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Report Date : |
18.10.2013 |
IDENTIFICATION DETAILS
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Name : |
HINI
STAR LTD. |
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Registered Office : |
Unit 01-02, 10/F., Harbour Centre, Tower 2, |
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Country : |
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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 Fancy Cut Diamonds, Polished Diamonds, Round
Diamonds, Loose Diamonds, Loose Diamond Stone, rough diamonds, Cut Diamonds, Polish Diamonds, Gems &
jewellery |
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No. of Employees : |
10. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 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.
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Source : CIA |
HINI STAR LTD.
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2724 4330
FAX: 852-2721 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
Annual Total Income of Group: Rs. 2,000-2,300 crore
Employees: 10. (Including associates)
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.
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 08-08-2013)
|
Name |
|
No.
of shares |
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Rasila Ramesh VIRANI |
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65,550,000 |
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Rameshkumar Bhikhabhai
VIRANI |
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11,700,000 |
|
Pankajkumar Vitthalbhai
KHUNT |
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450,000 |
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Karp Impex HK Ltd., Hong Kong. |
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300,000 |
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––––––––– |
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Total: |
78,000,000 ======== |
(As per registry
dated 08-08-2013)
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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 08-08-2013)
|
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
Annual Total Income of Group: Rs. 2,000-2,300 crore
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 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. 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 has had a minor shareholder Karp Impex HK Ltd. which is also a Hong Kong-registered firm. This firm had an associate in India bearing similar name.
The subject is an importer, exporter and wholesaler of fancy cut diamonds, polished diamonds, and round diamonds. According to the subject, it is trading in the following commodities:-
Loose Diamond, Loose Diamond Stone, Cut Diamond, Polish Diamond, Men’s Watch, Quartz Analogue Watch, etc.
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 [KARP].
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.
The profit after tax of the Karp Group decreased further in the year ended 31st March, 2013. It was reported. This was due to a number of adversities in economic conditions in India.
In India, the Karp Group has about 8,000 workers while some of its workers are the third generation employees.
In order to penetrate the international market further, the subject is going to take part in “Hong Kong Watch & Clock Fair 2014” which will be held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 3rd to 7th September, 2014. Its booth No. is 1C-D23.
Over the past three years, the revenues of the subject were significant but its profit margins were rather low.
The subject is fully supported by the Karp Group. History is over ten years.
The subject operates from a self-owned premises in Hong Kong.
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 |
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01-09-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
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07-09-2007 |
- |
- ditto - |
Deed of variation and further charge to secure general
banking facilities |
|
Date |
Particulars |
Amount |
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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. Name of Insurance Co.: HSBC Life (International) 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.
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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.61.58 |
|
|
1 |
Rs.98.51 |
|
Euro |
1 |
Rs.83.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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.