|
Report Date : |
03.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
HINI STAR LTD |
|
|
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Registered Office : |
Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung
Street, Hunghom, Kowloon |
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Country : |
Hong Kong |
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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 Loose Diamonds and Fancy Cut Diamonds, Polished Diamonds, and Round Diamonds. · Engaged in trading Loose Diamond, Loose Diamond Stone, Cut Diamond, Polish Diamond, Men’s Watch & Quartz Analogue Watch · Subject also offers the full spectrum of Fancy Cut Diamonds including Taper, Baguette Marquise, Pear, Oval, Princess, Heart, Trillion, Round Pointer, and Brilliant Cut Diamonds from 0.01 to 50 carat, also “Hearts & Arrow” ideal cut with GIA/HRD/IGI certificate. |
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No of Employees : |
10. (Including
associates) |
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 |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
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 has no tariffs on imported goods, and it levies excise
duties on only four commodities, whether imported or produced locally: 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, its continued reliance
on foreign trade and investment leaves it vulnerable to renewed global
financial market volatility or a slowdown in the global economy. 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 12% of total system
deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have
caused Hong Kong property prices to rise rapidly; consumer prices increased by
more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer
Economic Partnership Agreement, adopted in 2003 to forge closer ties between
Hong Kong and the mainland. The new measures, effective from January 2014,
cover services and trade facilitation, and will improve access to the
mainland's service sector for Hong Kong-based companies.
|
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$388,000,000.00
Issued: HK$233,600,000.00
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: Bank of India, Hong Kong Branch.
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. (Dissolved)
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$388,000,000.00 (Divided into 388,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$233,600,000.00
(As per registry
dated 19-12-2013)
|
Name |
|
No.
of shares |
|
Rasila Ramesh VIRANI |
|
132,260,000 |
|
Rameshkumar Bhikhabhai VIRANI |
|
23,340,000 |
|
|
|
––––––––––– |
|
|
Total: |
155,600,000 ========= |
(As per registry
dated 05-05-2014)
|
Name (Nationality) |
Address |
|
Rameshkumar Bhikhabhai VIRANI |
House 32, King’s Park Hill, 32 King ‘s Park Hill Road, Homantin,
Kowloon, Hong Kong. |
|
Rasila Ramesh VIRANI |
House 32, King’s Park Hill, 32 King ‘s Park Hill Road, Homantin,
Kowloon, Hong Kong. |
(As per registry
dated 24-03-2014)
|
Name |
Address |
Co.
No. |
|
RC Corporate Services Ltd. |
Unit 1003, 10/F., Tung Wai Commercial Building, 109-111
Gloucester 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$388,000,000.00 (Divided into 388,000,000 shares of HK$1.00 each)
Issued Share Capital: HK$233,600,000.00
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: Very Good.
Bankers:-
· Bank of India, Hong Kong Branch.
· Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.
· Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· The Royal Bank of Scotland N.V., Hong Kong Branch.
Standing: Very Good.
Having issued 338 million ordinary shares (increased from 78 million) of HK$1.00 each, Hini Star Ltd. is chiefly owned by Mr. Rasila Ramesh Virani who is holding 85% stake. The other 15% is owned by Rameshkumar Bhikhabhai Virani. Both are also directors of the subject.
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 loose diamonds and 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
It also offers the full spectrum of fancy cut diamonds including taper, baguette marquise, pear, oval, princess, heart, trillion, round pointer, and brilliant cut diamonds from 0.01 to 50 carat, also “Hearts & Arrow” ideal cut with GIA/HRD/IGI certificate.
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].
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 associated 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.
To facilitate its customers to browse the number of diamonds at a glance, the subject has launched the website online --- www.karpgroup.com to showcase its full array of stock.
The Karp Group has got an associated 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).
In India, the Karp Group has about 8,000 workers while some of its workers are the third generation employees.
Over the past four years, the revenues of the subject were rather significant.
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 |
|
01-09-2005 |
- |
The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong. |
Mortgage to secure general banking facilities |
|
07-09-2007 |
- |
- ditto - |
Deed of variation and further charge to secure general
banking facilities |
|
Date |
Particulars |
Amount |
|
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 |
|
20-11-2013 |
Instrument: Letter of Lien Property: 1. Nature of Deposit: TDR 2. Nature of Deposit: TDR Mortgagee: Bank of India, Hong Kong Branch. |
US$12,000,000.00 |
|
20-11-2013 |
Instrument: General Letter of Hypothecation Property: Bills of exchange, and invoices, or any other documents representing or relating to goods. The company agree that the same and all goods thereby represented or to which the document relate shall be hypothecated by way of first charge as a continuing security for all sums in which the company from time to time be actually or contingently indebted or liable to bank on any account Mortgagee: Bank of India, Hong Kong Branch. |
All money |
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.61.93 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.