MIRA INFORM REPORT

 

 

Report Date :

16.01.2014

 

IDENTIFICATION DETAILS

 

Name :

STAR GRACE LTD.

 

 

Registered Office :

c/o Hong Kong Professional Secretarial Services Ltd.

Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, 18 Harbour Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

04.07.2008

 

 

Com. Reg. No.:

39619361

 

 

Legal Form :

Private Limited Liability Company

 

 

LINE OF BUSINESS :

SUBJECT IS A IMPORTER, EXPORTER AND WHOLESALER OF DIAMONDS.

 

 

No. of Employees :

No employees in Hong Kong

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

 


 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

No operating office in Hong Kong

Payment Behaviour :

Unknown

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Hong Kong

A2

A1

 

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


company name and address

 

STAR GRACE LTD.

 

 

ADDRESS

 

Registered Office:-

c/o Hong Kong Professional Secretarial Services Ltd.

Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, 18 Harbour Road, Wanchai, Hong Kong.

 

Associated/Affiliated Companies:-

*           Bloom International, Hong Kong.

Crown Gallant Ltd., Hong Kong.

*           Dragon Distributors, Hong Kong.  (Same address)

[* Operated by Mr. Deepak Kumar]

 

 

BUSINESS REGISTRATION NUMBER

 

 39619361

 

 

COMPANY FILE NUMBER

 

 1253268

 

 

DATE OF INCORPORATION

 

4th July, 2008.

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1.00

 


SHAREHOLDER:           (As per registry dated 04-07-2013)

Name

 

No. of share

Deepak KUMAR

 

1

=

 

DIRECTOR:       (As per registry dated 04-07-2013)

Name

(Nationality)

 

Address

Deepak KUMAR

X/828, Grand Mohalla, Gandhi Ngr, Delhi-31, India.

 

SECRETARY:    (Resigned on 04-07-2013)

Name

Address

Co. No.

Wingate Professional Secretary Ltd.

Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

1426081

 

 

HISTORY

 

The subject was incorporated on 4th July, 2008 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office.  Formerly its registered office is in a commercial service firm located at Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong known as Hong Kong Professional Secretarial Services Ltd. [HKPSSL] which had handled its correspondences and documents.  HKPSSL was also the corporate secretary of the subject.  However, HKPSSL resigned on 4th July, 2009.  The subject moved to 9/F., Bel Trade Commercial Building, 3 Burrows Street, Wanchai, Hong Kong in November 2010 where is the operating address of a commercial service provider Crisp Business Services (HK) Ltd. [Crisp].  Crisp moved to 9/F., SPA Centre, 55 Lockhart Road, Wanchai, Hong Kong in July 2011, so did the subject.

In July 2012, the registered address moved back to Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

GENERAL

 

Star Grace Ltd. has issued just 1 ordinary share of HK$1.00 which is owned by Mr. Deepak Kumar who is an Indian.  He is an India passport holder.  He and Mr. Satharai Raghavan Ekambaram  (Alternate to Deepak KUMAR) were the directors of the subject.  The latter was also an Indian.  However, S R Ekambaram has retired and Deepak Kumar has become the only director of the subject.

The registered address of Kumar is in Delhi, India.  He does not have the right to reside in Hong Kong permanently.

Your given Hong Kong mobile phone number 852-6202 9354 belongs to Deepak Kumar, but we cannot reach him as the line “cannot be connected”.  The owner has turn off his mobile phone.

The subject does not have its own operating office.  Its registered office is in a commercial service firm located at Room 3208, 32/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong known as Hong Kong Professional Secretarial Services Ltd. [HKPSSL] which is handling its correspondences and documents.

The subject has no employees in Hong Kong.

The subject is a diamond importer, exporter and wholesaler.  Rough diamonds are imported from India, Belgium and other European countries.  Finished products are exported to Asian countries, the Middle East and Europe, etc.  Business is not very active in Hong Kong.

Kumar has set up another firm known as Dragon Distributors in Hong Kong.  Dragon Distributors registered address is also located at the above‑mentioned address.  Dragon Distributors is a sole proprietorship set up and owned by Kumar on 29th June, 2009.

Besides Dragon Distributors, the subject has had another affiliated company Crown Gallant Ltd. [Crown Gallant] in Hong Kong.  Crown Gallant was incorporated on 31st August, 2007 as a private limited liability company under the Hong Kong Companies Ordinance.  According to the Companies Registry of Hong Kong, Crown Gallant has issued 2 ordinary shares of HK$1.00 each which are equally owned by Mr. Ramesh Kumar Kadel and E.D. Diamonas B.V.B.A., a Belgium-based firm.  Mr. Ramesh Kumar Kadel and Mr. Deepak Kumar are directors of Crown Gallant.  Crown Gallant is also a diamond trader.  Crown Gallant also has no employees in Hong Kong.

Deepak Kumar is also the sole proprietor of another Hong Kong-registered company Bloom International which was established on 29th June, 2009.  Bloom International is also a diamond trader.

It is likely that the subject has got affiliated companies in India and the United Arab Emirates.  It is also likely that the India firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong.

The subject’s history in Hong Kong is over five years.

On the whole, since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

 

 

NOTE:

 

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.


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.61.59

UK Pound

1

Rs.101.09

Euro

1

Rs.83.99

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.