MIRA INFORM REPORT

Report Date :

15.05.2013

IDENTIFICATION DETAILS

Name :	LUCAS AND KINGSLY U.S.A. (H.K.)
Registered Office :	Room 6, Block F2, 5/F, Hang Fung Industrial Building Phase 2, 2G Hok Yuen Street, Hung Hom, Kowloon
Country :	Hong Kong
Date of Incorporation :	29.03.2005
Com. Reg. No.:	35451480
Legal Form :	Sole Proprietorship
Line of Business :	Manufacturer of jewellery and related articles
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
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 – March 31^st 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Hong Kong	A2	A2

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 levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. 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 OVERVIEW

Subject's Registered Name (in English ~ Chinese):	Lucas And Kingsly U.S.A. (H.K.)
Business Registration No. (BR No.):	35451480
Subject's Business Name (in English ~ Chinese):	N/A

Registered Address:

Room 6, Block F2, 5/F, Hang Fung Industrial Building Phase 2, 2G Hok Yuen Street, Hung Hom, Kowloon, Hong Kong.

Operating/Business Address:	Room 6, Block F2, 5/F, Hang Fung Industrial Building Phase 2, 1 Hok Yuen Street, Hung Hom, Kowloon, Hong Kong.
Telephone:	23112720; 98316253
Fax:	23112719
Email:	akm24365@yahoo.co.in

NACE - Code & Industry:	C32.1.2 - Manufacture of jewellery and related articles
Certification:	N/A
Business/Industry Trend:	Ordinary
Public Filings Compliance:	No Data Available

ALL FIGURES QUOTED IN LOCAL CURRENCY UNLESS OTHERWISE STATED

SUMMARY

Subject is an Indian owned and operated natural and synthetic gemstones trader appears possessing fairly acceptable operational and market experience to run along the line. 

TOTAL CREDIT APPRAISAL (TCA) GUIDE:

• The TCA is an opinion of the company's capability and ability based on prevailing conditions and information made available to Total Credit at the time of appraising.
• The TCA is not a recommendation to buy or sell nor is it an endorsement or non- endorsement of an issue.
• The information received has been obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed.
• Total Credit does not assume any part of the requestor's risk in the use or non-use of this TCA.
• No part of this report may be reproduced, stored in retrieval system or transmitted, in any form or by any means.
• TCA is subject to change due to any unforeseen and/or foreseen circumstances.

CORPORATE STRUCTURE

The following statutory information is based on the examination of Subject's file at Business Registration Office (BR), Inland Revenue Department, Hong Kong.

Date of Examination/ BR Copy Examined	9 May 2013
Business Registration No. (BR No.)	35451480
Business Status	Sole Proprietorship
Date Commenced	29 Mar 2005
Active Status	Live

Name Changed:

N/A

Branches/Trading As	N/A
Chief Executive	MAHESHWARI Amit Kumar  Alias Name: MAHESHWARI Amit

Details of Sole Proprietor / Partners as per B. R. copy obtained

Name	ID/BR No.	Passport No.	Issuing Country	Capacity	Address
MAHESHWARI Amit Kumar  Alias Name: MAHESHWARI Amit	P227779-8	N/A	N/A	Sole Proprietor	Room 1, 4/F, Rear Flat, Ocean View Court, 25 Chatham Road, Tsim Sha Tsui, Kowloon, Hong Kong.

HISTORY SUMMARY
Change of Ownership & Capital/ Share Allotment/Other Changes	No significant change in business and ownership have been reported since its inception.
Appointment and/or Resignation of Directors or Secretary	N/A
Admission or Retirement of Sole Proprietor/Partner	N/A
Parent	N/A

RELATED NEWS /FINDINGS

N/A

MANAGEMENT BACKGROUND

Name

MAHESHWARI Amit Kumar 

Alias Name

MAHESHWARI Amit 

Position (Title)

Chief Executive 

Nationality

N/A 

Experience

6-10 years 

Profile / Responsibility

Founder and Sole Proprietor, in charge of its business development, operation, administration and policymaking. His address is rented. 

