MIRA INFORM REPORT

 

 

Report No. :

343802

Report Date :

05.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HINI STAR LTD.

 

 

Registered Office :

Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon

 

 

Country :

Hongkong

 

 

Date of Incorporation :

08.08.2003

 

 

Com. Reg. No.:

33862215

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS, GEMS AND JEWELLERY.

 

 

No. of Employees :

10. (Including Associates)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hongkong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

HONGKONG - 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

 

 

Company Name and address

           

HINI STAR LTD.

 

ADDRESS:                   Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom,  Kowloon, Hong Kong.

 

PHONE:                        852-2724 4330

FAX:                             852-2721 6516

 

E-MAIL:                        hini@karpgroup.com

 

 

MANAGEMENT

 

Managing Director:        Mr. Rameshkumar Bhikhabhai Virani

 

 

SUMMARY

 

Incorporated on:            8th August, 2003.

 

Organization:                  Private Limited Company.

 

Issued Share Capital:     HK$233,600,000.00

 

Business Category:       Diamond and Gem Trader.

 

Annual Revenue:           US$200-230 million.

 

Employees:                  10.  (Including associates)

 

Main Dealing Banker:     Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

 

Banking Relation:          Good.

 

 

ADDRESS

 

Registered Head Office:-

Unit 01-02, 10/F., Harbour Centre, Tower 2, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.

 

Associated Factory in India:-

8/A, Lal Darwaja, Surat-395008, Gujarat, India.

 

Associated/Affiliated Companies:-

Karp Group of Companies

Hini Star (Bangkok) Ltd., Thailand.

Hini Star (Taiwan) Ltd., Taiwan.

Hini Star Diamonds LLC, UAE.

Hini Star, Hong Kong.  (Same address)

Karp Diamonds Pvt. Ltd., India.

Karp Impex HK Ltd., Hong Kong.  (Same address)

Karp Impex Ltd., India.

Karp Impex N.V., Belgium.

Karp Infotech, India.

Karp Jewellery Mfg. China Ltd., Hong Kong.  (Same address)

Karp Jewellery Mfg. HK Ltd., Hong Kong.  (Same address)

Karp Jewellery Pvt. Ltd., India.

Karp Jewellery Taiwan Ltd., Hong Kong.  (Dissolved)

Karp Jewellery Taiwan Ltd., Taiwan.

Karp Manufacturing Co., India.

Karp Suisse (Geneva), Switzerland.

Park Infotech, India.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

33862215

 

 

COMPANY FILE NUMBER

 

0856743

 

 

MANAGEMENT

 

Managing Director:        Mr. Rameshkumar Bhikhabhai Virani

General Manager:          Mr. Pankajkumar Vitthalbhai Khunt

 

 

ISSUED SHARE CAPITAL

 

HK$233,600,000.00

 

 

SHAREHOLDERS

(As per registry dated 08-08-2014)

 

Name

 

No. of shares

Rasila Ramesh VIRANI

 

197,810,000

Rameshkumar Bhikhabhai VIRANI

 

35,040,000

Pankajkumar Vitthalbhai KHUNT

 

450,000

Karp Impex HK Ltd., Hong Kong.

 

300,000

 

 

–––––––––––

 

Total:

233,600,000

=========

 

 

DIRECTORS

(As per registry dated 08-08-2014)

 

Name

(Nationality)

 

Address

Rameshkumar Bhikhabhai VIRANI

House 32, King’s Park Hill, 32 King ‘s Park Hill Road, Homantin, Kowloon, Hong Kong.

 

Rasila Ramesh VIRANI

House 32, King’s Park Hill, 32 King ‘s Park Hill Road, Homantin, Kowloon, Hong Kong.

 

 

SECRETARY

(As per registry dated 08-08-2014)

 

Name

Address

Co. No.

RC Corporate Services Ltd.

Unit 1003, 10/F., Tung Wai Commercial Building, 109-111 Gloucester Road, Wanchai, Hong Kong.

0467057

 

 

HISTORY

 

The subject was incorporated on 8th August, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

 

The subject moved to the present address in December 2005.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter and Wholesaler.

 

Lines:                           All kinds of diamonds, gems and jewellery.

 

Employees:                  10.  (Including associates)

 

Commodities Imported: Belgium, India, Israel, US, etc.

 

Markets:                        Hong Kong, India, Europe, Japan, Israel, Thailand, US, etc.

 

Annual Revenue:           US$200-230 million.

 

Terms/Sales:                 CAD, L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

 

MEMBERSHIP

 

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$233,600,000.00

 

Mortgage or Charge:     (See attachment)

 

Annual Net Profit:          US$2 - 4 million.

 

Profit or Loss:               Business is profitable.

 

Condition:                     Keeping in an active and steady condition.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Met trade commitments as contracted.

 

Commercial Morality:     Very Good.

 

Bankers:-

Bank of India, Hong Kong Branch.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

The Royal Bank of Scotland N.V., Hong Kong Branch.

Dah Sing Bank Ltd., Hong Kong.

Hang Seng Bank Ltd., Hong Kong.

 

Standing:                      Very Good.

