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Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
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Name : |
TRANS EXIM LTD. |
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Registered Office : |
c/o Diamart Ltd., Room 1724A, 17/F., Star House, |
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Country : |
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Date of Incorporation : |
16.09.1993 |
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Com. Reg. No.: |
17391800 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTER
AND EXPORTER OF ALL KINDS OF DIAMONDS, JEWELLERY PRODUCTS, PRECIOUS STONES,
ETC. |
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No. of Employees : |
8 |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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'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, it again faces a possible slowdown as exports to the
Euro zone and US slump. 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 7.8% of total system deposits in Hong
Kong by the end of 2011, an increase of over 59% since the beginning of the
year. 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 exports 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 28 million in 2011, 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 2011
mainland Chinese companies constituted about 43% of the firms listed on the
Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to
5% in 2011. Credit expansion and tight housing supply conditions caused Hong
Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in
2011. 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.
Source
: CIA
TRANS EXIM LTD.
c/o Diamart Ltd.
Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon,
Hong Kong.
PHONE: 2877 3191
FAX: 2801 4925
E-MAIL: nishit@diamart.diminco.com
Managing Director: Mr. Arvind
Kashinath Jadhav
Incorporated on: 16th September, 1993.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Jewellery
Trader.
Employees: 8. (Including associates)
Main Dealing Banker: The Royal
Bank of Scotland N.V., Hong Kong Branch.
Banking Relation: Satisfactory.
TRANS EXIM LTD.
Registered
Office:-
c/o Diamart Ltd.
Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon,
Hong Kong.
Associated/Affiliated
Companies:-
4C’s Diamonds Distributors, Hong Kong.
(Same address)
C’est Bien KK, Japan.
Diamart Ltd., Hong Kong. (Same
address)
Digico Holdings Ltd., Hong Kong.
(Same address)
Diminco (Japan) KK, Japan.
Diminco (Pacific) Manufacturing Co. Ltd., China.
Diminco Diamond (Shanghai) Co. Ltd., China.
Diminco Diamond Manufacturing Namibia (Pty) Ltd., Namibia.
Diminco Inc., USA.
Diminco NV, Belgium.
Gemsiam Manufacturing Co. Ltd., Thailand.
Giantti Jewelry Trading Shanghai Co. Ltd., China.
Gitanijali Gems Ltd., India.
Jewel Source Japan KK, Japan.
Jewel Trade DMCC, U.A.E.
Mi Amor NV, Belgium.
Verite Co. Ltd., Japan.
etc.
17391800
0449526
Managing Director: Mr. Arvind
Kashinath Jadhav
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
(As per registry dated 16-09-2012)
|
Name |
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No. of shares |
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Arvind Kashinath JADHAV |
|
600,000 |
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Zenit Chetan Kumar SHAH |
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400,000 |
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–––––––– |
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Total: |
1,000,000 ======= |
(As per registry dated 16-09-2012)
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Name (Nationality) |
Address |
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Arvind Kashinath JADHAV |
Flat G, 6/F., Tower 23A, Laguna Verde, Hunghom, Kowloon, Hong Kong. |
|
Zenit Chetan Kumar SHAH |
2078, Bo-an Nan Road, Shengong Hao Yau, Hao Shan Ghe 13-C, Lohwu
District, Shenzhen 518008, China. |
(As per registry dated 16-09-2012)
|
Name |
Address |
Co. No. |
|
VMC Secretaries Ltd. |
Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui,
Kowloon, Hong Kong. |
0750831 |
The subject was incorporated on 16th September, 1993 as a private
limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of J.S.M. Impex
Ltd., name changed to the present style on 10th November, 1994.
The subject’s registered address formerly was located at Room 1724A,
17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong, moved to
the present address in June 2012.
However, its operating office is still located at its old registered
address.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer
and Exporter.
Lines: All
kinds of diamonds, jewellery products, precious stones, etc.
Employees: 8.
(Including affiliates)
Commodities Imported: Europe,
India, Southeast Asia, etc.
Markets: India,
Asian countries, Europe, etc.
Terms/Sales: L/C or as per contracted.
Terms/Buying: L/C, T/T, D/P, etc
Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of
HK$1.00 each)
Issued Share Capital: HK$1,000,000.00
Mortgage or
Charge:-
Date of Charge on All Deposits to secure
Obligations of
the Chargor: 24-10-1996
Amount: To secure all
moneys obligations and liabilities
Property: A deposit of
US$200,000
Mortgagee: ABN
AMRO Bank N.V., Hong Kong Branch.
