|
Report No. : |
303119 |
|
Report Date : |
14.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
STAR DIAM LTD. |
|
|
|
|
Registered Office : |
Room 1406, 14/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
28.05.2005 |
|
|
|
|
Com. Reg. No.: |
35669566 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trader of Diamond. |
|
|
|
|
No. of Employee : |
3 |
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 |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Hong Kong |
A1 |
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 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
DIAM LTD.
ADDRESS: Room 1406, 14/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2369 6909
FAX: 852-2369 6906
E-MAIL: nimitshah_99@hotmail.com
Managing Director: Mr.
Nimit Shailesh Shah
Incorporated on: 28th
May, 2005.
Organization: Private
Limited Company.
Issued Share Capital:
HK$1.00
Business Category: Diamond Trader.
Employees:
3.
Main Dealing Banker: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1406, 14/F., Hart
Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
35669566
0973603
Managing
Director: Mr. Nimit Shailesh Shah
HK$1.00
(As per registry dated 28-05-2014)
|
Name |
|
No.
of share |
|
Nimit Shailesh SHAH |
|
1 = |
(As per registry
dated 28-05-2014)
|
Name (Nationality) |
Address |
|
Nimit Shailesh
SHAH |
Flat L, 17/F., Tower 2, Royal Peninsula, 8
Hung Lai Road, Hunghom, Kowloon, Hong Kong. |
|
Nirav Shailesh
SHAH |
Lady North Court Building No. 2, 4/F., 5
Chowpatti Road, Mumbai 7, India. |
(As per registry
dated 28-05-2014)
|
Name |
Address |
|
Bayani
Divino Bautista PONCE |
Unit 324, 3/F., Hankow Centre, 5-15 Hankow Road, Tsimshatsui, Kowloon,
Hong Kong. |
The
subject was incorporated on 28th May, 2005 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: Importer,
Exporter and Wholesaler.
Lines: All kinds of diamonds.
Brand Name:
Star Diam.
Employees: 3.
Commodities Imported: India, Belgium, other European countries,
Markets: Hong Kong, Japan, other Asian countries,
Europe,
Terms/Sales: L/C, T/T,
Terms/Buying: L/C, T/T, D/P,
Issued Share
Capital: HK$1.00
Mortgage or
Charge: (See
attachment)
Profit or Loss: Operation is conducted on a
profitable basis.
Condition: Business is rather
active.
Facilities: Adequate for
current running.
Payment: Met
trade commitments as contracted.
Commercial
Morality: Satisfactory.
Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having
issued just 1 ordinary share of HK$1.00, Star Diam Ltd. previously was wholly
owned by M. Shailesh & Company which was an India-based firm. On 17th December, 2009, M. Shailesh
& Company transferred its single share to Mr. Nimit Shailesh Shah who is an
India merchant. Now, the subject is
wholly-owned by N. S. Shah who is also the Managing director of the
subject. He is a Hong Kong ID
holder and has got the right to reside in Hong Kong permanently. The other director Mr. Nirav Shailesh Shah is
also an Indian. However he is an India
passport holder.
The
subject is a diamond importer, exporter and wholesaler. It also trades in polished and cut diamonds.
The
subject is also the supplier, importer and exporter of versatile range of
diamonds in a wide variety like rose cut diamonds, rose cut heart, rose cut round,
rose cut pears, rose cut oval, rose cut marquise, emerald cut, taper, tapered
baguette, fancy cut and fancy colour diamonds, briollets beads, old mine cut
diamonds round brilliant cut diamonds, marquise, pears, oval, heart, trilliant, It is also specialised in white diamonds,
from PK quality to VS quality, TTLB, off white, black, dark brown, treated
diamonds in round shape. Caret size is
6.5 or over. Most of its products bear
the brand name Star Diam.
The
subject’s loose and fancy diamonds are chiefly imported from India. Other diamonds are imported from Belgium and
the other European countries. Finished
products are marketed in Hong Kong, China, exported to Japan, the other Asian
countries, Europe, Business is active.
The
subject is trying to penetrate the China market further.
The
subject’s former parent company M. Shailesh & Company is in Mumbai,
Maharashtra, India which is a diamond manufacturer and trader. It is the chief supplier of the subject.
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 Diamond, Gem & Pearl Show 2015” which will
be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd
to 6th March, 2015.
The
history of the subject in Hong Kong is over nine years and six months. The subject is solely operated by the Shah
family.
On the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
13-08-2007 |
Instrument: Assignment of Receivables – General with
Notice of Assignment Property: In consideration of the Banking Facilities, the Customer, as beneficial
owner and by way of security for the payment of the Secured Monies, hereby
assigns, and agrees to assign, to the Bank the Receivables until all the
Secured Monies have been paid or discharged Mortgagee: The Hongkong & Shanghai Banking Corp.
Ltd., Hong Kong. |
To secure all monies in respect of banking facilities |
|
22-04-2010 |
Instrument: Assignment of Life Insurance Property: (i) All the Assignor’s claims, options, privileges, right, title,
interest and benefit in and under the Insurance; and (ii) all the Assignor’s
claims and rights against the issuer of the Policy in respect of the Policy Mortgagee: The Hongkong & Shanghai Banking
Corp. Ltd., Hong Kong. |
Secured Indebtedness |
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.62.10 |
|
|
1 |
Rs.94.10 |
|
Euro |
1 |
Rs.73.42 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.