MIRA INFORM REPORT

 

 

Report No. :

345230

Report Date :

21.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FIRESTAR DIAMOND LTD.

 

 

Registered Office :

Room 21 - 23, 2/F., New Henry House, 10 Ice House Street, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

09.09.2009

 

 

Com. Reg. No.:

51144017

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer and Exporter of All kinds of Diamonds.

 

 

No. of Employees :

7

 

 

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)

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 12.5% 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

 


Note

 

With former located at:

Room 1603-1604, 16/F., Crawford House,

70 Queen’s Road Central, Hong Kong.  

 

 

Company name & address

 

FIRESTAR DIAMOND LTD.

 

ADDRESS:       Room 21 - 23, 2/F., New Henry House, 10 Ice House Street, Central, Hong Kong.

 

PHONE:            852-2530 3677

 

FAX:                 852-2530 9877

 

E-MAIL:            ananavati@firestonediamond.com

 

MANAGEMENT:

 

Managing Director:  Mr. Himanshu Pravinchandra Trivedi

 

 

SUMMARY

 

Incorporated on:            9th September, 2009.

 

Organization:                 Private Limited Company.

 

Issued Share Capital:     HK$194,800,000.00

 

Business Category:       Diamond Trader.

 

Employees:                  7.

 

Main Dealing Banker:     Bank of India, Hong Kong Branch.

 

Banking Relation:          Satisfactory.

 

 

Name

 

FIRESTAR  DIAMOND  LTD.

 

ADDRESS

 

Registered Head Office:-

Room 21 - 23, 2/F., New Henry House, 10 Ice House Street, Central, Hong Kong.

 

Holding Company:-

Firestar Holdings Ltd., Hong Kong.  (Same address)

 

Associated Companies:-

Firestar Diamond (Prop.) Ltd., South Africa.

Firestar Diamond BVBA, Belgium.

Firestar Diamond FZE, UAE.

Firestar Diamond Inc., USA.

Firestar Diamond International Pvt. Ltd., India.

Firestar Diamond LLC, Armenia.

Firestar Diamond Pvt. Ltd., India.

Firestone Trading Pvt. Ltd., India.

 

 

BUSINESS REGISTRATION NUMBER

 

51144017

 

 

COMPANY FILE NUMBER

 

1371302

 

 

MANAGEMENT

 

Managing Director:  Mr. Himanshu Pravinchandra Trivedi

Chief Executive Officer:  Mr. Aditya Nanavati

 

 

ISSUED SHARE CAPITAL

 

HK$194,800,000

 

 

SHAREHOLDER

 

(As per registry dated 09-09-2015)

Name

 

No. of shares

Firestar Holdings Ltd., Hong Kong.

 

194,800,000

=========

 

 

DIRECTOR

 

(As per registry dated 09-09-2015)

Name

(Nationality)

 

Address

Himanshu Pravinchandra TRIVEDI

B27, 2/F., Shantisadan, Shankar Lane, Kandivali West, Mumbai 400067, Maharashtra, India.

 

 

SECRETARY

 

(As per registry dated 09-09-2015)

Name

Address

Co. No.

Louis Lai & Luk Company Secretarial Services Ltd.

9/F., Surson Commercial Building, 140-142 Austin Road, Tsimshatsui, Kowloon, Hong Kong.

0686503

 

 

HISTORY

 

The subject was incorporated on 9th September, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

 

Originally the subject was registered under the name of Firestone Diamond Ltd., name changed to the present style on 1st April, 2011.

 

Formerly the subject was located at ‘Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road Central, Hong Kong’, moved to the present address in July 2015.

 

The subject has increased its issued share capital in September 2015.

 

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

 

 

OPERATIONS

 

Activities:                                  Importer and Exporter.

 

Lines:                                       All kinds of diamonds.

 

Brand Name:                             Firestar.

 

Employees:                              7.

 

Commodities Imported:             India, Europe, other Asian countries.

 

Markets:                                    Europe, North America, Central & South America, South Africa.

 

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

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital:     HK$194,800,000

 

Mortgage or Charge:     (See attachment)

 

Profit or Loss:               Made small profits in past four years.

 

Condition:                     Business is normal.

 

Facilities:                      Making rather active use of general banking facilities.

 

Payment:                      Met trade commitments as required.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

Bank of India, Hong Kong Branch.

Punjab National Bank, Hong Kong Branch.

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

Union Bank of India, Hong Kong Branch.

 

Standing:                      Normal.

 

 

GENERAL

 

Having issued 194.8 million ordinary shares of HK$1.00 each, Firestar Diamond Ltd. is a wholly owned subsidiary of Firestar Holdings Ltd. [Firestar] which is a Hong Kong-registered firm.  This firm is also located at the same operating address as the subject.

 

The subject moved to the present new address in July 2015.

 

The subject is a member of the Firestar Diamond Group of companies.  The corporate office of the Group is in Mumbai, India.

