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Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
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Name : |
STARGEMS (HK) LTD. |
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Registered Office : |
Room 1007, 10/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
07.04.2008. |
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Com. Reg. No.: |
53467140 |
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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 and jewellery products, emerald, precious stones. |
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No. of Employees : |
4. (Including affiliates) |
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 : |
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 |
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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 - 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
STARGEMS (HK)
LTD.
ADDRESS: Room 1007, 10/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2724
8488, 2561 5161
FAX: 2724
3988
E-MAIL: bhaveshjaveri@hotmail.com
Managing Director: Mr. Bhavesh Deepak Javeri
Incorporated on: 7th
April, 2008.
Organization: Private
Limited Company.
Capital: Nominal: HK$35,000,000.00
Issued: HK$35,000,000.00
Business Category: Diamond Trader.
Employees:
4. (Including affiliates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
c/o Toyo Mall Ltd.
Room 803, 8/F., V. Heun Building, 138 Queen’s Road Central,
Hong Kong.
Head Office:-
Room 1007, 10/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Holding Company:-
Stargems Holding Ltd., Hong Kong.
Associated/Affiliated Companies:-
Alma Diamonds (HK) Ltd., Hong Kong.
(same address)
Hang Fung Finance Ltd., Hong Kong.
Hannaford Ltd., Hong Kong.
Inglory Ltd., Hong Kong.
Lotus Jewellery DMCC, UAE.
Sterling Star Trading LLC, UAE.
Yu Fung Co. Ltd., Hong Kong.
Yu Tai Hing Co. Ltd., Hong Kong.
Yu Tai Hing Land Agency Ltd., Hong Kong.
Yu Wing Construction & Investment Co. Ltd., Hong Kong.
53467140
1223841
Managing Director: Mr. Bhavesh
Deepak Javeri
Nominal Share Capital: HK$35,000,000.00 (Divided into 35,000,000 shares
of HK$1.00 each)
Issued Share Capital: HK$35,000,000.00
(As per registry dated 07-04-2012)
|
Name |
|
No. of shares |
|
Bhavesh Deepak JAVERI |
|
3,000 |
|
Karan JAVERI |
|
7,000 |
|
Stargems Holding Ltd., Hong Kong |
|
34,990,000 |
|
|
|
––––––––– |
|
|
Total: |
35,000,000 ======== |
(As per registry dated 07-04-2012)
|
Name (Nationality) |
Address |
|
Bhavesh Deepak JAVERI |
5 Navyug Niketan Teen Bhatti, 185 Walkeshwar Road, Mumbai MS 400006,
India. |
|
Karan JAVERI |
506, Al Sharhan Building, Rigga Road, Diera, Dubai, UAE. |
(As per registry dated 07-04-2012)
|
Name |
Address |
Co. No. |
|
Akin Professionals Ltd. |
20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan,
Hong Kong. |
1273165 |
The subject was incorporated on 7th April, 2008 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Whiteland
Consultants Ltd., name changed to Sterling Star (HK) Ltd. on
23rd December, 2010, and further to the present style on 19th August,
2011.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer,
Exporter and Wholesaler.
Lines: All
kinds of diamonds and jewellery products, emerald, precious stones
Employees: 4. (Including affiliates)
Commodities Imported: India, other Asian countries, etc.
Markets: India,
other Asian countries, UAE, etc.
Terms/Sales: L/C or as per
contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$35,000,000.00 (Divided into 35,000,000
shares of HK$1.00 each)
Issued Share Capital: HK$35,000,000.00
Alternation of Capital:-
|
07-04-2008 |
paid up |
HK$ 1.00 |
|
24-05-2011 |
paid up |
HK$
9,999.00 |
|
03-05-2012 |
paid up |
HK$ 34,990,000.00 |
|
|
|
–––––––––––––––– |
|
Total: |
paid up |
35,000,000 ============== |
Increases of Nominal Capital:-
|
From |
HK$10,000.00 |
to |
HK$35,000,000.00 |
on |
03-05-2012 |
Profit or Loss: Making a small profit in the past three years.
Condition:
Keeping in a
normal condition.
Facilities:
Making rather
active use of general banking facilities.
Payment:
Met trade commitments
as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong.
Standing:
Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Stargems (HK) Ltd.
was jointly owned by Mr. Bhavesh Deepak Javeri, holding 30% interests; and Mr.
Karan Javeri, holding 70%. The two
shareholders are Indian. They are also
directors of the subject. The former is
an India passport holder while the latter is a Belgium passport holder, both of
whom do not have the right to reside in Hong Kong permanently.
In May 2012, the subject issued 34,990,000 more ordinary shares of
HK$1.00 each which all have been allotted to Stargems Holding Ltd. [Stargems
Holding] which is a Hong Kong-registered firm. Now, Stargems Holding has become the holding
company of the subject, holding 99.97% of the subject’s interests. Stargems Holding is located at a different
address.
The subject has had a number of associated companies in Hong Kong and
the United Arab Emirates. It shares the
same office with Alma Diamonds (HK) Ltd. which is a Hong Kong-registered firm.
The subject is a diamond trader.
It has had associated companies in Dubai, the United Arab Emirates known
as Sterling Star Trading LLC and Lotus Jewellery DMCC. Located at the same address in the United
Arab Emirates, both firms are operated by Karan Javeri. Lotus Jewellery DMCC is a member of Dubai
Multi-Commodities Centre.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds like
marquise, pears, tappers, buggets and rose cut diamonds, etc. Commodities are sourced from India and other
Asian countries, products are marketed in China, exported to Japan, other Asian
countries and the United Arab Emirates.
Business is active.
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 “Guangzhou
Gold, Jewellery and Jade Show 2011” which was held in Guangzhou, Guangdong
Province, China.
The subject will penetrate the China market further in the years ahead.
Stargems Holding is chiefly owned by the Law family in Hong Kong. The Law family is engaged in diversified
economy, including property investments, building and construction, finance,
etc. Overall business is active.
As the history of the subject in Hong Kong is over five years, on the
whole, consider it good for normal business engagements.
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.
-
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.66.88 |
|
|
1 |
Rs.103.94 |
|
Euro |
1 |
Rs.88.09 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.