 


 

GENERAL

 

Having issued 233.6 million ordinary shares (increased from 78 million) of HK$1.00 each, Hini Star Ltd. is chiefly owned by Mr. Rasila Ramesh Virani who is holding 84.7% stake while Rameshkumar Bhikhabhai Virani is holding 15.0%.  Two minor shareholders are holding 0.3% in total.  The two large shareholders are also directors of the subject.

 

The subject is a member of the Karp Group which is an Indian group in India trading in jewellery and diamonds.  The Group is owned by the Virani family.

 

The subject has had a minor shareholder Karp Impex HK Ltd. which is also a Hong Kong-registered firm.  This firm has an associate in India bearing similar name.

 

The subject is an importer, exporter and wholesaler of loose diamonds and fancy cut diamonds, polished diamonds, and round diamonds.  According to the subject, it is trading in the following commodities: Loose Diamond, Loose Diamond Stone, Cut Diamond, Polish Diamond, Men’s Watch, Quartz Analogue Watch, etc.

 

It also offers the full spectrum of fancy cut diamonds and fancy coloured diamonds which include taper, baguette marquise, pear, oval, princess, heart, trillion, round pointer, and brilliant cut diamonds from 0.01 to 50 carat, also “Hearts & Arrow” ideal cut with GIA/HRD/IGI certificate.

 

Most of the products bear the brand name of “Tri-Star” and “Sky-Star”.  Most of its commodities are supplied by Karp Impex Ltd. [Karp Impex] which is an India-based firm.  Karp Impex is a main member of the Karp Group [KARP].

 

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 such as Las Vegas of the United States, Basel of Switzerland, Hyderabad of India, Macau, Shenzhen Special Economic Zone of China, etc.

 

Over the past years, the subject has taken part in the following exhibitions and fairs:-

 

United States

·         JCK Las Vegas Show;

Europe

·         BaselWorld, Switzerland;

Hong Kong

·         Hong Kong International Jewellery Show;

·         Hong Kong Jewellery & Gem Fair;

·         Hong Kong International Jewelry Manufacturers’ Exhibition;

Mainland China

·         Jewelry Shanghai;

·         Beijing International Jewellery Fair;

·         Shenzhen International Jewellery Fair; &

·         China International Jewellery Fair, Beijing.

 

For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2016” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 1st to 5th March, 2016.  Its booth No. is AWE 2-J02.

 

Sharing the same operating office with Karp Impex HK Ltd., the subject is fully supported by the Karp Group and the Virani family.

 

The subject had got the GJEPC awards from 1996 to 2002.

 

The Group was formed in the early 60’s in India.  Now, the Group is controlled by the third generation of the Virani family.

 

KARP is recognized by the Government of India as a “Star Trading House”.  Being one of the well- respected diamond companies in India and in the world, the Group has received the prestigious awards awarded by the Indian Diamond Council (Gems & Jewellery Export Promotion Council [GJEPC]) and the Government of India for its export achievements.

 

Mr. Rameshkumar Bhikhabhai Virani who is residing in Hong Kong is one of the key personnel of the Karp Group.

The presence of Karp Impex in international luxury market as an exclusive supplier of patented cut and polished diamonds to “Mont Blanc” for their writing instruments and women accessories.  Karp Impex derives about 80% of its revenues from manufacturing and processing of cut and polished diamonds, while balance sales arise out of trading of cut and polished diamonds and rough diamonds.  The company’s sales are predominantly export oriented.  It exports about 80% of its products.  Its markets are the United Kingdom, the United States, India, China, the United Arab Emirates, other European countries, Russia, etc.

 

In India, the Karp Group has about 8,000 workers while some of its workers are the third generation employees.

The subject is fully supported by the Karp Group.  History is over twelve years.

 

The subject operates from a self-owned premises in Hong Kong.

 

On the whole, in view of the background and parentage of the subject, consider it good for normal business engagements.

 

 

REMARKS

 

Property information of the company:-

Property Location:         Workshop Unit No. 01 & 02 on 10/F., Harbour Centre Tower 2,
8 Hok Cheung Street, Kowloon, Hong Kong.

Owner:  Hini Star Ltd.

Date of Purchase:  n.a.

Purchased Price:  n.a.

Incumbrances:-

Date of Mortgage

Amount Consideration

Mortgagee

Nature

01-09-2005

-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Mortgage to secure general banking facilities

07-09-2007

-

- ditto -

Deed of variation and further charge to secure general banking facilities

 

 

 

MORTGAGE OR CHARGE

 

Date

Description of Instrument

 

Mortgagee

01-09-2005

Mortgage

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

07-09-2007

Deed of Variation and Further Charge

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

17-02-2012

Letter of Lien

Bank of India, Hong Kong Branch.

25-01-2013

Assignment of Insurance Policy (ies) (2‑Party)

Hang Seng Bank Ltd., Hong Kong.

20-11-2013

Letter of Lien

Bank of India, Hong Kong Branch.

20-11-2013

General Letter of Hypothecation

Bank of India, Hong Kong Branch.

21-01-2015

Mortgage

Hang Seng Bank Ltd., Hong Kong.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.55

UK Pound

1

Rs.99.17

Euro

1

Rs.73.08

 

 

 

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.