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Report Date : |
19.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
STAR ART CO. LTD. |
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Registered Office : |
Room 1103, 11/F., Guardforce Centre, |
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Country : |
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Date of Incorporation : |
07.02.2006 |
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Com. Reg. No.: |
36448464 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
DIAMOND
TRADER OF ALL KINDS OF DIAMONDS, JEWELLERY, GEMSTONES. |
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No. of Employees |
12.
(Including associates) |
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 – 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 |
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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 |
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 |
STAR ART CO. LTD.
ADDRESS: Room 1103, 11/F., Guardforce
Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
PHONE: 852-2722 6333, 2367 0497,
2367 0121
FAX: 852-2722 6360,
2721 1173
E-MAIL: sales@gemasiahk.com
Managing Director: Mr. Jatin Pravinchandra Shah
Incorporated on: 7th
February, 2006.
Organization: Private
Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$4.00
Business Category: Diamond Trader.
Group Turnover: Rs.
325,018.90 million (Year ended
31-03-2014)
Employees:
12. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Very
Good.
STAR ART CO. LTD.
ADDRESS:
Registered
Office:-
c/o First Island Secretaries Ltd.
Room 905, 9/F., Silvercord, Tower 2, 30 Canton Road, Tsimshatsui,
Kowloon, Hong Kong.
Operating Office:-
Room 1103, 11/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom,
Kowloon, Hong Kong.
Holding Company:-
Star Asia (Mfg) Co. Ltd., Hong Kong.
(Same registered address).
Ultimate Holding
Company:-
Asian Star Co. Ltd., India.
Associated/Affiliated
Companies:-
A’star Jewellery, India.
Asian Star Co. Ltd., USA.
Asian Star Gems DMCC, UAE.
Asian Star Jewels Pvt. Ltd., India.
Asian Star Trading (Hong Kong) Ltd., Hong Kong.
Creative Designs Ltd., Hong Kong.
(Same address).
Gemasia (Shanghai) Ltd., China.
Gemasia B.V.B.A., Belgium.
Gemasia Solitaire Ltd., Hong Kong.
(Same address).
InterGems Trading (L.L.C.), Middle East.
Passion Jewels BVBA, Belgium.
Shah Manufacturers, India.
Star Asia (Thailand) Ltd., Thailand.
etc.
36448464
1023301
Managing Director: Mr. Jatin
Pravinchandra Shah
Nominal Share Capital: HK$10,000.00
(Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$4.00
(As per registry dated 07-02-2014)
|
Name |
|
No. of shares |
|
Star Asia (Mfg) Co. Ltd., Hong Kong. |
|
4 = |
(As
per registry dated 07-02-2014)
|
Name (Nationality) |
Address |
|
Kartik Nayanbhai SHAH |
Golden Legend (The Palm) Project, 11/13
Kalaprapruek Road, Bangkhuntien, Jomthong, Bangkok, 10150, Thailand. |
|
Saumil Shailesh SHAH |
Flat H, 19/F., Royal Peninsula, 8 Hung Lai
Road, Hunghom, Kowloon, Hong Kong. |
|
Jatin Pravinchandra SHAH |
Flat B, 6/F., Beauty Mansion, 69-71
Kimberley Road, Tsimshatsui, Kowloon, Hong Kong. |
(As per registry dated 07-02-2014)
|
Name |
Address |
Co.
No. |
|
First Island Secretaries Ltd. |
Room 905, 9/F., Silvercord, Tower 2,
30 Canton Road, Tsimshatsui, Kowloon, Hong Kong. |
0049295 |
The subject was incorporated on 7th
February, 2006 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: Diamond Trader.
Lines: All kinds of diamonds,
jewellery, gemstones.
Employees: 12.
(Including associates)
Commodities Imported: India, Europe, etc.
Markets: Asian countries, Europe, Middle
East, Australia, North America, etc.
Group Net Sales: Rs. 146,701.74 million
(Year ended 31-03-2010)
Rs. 166,732.64
million (Year ended 31-03-2011)
Rs. 183,540.12
million (Year ended 31-03-2012)
Rs. 246,221.41
million (Year ended 31-03-2013)
Rs. 325,018.90
million (Year ended 31-03-2014)
Terms/Sales:
L/C, T/T, D/P, 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$4.00
Group Profit After Tax (After Adjustment of Minority Interest):-
Rs. 3,007.38 million (Year ended 31-03-2010)
Rs. 3,777.63 million (Year ended 31-03-2011)
Rs. 4,139.50 million (Year ended 31-03-2012)
Rs. 4,776.59 million (Year ended 31-03-2013)
Rs. 7,796.77 million (Year ended 31-03-2014)
Profit or Loss: Making a small
profit every year.
