MIRA INFORM REPORT

Report Date :

30.11.2012

IDENTIFICATION DETAILS

Name :	GEM DE ORIENT

Registered Office :	Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	26.11.1966

Com. Reg. No.:	02171556-000-11

Legal Form :	Partnership

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

No. of Employees :	04

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	US$500,000.00
Status :	Small Company
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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Hong Kong

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
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'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, it again faces a possible slowdown as exports to the Euro zone and US slump. 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 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. 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 exports 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 28 million in 2011, 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 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% 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. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. 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.

Source : CIA

Company name

GEM DE ORIENT

Company ADDRESS

Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2868 1956

FAX: 2521 1403

E-MAIL: gdo@netvigator.com

MANAGEMENT

Manager: Mr. Mujeebur Rahman Habeeb

SUMMARY

Establishment: 26th November, 1966.

Organization: Partnership.

Capital: Not disclosed.

Business Category: Diamond Trader.

Employees: 4.

Main Dealing Banker: ABN AMRO Bank N.V., Hong Kong Branch.

Banking Relation: Satisfactory.

Company ADDRESS

Head Office:-

Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

Business Partner & Affiliate:-

Mashreq International LLC, UAE/Hong Kong. (Same address)

BUSINESS REGISTRATION NUMBER

02171556-000-11

MANAGEMENT

Manager: Mr. Mujeebur Rahman Habeeb

PARTNERS

Name: Mr. Mujeebur Rahman HABEEB

Residential Address: Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong

Kong.

Name: Mr. Riyaz Ahmed KABIR

Residential Address: Flat 11, 2/F., 9-11 Lock Road, Tsimshatsui, Kowloon, Hong Kong.

HISTORY

The subject was established on 26th November, 1966 as a partnership jointly owned by Indian under the Hong Kong Business Registration Regulations.

The subject’s partners have changed for many time.

The following table shows the changes of the partners:-

Name	Incoming Date	Outgoing Date
Mohamed Sathakathulla Thaika Sahib	26-11-1966	31-12-2009
Hameed Jalal	01-07-1969	01-09-1972
S.A. Seyed Abdul Kader	01-07-1969	01-04-1980
M.K.A. Seyed Ahmed Kabir	01-07-1969	01-04-1980
A.M. Mohamed Irufan		01-09-1971	01-06-1977
Mujeebur Rahman Habeeb		01-06-1977	-
Ahmed Husain Lafir		01-04-1982	01-04-1986
Habeeb Syed Abdul Kader		01-04-1982	01-04-1987
Ahmed Sadiq Habeeb		12-07-1990	30-12-2000
Mohamed Mukrim Habeeb Syed		01-10-1990	31-03-2008
Sabeeha		01-04-2002	31-03-2008
Riyaz Ahmed Kabir		01-04-2008	-

Initially the subject was located at Room 803, 8/F., Dragon Seed Building, 39 Queen’s Road Central, Hong Kong, moved to the present address in October 1995.

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 products, gems, watches, etc.

Employees: 4.

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

Markets: Japan, Southeast Asia, Europe, Middle East, North America, etc.

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

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

FINANCIAL INFORMATION

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.

Banker: ABN AMRO Bank N.V., Hong Kong Branch.

Standing: Small.

GENERAL

Gem De Orient is jointly owned by two Indian, namely, Mr. Mujeebur Rahman Habeeb and Mr. Riyaz Ahmed Kabir. Both of them are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently. The Manager of the subject Mr. Mujeebur Rahman Habeeb joined in the subject in June 1977.

The subject had a number of partners while most of them have retired. Its operating address is located at Flat 1, 13/F., Block A, Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong where is also the residential address of Mujeebur Rahman Habeeb.

The subject is a diamond and watch, classic watch trader. It is also a polished and cut diamond importer and exporter. Size of diamonds supplied range from 0.01 carat to 5.00 carat. It also trades in gemstones such as emerald, jadeite, ruby, sapphire, etc. Other products carried are diamond gold jewellery and gemset gold jewellery — 18 karat, and premium watches, etc. Raw materials and commodities are imported from Belgium, India, Israel, Russia, etc. Prime markets are Japan, other Asian countries, the Middle East, etc. Overall business is rather active. The subject’s business is chiefly handled by the two partners themselves.

The subject is also the Hong Kong sales agent for Mashreq International LLC [Mashreq] which is a Dubai-based firm. Currently, Mashreq International LLC, Hong Kong Office is also located at the operating address of the subject. Mashreq Hong Kong Office is a Hong Kong-registered firm.

Established in 1993 in Dubai, Mashreq started business in watches wholesaling.

Mashreq, the management arm of the Mashreqworld Group is an independent limited liability company incorporated under the laws of the United Arab Emirates.

Mashreq is a joint venture between Mr. Mohamed Mukrim Syed Habeeb of The Mashreqworld Group. A 5th generation (entrepreneur coming from) business family with interests in Real Estate, Shipping, Jewellery, Retail Chain Stores, Asset Management, Construction, Land Development, etc.) and Mr. Majid Saif Ahmed Al Ghurair of The Saif Al Ghurair Group (A Fortune 500 Group with interests in Banking, Real Estate, Insurance, Manufacturing, Malls & Shopping Complexes, Land Development, Sugar Refining etc.)

Mashreq was established in Dubai in 1993. It is trading in “ZENART” watches.

Now, Mashreq has had associated firms in Saudi Arabia, Shenzhen Special Economic Zone of China and Chennai of India.

In 2004, it was due to overwhelming demand from customers worldwide, “ZENART” introduced sub brands: “TRAZER”, “VERONA”, “LEROSKY”, “ARENDINO”, “SWISCARDIN”, “EPOK”, “QIDIZ”, “DGO”, “XETEX” and “FUSION”, etc.

The subject also trades in the above-mentioned brands. Over the past years, it has developed a number of regular customers in Hong Kong and the United Arab Emirates. Annual sales turnover is rather steady and significant.

The subject is a member of the Gem de Orient Group of companies. Its business is chiefly administered by the Habeeb family. The subject is fully supported by the Habeeb family in India.

The contact person of Mashreq Hong Kong Office is Mr. Ali.

On the whole, since the history of the subject in Hong Kong is over forty five years, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.20
UK Pound	1	Rs.88.37
Euro	1	Rs.71.47

INFORMATION DETAILS

Report Prepared by :

NLM

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.