MIRA INFORM REPORT

Report Date :

21.12.2011

IDENTIFICATION DETAILS

Name :	EVER GOLD (HK) LTD.
Registered Office :	5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	24.09.1999
Com. Reg. No.:	30487422
Legal Form :	Private Limited Company
LINE OF BUSINESS :	IMPORTER, EXPORTER AND WHOLESALER OF ALL KINDS OF DIAMONDS AND JEWELLERY PRODUCTS, EMERALD, PRECIOUS STONES, ETC.
No. of Employees :	50. (Including affiliates and retail shops)

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
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Hong Kong	A2	A2

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

Company name and address

EVER GOLD (HK) LTD.

ADDRESS: 5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2368 5589

FAX: 2368 9116

E-MAIL: dipan@inter-gemshk.com

MANAGEMENT

Managing Director: Mr. Dipan Jagdish Patel

SUMMARY

Incorporated on: 24th September, 1999.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000.00

Issued: HK$10,000.00

Business Category: Jewellery Trader.

Employees: 50. (Including affiliates and retail shops)

Main Dealing Banker: Hang Seng Bank Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

Retail Shops:-

Daily Jewellery Ltd.

Shop 179, 1/F., Grand Century Place, Mongkok, Kowloon, Hong Kong. [Tel: 2628 3555]

Shop 269, Level 2, Metropolis Plaza, Sheung Shui, New Territories, Hong Kong. [Tel: 2670 6737]

Shop 5B, Level 3, Shatin Plaza, Shatin, New Territories, Hong Kong.

G/F., Wing On Department Store, 211 Des Voeux Road Central, Hong Kong. [Tel: 2854 0682]

Joliesse

G/F., Wing On Department Store, 211 Des Voeux Road Central, Hong Kong. [Tel: 2854 0682]

Shop 269, Level 2, Metropolis Plaza, Sheung Shui, New Territories, Hong Kong. [Tel: 2670 6737]

Shop 5B, Level 3, Shatin Plaza, Shatin, New Territories, Hong Kong.

Shop 179, 1/F., Grand Century Place, Mongkok, Kowloon, Hong Kong. [Tel: 2628 3555]

Shop G8, G/F., Citimall, 1 Kau Yuk Road, Yuen Long, New Territories, Hong Kong. [Tel: 2470 1286]

Shop G12A, G/F., Hollywood Plaza, 610 Nathan Road, Mongkok, Kowloon, Hong Kong. [Tel: 3690 2868]

Shop 207, Level 2, Landmark North, 39 Lung Avenue, Sheung Shui, New Territories, Hong Kong. [Tel:2671 0055]

Shop 10C, G/F., Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.

Shop 1, MTR Floor, i-Square, 63 Nathan Road, Tsimshatsui, Kowloon, Hong Kong. [Tel: 2312 0611]

Affiliated Companies:-

Shrenuj Group of Companies

Alija International Pty. Ltd., Australia.

Arisia Jewellery Pvt. Ltd., India.

Astral Holding Inc., USA.

Astral Jewels Inc., USA.

Astral USA Inc., USA.

Bernie’s International LLC, USA.

C & A Dimonds International LLC, USA.

Copem & Shrenuj, Italy.

Daily Jewellery Ltd., Hong Kong. [Trading as Joeliesse] (Same address)

Facet (Hong Kong) Ltd., Hong Kong. (Same address)

Global Marine Diamond Corporation, USA.

Inter-Gems (H.K.) Ltd., Hong Kong. (Same address)

Ithemba Diamonds (Pty) Ltd., South Africa.

Jomard SAS, France.

Kiara Jewellery (H.K.) Ltd., Hong Kong. (Same address)

Kiara Jewellery Pvt. Ltd., India.

Lume Germany GmbH, Germany.

Lume Group AG, Switzerland.

Shrenuj & Co. Ltd., India.

Shrenuj (Mauritius) Pvt. Ltd., Mauritius.

Shrenuj (Shanghai) Diamond Co. Ltd., China.

Shrenuj Australia Pty. Ltd., Australia.

Shrenuj Botswana Pty. Ltd., Botswana.

Shrenuj Diajewels Ltd., India.

Shrenuj DMCC, UAE.

Shrenuj Gems & Jewellery Ltd., India.

Shrenuj GmbH, Germany.

Shrenuj Japan Corporation, Japan.

Shrenuj Jewelry (Far East) Ltd., Hong Kong.

Shrenuj Lifestyle Ltd., India.

Shrenuj N.V., Belgium.

Shrenuj Overseas Ltd., India.

Shrenuj South Africa Pty. Ltd., South Africa.

Shrenuj USA LLC, USA.

Simon Golub & Sons Inc., USA.

SWA Trading Ltd., Israel.

Trapz LLC, USA.

Uxolo Diamond Cutting Works (Pty) Ltd., South Africa.

etc.

