MIRA INFORM REPORT

 

 

Report Date :

19.11.2012

 

IDENTIFICATION DETAILS

 

Name :

TRANS  EXIM  LTD.

 

 

Formerly Known As :

J.S.M. Impex Ltd.

 

 

Registered Office :

c/o Diamart Ltd.

Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

16.09.1993

 

 

Com. Reg. No.:

17391800

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Importer and Exporter of all kinds of diamonds, jewellery products, precious stones, etc.

 

 

No. of Employees :

8

 

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 :

Usually correct

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

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong

A2

A2

 

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'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

 

Company name

 

TRANS  EXIM  LTD.

 

 

Company ADDRESS

 

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

 

Important Note:

The correct style of your should be

 

Room 2203, 22/F., Office Tower Langham Place,

8 Argyle Street, Mong Kok, Kowloon, Hong Kong

 

This is the operating address of a commercial service provider Day Business Centre Ltd. (DBCL). Your given phone and fax number 6407 1804 and 6346 4680 belong to this firm. Trans Exim Ltd. is one of the clients of DBCL. Trans Exim Ltd. moved its registered address to the address of DBCL in June 2012.

 

 

MANAGEMENT

 

Managing Director:  Mr. Arvind Kashinath Jadhav

 

 

SUMMARY

 

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.


Company ADDRESS

 

Registered Head 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)

Diamart Ltd., Hong Kong.  (Same address)

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

Gitanijali Gems Ltd., India.

Gitanjali Exports Corporation Ltd., India.

 

 

BUSINESS REGISTRATION NUMBER

 

17391800

 

 

COMPANY FILE NUMBER 

 

0449526

 

 

MANAGEMENT

 

Managing Director:  Mr. Arvind Kashinath Jadhav

 

 

CAPITAL

 

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

 

 


SHAREHOLDERS

 

(As per registry dated 16-09-2011)

 

Name

 

No. of shares

Arvind Kashinath JADHAV

 

600,000

Zenit Chetan Kumar SHAH

 

400,000

 

 

––––––––

 

Total:

1,000,000

=======

 

 

DIRECTORS

 

(As per registry dated 16-09-2011)

 

Name

(Nationality)

 

Address

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, China 518008.

 

 

SECRETARY

 

(As per registry dated 16-09-2011)

Name

Address

Co. No.

VMC Secretaries Ltd.

Room 1617-1618, 16/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.

0750831

 

 

HISTORY

 

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.

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

 

OPERATIONS

 

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.

 

 

FINANCIAL INFORMATION

 

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.

 

 

 

GENERAL

 

Having issued 1 million ordinary shares of HK$1.00 each, Trans Exim Ltd. is jointly owned by Mr. Amit Haresh Kumar Patwa, 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.

Patwa has been in Hong Kong for a very long time.  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.  The contact person of Diamart is also Patwa.

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.

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. Hitesh Laltibhai Mehta 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.  Rough diamonds, polished, cut and loose diamonds are imported from Europe, India, Southeast Asia, etc.  It is 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 in the China factory while finished products are exported to Japan, some Asian countries and Europe.  The business in China is handled by Shah.  Shah is responsible for acquiring products in China while Patwa 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 eighteen years and seven months.

On the whole, consider it good for normal business engagements.

 

 

REMARKS

 

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

 

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.

-          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.54.99

UK Pound

1

Rs.87.21

Euro

1

Rs.70.22

 

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

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.