|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
TRANS EXIM LTD. |
|
|
|
|
Registered Office : |
C/o Diamart Ltd. Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon |
|
|
|
|
Country : |
Hong Kong |
|
|
|
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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. |
|
|
|
|
No. of Employees : |
8. (Including affiliates) |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
levies excise duties on only four commodities, namely: hard alcohol, tobacco,
hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong
Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese
companies constituted about 46.6% of the firms listed on the Hong Kong Stock
Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply
conditions caused Hong Kong property prices to rise rapidly and inflation to
rise 4.1% in 2012. 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.
ADDRESS: c/o Diamart Ltd.
Room 1724A, 17/F.,
Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2877 3191
FAX: 852-2801 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.
Registered Office:-
c/o Day Business Centre Ltd.
Room 2203, 22/F., Office Tower Langham Place, 8 Argyle Street, Mong Kok,
Kowloon, Hong Kong.
Operating 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.
C’est Bien KK, Japan.
Diamart Ltd., Hong Kong.
Digico Holdings Ltd., Hong Kong.
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 |
|
No. of shares |
|
Arvind Kashinath JADHAV |
|
600,000 |
|
Zenit Chetan Kumar SHAH |
|
400,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As per registry dated 16-09-2012)
|
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 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.
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 contracted.
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 Mr. Arvind Kashinath
Jadhav was appointed in September 2010.
He is a Hong Kong ID holder and is currently residing in Hong Kong.
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 sourcing,
manufacturing, trading, branding and retailing of diamonds and diamond
jewellery. Diamart Hong Kong is a
wholesaler / retailer especially involved in importing and exporting of
polished diamonds. Prime markets are the
United States, China and Europe. It
mainly deals in diamonds below 50 point in Rounds, Princess, Baguettes and
small size H&A diamonds. Digico is
one of the few companies manufacturing top quality H&A rounds as small as
300/ct in significant quantities.
Digico is a vertically integrated global diamond house with a well
balanced operational and distribution system.
The Digico Group has modernized diamond cutting and polishing facilities
in India, Bangkok of Thailand and Qingdao of China. The Group has sales and marketing offices in
Europe, South East Asia, the United States, Japan and the Middle East. Its India subsidiary, Gitanjali Gems Ltd., is
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”.
Retail is an extension of Digico’s business. It is positioned in the Asian retail market. Its retail presence covers top 5 specialty
jewellery chain Vérité and department counter chain C’est Bien in Japan, both
mid-market retail brands with strong, local heritage of over 60 years. In Eastern China, Digico operates several
open space boutiques under the name Giantti.
Under the Digico Group, another firm Diminco is also located at the same
operating office. One of the Managers of
Diminco Nimish Shah is 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.
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. Business keeps on improving.
The subject has been able to maintain numerous regular suppliers and
customers for a long time.
The operating office located at Room 1724 on 17/F., Star House, 3
Salisbury Road, Kowloon, Hong Kong is owned by Diamart Ltd.
The history of the subject is about nineteen 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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
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.