|
Report Date : |
28.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
4C'S
DIAMONDS DISTRIBUTORS |
|
|
|
|
Registered Office : |
c/o Diamart Ltd. Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon |
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|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
11.03.1988 |
|
|
|
|
Com. Reg. No.: |
11655488-000-03 |
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|
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Legal Form : |
Partnership Concern |
|
|
|
|
Line of Business : |
importer and wholesaler
of precious stones, polished, cut, rough, loose diamonds & jewellery
products |
|
|
|
|
No. of Employees : |
08 (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 |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 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 |
4C’S DIAMONDS
DISTRIBUTORS
c/o Diamart Ltd.
Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2877 3191, 2377 1635
FAX: 852-2801 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: 8. (Including associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered
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. Nilesh Ratilal Sedani
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.
Employees: 8. (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 small profit every year.
Condition: Keeping in a rather active condition.
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.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Normal.
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 also trades in diamond jewellery.
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 concern 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 concern 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 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 the United Arab Emirates.
The business of the subject is active. Making a small profit every year.
The subject is supported by its associated firms. It is a member of The Indian Chamber of Commerce Hong Kong, Hong Kong.
The contact persons of the subject are Mr. Nilesh Ratilal Sedani, Mr. Hitesh Mehta and Mr. Patwa Amit Kumar.
As the history of the subject in Hong Kong is over twenty-five years, 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 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-concern 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.60.10 |
|
UK Pound |
1 |
Rs.102.40 |
|
Euro |
1 |
Rs.81.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
NNA |
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.