MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Name :	TRANS EXIM LTD.
Formerly Known as :	J.S.M. Impex Ltd
Registered Office :	c/o Day Business Centre Ltd. Suite 2203, 22/F., Office Tower, Langham Place, 8 Argyle Street, Mongkok, Kowloon
Country :	Hong Kong
Date of Incorporation :	16.09.1993
Com. Reg. No.:	17391800
Legal Form :	Private Limited Company
Line of Business :	· Engaged as trader of Diamond, Jewellery and Precious Stone · Importer of Polished, cut and Loose Diamonds
No of Employees :	06 (Including affiliates)

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small company
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

COMPANY NAME & ADDRESS

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

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: 6. (Including affiliates)

Main Dealing Banker: The Royal Bank of Scotland N.V., Hong Kong Branch.

Banking Relation: Satisfactory.

company ADDRESS

Registered Office:-

c/o Day Business Centre Ltd.

Suite 2203, 22/F., Office Tower, Langham Place, 8 Argyle Street, Mongkok, 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. [Receiver Appointed]

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.

BUSINESS REGISTRATION NUMBER

17391800

COMPANY FILE NUMBER

0449526

MANAGEMENT

Managing Director: Mr. Arvind Kashinath Jadhav
Mobile Phone No.: 852-6407 1804

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 16-09-2013)

Name		No. of shares
Arvind Kashinath JADHAV		600,000
Zenit Chetan Kumar SHAH		400,000
		––––––––
	Total:	1,000,000 =======

DIRECTORS: (As per registry dated 16-09-2013)

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.

SECRETARY: (As per registry dated 16-09-2013)

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.

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.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of diamonds, jewellery products & precious stones.

Employees: 6. (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 trade commitments as contracted.

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. Arvind Kashinath Jadhav, holding 60% interests; and Mr. Zenit Chetan Kumar Shah [Z C K Shah], holding 40%. Both are India merchants and also directors of the subject.

Mr. Arvind Kashinath Jadhav was appointed director of the subject in September 2010. He is a Hong Kong ID holder and is currently residing in Hong Kong. He can be reached at his Hong Kong mobile phone number

852-6407 1804.

Most of the time, Z C K 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 merchants.

Under the Digico Group, another firm Diminco is also located at the same operating office. One of the Managers Mr. Diminco Nimish Shah is a family member of Z C K Shah.

The subject’s registered address is in a business centre known as Day Business Centre Ltd. located at Room 2203, 22/F., Office Tower, Langham Place, 8 Argyle Street, Mongkok, Kowloon, Hong Kong.

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

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 Z C K 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 a number of regular suppliers and customers for a long time. It has had associated companies in India.

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 twenty years and ten months.

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

REMARK

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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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 30^th 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.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.