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Report No. : |
346144 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
STARGEMS (HK) LTD. |
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Registered Office : |
Room 1007, 10/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
07.04.2008 |
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Com. Reg. No.: |
53467140 |
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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 and jewellery products, emerald, precious stones |
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No. of Employee : |
4. (Including associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 |
|
Insignificant |
A1 |
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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 |
STARGEMS
(HK) LTD.
ADDRESS: Room 1007, 10/F., Hart Avenue
Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2724
8488, 2561 5161
FAX: 852-2724 3988
E-MAIL: bhaveshjaveri@hotmail.com
MANAGEMENT:
Managing Director: Mr. Bhavesh Deepak
Javeri
Incorporated on: 7th April, 2008.
Organization: Private Limited
Company.
Issued Share Capital: HK$38,487,500.00
Business Category: Diamond
Trader.
Employees: 4. (Including associates)
Main Dealing Banker: The
Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1007, 10/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui,
Kowloon, Hong Kong.
Holding Company:-
Stargems Holding Ltd., Hong Kong.
Associated/Affiliated
Companies:-
Alma Diamonds (HK) Ltd., Hong Kong.
Star Gems Pty. Ltd., South Africa.
Stargems BVBA, Belgium.
Stargems DMCC, United Arab Emirates.
Stargems Exports Pvt. Ltd., India.
Stargems Inc., US.
Stargems LLC, United Arab Emirates.
53467140
1223841
Managing Director: Mr. Bhavesh
Deepak Javeri
HK$38,487,500.00
(As per registry dated 07-04-2015)
|
Name |
|
No. of shares |
|
Stargems Holding Ltd., Hong Kong. |
|
38,487,500 ======== |
(As per registry dated 07-04-2015)
|
Name (Nationality) |
Address |
|
Bhavesh Deepak JAVERI |
5 Navyug Niketan Teen Bhatti, 185 Walkeshwar Road, Mumbai MS 400 006,
India. |
|
Karan JAVERI |
506, Al Sharhan Building, Rigga Road, Diera, Dubai, UAE. |
(As per registry dated 07-04-2015)
|
Name |
Address |
Co. No. |
|
Akin Professionals Ltd. |
20/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan,
Hong Kong. |
1273165 |
The subject was incorporated on 7th April, 2008 as a private limited
liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Whiteland
Consultants Ltd., name changed to Sterling Star (HK) Ltd. on
23rd December, 2010, and further to the present style on 19th August,
2011.
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 products, emerald, precious stones
Employees: 4. (Including associates)
Commodities Imported: India,
other Asian countries
Markets: India, other Asian
countries, UAE
Terms/Sales: COD, L/C or as per
contracted.
Terms/Buying: L/C, T/T, D/P
Issued Share Capital: HK$38,487,500.00
Profit or Loss: Making small profits
in the past years.
Condition: Keeping in a
rather active condition.
Facilities: Making active use
of general banking facilities.
Payment: Met trade
commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Hongkong &
Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
Having issued 10,000 ordinary shares of HK$1.00 each, Stargems (HK) Ltd.
formerly was jointly owned by Mr. Bhavesh Deepak Javeri, holding 30% interests;
and Mr. Karan Javeri, holding 70%. The
two shareholders are Indian. They are
also directors of the subject. The
former is an India passport holder while the latter is a Belgium passport
holder, both of whom do not have the right to reside in Hong Kong permanently.
In May 2012, the subject issued 34,990,000 more ordinary shares which
all have been allotted to Stargems Holding Ltd. [Stargems Holding]. Stargems Holding is a Hong Kong-registered
firm. Since then, Stargems Holding had
become the holding company of the subject, holding 99.97% of the subject’s
interests.
On 27th June, 2012, the two minor shareholders transferred all their
shares to Stargems Holding. Now, the
subject is a wholly-owned subsidiary of Stargems Holding. In June 2015, the subject’s ordinary share
was made up to 38,487,500 and its issued share capital was increased to
HK$38,487,500.00.
Stargems Holding is owned by the following Indian:
Bhavesh Deepak Javeri
Address: 5 Navyug Niketan Teen Bhatti, 185 Walkeshwar Road, Mumbai, Ms
400006, India
Equity: 30.0%
Karan Javeri
Address: Tower 4, 37G Royal Peninsula, 8 Hung Lai Road, Hunghom,
Kowloon, Hong Kong
Equity: 69.2%
Shailesh Javeri
Address: Fazantenlaan 24, 2610 Antwerpen An, Belgium
Equity: 0.8%
Stargems Holding is located at a different address.
The subject has had a number of associated companies in Hong Kong, the
United Arab Emirates, Belgium and South Africa.
The subject is a diamond trader.
It has had associated companies in Dubai, the United Arab Emirates known
as Stargems LLC and Stargems DMCC.
Located at the same address in the United Arab Emirates. It also has had an associated company in the
United States and Belgium. The one in
Belgium is known as Stargems Bvba.
The subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds like
marquise, pears, tappers, buggets and rose cut diamonds, etc. Commodities are sourced from India and the
other Asian countries, products are marketed in China, exported to Japan, the
other Asian countries and the United Arab Emirates, South Africa, the United
States, etc. Business is active.
In order to penetrate the international market further, the subject has
taken part in fairs and exhibitions held in Hong Kong, China and other foreign
large cities. For instance, it usually
takes part in “Guangzhou Gold, Jewellery and Jade Show” which is Guangzhou,
Guangdong Province, China annually.
The subject’s associate Stargems Bvba is going to take part in “HKTDC
Hong Kong International Jewellery Show 2016” which will be held in Hong Kong
Convention and Exhibition Centre, Wanchai, Hong Kong during the period of 3rd
to 7th March, 2016. Its booth No. is AWE
2-L12.
The subject is a member of the Stargems Group. The two shareholders of the subject are the
CEOs of the Group while the Chairman is Mr. Shailesh Javeri.
Stargems Group is wholly owned by the Javeri family.
As the history of the subject in Hong Kong is over seven years and three
months, on the whole, consider it good for normal business engagements.
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.
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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.
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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.
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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.64.82 |
|
|
1 |
Rs.100.12 |
|
Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.