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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
LITTLE STAR LTD. |
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Registered Office : |
Room 1606, 16/F., |
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Country : |
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Date of Incorporation : |
07.02.2003 |
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Com. Reg. No.: |
33348809 |
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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 Associate] |
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) |
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Hong Kong |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 |
LITTLE STAR LTD.
ADDRESS: Room 1606, 16/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2191
9494, 2192 9493
FAX: 852-2191 9492
E-MAIL: info@littlestarltd.com
Managing Director: Mr. Alpesh
Babulal Mehta
Incorporated on: 7th February, 2003.
Organization: Private Limited Company.
Capital: Nominal: HK$50,000.00
Issued: HK$10,000.00
Business Category: Diamond
Trader.
Employees: 4. (Including associate)
Main Dealing Banker: The Hong
Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
LITTLE STAR LTD.
Registered Head Office:-
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 91115, Tsimshatsui, Kowloon, Hong Kong.
Subsidiary Company:-
Veni Diam Ltd., Hong Kong.
Associated/Affiliated Companies:-
Belga Diam Co. Ltd., Thailand.
Dream Creations Jewelery, Hong Kong.
(Same address)
Hiralal Chhaganlal & Co., India.
33348809
0832712
Managing Director: Mr. Alpesh
Babulal Mehta
Nominal Share Capital: HK$50,000.00 (Divided into 50,000 shares of
HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry dated 07-02-2014)
|
Name |
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No. of shares |
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Alpesh Babulal MEHTA |
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9,000 |
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Ramesh Hiralal MEHTA |
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1,000 |
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–––––– |
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Total: |
10,000 ===== |
(As per registry dated 07-02-2014)
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Name (Nationality) |
Address |
|
Alpesh Babulal MEHTA |
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
(As per registry dated 07-02-2014)
|
Name |
Address |
|
Thouleckarsabioudine KAMALDEEN |
Room 1606, 16/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong. |
The subject was incorporated on 7th February, 2003 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Room 801, 8/F., Lee Wai Commercial
Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in March 2010.
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 associate)
Commodities Imported: India, Belgium,
Thailand, other European countries
Markets: Hong
Kong, China, Australia, Japan, Southeast Asia, Europe, Middle East
Terms/Sales: L/C, T/T
Terms/Buying: L/C, T/T, D/P
Nominal Share Capital: HK$50,000.00
(Divided into 50,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Profit or Loss: Operation
is profitable.
Condition: Business
is active.
Facilities: Making
active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory
Banker: The Hong Kong & Shanghai
Banking Corp. Ltd., Hong Kong.
Standing: Good.
Having issued 10,000 ordinary shares of HK$1.00 each, Little Star Ltd.
is jointly owned by two Indians: Mr. Alpesh Babulal Mehta and Mr. Ramesh
Hiralal Mehta. The former is holding 90%
interests while the latter, 10%. The
former is a Hong Kong ID Card holder and has got the right to reside in Hong
Kong permanently while the latter’s registered address is in Bangkok,
Thailand. Mr. Alpesh Babulal Mehta is
also the only director of the subject.
The subject actually is owned and operated by the Mehta family.
The subject has had a wholly-owned subsidiary known as Veni Diam Ltd.
[Veni Diam], a Hong Kong-registered company incorporated on 21st June,
2012. Veni Diam is also a diamond
trader.
The subject is known to acquire and supply diamonds in an extensive
assortment of round and fancy shapes and sizes including single cut diamonds, loose
diamonds, specialized in round brilliant, tapers, pointers, dossiers, single
cut, princess cut, 1 ct up, and baguettes.
The subject is carrying the following significant products in Hong Kong:
·
Baguette Diamonds;
·
Loose Diamond Stones;
·
Loose Diamonds;
·
Round Brilliant Diamonds; &
·
Tapered Baguette Diamonds
·
The subject is originated in India.
It was founded in 1957. Now, the
associated company of the subject in India is Hiralal Chhaganlal & Co.
while the one in Thailand is Belga Diam Co. Ltd.
According to the subject, it is owned by the Indian Mehta family who
have been engaged in diamond business since 1957. Business has been expanded to Hong Kong and
Thailand. The subject also exports its
products to China, Southeast Asia, the Middle East.
The subject has had an associated company Dream Creations Jewelery
located at the same operating address.
This firm is a sole proprietorship set up and owned by Alpesh Babulal
Mehta.
The subject’s products are chiefly imported from India, prime marketed
are Hong Kong, China, Australia, Japan, Southeast Asia, Europe, the Middle
East. Business is rather active. The subject is fully supported by Mehta
family.
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 is going to
take part in “HKTDC Hong Kong International Jewellery Show 2015” which will be
held in Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong during
the period of 4th to 8th March, 2015.
The history of the subject in Hong Kong is over eleven 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.
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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.
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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
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.03 |
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|
1 |
Rs.99.99 |
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Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.