Revenue: US$200 - 220 million
Total Income of Group: Rs.
1,210.22 crore (Year ended 31-03-2011)
Rs. 1,862.65 crore (Year ended 31-03-2012)
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
Mortgage or Charge: (See attachment)
Net Profit: US$2
- 3 million
Profit After Tax of Group: Rs.
57.10 crore (Year ended 31-03-2011)
Rs. 12.62
crore (Year ended 31-03-2012)
Profit or Loss: Profitable
operation is recorded.
Condition: Keeping
in an active and steady condition.
Facilities: Is
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.
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.
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.
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.
The presence of Karp Impex in international luxury market as an
exclusive supplier of patented cut and polished diamonds to “Mont Blanc” for
their writing instruments and women accessories. Karp Impex derives about 80% of its revenues
from manufacturing and processing of cut and polished diamonds, while balance
sales arise out of trading of cut and polished diamonds and rough
diamonds. The company’s sales are
predominantly export oriented (~80% of total sales).
For the year ended 31st March, 2012, the total income of Karp Impex
reported a profit after tax [PAT] of Rs. 12.62 crore on a total income of
Rs. 1,862.65 crore, as compared to a PAT and total income of Rs. 57.10
crore and Rs. 1,210.22 crore respectively for the year ended 31st March,
2011. Its PAT dropped substantially in
FY 2012.
Despite of lower profitability in the coming years, Karp Impex will be
able to maintain its credit profile given its long standing presence in the
market aided by superior technology and robust net worth.
In India, the Karp Group has about 8,000 workers while some of its
workers are the third generation employees.
The subject is fully supported by the Karp Group. History is over nine years and eight months.
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. However, 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.
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 |
|
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. |
|
25-01-2013 |
Instrument: Assignment of Insurance Policy (ies)
(2‑Party) Property: All the rights, title, benefits and interest of the Borrower in and to
the Policy and the Proceeds, whether in existence at the date of the
Assignment or after the date of the Assignment. Insurere : HSBC Life (Internationa0L Ltd. Name of Insured: Virani Rasila
Ramesh Policy No. 28006375 Effective Date: 25-01-2013-04-11 Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure all sums of money and liabilities |
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.
-
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.
-
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.
-
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.53.53 |
|
|
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.71.32 |
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.