MIRA INFORM REPORT
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Report Date : |
05.12.2011 |
IDENTIFICATION DETAILS
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Name : |
4C’S
DIAMONDS DISTRIBUTORS LTD. |
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Registered Office : |
c/o Diamart Ltd., Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
11.03.1988 |
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Com. Reg. No.: |
11655488-000-03 |
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Legal Form : |
Partnership Concern |
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Line of Business : |
Importer, Distributor and Wholesaler of all kinds of diamonds, jewellery and gemstones, etc. |
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No. of Employee: |
6. (Including affiliates) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Hong Kong |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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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 |
Company name
4C’S DIAMONDS DISTRIBUTORS
Company ADDRESS
c/o Diamart Ltd.
Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 2877 3191, 2377 1635
FAX: 2801 4925, 2801 4910
E-MAIL: jayesh@netvigator.com
MANAGEMENT
Manager: Mr. Arvind Kashinath Jadhav
SUMMARY
Establishment: 11th March, 1988.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader and Distributor.
Employees: 6. (Including affiliates)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
COMPANY ADDRESS
Head Office:-
c/o Diamart Ltd.
Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
P.O. Box 96871, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Affiliated
Companies:-
· Diamart Ltd., Hong Kong. (Same address)
· Digico Holdings Ltd., Hong Kong. (Same address)
· Gitanjali Gems Ltd., India.
· Trans Exim Ltd., Hong Kong. (Same address)
BUSINESS REGISTRATION NUMBER
11655488-000-03
MANAGEMENT
Manager: Mr. Arvind Kashinath Jadhav
PARTNERS
Name: Mr. Arvind Kashinath JADHAV
Residential Address: Flat G, 6/F., Tower 23A, Laguna Verde, Hunghom, Kowloon, Hong Kong.
Name: Mr. Mayank Navnitlal SHAH
Residential Address: 602
Posetdon Patio Buiilding, 2-2-11 Moto Asakusa, Taito-ku, Tokyo, Japan.
HISTORY
The
subject was established on 11th March, 1988 as a partnership concern jointly owned
by Mr. Chetan Chinubhai Choksi and Mr. Jayeshkumar Indravadan Shah under the
Hong Kong Business Registration Regulations.
The
following table shows the changes of the partners:-
|
Name |
Incoming Date |
Outgoing Date |
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Chetan Chinubhai CHOKSI |
11-03-1988 |
01-04-1997 |
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Jayeshkumar Indravadan SHAH |
11-03-1988 |
01-04-2000 |
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Nishit Dinesh MEHTA |
23-03-1993 |
15-11-2000 |
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Amit Haresh Kumar PATWA |
01-04-2000 |
25-08-2010 |
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Nilesh Ratilal SEDANI |
15-11-2000 |
15-11-2003 |
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Hitesh Laltibhai MEHTA |
15-11-2000 |
01-04-2011 |
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Arvind Kashinath JADHAV |
25-08-2010 |
- |
|
Mayank Navnitlal SHAH |
01-04-2011 |
- |
Initially
the subject was located at A-3, 9/F., Hankow Centre, 41-51 Peking Road, Tsimshatsui,
Kowloon, Hong Kong, moved to Room 1101, 11/F., Century Square, 1-13 D’Aguilar
Street, Central, Hong Kong in November 1993; to Room 1724, 17/F., Star House, 3
Salisbury Road, Tsimshatsui, Kowloon, Hong Kong in June 2000; to Flat G, 7/F.,
Kim Hing Mansion, 49‑51 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong in
February 2002; to Flat 5, 9/F., Kiu Fung Mansion, 18 Austin Avenue,
Tsimshatsui, Kowloon, Hong Kong in May 2003; and further moved to the present
address in April 2007.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
OPERATIONS
Activities: Importer, Distributor and Wholesaler.
Lines: All kinds of diamonds, jewellery and gemstones, etc.
Employees: 6. (Including affiliates)
Commodities Imported: India, Thailand, Belgium, other European countries, etc.
Markets: Hong Kong, other Asian countries, Europe, US, etc.
Terms/Sales: L/C, T/T or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc.
MEMBERSHIP
· Diamond Federation of Hong Kong, China Ltd., Hong Kong.
· The Indian Chamber of Commerce Hong Kong, Hong Kong.
FINANCIAL INFORMATION
Capital: Not disclosed.
Profit or Loss: Making a very small profit every year.
Condition: Keeping in a rather active condition.
