|
Report Date : |
21.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
FINE STAR LTD. |
|
|
|
|
Registered Office : |
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
24.07.2007 |
|
|
|
|
Com. Reg. No.: |
38298441 |
|
|
|
|
Legal Form : |
Private Limited Company. |
|
|
|
|
Line of Business : |
trader of loose, polished and cut diamonds |
|
|
|
|
No. of Employees : |
4. (Including associate) |
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 |
|
Payment Behaviour : |
No complaints |
|
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
FINE STAR
LTD.
ADDRESS: Room 1703, 17/F., Hart
Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-6933 4990
FAX: 852-2366 9007
E-MAIL: finestarhk@rediffmail.com
Managing Director: Mr. Chu Ho Fu,
Howard
Incorporated on: 24th
July, 2007.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Diamond Trader.
Employees:
4. (Including associate)
Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
Room 1802, 18/F., Dominion Centre, 43-59 Queen’s Road East,
Hong Kong.
Operating Office:-
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon,
Hong Kong.
Affiliated/Associated Company:-
Fine Star HK Ltd., Hong Kong.
(Same address)
Great Enterprise (Global) Ltd., Hong Kong.
38298441
1152487
Managing Director: Mr. Chu Ho Fu,
Howard
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 24-07-2013)
|
Name |
|
No. of shares |
|
Unity Development Ltd., Hong Kong. |
|
2,000 |
|
Fine Bless Ltd., Hong Kong. |
|
1,500 |
|
Chu Lop Fu, Raymond |
|
1,500 |
|
KO Kam Hon |
|
2,000 |
|
[to be
continued] |
||
|
|
||
|
|
||
|
[continued] |
||
|
HO Yiu |
|
1,000 |
|
CHUNG Shu Wai |
|
2,000 |
|
|
|
––––– |
|
|
Total: |
10,000 ===== |
(As per registry dated 24-07-2013)
|
Name (Nationality) |
Address |
|
CHU Ho Fu, Howard |
Flat D,37/F., Tower 18, Laguna Verde, Laguna Grande, Hunghom, Kowloon,
Hong Kong. |
|
LAM Sik Lung |
No. 8 Braga Circuit, Kowloon, Hong Kong. |
(As per registry dated 24-07-2013)
|
Name |
Address |
Co. No. |
|
Chinson Corporate Services Ltd. |
Room 1802, 18/F., Dominion Centre, 43‑59 Queen’s Road East,
Hong Kong. |
0298578 |
The subject was incorporated on 24th July, 2007 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 loose diamonds.
Employees: 4. (Including associate)
Commodities Imported: India, etc.
Markets: Hong
Kong, Japan, the other Asian countries, Europe, etc.
Terms/Sales:
L/C, T/T, etc.
Terms/Buying: L/C,
T/T, D/P, etc.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
Indebtedness: HK$11,638,789.95 (Total amount outstanding on all mortgages
and charges as per last Annual Return dated 24-07-2013)
Mortgage or Charge: (See
attachment)
Profit or Loss: Made a small profit in the past three years.
Condition:
Keeping in a
normal manner.
Facilities: Making rather active use of general banking
facilities.
Payment:
Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker:
Hang Seng
Bank Ltd., Hong Kong.
Standing:
Small.
Having issued 10,000 ordinary shares of HK$1.00 each, Fine Star Ltd. is jointly
owned by four Hong Kong merchants and two Hong Kong-registered firm.
The subject’s registered address is in a commercial service firm located
at “Room 1802, 18/F., Dominion Centre, 43-59 Queen’s Road East, Hong Kong”
known as “Chinson Corporate Services Ltd.” which is handling its
correspondences and documents. This
company is also the corporate secretary of the subject.
The subject’s operating address is located at a different address.
The subject is a loose diamond trader.
The managing director of the subject is Chu Ho Fu, Howard. He can be reached at his mobile phone number
852‑6933 4990.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut
diamonds. Most of the commodities are
imported from India. Prime markets are
Hong Kong, Japan, the other Asian countries, Europe, etc. Business is normal.
The subject has had an associated company Fine Star HK Ltd. which is
also a Hong Kong-registered firm located at the same operating address. The subject and Fine Star HK are engaged in
the same lines of business.
One of the directors of the subject Chu Lop Fu, Raymond and chu Ho Fu,
Howard are full brothers. They are also
the shareholders of another firm known as Great Enterprise (Global) Ltd. [Great
Enterprise] which is located at a different address.
Great Enterprise is a woollen sweater and other knitted product trader.
The contact person of the subject Mr. Lam Sik Lung who is also a
director of the subject. Its history in
Hong Kong is over six years.
On the whole, consider the subject good for normal business engagements.
|
Date |
Particulars |
Amount |
|
06-10-2010 |
Instrument: Two-Party Mortgage Deed Property: All that one equal undivided 123 part of share of and in all those pieces
or parcels of ground respectively registered in the Land Registry as New
Kowloon Inland Lot No. 4502 and New Kowloon Inland Lot No. 4503 and of and in
the messuages erections and buildings erected thereon known at the date
hereof as “Tong Seng Mansion” being No. 1, 3, 5, 7, 9, 11, 13, 15, 17, 19,
21, 23, 25, 27, 29, 31 and 33 Kam Wing Street and No 5 and 7 Yin Hing Street
together with the sole and exclusive right and privilege to hold use occupy
and enjoy all that the shop premises on the G/F. of the said Building now
known as No. 13 Kam Wing Street (formerly designated as Shop G) Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure banking facilities to such extent as the Mortgagee may from time
to time determine at its absolute discretion and interest thereon |
|
31-03-2011 |
Instrument: Two-Party Mortgage Deed Property: All that two equal undivided 123 part of share of and in all those
pieces or parcels of ground respectively registered in the Land Registry as
New Kowloon Inland Lot No. 4502 and New Kowloon Inland Lot No. 4503 and of
and in the messuages erections and buildings erected thereon known at the
date hereof as “Tong Seng Mansion” the G/F. of which are known as No. 1, 3,
5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, 31 and 33 Kam Wing Street
and No 5 and 7 Yin Hing Street and the Upper Floors of which are known as No.
7 Yin Hing Street together with the sole and exclusive right and privilege to
hold use occupy and enjoy All those the shops previously designated as Shop
“P” and “Q” but now known as No. 31 and 33 Kam Wing Street Mortgagee: Hang Seng Bank Ltd., Hong Kong. |
To secure banking facilities to such extent as the Mortagee may from
time to time determine at its absolute discretion and interest thereon |
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.
-
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.
-
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.
-
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.
-
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.
-
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.62.24 |
|
UK Pound |
1 |
Rs.99.90 |
|
Euro |
1 |
Rs.84.23 |
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.