 

The subject is a global diamond and jewellery company with vertically integrated operations that span from procurement of raw materials to the design, manufacture, distribution, and after-sales service of diamond-studded jewellery.  Headquartered in Mumbai, it has offices in Antwerp, Chicago, Dubai, Johannesburg, New York, San Francisco, Surat and Yerevan.  The subject has an exclusive range of white and fancy coloured diamonds that includes extremely rare diamonds accessible only to a select few customers.  Sizes typically start at 3 carats and go up to over 20 carats.  It is the sole distributor in India for Argyle Pink Diamonds, which are some of the world’s most sought after gems.

 

Its products are marketed in Hong Kong, China and exported to Asian countries, Europe, North America, Africa, Central & South America, etc.  Business is normal.

 

Currently, Firestar has over 1,300 employees in its manufacturing plants.  Firestar has registered about 75 trademarks and ten patents.  One of its significant trademarks is Firestar.

 

The subject’s associate Firestone International Pvt. Ltd. has registered its trade mark Firestar with Trade Marks Registry, Intellectual Property Department, the Government of the Hong Kong SAR.  This trade mark was registered on 4th August, 2010 and the expiry date is 3th August 2020.

 

One of the significant companies of the Firestar Group is Firestar Diamond International Pvt. Ltd. which is an India-based company.

 

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.

 

The history of the subject in Hong Kong is over six years and a month.

 

On the whole, the subject is considered good for normal business engagements.

 

 

REMARKS

 

Brief personal profile of the principals:-

 

Mr. Aditya NANAVATI, CEO of the subject, is the Head of Hong Kong.  Aditya plays a pivotal role in leading sales of polished products and managing Firestar’s operations in Hong Kong, China, and the Far East.  Prior to joining Firestar, Aditya spent two years as an M&A analyst at Dresdner Kleinwort, London, where he worked on both buy and sell sides of transactions, as well as pitches.  He worked in the Financial Institution and the Consumer Retail space, and was on the team advising HBOS about its acquisition by Lloyds TSB.  Aditya has a Masters in Science in Finance and Economics and a Bachelors in Science in Accounting and Finance from the London School of Economics.  He is also a GIA Diamond Graduate.

 

Mr. Neeshal MODI is the CEO of Diamond Division and Head of Belgium.  Neeshal leads Firestar’s Diamond Division, travelling extensively to source the finest quality diamonds from all over the world.  In his role as CEO of the Diamond Division, Neeshal manages the entire diamond manufacturing process and has played a key role in setting up new manufacturing units in Surat (India) and Yerevan (Armenia).  He has also been instrumental in expanding Firestar’s European operations.  Neeshal holds a degree in Investment and Financial Risk Management from City University, London and held positions at several, respected financial services organizations.

 

 

MORTGAGE OR CHARGE

 

Date

 

Particulars

Amount

11-02-2011

Instrument:        Debenture

Property:

a)         By way of first fixed charge, all the plant, machinery, vehicles, computers and other equipment and other installation or material

b)         By way of first fixed charge, the uncalled capital and any uncalled premiums and any called but unpaid capital or premiums, goodwill and all patents, patent applications, inventions, trademarks, trade names, registered designs, copyrights, know-how and other intellectual or industrial property rights and all ancillary rights and benefits

c)         By way of first fixed charge, all book and other debts reveues and claims

d)         By way of first fixed charge, all present and future contracts or pllicies of insurance; and

e)         By way of first floating charge, the undertaking and all the property, assets and rights

Mortgagee:        Union Bank of India, Hong Kong Branch.

To secure all monies in respect of banking facilities

22-02-2011

Instrument:        Charge on Deposit to secure the Depositor’s Obligations

Property:

A sum of US$2,500,000.00 currently represented or evidenced by a certificate of deposit dated 22-02-2011 bearing number 7141001019

Mortgagee:        Punjab National Bank, Hong Kong Branch.

As a continuing security for the payment and discharge of the Secured Obligations

24-02-2011

Instrument:        Charge on Deposit

Property:

A sum of US$2,000,000.00 currently represented or evidenced by a certificate of deposit dated 24-02-2011 bearing number 000013010000589

Mortgagee:        Union Bank of India, Hong Kong Branch.

All moneys

18-03-2011

Instrument:        Letter of Set-off and Appropriation

Property:

Deal No.           Date     Amount Due Date

169350  18-03-2011        US$1,875,000.00           19-03-2012

Mortgagee:        Bank of India, Hong Kong Branch.

Advances and other banking facilities

02-05-2013

Instrument:        Letter of Set-off & Appropriation

Property:

Deal No.           Date     Amount Due Date

183913  02-05-2013        US$580,000.00  02-05-2014

Mortgagee:        Bank of India, Hong Kong Branch.

Advances and other banking facilities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

 

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%)

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.