MIRA INFORM REPORT

Report Date :

06.05.2011

IDENTIFICATION DETAILS

Name :	H.K. IMPEX

Registered Office :	Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	01.01.2002

Com. Reg. No.:	32290536-000-01

Legal Form :	Sole Proprietorship

Line of Business :	Importer and Exporter of all kinds of diamonds and jewellery, 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 :	Small Company
Payment Behaviour :	Regular
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

Name and address

H.K. IMPEX

ADDRESS:

Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2367 8114, 2724 6530, 3741 2290

FAX: 2368 7147

E-MAIL: info@hkimpex.com

hk@diamondbyhk.com

MANAGEMENT

Manager: Mr. Bhagwanji Virji Lunagaria

SUMMARY

Establishment: 1st January, 2002.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Diamond Importer and Exporter.

Employees: 5.

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

Banking Relation: Satisfactory.

ADDRESS

Head Office:-

Room 1011, 10/F., Peninsula Square, West Wing, 18 Sung On Street, Hunghom, Kowloon, Hong Kong.

Affiliated Companies:-

Hari Krishna Group of Companies

H.K. Designs (India) Seepz Unit, India.

H.K. Designs Inc., USA.

H.K. Diam BVBA, Belgium.

H.K. Exports (Shanghai) Ltd., China.

H.K. International, USA.

H.K. Jewels Pvt. Ltd., India.

Hari Krishna Exports, India.

etc.

BUSINESS REGISTRATION NUMBER

32290536-000-01

MANAGEMENT

Manager: Mr. Bhagwanji Virji Lunagaria

Contact Persons: Mr. Mukesh Dholakiya

Mr. Bhagwanji Patel

PROPRIETOR

Name: Mr. Bhagwanji Virji LUNAGARIA

Residential Address: B-241 Ambikanagar Society, 099 Aarogya Kendra, Katargam, Surat, Gujarat, India.

HISTORY

The subject was established on 1st January, 2002 as a partnership concern jointly owned by Mr. Urveshi Kirtikant Maniyar and Mr. Bhagwanji Virji Lunagaria under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name	Incoming Date	Outgoing Date
Urveshi Kirtikant MANIYAR	01-01-2002	28-09-2004
Bhagwanji Virji LUNAGARIA	01-01-2002	-
Mukeshkumar G. DHOLAKIYA	07-08-2002	05-08-2003

At the very beginning, the subject was located at Flat E, 11/F., Luna Court, 53-59 Kimberly Road, Tsimshatsui, Kowloon, Hong Kong, moved to Room 1603, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong in December 2002, and further moved to the present address in October 2005.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of diamonds and jewellery, etc.

Employees: 5.

Commodities Imported: India, other Asian countries, Europe, etc.

Markets: Asia Pacific region, Middle East, Australia, New Zealand, USA, Europe, etc.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Capital: Not disclosed.

Profit or Loss: Making a small profit every year.

Condition: Keeping in a normal condition.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

H.K. Impex is a Hong Kong based company engaged in jewellery and diamond business. Business commenced on 1st January, 2002, the subject is a sole proprietorship owned by Mr. Bhagwanji Virji Lunagaria who is an Indian. Having been in Hong Kong for a very long time, he is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject is a diamond trader. It is able to offer its worldwide customers with international standard diamonds. Its prime markets are the Asia Pacific region, the Middle East, Australia, New Zealand, the United States, Europe, etc.

The subject is a marketing affiliate of m/s. Hari Krishna Exports which is in Mumbai, India. The subject belongs to the Hari Krishna Group.

According to the subject, Hari Krishna Exports has been engaged in diamond business since 1983. The Group has six related factories in India with 4,000 workers. The factories, operated by the Hari Krishna Group, are able to cut and polish all kinds of diamond. It is specialized in “white colour and round cut” for all sizes.

The Hari Krishna Group is a diamond cutter and polisher. Its flagship company Hari Krishna Exports was set up in 1992 at Surat in India with a simultaneous opening of sales and marketing office in Mumbai, the hub of polished diamond trade. Ever since then, it has been at the cutting edge of trade, setting trends in the field of manufacturing and exporting of diamonds and studded jewellery.

Hari Krishna Group procures rough diamonds from various producers of Russia, South Africa, Canada, and other agencies of Antwerp. Rough diamonds are brought to its Surat and Ahmedabad manufacturing plants where they are cut and polished into different shapes, sizes and weight. The Group’s diamonds are usually in round brilliant cut [RBC] in whites. All the polished goods are sent to Mumbai office where the Group’s sales office and assort departments are located. After the assortment has been done, goods are being sold and exported to various clients throughout the world.

Hari Krishna Group has got the ISO 9001:2000 certificate from ABS Quality Evaluations Inc. It is also a “Three Star Export House” recognized by the Government of India. From 2005 to 2010, the Gem and Jewellery Export Promotion Council in India had awarded the Group with certificates for its good export performance.

The Group’s products are exported to the United States, Japan, Israel, the United Kingdom, Belgium, Australia, New Zealand, the United Arab Emirates, and some of the European countries.

H.K. International, the first overseas marketing alliance of Hari Krishna Group, was set up in 1999 in New York. It is dealing in diamonds ranging from 0.50 pts to 5.00 cts. and also in stones duly certified by GIA and EGL.

The Group’s ventures include jewellery manufacturing facilities in Mumbai: H.K. Jewels and H.K. Designs (India).

In 2005, the subject launched “Kisna” branded diamond jewellery for the Indian market. “Kisna” is the only branded diamond jewellery that is available in more than 1,015 jewellery outlets in India.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong, China and other foreign large cities.

The subject has got affiliated companies known as H.K. Designs (India) Seepz Unit and H.K. Jewels Pvt. Ltd. in India. Its affiliated company in China is known as H.K. Exports Shanghai Ltd.

The contact persons of the subject are Mr. Mukesh Dholakiya and Mr. Bhagwanji Patel.

The Hari Krishna Group achieved a turnover of US$250 million for the fiscal year 2007-2008. Now, the annual sales turnover of the Group ranges from US$250 to 270 million. Overall business is active.

On the whole, fully supported by the Hari Krishna Group, the subject is considered good for normal business engagements.

COURT CASES: None per our.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.57
UK Pound	1	Rs.73.58
Euro	1	Rs.66.23

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.