|
Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
BLUE STAR DIAMONDS (HK) LTD. |
|
|
|
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Registered Office : |
Room 1406, 14/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
20.10.2011 |
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Com. Reg. No.: |
59085045 |
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|
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Legal Form : |
Private Limited Company |
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|
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LINE OF BUSINESS : |
IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS,
ROUGH DIAMONDS. |
|
|
|
|
No. of Employees : |
04 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small company |
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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 |
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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
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
BLUE STAR DIAMONDS
(HK) LTD.
ADDRESS: Room 1406, 14/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2301 2018, 6929 8306
FAX: 852-2301 2118, 2301 2308
E-MAIL: hongkong@bluestardiamonds.com
(Your enquiry given as:
BLUE STAR DIAMONDS (HK)
and address at:
Room 1404, 14/F. of the same building)
Managing Director: Mr. Arnav Akshay Mehta
Incorporated on: 20th October, 2011.
Organization: Private Limited Company.
Capital: Nominal:HK$20,000,000.00
Issued: HK$20,000,000.00
Business Category: Diamond Trader.
Employees: 4.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1406, 14/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
Holding Company:-
Blue Star Diamonds Private Ltd., India.
Affiliated/Associated
Companies:-
Antwerp Star Diamonds NV, Belgium.
Arjav Associates NV, Belgium.
Arjav Diamonds India Pvt. Ltd., India.
Arjav Diamonds NV, Belgium.
Arjav Manufacturing NV, Belgium.
Auro Manufacturing Pvt. Ltd., India.
Aurostar Jewellery India Pvt. Ltd., India.
Blue Star & Kiven Diamonds Pty. Ltd., Australia.
Blue Star Diamonds Botswana Pty. Ltd., Botswana.
Blue Star Diamonds DMCC, UAE.
59085045
1673291
Managing Director: Mr. Arnav Akshay Mehta
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
SHAREHOLDER: (As per registry dated 20-10-2013)
|
Name |
|
No. of shares |
|
Blue Star Diamonds Private Ltd. CE 9010, 8013, 8014, 8016, 9/F., Tower C, Bharat Diamond Bourse, BKC, Bandra (E) Mumber - 400051, India. |
|
20,000,000 ======== |
DIRECTORS: (As per registry dated 20-10-2013)
|
Name (Nationality) |
Address |
|
Arnav Akshay MEHTA |
Kamai Mahal, Flat No. 10, 5/F., Carmichael Road, Mumbai 400 026, India. |
|
Anshul Anuj MEHTA |
14th Cliff, B-G Kher Marg, Ridge Road, Malabar Hill, Mumbai-400006, India. |
SECRETARY: (As per registry dated 20-10-2013)
|
Name |
Address |
Co. No. |
|
Top Establishment Ltd. |
Room 2207-2209, 22/F., Tower Two, Lippo Centre, 89 Queensway, Admiralty, Hong Kong. |
0409655 |
The subject was incorporated on 20th October, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds, rough diamonds
Employees: 4.
Commodities Imported: India, Belgium, etc.
Markets: Hong Kong, other Asian countries, Europe, etc.
Terms/Sales: As per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
Nominal Share Capital: HK$20,000,000.00 (Divided into 20,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$20,000,000.00
Increases of Nominal
Capital:-
|
From |
HK$ 100,000.00 |
to |
HK$ 4,000,000.00 |
on |
11-04-2012 |
|
From |
HK$4,000,000.00 |
to |
HK$20,000,000.00 |
on |
19-06-2012 |
Alternation of Issued
Capital:-
|
Initially |
paid up |
HK$ 100,000.00 |
|
11-04-2012 |
paid up |
HK$ 3,900,000.00 |
|
19-06-2012 |
paid up |
HK$ 16,000,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
HK$ 20,000,000.00 ============== |
Mortgage or Charge: (See attachment)
Profit or Loss: Kept a balance account in 2012.
Condition: Business is improving.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having issued 20 million ordinary shares of HK$1.00 each, Blue Star Diamonds (HK) Ltd. is a wholly owned subsidiary of Blue Star Diamonds Private Ltd. [Blue Star] which is an India-based firm.
The directors of the subject are Mr. Arnav Akshay Mehta and Mr. Anshul Anuj Mehta, both of whom are Indian.
