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Report Date : |
30.10.2013 |
IDENTIFICATION DETAILS
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Name : |
BLUE
STAR DIAMONDS (HK)
LTD. |
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Registered Office : |
Room 1406, 14/F., |
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Country : |
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Date of Incorporation : |
20.10.2011 |
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Com. Reg. No.: |
59085045 |
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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, rough diamonds, etc. |
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No. of Employees : |
04 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Recently commence its commercial activity |
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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 – March 31st 2013
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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 |
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Source : CIA |
BLUE STAR DIAMONDS (HK) LTD.
Room 1406, 14/F., Hang Seng Tsim Sha Tsui Building, 18 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2301 2018
FAX: 2301 2118, 2301 2308
E-MAIL: hongkong@bluestardiamonds.com
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
(As per registry
dated 20-10-2012)
|
Name |
|
No.
of shares |
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Blue Star Diamonds Private
Ltd. 310/312 Prasad Chambers, Opera House, Mumbai 400-004, India. |
|
20,000,000 ======== |
(As per registry
dated 20-10-2012)
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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. |
(As per registry
dated 20-10-2012)
|
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, etc.
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$20,000,000.00
Alternation of
Capital:-
|
Initially |
paid up |
HK$ 100,000.00 |
|
11-04-2012 |
paid up |
HK$ 3,900,000.00 |
|
19-06-2012 |
paid up |
HK$ 16,000,000.00 |
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|
–––––––––––––––– |
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Total: |
paid up |
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 |
Mortgage or Charge: (See attachment)
Profit or Loss: Kept a balance account in 2012.
Condition: Business is improving.
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.
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 Blue Star group specialises in higher caratage diamonds (0.70 carats [cts] to 1.00 cts). 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.
Fully supported by the Blue Star Group, the subject commenced business just in late July 2012.
On the whole, since the history of the subject is short in Hong Kong, consider it good for normal business engagements on secured 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
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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
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
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UK Pound |
1 |
Rs.98.99 |
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Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.