|
Report Date : |
23.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
FIRESTAR DIAMOND LIMITED |
|
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Registered Office : |
Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.09.2009 |
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Com. Reg. No.: |
51144017 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter all kinds of diamonds. |
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No. of Employees : |
7 |
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 : |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Hong Kong |
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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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
ADDRESS: Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central, Hong Kong.
PHONE: 852-2530 3677
FAX: 852-2530 9877
E-MAIL: ananavati@firestonediamond.com
Managing Director: Mr. Mihir Rashmi Bhansali
Incorporated on: 9th September, 2009.
Organization: Private Limited Company.
Capital: Nominal: HK$117,000,000.00
Issued: HK$117,000,000.00
Business Category: Diamond Trader.
Employees: 7.
Main Dealing Banker: Bank of India, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central, Hong Kong.
Holding Company:-
Firestar Holdings Ltd., Hong Kong. (Same address)
Associated
Companies:-
Firestar Diamond BVBA, Belgium.
Firestar Diamond FZE, UAE.
Firestar Diamond Inc., USA.
Firestar Diamond LLC, Armenia.
Firestone International Pvt. Ltd., India.
51144017
1371302
Managing Director: Mr. Mihir Rashmi Bhansali
Chief Executive Officer: Mr. Aditya Nanavati
Nominal Share Capital: HK$117,000,000.00 (Divided into 117,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$117,000,000.00
(As per registry dated 09-09-2012)
|
Name |
|
No. of shares |
|
Firestar Holdings Ltd., Hong Kong. |
|
117,000,000 ========= |
(As per registry dated 09-09-2012)
|
Name (Nationality) |
Address |
|
Mihir Rashmi BHANSALI |
211, Casablanca 39, Cuffe Parade, Colaba, Mumbai‑400005, India. |
(As per registry dated 10-01-2013)
|
Name |
Address |
Co. No. |
|
Louis Lai & Luk Company Secretarial Services Ltd. |
9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong. |
0686503 |
The subject was incorporated on 9th September, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Firestone Diamond Ltd., name changed to the present style on 1st April, 2011.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: All kinds of diamonds.
Brand Name: Firestar.
Employees: 7.
Commodities Imported: India, Europe, etc.
Markets: Europe, North America, Central & South America, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$117,000,000.00 (Divided into 117,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$117,000,000.00
Increase of Nominal Capital:-
|
From |
HK$58,656,000.00 |
to |
HK$117,000,000.00 |
on |
26-03-2012 |
Alternation of Issued Capital:-
|
Initially |
paid up |
HK$ 58,656,000.00 |
|
26-03-2012 |
paid up |
HK$ 58,344,000.00 |
|
|
|
–––––––––––––––––– |
|
Total: |
paid up |
HK$117,000,000.00 ================ |
Mortgage or Charge: (See attachment)
Profit or Loss: Made a small profit in 2012.
Condition: Business is improving.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Bankers:-
Bank of India, Hong Kong Branch.
Punjab National Bank, Hong Kong Branch.
Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
Union Bank of India, Hong Kong Branch.
Standing: Normal.
Having issued 117 million ordinary shares of HK$1.00 each, Firestar Diamond Ltd. is a wholly owned subsidiary of Firestar Holdings Ltd. [Firestar] which is a Hong Kong-registered firm. This firm is also located at the same operating address as the subject.
The subject is a member of the Firestar Diamond Group of companies. The corporate office of the Group is in Mumbai, India.
The subject is a multinational diamond and jewellery manufacturing company. Its operations span the United States, Europe and Asia. It is able to offer clients with rough and polished diamond procurement, diamond polishing, jewellery design, manufacture, distribution and after-sales service. The followings are its main products:-
GIA white diamond, Pink diamond, GIA other types of diamond, etc.
Its products are exported to Europe, North America, Central & South America, etc. Business is still under development.
Currently, Firestar has over 1,300 employees in its manufacturing plants. Firestar has registered about 75 trademarks and ten patents. One of its significant trade mark is Firestar.
The subject’s associate Firestone International Pvt. Ltd. has registered its trade mark Firestar with Trade Marks Registry, Intellectual Property Department, the Government of the Hong Kong SAR. This trade mark was registered on 4th August, 2010 and the expiry date is 3th August 2020.
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 5th to 9th March, 2013. Besides, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 5th to 9th March, 2014. Its booth No. is 3G-A11.
