MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	CRYSTAL GEMS (HK) LTD.

Registered Office :	Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	18.04.1988

Com. Reg. No.:	38177625

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of All kinds of diamonds and jewellery products, etc.

No. of Employees :	6. (Including associate)

RATING & COMMENTS

MIRA’s Rating :

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,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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 name

CRYSTAL GEMS (HK) LTD.

ADDRESS

Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2721 8608, 6900 4525

FAX: 2723 9704

E-MAIL: info@crystalgems.com.hk

MANAGEMENT

Managing Director: Mr. Prasannkumar Kantilal Shah

SUMMARY

Establishment: 18th April, 1988. (Partnership)

Incorporated on: 13th July, 2007.

Organization: Private Limited Company.

Capital: Nominal: HK$15,700,000.00

Issued: HK$15,700,000.00

Business Category: Diamond Trader.

Employees: 6. (Including associate)

Main Dealing Banker: Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.

Banking Relation: Satisfactory.

Company name

CRYSTAL GEMS (HK) LTD.

ADDRESS

Head Office:-

Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

Holding Company:-

Sanghavi Exports International Private Ltd., India.

Associated/Affiliated Companies:-

Sanghavi Group of Companies

Aagam Exports, Hong Kong.

Crystal Gems Ltd., Hong Kong. (Same address)

Dynamic Design Group Inc., USA.

Sanghavi Diamond Mfg. Pvt. Ltd., India.

Sanghavi Diamonds Inc., USA.

Sanghavi Exports, Hong Kong.

Sanghavi Exports, India.

Sanghavi Far East Pte. Ltd., Singapore.

Sanghavi Jewel Pvt. Ltd., India.

Sanghavi Jewellery Tokyo Co. Ltd., Japan.

Super Diam, Hong Kong.

etc.

BUSINESS REGISTRATION NUMBER

38177625

COMPANY FILE NUMBER

1149269

MANAGEMENT

Managing Director: Mr. Prasannkumar Kantilal Shah

CAPITAL

Nominal Share Capital: HK$15,700,000.00 (Divided into 15,700,000 shares of HK$1.00 each)

Issued Share Capital: HK$15,700,000.00

SHAREHOLDER

(As per registry dated 13-07-2012)

Name

No. of shares

Sanghavi Exports International Private Ltd.

502 Prasad Chambers, Opera House, Mumbai-400004, India.

15,700,000

========

DIRECTORS

(As per registry dated 10-12-2012)

Name (Nationality)	Address
Prasannkumar Kantilal SHAH	Flat A, 18/F., Tower 2, Harbourfront Landmark, 11 Wan Hoi Street, Hunghom, Kowloon, Hong Kong.
Vaishali Prasanna SHAH	Flat A, 18/F., Tower 2, Harbourfront Landmark, 11 Wan Hoi Street, Hunghom, Kowloon, Hong Kong.
Kalpesh Vasantlal SANGHAVI	19, Kailash Niketan Society, 24, L.D. Ruparel Marg, Walkeshw Ar, Mumbai - 400 006, India.

SECRETARY

(As per registry dated 13-07-2012)

Name	Address	Co. No.
Setu Dilipbhai MORAKHIA	Flat B4, 15/F., Block B, Hong Yuen Court, 1‑5 Tak Shing Street, Joran, Kowloon, Hong Kong.	R336829(6)

HISTORY

The subject was incorporated on 13th July, 2007 as a private limited liability company under the Hong Kong Companies Ordinance. It was set up to take over the business of Sanghavi Exports which was a partnership company established on 18th April, 1988 bearing business registration number 11749114.

Originally the subject was registered under the name of Sanghavi Exports Ltd., name changed to the present style on 28th July, 2010.

Initially the subject was located at Block 3D, 12/F., Victoria Centre, 15 Watson Road, Hong Kong, moved to Room 2208, 22/F., Melbourne Plaza, 33 Queen’s Road Central, Hong Kong in May 1988; to Room 602, 6/F., Trans Hong Kong Commercial Building, 41-43 Carnarvon Road, Tsimshatsui, Kowloon, Hong Kong in August 1989; to Flat B, 11/F., Hang Lung Bank Building, 46-48 Granville Road, Tsimshatsui, Kowloon, Hong Kong in August 2006; to Room 901, 9/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong in late 2008, to 16A, Wah Fai Mansion, 38‑40 Granville Road, Tsimshatsui, Kowloon, Hong Kong in October 2009 and further moved to the present address in January 2012.

