|
Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
4C’S DIAMONDS DISTRIBUTORS |
|
|
|
|
Registered Office : |
C/o Diamart Ltd. Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
|
Date of Incorporation : |
11.03.1988. |
|
|
|
|
Com. Reg. No.: |
11655488-000-03 |
|
|
|
|
Legal Form : |
Partnership. |
|
|
|
|
Line of Business : |
Importer, Distributor and Wholesaler of all kinds of diamonds, jewellery and gemstones, etc. |
|
|
|
|
No. of Employees : |
12. (Including associates) |
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 : |
No Complaints |
|
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) |
|
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
4C’S DIAMONDS
DISTRIBUTORS
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
Manager: Mr. Arvind Kashinath
Jadhav
Establishment: 11th
March, 1988.
Organization: Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader and Distributor.
Employees:
12. (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.
Mailing Address:-
P.O. Box 96871, Tsim Sha Tsui Post Office, Kowloon, Hong Kong.
Associated/Affiliated Companies:-
*Diamart Ltd., Hong Kong.
*Digico Holdings Ltd., Hong Kong.
Gitanjali Gems Ltd., India.
*Trans Exim Ltd., Hong Kong.
(* same address)
11655488-000-03
Manager: Mr. Arvind Kashinath
Jadhav
Contact Person: Mr. Hitesh Mehta
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: 12. (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:
Good.
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 precious stones,
polished, cut and rough and loose
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, the 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.
Established in 2001, Digico Group is amongst the largest vertically
integrated diamond and jewellery companies in the world.
Digico is known for its leading position and manufacturing excellence in
small size H&A diamonds. It is one
of the very few companies manufacturing top quality H&A rounds as small as
300/ct in significant quantities.
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”.
Digico has had wholesaling and retailing activities in its core markets
Antwerp, China, Japan and Dubai.
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 about twenty-five years,
on the whole, consider it 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
-
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.54.48 |
|
|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.72.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.