Now, the Firestar Group has set up offices in Antwerp, New York, Dubai, etc. besides in India and Hong Kong.
The history of the subject in Hong Kong is about four years.
On the whole, consider the subject good for normal business engagements in small credit amounts for the time being.
Brief personal profile of the principals:-
Mr. Mihir Rashmi BHANSALI, Managing Director of the subject, is the Chief Executive Officer [CEO] of Jewelry Division and Head of the United States. He is the CEO of Firestar. Mihir manages all fine jewelry operations, including global manufacturing and international sales. He regularly examines and improves all processes within the organization and consistently upgrades performance levels by enhancing internal systems and technology and by providing professional education and advanced training opportunities to executives and broad staff. In addition, Mihir expands the Firestar footprint across continents, by forging partnerships and joint ventures with corporations offering complementary synergies. Mihir has a degree in Business Administration from Babson College, MA (USA) and has completed executive programs at Harvard and attended seminars at YPO. His tenure at Firestar spans over 10 years.
Mr. Aditya NANAVATI, CEO of the subject, is the Head of Hong Kong. Aditya plays a pivotal role in leading sales of polished products and managing Firestar’s operations in Hong Kong, China, and the Far East. Prior to joining Firestar, Aditya spent two years as an M&A analyst at Dresdner Kleinwort, London, where he worked on both buy and sell sides of transactions, as well as pitches. He worked in the Financial Institution and the Consumer Retail space, and was on the team advising HBOS about its acquisition by Lloyds TSB. Aditya has a Masters in Science in Finance and Economics and a Bachelors in Science in Accounting and Finance from the London School of Economics. He is also a GIA Diamond Graduate.
Mr. Neeshal MODI is the CEO of Diamond Division and Head of Belgium. Neeshal leads Firestar’s Diamond Division, travelling extensively to source the finest quality diamonds from all over the world. In his role as CEO of the Diamond Division, Neeshal manages the entire diamond manufacturing process and has played a key role in setting up new manufacturing units in Surat (India) and Yerevan (Armenia). He has also been instrumental in expanding Firestar’s European operations. Neeshal holds a degree in Investment and Financial Risk Management from City University, London and held positions at several, respected financial services organizations.
|
Date |
Particulars |
Amount |
|
11-02-2011 |
Instrument: Debenture Property: a) By way of first fixed charge, all the plant, machinery, vehicles, computers and other equipment and other installation or material b) By way of first fixed charge, the uncalled capital and any uncalled premiums and any called but unpaid capital or premiums, goodwill and all patents, patent applications, inventions, trademarks, trade names, registered designs, copyrights, know-how and other intellectual or industrial property rights and all ancillary rights and benefits c) By way of first fixed charge, all book and other debts reveues and claims d) By way of first fixed charge, all present and future contracts or pllicies of insurance; and e) By way of first floating charge, the undertaking and all the property, assets and rights Mortgagee: Union Bank of India, Hong Kong Branch. |
To secure all monies in respect of banking facilities |
|
22-02-2011 |
Instrument: Charge on Deposit to secure the Depositor’s Obligations Property: A sum of US$2,500,000.00 currently represented or evidenced by a certificate of deposit dated 22-02-2011 bearing number 7141001019 Mortgagee: Punjab National Bank, Hong Kong Branch. |
As a continuing security for the payment and discharge of the Secured Obligations |
|
24-02-2011 |
Instrument: Charge on Deposit Property: A sum of US$2,000,000.00 currently represented or evidenced by a certificate of deposit dated 24-02-2011 bearing number 000013010000589 Mortgagee: Union Bank of India, Hong Kong Branch. |
All moneys |
|
18-03-2011 |
Instrument: Letter of Set-off and Appropriation Property: Deal No. Date Amount Due Date 169350 18-03-2011 US$1,875,000.00 19-03-2012 Mortgagee: Bank of India, Hong Kong Branch. |
Advances and other banking facilities |
|
02-05-2013 |
Instrument: Letter of Set-off & Appropriation Property: Deal No. Date Amount Due Date 183913 02-05-2013 US$580,000.00 02-05-2014 Mortgagee: Bank of India, Hong Kong Branch. |
Advances and other banking facilities |
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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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 –
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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. 65.42 |
|
|
1 |
Rs. 102.10 |
|
Euro |
1 |
Rs. 87.32 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.