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Report No. : |
344290 |
|
Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
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Name : |
FINE STAR HK LTD. |
|
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Registered Office : |
Room 1703, 17/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon |
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Country : |
Hongkong |
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Date of Incorporation : |
04.10.2006 |
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Com. Reg. No.: |
37227469 |
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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. |
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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 |
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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) |
|
Hongkong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 |
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$7,500,000.00
(As per registry dated 04-10-2014)
|
Name |
|
No. of shares |
|
Adit Bakul
SHAH |
|
7,500,000 ======= |
(As per registry dated 04-10-2014)
|
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 04-10-2014)
|
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.
Employees: 3.
(Including associate)
Commodities Imported: India,
Thailand, Belgium, other Asian and European countries.
Markets: Japan,
Southeast Asia, Europe, Middle East, Scandinavia, Hong Kong
Terms/Sales: L/C, T/T,
Terms/Buying: L/C, T/T, D/P
Issued Share Capital: HK$7,500,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Making
small profits in the past years.
Condition: Business
is normal.
Facilities: Making active use of general
banking facilities.
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.
Standard Chartered
Bank (Hong Kong) Ltd., Hong Kong
Standing: Satisfactory.
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. However, the subject is
significant for its black diamonds.
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.
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 2016” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during
the period of 1st to 5th March, 2016.
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 nine 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
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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.
-
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.
-
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.65.16 |
|
|
1 |
Rs.99.78 |
|
Euro |
1 |
Rs.73.33 |
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.