MIRA INFORM REPORT

Report Date :

09.05.2012

IDENTIFICATION DETAILS

Name :	HIMA GEMS
Registered Office :	16/F., Kolling Centre, 77-79 Granville Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	07.09.1987
Com. Reg. No.:	11279812-000-09
Legal Form :	Sole Proprietorship
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds, gems, jewellery products, etc.
No. of Employees :	08

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

HIMA GEMS

company ADDRESS

16/F., Kolling Centre, 77-79 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2367 1457, 2739 7861

FAX: 2724 3524

E-MAIL: hima@netvigator.com

MANAGEMENT

Manager: Mr. Himant Hem Kumar Sacheti

SUMMARY

Establishment: 7th September, 1987.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Diamond Trader.

Employees: 8.

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

Banking Relation: Satisfactory.

company ADDRESS

Head Office:-

16/F., Kolling Centre, 77-79 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

11279812-000-09

MANAGEMENT

Manager: Mr. Himant Hem Kumar Sacheti

Contact Person: Mr. Kama Kama

SOLE PROPRIETOR

Name: Mr. Himant Hem Kumar SACHETI

Residential Address: Apartment 7, 7/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

HISTORY

The subject was established on 7th September, 1987 as a sole proprietorship concern owned by Mr. Hem Kumar Himant Sacheti under the Hong Kong Business Registration Regulations.

The following table shows the changes of the partners:-

Name	Incoming Date	Outgoing Date
Himant Hem Kumar SACHETI	07-09-1987	-
Rakesh SHARMA	01-04-1996	01-04-2000
Vikas BADER	23-05-2000	15-11-2003
Vinit HIRAWAT	01-12-2000	30-06-2002

Initially the subject was located at Apartment 7, 7/F., Star Mansion, 3 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Apartment B, 14/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in October 1989; to Flat B, 7/F. of the same building in July 1993; and further moved to the present address in August 2000.

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, gems, jewellery products, etc.

Employees: 8.

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

Markets: Southeast Asia, Europe, Middle East, etc.

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

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

MEMBERSHIP

The Indian Chamber of Commerce Hong Kong, Hong Kong.

FINANCIAL INFORMATION

Capital: Not disclosed.

Profit or Loss: Making a small profit every year.

Condition: Keeping in an active condition.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

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

Bank of India, Hong Kong Branch.

Standing: Small.

GENERAL

Hima Gems is a sole proprietorship set up and owned by Mr. Himant Hem Kumar Sacheti who is an Indian. He has been in Hong Kong for a very long time. He had several partners but all of them have retired.

The subject also set up a diamond processing factory in Hong Kong on 9th November, 2001, but this factory ceased business formally on 30th June, 2002.

Currently, the subject is manufacturing the following commodities and offering clients with the following services:-

Product/Service	Product/Service Remarks
Diamond	Rose cut, Rare natural colour diamonds from India, Israel and Belgium (Importer) Rose cut, Rare natural colour diamonds from India, Israel and Belgium (Exporter) Rose cut, Rare natural colour diamonds from India, Israel and Belgium (Wholesaler)

Most of the commodities such as natural fancy diamonds, Marquise diamonds, natural fancy diamonds, etc. are imported from India, Belgium, Israel, other Asian countries, etc. Prime markets are Hong Kong, India, Southeast Asia, the Middle East, Europe, etc.

According to the subject its significant products are polished white diamonds and polished colour diamonds.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong, Macau and other foreign large cities. The latest exhibition taken part by the subject was Hong Kong International Jewellery Show 2011 which had been held during the period of 5th to 9th March, 2011.

In the years ahead, it is going to take part in “HKTDC Hong Kong International Jewellery Show 2012” which will be held in Wanchai, Hong Kong during the period of 16th to 20th February, 2012.

The business of the subject is active as regular suppliers and overseas customers have been maintained.

The contact person of the subject Mr. Kama Kama is also an Indian.

The history of the subject is over twenty-four years and two months. Annual sales turnover is quite significant.

On the whole, consider the subject good for normal business engagements.

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.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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