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Report No. : |
341572 |
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Report Date : |
23.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
4C’S DIAMONDS DISTRIBUTORS |
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Registered Office : |
Room 1523A, 15/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 |
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Com. Reg. No.: |
11655488-000-03 |
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Legal Form : |
Partnership |
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Line of Business : |
Importer,
Distributor and Wholesaler of All kinds of diamonds, jewellery and gemstones |
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No. of Employees : |
7. (Including
associates) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
4C’S DIAMONDS
DISTRIBUTORS
ADDRESS: Room 1523A, 15/F., Star House, 3
Salisbury Road, Tsimshatsui, Kowloon, Hong Kong.
PHONE: 852-2877 3191
FAX: 852-2801 4925
E-MAIL: jayesh@netvigator.com
MANAGEMENT:
Manager:
Mr. Arvind Kashinath Jadhav
Establishment: 11th
March, 1988.
Organization:
Partnership.
Capital:
Not
disclosed.
Business Category: Diamond Trader and Distributor.
Employees:
7. (Including
associates)
Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Satisfactory.
Registered Office:-
c/o Diamart Ltd.
Room 1523A, 15/F., Star House, 3 Salisbury
Road, Tsimshatsui, Kowloon, Hong Kong.
Mailing Address:-
P.O. Box 96871, Tsim Sha Tsui Post Office,
Kowloon, Hong Kong.
11655488-000-03
Manager:
Mr. Arvind Kashinath Jadhav
(Hong Kong Mobile Phone Number: 852-6407 1804)
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; to Room 1724A, 17/F., Star House, 3 Salisbury Road, Tsimshatsui,
Kowloon, Hong Kong in April 2007 and further moved to the present address in
May 2015.
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: 7. (Including associates)
Commodities Imported: India, Thailand, Belgium, other European countries
Markets: Hong
Kong, other Asian countries, Europe, US.
Terms/Sales: CAD,
L/C, T/T or as per contracted.
Terms/Buying:
L/C, T/T, D/P.
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 an active manner.
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 engaged in importing and
wholesaling precious stones, polished, cut and rough and loose diamonds
imported from India, Thailand and Belgium.
Finished products are marketed in Hong Kong, China and exported to
Japan, South Korea, Thailand, the other Asian countries, Europe. 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 business of the subject is active. Making a small profit every year.
The subject is a member of The Indian Chamber
of Commerce Hong Kong, Hong Kong.
The business of the subject is chiefly
handled by Mr. Arvind Kashinath Jadhav who can be reached at his Hong Kong
mobile phone number
852-6407 1804.
As the history of the subject in Hong Kong is
over twenty-seven years and six months, on the whole, consider it good for
normal business engagements.
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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.
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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.65.63 |
|
UK Pound |
1 |
Rs.101.73 |
|
Euro |
1 |
Rs.73.26 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
TRU |
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.