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, etc.

Employees: 6. (Including associate)

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

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

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$15,700,000.00 (Divided into 15,700,000 shares of HK$1.00 each)

Issued Share Capital: HK$15,700,000.00

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 required.

Commercial Morality: Satisfactory.

Bankers:-

Antwerpse DiamantBank NV
(also known as Antwerp Diamond Bank NV), Hong Kong Branch.

Bank of India, Hong Kong Branch.

Standing: Good.

GENERAL

Having issued 15.7 million ordinary shares of HK$1.00 each, Crystal Gems (HK) Ltd. is almost a wholly-owned subsidiary of by Sanghavi Exports International Private Ltd. [Sanghavi] which is an India-based firm.

The former name of the subject was Sanghavi Exports Ltd., name changed to the present style in July 2010.

The subject is trading as Sanghavi Exports, a Hong Kong-registered firm located at the same address.

The directors of the subject are Prasannkumar Kantilal Shah, Vaishali Prasanna Shah and Kalpesh Vasantlal Sanghavi. The former two are Hong Kong ID Card holders and have got the right to reside in Hong Kong permanently while the third is an India passport holder. The third was newly appointed in December 2012.

The subject is an associated company of Crystal Gems Ltd. [Crystal Gems] which is also located at its operating address.

Having issued 5 million ordinary shares of HK$1.00 each, Crystal Gems is jointly owned by Mr. Amitkumar Sevantilal Sanghavi, holding 99% interests, and Mr. Prasannkumar Kantilal Shah, holding just 1%.

The subject and Crystal Gems are engaged in the same lines of business and under the same management.

The subject is a diamond importer, exporter and wholesaler.

Sanghavi was set up by the Sanghavi brothers. Sanghavi and its associates and subsidiaries have formed a group of companies known as Sanghavi Group which is also a diamond trader.

The subject is an affiliated company of the Sanghavi Group.

The Sanghavi Group was founded by four Sanghavi brothers, Vasant, Kirti, Ramesh and Chandrakant in the late 70s.

Under the flagship company Sanghavi Exports, the Group has developed extensively in the diamond industry. Today, the Group’s core business is exporting polished diamonds and diamond studded jewellery and also engaged in manufacturing diamonds and jewellery. Sanghavi Exports is ISO 9001:2000 certified and also a Government Recognized Star Trading House and a Diamond Trading Company Sightholder.

The Group has set up a large network of marketing offices in 12 major cities of the world, main ones are in the United States, Belgium, Japan, Australia, Canada, Singapore, and the other European countries. Its customers came from over 50 countries.

The Group’s diamond manufacturing factory, Sanghavi Diamond Mfg. Pvt. Ltd. is located in Surat. This factory is one of the largest manufacturers in Asia.

Sanghavi Group has five production facilities in Surat and Mumbai. The company has made an investment of US$50 million in these production facilities which are employing over 3,500 employees directly.

The Group’s finished products with sizes ranging from 0.01 points to 3.00 carats.

Sanghavi Group has an affiliate group known as Dynamic Design Group Inc. [DD Group] in the United States.

Since 1995 DD Group Inc. has been supplying high quality diamond jewelry and providing an extensive selection of styles finished to jewelry stores across the United States. It has been sourcing rough diamonds from major Diamond Centers (such as Ghana, Congo, Moscow and Israel) and its products come directly from its diamond factory in India, which stands as one of the largest in India today.

The Group is the subject’s main supplier.

The subject is supported by the Group and the Sanghavi brothers. In Hong Kong, the subject’s business is chiefly handled by Mr. Prasannkumar Kantilal Shah. Annual sales turnover is quite significant. History is over 24 years.

Since the subject is an associated company of the Sanghavi Group, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.99
UK Pound	1	Rs.84.19
Euro	1	Rs.71.86

INFORMATION DETAILS

Report Prepared by :

SDA

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.