MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	GEM EXPORTS LTD.

Registered Office :	Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	26.03.2010

Com. Reg. No.:	52002800

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, etc.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	New Company

Payment Behaviour :	Unknown

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

GEM EXPORTS LTD.

Company ADDRESS

Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2723 2690, 2739 8551

FAX: 2723 6246

E-MAIL: gemexpo@netvigator.com

MANAGEMENT

Managing Director: Mr. Ashok Mundra

SUMMARY

Incorporated on: 26th March, 2010.

Organization: Private Limited Company.

Capital: Nominal: HK$2,000,000.00

Issued: HK$2,000,000.00

Business Category: Diamond Trader.

Employees: 4. (Including associate)

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Too early to comment.

Company ADDRESS

Registered Head Office:-

Unit 27, 11/F., Block B, Focal Industrial Centre, 21 Man Lok Street, Hunghom, Kowloon, Hong Kong.

Associated Companies:- (Same address)

Gem Exports, Hong Kong.

Tirupati Diamonds, Hong Kong.

BUSINESS REGISTRATION NUMBER

52002800

COMPANY FILE NUMBER

1436043

MANAGEMENT

Managing Director: Mr. Ashok Mundra

CAPITAL

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

SHAREHOLDERS

(As per registry dated 26-03-2010)

Name		No. of shares
Ashok MUNDRA		1,600,000
Mukesh MUNDRA		400,000
		––––––––
	Total:	2,000,000 =======

DIRECTORS

(As per registry dated 26-03-2010)

Name

(Nationality)

Address

Ashok MUNDRA

Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

Mukesh MUNDRA

Unit C & D, 16/F., Tower 25, Laguna Verde Phiva, IVB, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 26-03-2010)

Name	Address	Co. No.
Top Honour Secretarial Services Ltd.	Room 1002, 10/F., Ginza Square, 565-567 Nathan Road, Kowloon, Hong Kong.	1312187

HISTORY

The subject was incorporated on 26th March, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of diamonds and jewellery products, etc.

Employees: 4. (Including associate)

Commodities Imported: India, Belgium, other European countries, etc.

Markets: Japan, other Asian countries, Europe, etc.

Terms/Sales: L/C, T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$2,000,000.00 (Divided into 2,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$2,000,000.00

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.

GENERAL

Having issued 2 million ordinary shares of HK$1.00 each, Gem Exports Ltd. is jointly owned by Mr. Ashok Mundra, holding 80% interests; and Ms. Mukesh Mundra, holding 20%. The two Mundras are Indian and each is holding a Hong Kong ID Card. The latter is an Indian businesswoman. They have got the right to reside in Hong Kong permanently. They are also directors of the subject.

Incorporated on 26th March, 2010, the subject has had a main associated company Tirupati Diamonds [Tirupati] located at the same operating office. Tirupati is a diamond trader, so does the subject.

Tirupati is a sole proprietorship set up and owned by Ms. Mukesh Mundra. Business commenced in October 1996, Tirupati is a diamond trader. It is trading in loose, cut and polished diamonds, precious stones, gem sets, semi-precious stones, blue or coloured sapphire, etc. Rough diamonds and loose diamonds are imported from India, Belgium, other European countries, etc. India is its main supplying country. Some of the rough diamonds are polished or processed in Hong Kong or China. Finished products and polished diamonds are marketed in Hong Kong, exported to Japan, Europe and other Asian countries.

The business of the subject and Tirupati are chiefly handled by the two Mundras.

Besides Tirupati, the subject has had another associate Gem Exports, this firm is also a diamond trader and controlled by the Mundras.

The subject’s business is just at its early stage.

Since the history of the subject is just over a year in Hong Kong, on the whole, consider it good for normal business engagements on secured basis.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

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

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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