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Report No. : |
326544 |
|
Report Date : |
10.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
FINE STAR HK LTD. |
|
|
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Registered Office : |
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
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|
|
Date of Incorporation : |
04.10.2006 |
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|
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Com. Reg. No.: |
37227469 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds and
jewellery. |
|
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No of Employees : |
3. (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 |
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
FINE STAR
HK LTD.
ADDRESS: Room 1703, 17/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2366
9577, 6933 4990
FAX: 852-2366
9007
E-MAIL: finestarhk@rediffmail.com
Managing Director: Mr. Adit
Bakul Shah
Incorporated on: 4th October, 2006.
Organization: Private Limited Company.
Issued Share Capital: HK$7,500,000.00
Business Category: Diamond
Trader.
Employees: 3. (Including associate)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head Office:-
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Associated Company:-
Fine Star Ltd., Hong Kong.
37227469
1078533
Managing Director: Mr. Adit Bakul
Shah
(Mobile: 852-6933 4990)
HK$5,700,000.00
(As per registry dated 24-07-2014)
|
Name |
|
No. of shares |
|
Adit Bakul SHAH |
|
7,500,000 ======= |
(As per registry dated 04-10-2013)
|
Name (Nationality) |
Address |
|
Adit Bakul SHAH |
Flat J, 15/F., Tower 2, Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon, Hong Kong. |
(As per registry dated 04-10-2013)
|
Name |
Address |
Co. No. |
|
Elegant Secretaries Ltd. |
Room 804, 8/F., Lap Fai Building, 6-8 Pottinger Street, Central, Hong
Kong. |
0418716 |
The subject was incorporated on 4th October, 2006 as a private limited
liability company under the Hong Kong Companies Ordinance.
Formerly the subject was located at Flat Rear, 6/F., Ocean View Court,
25A Chatham Road South, Tsimshatsui, Kowloon, Hong Kong, moved to the
present address in November 2008.
The subject increased its issued share capital from HK$5.7 million to
HK$7.5 million on 24th July, 2014.
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.
Employees: 3. (Including associate)
Commodities Imported: India,
Thailand, Belgium, other Asian and European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East, Scandinavia, Hong Kong, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, etc.
Issued Share Capital: HK$7,500,000.00
Mortgage or Charge: (See attachment)
Profit or Loss: Making
a small profit in the past three years.
Condition: Business
is normal.
Facilities: Adequate
for current running.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Bankers:-
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Commonwealth Finance Corporation Ltd., Hong Kong.
Bank of India, Hong Kong Branch.
Standing: Normal.
Having issued 7.5 million ordinary shares of HK$1.00 each, Fine Star HK
Ltd. is an Indian company wholly owned by Mr. Adit Bakul Shah. Shah is an India passport holder whose native
land is Mumbai, India. Now he is a
Hong Kong ID Card holder and has got the right to reside in Hong Kong
permanently. He is also the only director of the subject.
The subject has increased its issued share capital from HK$2.5 million
to HK$5.7 million and further to HK$7.5 million which is the present amount.
Formerly the subject had two directors.
Another old director Mr. Saloni Adit Shah has retired and Mr. Adit Bakul
Shah has become the only director of the subject. He can be reached at his Hong Kong mobile
phone No.
852-6933 4990.
The subject is a diamond trader.
It is trading in loose diamonds, single cut diamonds, tapper cut
diamonds, full cut diamonds, black diamonds, etc. Raw materials and polished white and
colour diamonds are imported from Thailand, India, Belgium and the other Asian
and European countries. The subject also
trades in black and brown stones.
Finished products and polished diamonds are exported or re-exported to
Japan, Southeast Asia, Europe, the Middle East, Scandinavia, etc., as well as
marketed in Hong Kong.
According to the subject it is significant for its loose diamonds and
black diamonds.
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.
Besides, it also took part in “HKTDC Hong Kong International Jewellery
Show 2015” which had been held in the same Exhibition Centre, Wanchai, Hong
Kong during the period of 5th to 9th March, 2015.
Adit Bakul Shah has had close business ties with a number of diamond and
jewellery manufacturers and suppliers in Mumbai, India. The business of the subject is normal.