[Now known as The Royal Bank of Scotland N.V.]
Profit or Loss: Making
a small profit in the past years.
Condition: Business
is active and steady.
Facilities: Making
active use of general banking facilities.
Payment: Met obligations as required.
Commercial Morality: Satisfactory.
Bankers: The Royal Bank of Scotland N.V., Hong Kong
Branch.
Standing: Normal.
Having issued 1 million ordinary shares of HK$1.00 each, Trans Exim Ltd.
is jointly owned by Mr. Arvind Kashinath Jadhav, holding 60% interests; and Mr.
Zenit Chetan Kumar Shah, holding 40%.
Being an Indian, Shah is one of the directors of the subject. The other director of the subject Mr. Arvind
Kashinath Jadhav was appointed in September 2010.
Most of the time, Shah, an India passport holder, is residing in
Shenzhen Special Economic Zone, China where he has had business concerns.
The subject is sharing the office with Diamart Ltd. [Diamart] which is a
Hong Kong-registered firm. Diamart
has got an associated firm Digico Holdings Ltd. [Digico] which is also a Hong
Kong-registered firm located at the same address. Diamart and Digico are also trading in
diamonds but owned by different Indian.
Digico was accorded with the DTC sight in the year 2000. The Digico Group is involved in rough
sourcing, manufacturing, trading, branding and retailing of diamonds and
diamond jewellery. Diamart Hong Kong is
a wholesaler / retailer especially involved in import and export of polished
diamonds, exporting the majority to the United States, China and Europe. It deals in diamonds below 50 point in
Rounds, Princess and Baguettes.
Digico is a vertically integrated global diamond house with a well balanced
operational and distribution system in place that maximizes efficiency. The Digico Group has highly modernized
diamond cutting and polishing facilities in India, Bangkok and Qingdao, China. The Group has sales and marketing offices
across Europe, South East Asia, the United States, Japan and the Middle
East. Its Indian subsidiary, Gitanjali
Gems Ltd., is today one of the largest diamond exporting public limited
companies in India. Digico has had
branch companies in the United States, Belgium, India, Namibia, the United Arab
Emirates, China, Thailand and Japan.
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 rest of the world. The list includes well‑know and well
established brands such as “Nakshatra”, “Gili”, “Asmi”, “Sangini”,
“D’Damas”, “Mi Amor” and “Giantti”. Currently, Digico Group is operating 27
retail outlets under the name “Giantti” across China.
Under the Digico Group, another firm Diminco is also located at the same
operating office. One of the Managers of
Diminco Nimish Shah seems to be a family member of Zenit Chetan Kumar Shah.
Besides, the subject has got another associated firm 4C’s Diamonds
Distributors located at the same operating address. 4C’s Diamonds Distributors is a partnership
jointly owned by Mr. Mayank Navnitlal Shan and Mr. Arvind Kashinath
Jadhav. The first is also an
Indian. This firm was established on
11th March, 1988.
The subject is a diamond, jewellery and precious stone trader. Polished, cut and loose diamonds are imported
from Europe, India, other Asian countries, etc.
It is also carrying the following semi-precious stones:
Aquamarine, pink amethyst, rubylite, green amethyst, blue topaz, lemon
topaz, citrine, smokey topaz, kunzite, peridot, morganite, pink tourmalines,
amethyst, pink topaz, garnet, rose quartz, etc.
The subject is one of the significant jewellery firms in Hong Kong that
imports cut and polished colour gemstones from India. In 2005, the subject got an award from The
Gem & Jewellery Export Promotion Council of India.
The subject has got an affiliated factory in Shenzhen Special Economic
Zone, China. Rough diamonds are
processed and cut in the China factory while finished products are exported to
Japan, some of the Asian countries and Europe.
The business in China is handled by Shah. Shah is responsible for acquiring products in
China while Jadhav is responsible for the subject’s business in Hong Kong. The subject and its affiliated or associated
companies acquire jewellery products from the same factory in China.
The business of the subject is rather steady. Regular suppliers and customers have been
maintained for a long time. The history
of the subject in Hong Kong is over nineteen years.
The operating office located at Room 1724 on 17/F., Star House, 3
Salisbury Road, Kowloon, Hong Kong is owned by Diamart Ltd.
On the whole, consider the subject good for normal business engagements.
Property information
of affiliate:-
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
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
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|
1 |
Rs.86.97 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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 |
|
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.