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MIRA INFORM REPORT
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Report No. : |
479587.2 |
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Report Date : |
14.02.2018 |
IDENTIFICATION DETAILS
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Name : |
FIRESTAR DIAMOND LIMITED |
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Registered Office : |
Room 21 - 23, 2/F., New Henry House, 10 Ice House
Street, Central, |
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Country : |
Hongkong |
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Date of Incorporation : |
09.09.2009 |
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Com. Reg. No.: |
51144017 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Exporter of all kinds of Diamonds. |
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No. of Employees : |
7 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
D |
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Credit Rating |
Explanation |
Rating Comments |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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Status : |
Poor |
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Payment Behaviour : |
-- |
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Litigation : |
-- |
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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Hongkong |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. 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 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.
Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 4.4% in 2014, but slowed to 2.9% in 2015. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.
Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.
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Source
: CIA |
NOTE:
NIRAV MODI UNDER
INVESTIGATION FOR BANK FRAUD
INDIAN AUTHORITY PROBES BILLIONAIRE JEWELER’S
DEALINGS WITH PUNJAB NATIONAL BANK, REPORTS SAY.
FEB
11, 2018 10:53 AM BY RAPAPORT NEWS
RAPAPORT...
India’s Central Bureau of Investigation (CBI) has launched a
probe into billionaire jeweler Nirav Modi over allegations he defrauded a state
bank of $44 million, Reuters reported.
The Punjab
National Bank complained to the CBI that Modi and others had conspired with
bank officials for financial gain, the report said last week. Earlier this
month, the CBI raided Modi’s home, as well as 21 locations linked to his
companies and those of others accused in the case, the news organization cited
a spokesperson for the bureau as saying.
The
fact that the CBI is investigating and has registered the complaint does not
mean the case will ever go to trial, the report noted, adding that the inquiry
was in its early stages.
Modi’s
diamond-retail firm, Firestar International Limited, “has no affiliation, legal
or otherwise” with the case, the company said in a statement. The CBI did not
name Firestar in its accusations, Reuters said.
A
spokespeople for Modi did not immediately respond to Rapaport News’
request for comment.
NOTE
Not ‘Crawford
Market’.
Company
name and address
FIRESTAR
DIAMOND LIMITED
ADDRESS: Room
21 - 23, 2/F., New Henry House, 10 Ice House Street, Central, Hong Kong.
(Formerly
located at:
Room
1603-1604, 16/F., Crawford House, 70 Queen’s Road Central, Hong Kong.)
PHONE: 852-2530
3677
FAX: 852-2530
9877
E-MAIL: ananavati@firestardiamond.com
MANAGEMENT
Managing Director:
Mr. Bankim Madhu Mehta
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.
ADDRESS
Registered Head
Office:-
Room 21 - 23, 2/F., New Henry House, 10 Ice House Street,
Central, Hong Kong.
(Formerly located at:
Room 1603-1604, 16/F., Crawford House, 70 Queen’s Road
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.
Bankim Madhu Mehta
Chief Executive Officer:
Mr. Aditya Nanavati
ISSUED
SHARE CAPITAL
HK$194,800,000.00
SHAREHOLDER
(As per registry dated 09-09-2017)
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Name |
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No. of shares |
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Firestar Holdings Ltd., Hong Kong. |
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194,800,000 ========= |
DIRECTOR
(As per registry dated 09-09-2017)
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Name (Nationality) |
Address |
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Bankim Madhu MEHTA |
Apartment 11K, 100 Hepburn Road, Clifton, New Jersey,
07012-2209, U.S. |
SECRETARY
(As per registry dated 09-09-2017)
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Name |
Address |
Co. No. |
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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, etc.
Markets: Europe,
North America, Central & South America, South Africa, etc.
Terms/Sales: CAD, L/C, T/T, etc.
Terms/Buying: L/C, T/T, D/P, O/A, etc.
MENBERSHIP
The Hong Kong General Chamber of Commerce,
Hong Kong.
[Membership No. HKF0421]
FINANCIAL
INFORMATION
Issued Share Capital: HK$194,800,000.00
Mortgage or Charge: (See
attachment)
Profit or Loss: Made
small profits in past years.
Condition: Business
is steady.
Facilities: Making
rather active use of general banking facilities.
Payment: Met trade commitments as
contracted.
Commercial Morality:
Good.
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: Very Good.
GENERAL
Having issued 194.8 million
ordinary shares of HK$1.00 each, Firestar Diamond Limited 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 director of the
subject is Mr. Bankim Madhu Mehta who was appointed on 9th September,
2017. Being an India passport holder, he
is the only director of the subject. The
old director of the subject Mr. Himanshu Pravinchandra Trivedi has resigned.
The subject moved to
the present address in July 2015.
The subject is a
member of the Firestar Diamond Group of companies and 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, India, it has
offices in Antwerp, Dubai, Johannesburg, New York, Surat and Yerevan.
The subject has an
exclusive range of white and fancy coloured diamonds that includes rare
diamonds. Sizes of the diamonds start at
3 carats and up to over 20 carats.
The subject is also the sole distributor in India for ‘Argyle Pink
Diamonds’.
The main products of
the subject are as follows:-
· Fancy Coloured Diamonds
· Argyle Pink Diamonds
· Pink Diamonds
· Colourless Diamonds
· GIA / White Diamonds
· Fancy Diamonds, etc.
Currently, Firestar
has over 1,300 employees in its manufacturing plants.
The company’s
intellectual property (IP) library includes several hundred copyrights, 75
registered trademarks, and 10 mechanical patents. One of its significant trademarks is Firestar.
The subject’s
products are marketed in Hong Kong, China and exported to Taiwan, the other
Asian countries, the Middle East, Europe, North America, Africa, Central &
South America, etc. Overall business is
satisfactory.
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.
Another significant
company of the Group is Firestar Diamond BVBA which is in Antwerp, Belgium.
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 took part in “HKTDC Hong
Kong International Diamond, Gem & Pearl Show 2017” which had been held in
Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 28th February
to 4th March, 2017.
The subject will take
part in the same show in 2018.
It also takes part in
Jewelry & Watch Show which is held in Las Vegas, the United States, and
Taiwan Jewelry & Gem Fair which is held in Taipei World Trade Centre of
Taiwan, etc.
The history of the
subject in Hong Kong is over eight years and three months.
On the whole, the
subject is considered good for normal business engagements.
REMARKS
Brief personal
profile of the CEO:-
Mr.
Aditya NANAVATI, is the
CEO of the subject. Aditya plays a pivotal
role in leading sales of polished products and managing Firestar’s operations
in Hong Kong, China, and the Asia Pacific region. Prior to joining Firestar, Aditya had 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
Master’s degree in Science in Finance and Economics and a Bachelor’s degree in
Science in Accounting and Finance from the London School of Economics. He is
also a GIA Diamond Graduate. He is experienced in the line of business.
MORTGAGE
OR CHARGE
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Date |
Particulars |
Amount |
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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 revenues and claims d) By way
of first fixed charge, all present and future contracts or policies 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 |
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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 |
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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 |
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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 |
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.28 |
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|
1 |
INR 89.02 |
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Euro |
1 |
INR 78.93 |
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HKD |
1 |
INR 8.20 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.