|
Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
VAMA EXIM LTD. |
|
|
|
|
Registered Office : |
Room 1711, 17/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui,
Kowloon |
|
|
|
|
Country : |
Hong Kong |
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|
|
|
Date of Incorporation : |
09.01.2013 |
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|
|
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Com. Reg. No.: |
60854401 |
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|
|
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Legal Form : |
Private Limited Liability Company |
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|
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds |
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|
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No. of Employees |
1 |
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 : |
Business is Under Development |
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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 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 |
VAMA
EXIM LTD.
ADDRESS:
Room 1711, 17/F.,
Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong
Kong.
PHONE: 852-2369 8444
FAX: 852-2366 9144
E-MAIL: urjenish2000@yahoo.co.in
General
Manager: Mr. Jenish Hasmukhkumar Shah
Incorporated on: 9th January, 2013.
Organization: Private Limited Company.
Capital: Nominal: HK$1,000,000.00
Issued: HK$1,000,000.00
Business Category: Diamond Trader.
Employee: 1.
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
VAMA
EXIM LTD.
ADDRESS:
Registered
Head Office:-
Room 1711, 17/F.,
Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui, Kowloon, Hong
Kong.
Associated
Companies:-
Ayu Diam (H.K.)
Co. Ltd., Hong Kong. (Same address)
Ayu Diam
(Shanghai) Ltd., China.
H And H Jew., Hong
Kong.
60854401
1849436
General
Manager: Mr. Jenish Hasmukhkumar Shah (Mobile: 852-6739 7144)
Contact
Person: Mr.
Syed Ahmed Saajid (Mobile: 852-9674 4786)
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 09-01-2014)
|
Name |
|
No.
of shares |
|
Ketan
Jayantilal SHAH |
|
500,000 |
|
Vraj Ketan SHAH |
|
500,000 |
|
|
|
–––––––– |
|
|
Total: |
1,000,000 ======= |
(As
per registry dated 09-01-2014)
|
Name (Nationality) |
Address |
|
Vraj Ketan SHAH |
2/13 Jaliwala Building, 2/F., Flat No. 2,
Banganga Road, Walkeshwar, Malbar Hill, Mumbai 400006, India. |
|
Ketan Jayantilal
SHAH |
Jaliwala Building, Walkeshwar Road, Mumbai
400006, India. |
(As
per registry dated 09-01-2014)
|
Name |
Address |
Co.
No. |
|
Lodestar
Secretaries Ltd. |
13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong
Kong. |
0113023 |
The
subject was incorporated on 9th January, 2013 as a private limited liability
company under the Hong Kong Companies Ordinance.
Formerly
the subject was located at Room A, 2/F., South Sea Mansion, 81 Chatham
Road, Tsimshatsui, Kowloon, Hong Kong, moved to the present address in March
2013 and backed to the old office in late 2013.
Apart
from these, neither material change nor amendment has been ever traced and
noted.
Activities: Importer, Exporter and Wholesaler.
Lines: All kinds of diamonds.
Employee: 1.
Commodities Imported: India, other Asian countries, Belgium, Israel, other European countries, etc.
Markets: Hong Kong, Japan (main), India, other Asian countries, etc.
Terms/Sales: L/C, T/T, etc.
Terms/Buying: L/C, Advanced 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
Profit or Loss: Too early to offer an opinion.
Condition: Business is under development.
Facilities: Making fairly active use of general banking facilities.
Payment: Met trade commitments as required.
Commercial Morality: Satisfactory.
Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Standing: Small.
Having
issued 1 million ordinary shares of HK$1.00 each, Vama Exim Ltd. is equally
owned by Mr. Ketan Jayantilal Shah [K. J. Shah] and Mr. Vraj Ketan Shah [V. K.
Shah]. Being India passport holders, the
two shareholders are also directors of the subject. Both of them currently are residing in
Mumbai, India. Both of the Shahs belong
to the Shah family.
The
subject has moved back to the present address in late 2013.
The
General Manager of the subject Mr. Jenish Hasmukhkumar Shah [J. H. Shah]
can be reached at his Hong Kong mobile phone number 852‑6739 7144 in case
he is in Hong Kong. He is also a member
of the Shah family. However, he seems
not in Hong Kong now.
We
can reach Mr. Syed Ahmed Saajid at your given Hong Kong mobile phone number
852-9674 4786. He reported us that K. J.
Shah and V. K. Shah had been his friends.
He is handling the subject’s business in Hong Kong located at the
above-mentioned address.
The
subject is a diamond importer, exporter and wholesaler. Cut and polished diamonds are imported from
India, other Asian countries, Belgium, Israel, other European countries,
etc. It is trading in loose diamonds
like marquise, pears, tappers, buggets and rose cut diamonds range from 0.05
cts to 0.60 cts. Finished products and
polished diamonds are marketed in Hong Kong, exported or re-exported to
Japan, India and other Asian countries.
China, Japan seems to be the major markets.
It
is likely that the subject has got an associated company in India which is also
operated by K. J. Shah and V. K. Shah. The firm in India is also engaged in diamonds
wholesaling and distributing.
The
subject’s business is handled by J. H. Shah in Hong Kong. Being a one‑man company, the subject
has no other employees in Hong Kong.
Besides
the subject, another firm known as Ayu Diam (H.K.) Co. Ltd. [Ayu Diam] is
located at the same address.
Having
issued 7.8 million ordinary shares of HK$1.00 each, Ayu Diam is chiefly owned
by J. H. Shah while the minor shareholder is Mr. Nilesh Vinoobhai
Shah.
Ayu
Diam has had an associated company in Shanghai, China known as Ayu Diam
(Shanghai) Ltd. which is a member of Shanghai Diamond Exchange. The subject’s products are also marketed in
China via this firm.
The
history of the subject in Hong Kong is just over a year. Business is still under development.
On
the whole, since the history of the subject is short, consider it good for
normal business engagements on L/C basis.
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.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PDT |
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.