Business Capacity

Company Name	CR/BR No.	Capacity	As at:
Lucas And Kingsly U.S.A. (H.K.)	35451480	Sole Proprietor	9 May 2013

Court Action

As Defendant

None found in our database

Profile/Responsibility and Business Capacity indicated are based on -on-file, sources, and enquiries and investigations recently conducted but do not necessarily represent the full or most updated. For example, the status indicated under Business Capacity is based on the date shown (if available) as recorded, which might have been changed at the time the report is compiled.

FINANCIAL

Current Interviews & Investigations

Interviewed MAHESHWARI Amit Kumar, Sole Proprietor, confirmed part of the details within this report but declined to disclose any financial information or business trend on the grounds of company privacy.

Sources and records reveal no related information.

Private companies in Hong Kong (include private limited, sole proprietorship and partnership) are not required to file or disclose their financial information for public inspection.

GROUP PROFILE & FINANCIALS

N/A

BANKING

Maintaining bank accounts with HSBC. No negative implication has been reported.

TRADE RECORD

A trade survey currently conducted reveals the following:

	First	Second
Type of Supplies	Services	Services
Time Known	4 Years	6 Years
Highest Credit	10,000	25,000
Outstanding Balance	5,000	10,000
Terms	14 days net	30 days net
Pay Record	As Agreed	As Agreed
Overall Trade Reputation	Average

TOTAL DEBT SCANNER

(TDS)

TDS reveals if subject has been listed as debtor in our debt database in the past 5 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed. It should be noted that the collection record contained in the report might have been paid, terminated, vacated, settled or released prior to the date of report compiled.

Search Result:

Subject

None found in our database

Related Members

None found in our database

Related Companies

None found in our database

PUBLIC FILINGS

Mortgages and Charges (M&C)

M&C records, if any, are extracted from the Companies Registry, Hong Kong ("CRHK"). Details of "Creating Instrument" and "Description of Property Mortgaged or Charged" are available subject to the prevailing fees as per document charged by CRHK. Please indicate/select "Full Mortgage/Charge" when ordering our services/reports (e.g.: Total Limited Company Search or Total Company Credit Report). Request for Full mortgage/Charge made 7 days after the report delivery will be treated as a new order and is subject to our "Official Document Retrieval (ODR)" service charge + related government fees. M&C brief particulars may not be available from CRHK for mortgage/charge registered before 28 Feb 2005.

Records filed in:

N/A

Total Amount outstanding as of the date of this Return on all mortgages and charges which are required to be registered with the Registrar of Companies pursuant to sections 80 and 82 of the Companies Ordinance

TOTAL WRIT SCANNER

(TWS)

TWS reveals if subject has been listed as Defendant/Debtor/Respondent, Plaintiff/Creditor/Applicant, in liquidation or bankruptcy within our court database in the past 7 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. It should be noted that the court record contained in a report might have been paid, terminated, vacated, settled or released prior to the date of a report was compiled. Civil claims are filed as the result of disputes of a commercial or other nature. The Defendant/Debtor/Respondent is not liable nor the Plaintiff/Creditor/Applicant eligible to the claim until judgement is obtained from the relevant court, which is not open for public inspection at present. Only the latest 50 records will be shown when total records exceed 50.

Search Result:

Subject

As Defendant

None found in our database

As Plaintiff

None found in our database

Comments

N/A

Related Members

As Defendant

None found in our database

Comments

N/A

Related Companies

As Defendant

None found in our database

Comments

N/A

OPERATION & ACTIVITIES

Business Lines

Principal Business Line	Trading of natural and synthetic gemstones
Second Business Line	N/A

Product/Production

China Factory	N/A
Size of China Factory (sq. ft.)	N/A
No. of Staff / Workers in China (or Overseas)	N/A
Product / Production Remarks	Its gemstone products include: Amethyst Citrine Garnet Peridot

