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Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
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Name : |
VAMA EXIM LTD. |
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Registered Office : |
Room 1711, 17/F., Rise Commercial Building, 5-11 Granville Circuit, Tsimshatsui,
Kowloon |
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Country : |
Hong Kong |
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Date of Incorporation : |
09.01.2013 |
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Com. Reg. No.: |
60854401 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of diamonds |
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No. of Employees |
01 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 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 Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
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,
Markets: Hong Kong, Japan (main), India, other Asian countries
Terms/Sales: L/C, T/T
Terms/Buying: L/C, Advanced T/T, D/P
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
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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.
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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.
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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.
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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.
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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.
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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.
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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.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.