As the history of the subject in Hong Kong is over eight years and two
months, on the whole, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
07-12-2007 |
Instrument: Letter of Hypothecation
for Trade Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth
Finance Corporation Ltd., Hong Kong. |
All sum of monies |
|
10-12-2007 |
Instrument: Charge Over
Deposit Property: Account No.: 20096 Mortgagee: Commonwealth
Finance Corporation Ltd., Hong Kong. |
All the indebtedness and the due and punctual performance and
observance by the Depositor of all its obligations and liabilities |
|
06-10-2009 |
Instrument: Letter of
Hypothecation for Trade Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth
Finance Corporation Ltd., Hong Kong. |
All sum of monies |
|
25-06-2010 |
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
upon the terms herein set out as a continuing security for the due and
punctual payment of the Secured Indebtedness and the due and punctual
performance and observance by the Borrower of all other obligations of the
Borrower contained in the Facility Letter Mortgagee: The Hongkong
& Shanghai Banking Corp. Ltd., Hong Kong. |
Secured Indebtedness |
|
27-08-2010 |
Instrument: Letter of
Hypothecation for Trade Finance Property: Hypothecation of goods and produce represented by any or such
documents or to which any such documents relate and all policies of insurance
relating thereto and all proceeds deriving therefrom as security for advances
and other banking facilities against bills of lading, shipping documents,
warrants, delivery orders, wharfingers’ or other warehouse keeper’s
certificate or receipts and/or invoices or other documents representing or
relating to goods or produce Mortgagee: Commonwealth
Finance Corporation Ltd., Hong Kong. |
All sum of monies |
|
07-07-2011 |
Instrument: Letter of Lien Property: Nature of Deposit: TDR TDR Mortgagee: Bank of India,
Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: Charge and
Hypothecation of Book Debts (CC.531) Property: Hypothecate and charge to the Bank by way of charge on all the book debts
outstanding, moneys receivable, claims and bills which are now due and owing
or which may at any time hereafter during the continuance of this security
becomes due and owing to “the Borrower” in the course of its business by any
person, company or by the Government or any local or public body or authority
(all of which are hereinafter collectively referred to as “the said debts”)
as security for the due payment to the Bank at any time on demand at Hong
Kong. Mortgagee: Bank of India,
Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: Hypothecation
of Tangible Moveable Property (L448) Property: All tangible movable assets of borrower including in particular stocks
of all goods of diamonds, gem, precious stones, jewellery, gold, furniture
and fixtures and plant & machinery etc., wheresover situate and/or in
transit. Including therein the stocks
thereof for time being whether raw or manufactured or in process of
manufacture. And also all procedures
gods and any and every tangible moveable property of the Borrower whether now
lying or at any time hereafter during the continuance of this security lying
or being in or about the Borrower’s premises and godowns at Flat 1703, 17/F.,
Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong or
wherever else the same may be or be held by any party anywhere to the order
and disposition of the Borrower or in course of transit to the Borrower (all
or which are hereinafter called “the
hypothecated goods”) Mortgagee: Bank of India,
Hong Kong Branch. |
US$1,000,000 |
|
13-06-2012 |
Instrument: General Letter
of Hypothecation Property: Bills or exchange, and/or invoices, or any other documents
representing or relating to goods. The
company agree that the same and all goods thereby represented or to which the
documents relate shall be hypothecated by way of first charge as a continuing
security for all sums in which the company from time to time be actually or
contingently indebted or liable to bank on any account. Mortgagee: Bank of India,
Hong Kong Branch. |
All the money |
|
22-01-2013 |
Instrument: Charge Over
Deposits - CD1 (11a) Property: 1. By fixed Charge:
all the Company’s rights in respect of the following (i) the sum(s) deposited
by the Company or for its benefit in the account(s) or as evidenced by
deposit instrument(s) or other evidence of indebtedness specified in the
schedule below, including renewals of such sums; and (ii) all other sums in
any currency from time to time standing to the credit of the Company or the
credit of any other person for the Company’s benefit, on any account in the
Company’s sole or joint names maintained with the Bank or SCB Group Company
including renewals of such sums, and all interest from time to time accruing
or payable on the sums 2. By assignment:
all Deposits held with any SCB Group Co. Mortgagee: Standard
Chartered Bank (Hong Kong) Ltd., Hong Kong. |
To secure the payment or discharge of all moneys, obligations and
liabilities |
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.
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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.
-
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.63.94 |
|
|
1 |
Rs.98.27 |
|
Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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.