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Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
FINE STAR |
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|
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Registered Office : |
Flat A, 10/F., Golden Mansion, 83-85A Chatham Road, Tsimshatsui, Kowloon |
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|
|
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Country : |
Hong Kong |
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Date of Incorporation : |
31.05.2007 |
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Com. Reg. No.: |
38002397-000-05 |
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Legal Form : |
Sole Proprietorship |
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF LOOSE DIAMONDS, PRECIOUS
STONES, RUBY JADE, GEM SETS, SEMI-PRECIOUS STONES, BLUE OR COLOURED SAPPHIRE,
ETC. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
No Operating Office in Hong Kong |
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Payment Behaviour : |
Unknown |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
FINE STAR
ADDRESS: Flat A, 10/F., Golden
Mansion, 83-85A Chatham Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2367 8211
Manager: Mr. Jayesh Jivanbhai
Sasapara
Establishment: 31st
May, 2007.
Organization: Sole
Proprietorship.
Capital:
Not
disclosed.
Business Category: Diamond Trader.
Employees:
Nil.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Head Office:-
Flat A, 10/F., Golden Mansion, 83-85A Chatham Road, Tsimshatsui,
Kowloon, Hong Kong.
38002397-000-05
Manager: Mr. Jayesh Jivanbhai
Sasapara
Name: Mr. Jayesh Jivanbhai
SASAPARA
Residential Address: B-64 Yogi
Nagar Society-B OPP-Balaji Bunglows Puns- Simada Road, Surat - 394211, India.
The subject was established on 31st May, 2007 as a sole proprietorship
concern owned by Mr. Ashish Babubhai Beladia under the Hong Kong Business
Registration Regulations. Became a
partnership as Mr. Jayesh Jivanbhai Sasapara joined in on 8th November,
2011. However, the subject became a sole
proprietorship again as Mr. Ashish Babubhai Beladia retired on 11th November,
2011.
Initially the subject was located at Flat C, 5/F., South Sea Apartments,
81 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in January 2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: Loose
diamonds, precious stones, ruby jade, gem sets, semi-precious stones, blue or
coloured sapphire, etc.
Employees: Nil.
Commodities Imported: India, Belgium, other European countries, etc.
Markets: Hong
Kong, Japan, other Asian countries, North America, Western Europe, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Capital: Not
disclosed.
Profit or Loss: Made a very small profit in the past two years.
Condition: Business
is fairly active.
Facilities: Making
fairly active use of general banking facilities.
Payment:
Unknown.
Commercial Morality: Satisfactory.
Banker:
The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong.
Standing:
Small.
Fine Star is a sole proprietorship set up in May 2007. It was owned by Mr. Ashish Babubhai
Beladia but now it is owned by Mr. Jayesh Jivanbhai Sasapara. Sasapara, joined in the subject in November
2011, is an Indian holding an India passport and does not have the right to
reside in Hong Kong permanently.
The subject’s telephone number and fax number have not registered with
local telephone company nor listed on telephone directories.
The subject’s registered address was in a residential building located at
Flat C, 5/F., South Sea Apartments, 81 Chatham Road, Tsimshatsui,
Kowloon, Hong Kong where was supposed to be the Hong Kong residential
address of Beladia. Now, the registered
address of the subject is located at Flat A, 10/F., Golden Mansion, 85‑85A Chatham
Road, Tsimshatsui, Kowloon, Hong Kong where is supposed to be the
Hong Kong residential address of Sasapara when he is in Hong Kong. The residential building is not trespassed by
outsiders. The subject has no employees
in Hong Kong.
The subject is trading in loose diamonds, precious stones, ruby jade,
gem sets, semi-precious stones, blue or coloured sapphire, etc. Polished or cut diamonds are imported from
India, Belgium, etc. Some of the
polished diamonds are wholesaled in Hong Kong or re-exported to India, the
other Asian countries, Europe, etc.
Business is just fairly active.
The subject has got a number of regular suppliers in India.
Business chiefly handled by Sasapara himself, the subject is just a
one-man company. The subject was able to
made a small profit in 2011 and 2012.
The history of the subject is over five years in Hong Kong.
On the whole, since the subject does not have its own operating office
and has no employees, consider it good for business engagements on L/C basis
for the time being.
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.
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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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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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February 2013.
Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India
exported $ 1.84 billion worth of polished diamonds in February 2013. A senior
executive of GJEPC said, “Export of cut and polished diamonds started falling
month-wise after the imposition of 2 % of import duty on the polished diamonds.
But February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following prudent
risk management norms when lending money to gems and jewellery sector. This
follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
|
1 |
Rs.82.98 |
|
Euro |
1 |
Rs.70.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.