The subject is a member of the Blue Star Group.
Blue Star, set up as a partnership firm in 1966 by Mr. Vasantlal Mehta, was reconstituted as a private limited company on 4th December, 2008. The Blue Star group is one of the top diamond exporters in the country. The group has direct access to rough diamonds because of its status as a sightholder of the Diamond Trading Company (DTC), Harry Winston Diamond Corporation (Aber), Alrosa Company Ltd (Alrosa), and BHP Billiton Limited; it also sources rough diamonds from Arjav Diamonds NV (owned by common promoters). The Group is one of the world’s significant rough diamond distributors.
The Blue Star group is specialised in higher caratage diamonds (0.70 carats [cts] to 1.00 cts). The followings are the main polished diamonds products of the Group:-
Pointers (certified and uncertified)
4 Grainers Up (certified and uncertified)
Fancy Shapes (certified and uncertified) --- include Princess, Cushion, Emerald, Asscher, Radiant, Pear, Marquise, Heart, Oval, etc.
Blue Star is now managed by Mr. Mehta’s sons, Mr. Akshay Mehta, Mr. Anuj Mehta, and Mr. Ashit Mehta. Mr. Akshay Mehta and Mr Anuj Mehta look after the trading in rough and polished diamonds. Mr. Akshay Mehta’s sons, Mr. Arjav Mehta and Mr. Arnav Mehta, joined the business in 2002 and 2004, respectively. Mr. Arnav Mehta manages the group’s manufacturing operations, while Mr. Ashit Mehta and Mr. Arjav Mehta manage the overseas operations.
Since then, the brothers have built their Indian and Belgian businesses into a leading global marketing operation for both rough and polished diamonds. In recognition of their achievements, the Blue Star Group was awarded its first DTC sight in Belgium in 1991, under the name Arjav Diamonds, and a second DTC sight in India in 1994. Over the last two decades, the Blue Star Group has achieved an average annual compound growth rate of over 10% on its total sales, and become one of the leading global DTC Sightholders. Additionally it has achieved supply arrangements with other leading mining houses such as BHP and Alrosa. In 2009 the group became the first, and one of the largest contract holders with Alrosa.
The Blue Star Group continues to develop its activities through the third generation of the family. In 2001, the group moved downstream into the design, manufacture and distribution of jewellery. The same year, it launched a state-of-the-art factory in Surat, India.
2006 saw the doubling of the Blue Star Group’s manufacturing strength when it moved into a new ultra-modern manufacturing headquarters in Surat, India.
Arjav Diamonds India Pvt Ltd. [Arjav] (formerly Rameschandra Ramniklal & Co India Pvt Ltd) was incorporated in April 2007, and belongs to the Blue Star group, founded by Mr. Vasantlal Mehta in 1966. Arjav Diamonds NV holds around 96 per cent of Arjav’s equity. Arjav trades in and distributes rough and polished diamonds; it also exports polished diamonds manufactured at its in‑house facility in Surat. The company has offices in all major diamond centres, including the United States, Belgium, Tel Aviv, and Mumbai. The company’s expertise lies in lower caratage diamonds, with sizes ranging from 0.05 to 0.30 carats.
The contact person of the subject Mr. Arnav Akshay Mehta can be reached at his Hong Kong mobile phone at 852-6929 8306.
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 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.
Fully supported by the Blue Star Group, the subject commenced business just in late October 2012. History in Hong Kong is just over 2 years.
On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on L/C basis for the time being.
|
Date |
Particulars |
Amount |
|
13-11-2012 |
Instrument: Debenture between the Chargor and Standard Chartered Bank (Hong Kong) Ltd. Property: 1) Fixed
Charges The Chargor, as legal and beneficial owner and as continuing security for the due and punctual payment and discharge of all liabilities charges in favour of the Lender, by way of first fixed charge, all of its present & future:- A) Book Debts; B) Bank Accounts; C) Investments; D) Uncalled capital and goodwill; E) Intellectual Property; and F) Beneficial Interest in any pension fund. 2) Assignment 3) Assignment of the PCC 4) Floating
charge Mortgagee: Standard Chartered Bank (Hong Kong) Ltd., Hong Kong. |
All liabilities |
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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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.62.39 |
|
|
1 |
Rs.101.80 |
|
Euro |
1 |
Rs.84.75 |
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.