Condition:
Keeping in an
active and satisfactory condition.
Facilities:
Making active
use of general banking facilities.
Payment:
Met obligations
as contracted.
Commercial Morality: Good.
Banker:
: The Hongkong & Shanghai Banking Corp. Ltd.,
Hong Kong.
Standing:
Very Good.
Star Art Co. Ltd. is a wholly-owned subsidiary of Star Asia (Mfg) Co.
Ltd., a Hong Kong-registered company in operating office of a secretarial
company located at Room 905, 9/F., Silvercord, Tower 2, 30 Canton Road,
Tsimshatsui, Kowloon, Hong Kong.
In turn, Star Asia (Mfg) is a subsidiary of Asian Star Co. Ltd. [Asian
Star] which is also an India-based company.
Asian Star is a listed company in Bambay Stock Exchange.
Being a diamond trader, the subject is a Hong Kong based marketing arm
of Asian Star. Established in May 2006,
the subject has emerged as a prominent market player in the Asia Pacific
region.
The subject is specialized in round and loose diamonds, WHITE, TTLB and
TTLC shades, sizes ranges from 0.003 points to 2 carats, clarity ranges from
IF, VVS to heavy PK and colour ranges from D to N-O. It also provides certified diamonds from the
world’s reputed gem laboratories like GIA, HRD and IGI. Its extensive marketing network ensures
efficient and personalized services with consistent supply of goods. It regularly participates in jewellery shows
in Asian countries in order to penetrate the international market further.
The subject is trading in the following commodities:-
|
Product/Service |
Product/Service
Remarks |
|
Jewellery – Diamond |
From India and Belgium (Importer) From India and Belgium (Exporter) |
|
Loose Diamond |
From India, Belgium and Israel (Importer) From India, Belgium and Israel (Exporter) |
Asian Star was established in 1971 as a partnership and became a public
limited company in 1995.
Now, Asian Star is one of the world’s leading diamantaires and a Diamond
Trading Company Sightholder. Its
business comprises of diamond manufacturing, jewellery manufacturing and
retailing. Having set up marketing arms
across three continents — Asia, Europe and North America — Asian Star is
positioned to serve its customers throughout the world.
The Group is trading in the following commodities, so does the subject:-
Polished Diamonds - All polished 2 ct. and smaller in fine makes;
Jewellery - Gold and
platinum, diamond studded jewellery spanning all categories like Rings,
Earrings, Pendants, Bracelets, Bangles, Necklaces etc. for the domestic and
international market;
Jewellery Retailing - ‘Shagun Jewels’, the flagship retail store at Hyderabad catering to
urban Indian women; &
Power -
Windmills in Maharashtra, Kerala and Tamil Nadu.
Asian Star’s factory is in Surat, India, covering an area of 65,000
sq.ft. and employing about 2,000 skilled workers.
Asian Star achieved a new milestone on 6th December, 2010 at the grand
opening of its new factory, A’Star Jewellery — Hosur.
The 5,000 sq.ft. state-of-the-art factory employs 120 highly skilled
employees, especially trained in the manufacture of hand-crafted diamond
jewellery. The product line would be
primarily focused on high value, couture diamond jewellery.
Asian Star has got the following achievements:-
Has the prestigious status of being a DTC Sightholder for the current
contract term, up to 2015.
Commercial member of the Responsible Jewellery Council (RJC) since May
2012
The Chairman of Asian Star is Mr. Dinesh Shah, Chief Executive Officer
and Managing Director is Mr. Vipul Shah.
All of them belong to the Shah family.
For the year ended 31st March, 2014, the sales of the Group amounted to
Rs. 325,018.90 million, increased by 32.0% as compared with Rs. 246,221.41
million in FY 2013; profit after tax and after adjustment of minority interest
in the year was Rs. 7,796.77 million, increased by 63.2% as compared with
Rs. 4,776.58 million in FY 2013.
Asian Star’s shares are listed on the Bombay Stock Exchange
(scrip code‑531847) in India.
Its business in diamond increased substantially in FY 2014.
The subject’s business is chiefly handled by Mr. Jatin Pravinchandra
Shah who is an Indian residing in Hong Kong.
He is a Hong Kong ID holder and has got the right to reside in Hong Kong
permanently. He is also the contact
person of the subject.
The subject is fully supported by Asian Star. History in Hong Kong is over eight years and
seven months.
On the whole, consider the subject good for normal business engagements.
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.
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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.
-
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.61.06 |
|
UK Pound |
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.78.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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 |
|
|
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 |
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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.