BUSINESS REGISTRATION NUMBER

30487422

COMPANY FILE NUMBER

0689439

MANAGEMENT

Managing Director: Mr. Dipan Jagdish Patel

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each

Issued Share Capital: HK$10,000.00

SHAREHOLDERS

(As per registry dated 24-09-2011)

Name		No. of shares
Dipan Jagdish PATEL		5,000
Anita PATEL		5,000
		––––––
	Total:	10,000 =====

DIRECTORS

(As per registry dated 24-09-2011)

Name (Nationality)	Address
Dipan Jagdish PATEL	5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.
Anita PATEL	5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

SECRETARY

Dipan Jagdish PATEL (As per registry dated 24-09-2011)

HISTORY

The subject was incorporated on 24th September, 1999 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, emerald, precious stones, etc.

Employees: 50. (Including affiliates and retail shops)

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

Markets: Japan, other Asian countries, etc.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met as required.

Commercial Morality: Satisfactory.

Bankers:-

Hang Seng Bank Ltd., Hong Kong.

ICICI Bank Ltd., Hong Kong Branch.

Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Ever Gold (HK) Ltd. is equally owned by Dipan Jagdish Patel and Ms. Anita Patel. They are also directors of the subject. Being Indian merchants, they are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently.

The subject has got two affiliated companies Inter-Gems (H.K.) Ltd. [Inter‑Gems] and Facet (Hong Kong) Ltd. [Facet] located at its operating address.

The subject, Facet and Inter-Gems are engaged in the same lines of business. All these firms are owned by the Patel family.

The Patel family is also operating “Joliesse”, a business name of Daily Jewellery Ltd. [Daily Jewellery] which was incorporated in Hong Kong on 10th September, 2003. Currently there are nine retailing shops bearing the name of “Joliesse” operated by Daily Jewellery.

Daily Jewellery was first founded as a jewellery school in 1980. The total number of graduates to-date is about 10,000. Many of them are now working in senior positions in different prestigious jewellery companies in the region. Daily Jewellery then diversified into jewellery manufacturing business in 1982. Following the success of the operation, Daily Jewellery was engaged in the retail market in 1994. Currently, Daily Jewellery has 4 outlets in Hong Kong bearing its name.

Incorporated on 15th October, 1997, Inter-Gems is a subsidiary company of Shrenuj (Mauritius) Pvt. Ltd. which is a Mauritius-registered firm.

The subject is a diamond importer, exporter and wholesaler. It is a dealer dealing in jewellery ranging from 2 points to 2 carats, and in all colours — from D to L colours and all shades of brown. Products include single cuts, full cuts and fancy shapes — such as Princess, Baguettes, Marquise, Pearl, Oval, Emerald and Heart. Rough diamonds are imported from India, Belgium, Israel and other European countries, etc. Polished and cut products are exported to Japan, Southeast Asia, the Middle East, etc. Business is rather active.

In order to penetrate the international market further, Inter-Gems has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. The significant one participated is the Hong Kong International Jewellery Show which is held in Hong Kong yearly.

Inter-Gems also markets its product online. It sells its product via the website “BusyTrade.com”.

History in Hong Kong over twelve years, Inter-Gems is a DTC Sight Holder.

The subject’s India affiliate Shrenuj & Co. Ltd. [Shrenuj] is one of the largest diamond and jewellery manufacturing companies in India. It has an international presence in 15 countries with a geographically diversified customer base, favourable economies of scale, ability to source roughs from strategic partners, growing retail presence and market linked production mix. Inter-Gems is one of the subsidiaries of Shrenuj in Hong Kong.

For the year ended 31st March, 2011, the turnover of the Shrenuj Group amounted to Rs 245,651.52 million (2010: Rs 188,995.87 million). Group net profit after taxation and minority interest for the year was Rs 5,684.47 million (2010: Rs 5,077.49 million).

For the six months ended 30th September, 2011, the turnover of the Shrenuj Group amounted to Rs 144,335.23 million (same period of 2010: Rs 106,896.91 million). Group net profit after taxation and minority interests for the period was Rs 3,847.80 million (same period of 2010: Rs 2,851.33 million).

Shrenuj expects Indian gems and jewellery sector to grow at a CAGR of around 13% during the years of 2011 to 2013. While increasing gold prices and rising inflation could be factors to watch, consumer demand is expected to continue its momentum.

Under this circumstances, the subject also expects its business will grow 8 to 10% in the two years ahead.

Since the history of the subject in Hong Kong is about twelve years and three months, on the whole, consider it good for normal business engagements.

REMARKS

Property information of affiliate:-

1. Property Location: Carparking Space No. B84 at Basement 2 of Phase VI,
Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

Owner: Inter-Gems (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
30-09-2008	-	Hang Seng Bank Ltd., Hong Kong.	Mortgage to secure general banking facilities

2. Property Location: Carparking Space No. B85 at Basement 2 of Phase VI,
Caribbean Coast, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

Owner: Inter-Gems (H.K.) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
30-09-2008	-	Hang Seng Bank Ltd., Hong Kong.	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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.03
UK Pound	1	Rs.82.34
Euro	1	Rs.68.99

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.