Supplies/Purchases

Hong Kong and China
Types of Supplies	Services
Buying Terms	COD and credit of 7 to 30 days
Overseas
Import Countries	India
Types of Supplies	Gemstones
Buying Terms	COD, TT and credit of 7 to 30 days
Remarks	N/A

Markets

Major Market	Hong Kong and South East Asia
Minor Market	N/A
Selling Products / Services	Gemstones
Selling Terms	Advance Payment, COD and credit of 7 to 30 days
Remarks	N/A

Brands

Own Brands	N/A
OEM (Clients) Brands	N/A
Remarks	N/A

Premises and Staff

Hong Kong Office
Area (sq. ft.)	500
Type	Industrial
Staff Range	3 to 9
China Office
Staff Range	N/A
Premises Remarks	Renting a unit as its office and showroom at the captioned address, which is at a 34-year-old industrial building. Employing 4.
Total No. of Staff in Hong Kong (China)	4

TOTAL PROPERTY OWNERSHIP SEARCH

(TPOS)

TPOS reveals if subject has been involved in property transaction record in our database since 1996. TPOS does not represent the full record or history of all transactions relating to the registered charges, mortgages or ownerships. Some of the charges, mortgages or ownerships might have been released and/or changed. There could be latest mortgages, charges, ownerships or transactions not reflected. TPOS also checks on Subject's shareholder, director, sole proprietor, partner (collectively listed under "Related Members" in this section) and/or related company while related records will be revealed when appropriate.

Search Result:

Subject

No Trace

Related Members

No Trace

Related Companies

No Trace

Abbreviations:
S&P = Sales and Purchase
GBF = General Banking Facilities
N/A = Not Available/Applicable

RELATED COMPANIES

Related companies mean Parent Company, Subsidiary Company, Director's Other Business/Capacity, etc.

N/A

ECONOMIC AND TRADE INFORMATION ON HONG KONG

Major Economic Indicators

	2009	2010	2011	Forecast/Latest
Population, Mid-year (million)	6.97	7.02	7.07	7.14^a
Gross Domestic Product (US$billion)	208.0	223.3	243.2	250.5-252.9^b
GDP Per Capita (US$)	29,800	31,800	34,400	35,100-35,400^b
Real GDP Growth (%)	-2.6	+7.1	+5.0	+1-2^b
Inflation (% Change in Composite CPI)	+0.5	+2.4	+5.3	+4.7^c
Unemployment Rate, seasonally adjusted (%)	5.4	4.4	3.4	3.2^d
Retail Sales Growth (%)	+0.6	+18.3	+24.9	+13.1^c
Visitor Arrival Growth (%)	+0.3	+21.8	+16.4	+15.5^c

^a 2012; ^b government forecast for 2012; ^c year-on-year change in January-June 2012; ^d April-June 2012.

Merchandise Trade Performance

	2010		2011		January-June 2012
	US$billion	Growth %	US$billion	Growth %	US$billion	Growth %
Total Exports	388.6	+22.8	427.9	+10.1	207.6	+0.3
Domestic Exports	8.9	+20.4	8.4	-5.5	3.6	-19.4
Re-exports	379.7	+22.8	419.8	+10.5	204.0	+0.7
Imports	431.4	+25.0	482.6	+11.9	236.0	+1.4
Total Trade	820.0	+23.9	910.5	+11.0	443.6	+0.9
Trade Balance	-42.8	N/A	-54.8	N/A	-28.4	N/A

Service Trade Performance

	2010		2011		January-June 2012
	US$billion	Growth %	US$billion	Growth %	US$billion	Growth %
Exports	105.7	+23.1	121.2	+14.6	60.2	+7.6
Imports	50.8	+16.3	55.8	+9.8	27.4	+3.7
Total Trade	156.5	+20.8	177.0	+13.1	87.6	+6.4
Trade Balance	54.9	N/A	64.9	N/A	32.8	N/A

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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.63
UK Pound	1	Rs.83.67
Euro	1	Rs.71.02

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%)

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.