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Report Date : |
01.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
4C'S
DIAMONDS DISTRIBUTORS |
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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 Company |
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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 Employees : |
15. (Including
associates) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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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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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 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Hong Kong |
A2 |
A2 |
|
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 |
4C’S DIAMONDS DISTRIBUTORS
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
Manager: Mr. Arvind Kashinath Jadhav
Establishment: 11th March, 1988.
Organization: Partnership.
Capital: Not disclosed.
Business Category: Diamond Trader and Distributor.
Employees: 15. (Including associates)
Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
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)
11655488-000-03
Manager: Mr. Arvind Kashinath Jadhav
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 Building, 2-2-11 Moto Asakusa, Taito-ku, Tokyo, Japan.
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 |
|
Chetan Chinubhai CHOKSI |
11-03-1988 |
01-04-1997 |
|
Jayeshkumar Indravadan SHAH |
11-03-1988 |
01-04-2000 |
|
Nishit Dinesh MEHTA |
23-03-1993 |
15-11-2000 |
|
Amit Haresh Kumar PATWA |
01-04-2000 |
25-08-2010 |
|
Nilesh Ratilal SEDANI |
15-11-2000 |
15-11-2003 |
|
Hitesh Laltibhai MEHTA |
15-11-2000 |
01-04-2011 |
|
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.
Activities: Importer, Distributor and Wholesaler.
Lines: All kinds of diamonds, jewellery and gemstones, etc.
Employees: 15. (Including associates)
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.
· Diamond Federation of Hong Kong, China Ltd., Hong Kong.
The
Indian Chamber of Commerce Hong Kong, Hong Kong.
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: Normal.
4C’s Diamonds Distributors is a partnership jointly owned by Mr. Arvind Kashinath Jadhav and Mr. Mayank Navnitlal Shah, both of whom are Indian. 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 Arvind Kashinath Jadhav 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. Jadhav is the Managing Director of Trans Exim.
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 is rather active.
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 active. Making a small profit every year.
The subject is supported by its associated firms.
As the history of the subject in Hong Kong is over twenty-four years and four months, on the whole, consider it good for normal business engagements.
REMARKS:
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.
-
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.81 |
|
UK Pound |
1 |
Rs.87.67 |
|
Euro |
1 |
Rs.68.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
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 |
|
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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.