Facilities: Making rather active use of general banking facilities.
Payment: Met trade commitments as contracted.
Commercial Morality: Satisfactory.
Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Standing: Small.
GENERAL
4C’s
Diamonds Distributors is a partnership jointly owned by Mr. Arvind Kashinath
Jadhav and Mr. Mayank Navnitlal Shah.
The latter joined in the subject on 1st April, 2011 while its old
partner Hitesh Laltibhai Mehta retired on the same date. Jadhav is a Hong Kong ID Card holder and has
got the right to reside in Hong Kong permanently.
At
the very beginning, the subject was jointly set up by Mr. Jayeshkumar
Indravadan Shah and Mr. Chetan Chinubhai Choksi. However, J. I. Shah retired from the subject
on 1st April, 2000 and set up another firm known as Harshdiam. Being also a diamond trader, Harshdiam was
set up on 29th September, 1993.
The
subject is sharing the operating office with the following Hong Kong-registered
firms:-
· Diamart Ltd.
· Digico Holdings Ltd.
· Trans Exim Ltd.
The
subject is engaged in importing and wholesaling polished, cut and rough
diamonds imported from India, Thailand and Belgium. Rough diamonds are cut and polished in Hong
Kong or China. Finished products are
exported to Japan, South Korea, Thailand, other Asian countries, Europe, etc.
The
subject has got an affiliated factory in Shenzhen Special Economic Zone, China
which is engaged in diamonds cutting, polishing, and jewellery manufacturing.
The
subject’s affiliated company Trans Exim Ltd. [Trans Exim] is also a diamond
trader. Having issued 1 million ordinary
shares of HK$1.00 each, Trans Exim is jointly owned by Mr. Amit Haresh Kumar
Patwa who is holding 60% interests, and Mr. Zenit Chetan Kumar Shah, holding
40%. Most of the time, Z. C. K. Shah, an
India passport holder, is residing in Shenzhen Special Economic Zone, China
administering the production in China.
Patwa was the old partner of the subject. In 2005, Trans Exim got an award from The Gem
& Jewellery Export Promotion Council of India.
The
subject’s another affiliated company Digico Holdings Ltd. [Digico] is also a
significant diamond trader. This firm
has had branch companies in the United States, Belgium, India, Namibia, the
United Arab Emirates, China, Thailand and Japan.
Digico
is a group of companies integrate diamond and jewellery manufacturers and
retailers in the world. The group has
had a strong presence at every level of the diamond business, right from
sourcing diamonds at competitive prices from DTC (Diamond Trading Company) as
sight holders to retailing its products through a vast network of self-owned
and franchised stores.
Digico
is the pioneer of branded jewellery in India and has several well established
brands in its arsenal to tap the continuously growing branded jewellery market
in India and the other countries of the world.
The followings are the well established brands: “Nakshatra”, “Gili”,
“Asmi”, “Sangini”, “D’Damas”, “Mi Amor”, “Giantti”,
etc.
Currently,
Digico Group is operating about 27 retail outlets under the name “Giantti”
in China. Business keeps on improving.
Digico
also has had a strong retail presence in India and some other countries
offering an extraordinary shopping experience through its retail stores of
“Samuels”, “Rogers” and “Verite”.
The
business of the subject is rather active.
Making a small profit every year.
The
subject is supported by its affiliated and associated firms.
As
the history of the subject in Hong Kong is over twenty-three years and four months,
on the whole, consider it good for normal business engagements.
REMARKS:
Court Cases: None per our.
Property
information of affliate:-
Property Location: Room 1724 on 17/F., Star House, 3 Salisbury Road, Kowloon, Hong Kong.
Owner: Diamart Ltd.
Date of Purchase: n.a.
Purchased Price: n.a.
Incumbrances:-
|
Date of Mortgage |
Amount
Consideration |
Mortgagee |
Nature |
|
04-03-2005 |
- |
Belgian Bank, Hong Kong Branch.
[Business was taken over by Industrial & Commercial Bank of China (Asia)
Ltd.] |
Mortgage to secure general banking facilities |
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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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis the Indian diamond industry
has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a
dozen diamond firms in Surat. Until about two months ago, they had not
repaid these dues. Bankers believe many diamantaires borrowed money
during the economic downturn two years ago and diverted funds to businesses
like real estate and capital markets. Many of themselves made money from these
businesses but their diamond companies have gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.51.35 |
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UK Pound |
1 |
Rs.80.50 |
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Euro |
1 |
Rs.69.14 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.