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Report No. : |
352433 |
|
Report Date : |
05.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
VIJAY ORIENT
STAR LTD. |
|
|
|
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Registered Office : |
Flat B, 11/F., Cameron Plaza, 23-25 Cameron Road,
Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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|
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Date of Incorporation : |
28.04.1978 |
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|
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Com. Reg. No.: |
05558618 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is exporter and wholesaler of all kinds of fine jewellery and diamond products |
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No. of Employee : |
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 |
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Status : |
Satisfactory |
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|
|
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
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Insignificant |
A1 |
|
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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies
|
Source
: CIA |
VIJAY
ORIENT STAR LTD.
Flat B,
11/F., Cameron Plaza, 23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2522
3014~5, 2524 0842
FAX: 852-2845 3821
E-MAIL: gare10@hotmail.com
Managing
Director: Mr. Gautam
Shantilal Jhaveri
Incorporated
on: 28th
April, 1978.
Organization: Private
Limited Company.
Issued Share
Capital: HK$1,000,000.00
Business Category:
Jewellery Trader.
Employees: 4. (Including associate)
Main Dealing
Banker: Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Banking
Relation: Satisfactory.
Associated
Companies:-
* Arihant Enterprise Ltd., Hong Kong.
(Dissolved by Striking Off)
Kowloon Resources
And Supplies Ltd., Hong Kong.
London Star
Diamond Co., India.
* One Six Ltd., Hong Kong.
* Surya Star Ltd., Hong Kong. (Dissolved by Deregistration)
(* Same address)
05558618
0059855
Managing
Director: Mr. Gautam
Shantilal Jhaveri(Hong Kong Mobile: 852-9198 3985)
General
Manager: Mr. Renuka Galitam Jhaveri
HK$1,000,000.00
(Divided into 10,000 ordinary shares of HK$100.00 each)
(As
per registry dated 28-04-2015)
|
Name |
|
No.
of shares |
|
Gautam Shantilal JHAVERI |
|
3,990 |
|
David KLAGSBRUN
[Deceased] |
|
3,000 |
|
Pradyot R. KOTHARI |
|
3,000 |
|
Renuka Gautam JHAVERI |
|
10 |
|
|
|
–––––– |
|
|
Total: |
10,000 ===== |
(As
per registry dated 06-05-2015)
|
Name (Nationality) |
Address |
|
Gautam
Shantilal JHAVERI |
Flat B, 11/F., Cameron Plaza,
23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong. |
|
Devanshi
Gautam JHAVERI |
Flat B, 11/F., Cameron Plaza,
23-25 Cameron Road, Tsimshatsui, Kowloon, Hong Kong. |
(As
per registry dated 06-05-2015)
|
Name |
Address |
Co.
No. |
|
Benta
Nominees Ltd. |
20/F., Tung Wai Commercial Building, |
0042671 |
The
subject was incorporated on 28th April, 1978 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room 1307, 13/F., Tak Shing House, 20 Des Voeux
Road Central, Hong Kong, moved to the present address in June 2002.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Exporter and Wholesaler.
Lines: All kinds of fine jewellery
and diamond products.
Employees: 4.
(Including associate)
Commodities
Imported: India,
Europe, etc.
Markets: Japan, South Korea, Southeast
Asia, Europe, Middle East, etc.
Terms/Sales: L/C
or as per contracted.
Terms/Buying: L/C,
T/T, D/P, etc.
Issued Share
Capital: HK$1,000,000.00 (Divided into 10,000 ordinary shares of HK$100.00
each)
Mortgage
or Charge:-
Date
of Charge Over Deposits: 29-04-1988
Amount: To secure the repayment of all
moneys obligations and liabilities
Property: All the deposit of US$65,000
Mortgagee: Belgian Bank, Hong Kong
Branch. [Business was taken over by
Industrial & Commercial Bank of China (Asia) Ltd.]
Profit or Loss: Making a small profit every year.
Condition: Keeping
in an active condition.
Facilities: Adequate
for current running.
Payment: No
Complaints
Commercial
Morality: Satisfactory.
Banker: Industrial & Commercial Bank of China
(Asia) Ltd., Hong Kong.
Standing: Good.
Vijay
Orient Star Ltd. is jointly owned by Mr. Gautam Shantilal Jhaveri, Mr. David
Klagsbrun, Mr. Pradyot R. Kothari, and Mr. Renuka Galitam Jhaveri. The second has passed away while the third is
residing in Antwerp, Belgium.
Mr.
Gautam Shantilal Jhaveri can be reached at his Hong Kong mobile phone number
852-9198 3985.
The
subject’s business is chiefly handled by Gautam Shantilal Jhaveri and Renuka
Galitam Jhaveri. Belong to the same
family, the two Jhaveris are Hong Kong ID Card holders and have got the right
to reside in Hong Kong permanently.
The
subject is trading in the following commodities:-
|
Product/Service |
Product/Service
Remarks |
|
Fine Jewellery |
|
|
Precious and
Semi-Precious Jewellery |
From India
(Importer) |
|
Jewellery –
Semi-Precious Stone |
From India (Importer) From
India (Exporter) |
|
Jewellery –
Platinum |
From India (Importer) From
India (Exporter) |
|
Jewellery –
Pearl |
From India (Importer) From
India (Exporter) |
|
Jewellery –
Gemset |
From India (Importer) From
India (Exporter) |
|
Jewellery –
Pearl |
From
India (Importer) |
Most
of the subject’s commodities are imported from India. Jewellery products are exported to Japan,
South Korea, Southeast Asia, Europe, the Middle East, etc. Business is rather active and steady. It seems that Belgium has been a significant
market of the subject.
The
subject has had two main associated companies, namely, Surya Star Ltd. [Surya
Star] and Kowloon Resources And Supplies Ltd. [KR] located at its operating
address.
Having
issued 100 ordinary shares of HK$1.00 each, Surya Star is wholly-owned by Holdas
Nominees Ltd. which is a Hong Kong-registered firm. The director of Surya Star Gautam Shantilal
Jhaveri is also the Managing Director of the subject.
KR
is engaged in the same lines of business.
Its managing director is Gautam Shantilal Jhaveri.
Having
issued 100 ordinary shares of HK$1.00 each, KR is wholly owned by Benta
Nominees Ltd. which is a Hong Kong-registered nominee firm.
The
subject has had an associated company One Six Ltd., a Hong Kong-registered firm
located at the same address. This firm
is trading in loose diamonds and fine jewellery. Most of its products are made of white round
diamonds and 18K white gold.
Another
associated company Arihant Enterprise Ltd. was also located at the same
address. This company was incorporated
on 28th October, 1975 and was also operated by Gautam Shantilal Jhaveri. However, this company has been dissolved by
striking off on 13th March, 2015.
Besides,
the subject has had an associated company known as London Star Diamond Co.
[London Star] in India. London Star is
the subject’s main supplier.
The
subject has been a significant and old polished diamond exporter and
wholesaler. History in Hong Kong is over
thirty-seven years. Regular suppliers
and customers have been maintained.
On
the whole, consider it 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.
-
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.
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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.
-
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.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
HKD |
1 |
Rs. 8.60 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
ASH |
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.