MIRA INFORM REPORT

Report Date :

01.11.2013

IDENTIFICATION DETAILS

Name :	SUPER COLLECTION
Registered Office :	Flat 21E, 21/F., Block 10, Villa Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon
Country :	Hong Kong
Date of Incorporation :	20.03.1999
Com. Reg. No.:	22333996-000-03
Legal Form :	Sole Proprietorship
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, emerald, precious stones
No. of Employees :	01

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	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'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

SUPER COLLECTION

Company ADDRESS

Flat 21E, 21/F., Block 10, Villa Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

PHONE: 2311 2145

FAX: Not available

MANAGEMENT

Manager: Mr. Kamlesh Surendra Modi

SUMMARY

Establishment: 20th March, 1999.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Diamond Trader.

Employees: 1.

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

Banking Relation: Satisfactory.

Company ADDRESS

Head Office:-

Flat 21E, 21/F., Block 10, Villa Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong.

Mailing address:

P.O. Box 86162, Gillies Avenue Post Office, Kowloon, Hong Kong.

Affiliated Company:

C. Mahendra Exports (H.K.) Ltd.

Flat 808, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

[Tel: 852-2311 2011]

BUSINESS REGISTRATION NUMBER

22333996-000-03

MANAGEMENT

Manager: Mr. Kamlesh Surendra Modi

SOLE PROPRIETOR

Name: Mr. Kamlesh Surendra MODI

Residential Address: 11/F., Rear Portion, Ocean View Court, 25A Chatham Road, Tsimshatsui, Kowloon,

Hong Kong.

HISTORY

The subject was established on 20th March, 1999 as a sole proprietorship concern owned by Mr. Kamlesh Surendra Modi under the Hong Kong Business Registration Regulations.

Initially the subject was located at Room 108, 1/F., Wing On Plaza, 52 Mody Road, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong in June 2004; to Flat B, 20/F., Block 12A, Costa Del Sol, Laguna Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong in July 2004; and further to the present address in May 2007.

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, emerald, precious stones.

Employees: 1.

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

Markets: Japan, Southeast Asia, Europe, Middle East, 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: Profitable operation is recorded.

Condition: Keeping in a normal manner.

Facilities: Is making use of general banking facilities.

Payment: Unknown

Commercial Morality: Satisfactory.

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

Standing: Small.

GENERAL

Super Collection is a sole proprietorship set up and owned by Mr. Kamlesh Surendra Modi who is an Indian. Modi has been in Hong Kong for a very long time. It is likely that he has become a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject’s registered address is located at Flat 21E, 21/F., Block 10, Villa Verde, 8 Laguna Verde Avenue, Hunghom, Kowloon, Hong Kong. This office is not in a commercial building but a residential building.

The subject moved to this address in May 2007. The premises located at the above-mentioned address is owned by C. Mahendra Exports (H.K.) Ltd. [CME] which is a Hong Kong-registered firm. This firm is also a diamond trader.

Formerly the subject was located at Flat 7 & 8, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong where is the current operating address of CME.

We can reach CME at your 852-2311 2011. The respondent said his office is also the office of the subject.

The subject is dealing in fine coloured diamonds and rare gemstones. Products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds. Most of the commodities are imported from India and Europe. Prime markets are Hong Kong, Japan, the other Asian countries, the Middle East, etc. Business is normal.

The subject kept a balance account or made a very small profit in most of the past years.

The history of the subject in Hong Kong is about fourteen years. Regular customers and suppliers have been maintained.

On the whole, since the subject’s registered address is in a private building, consider it good for normal business engagements on secured basis.

.

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.61.41
UK Pound	1	Rs.98.29
Euro	1	Rs.84.12

INFORMATION DETAILS

Report Prepared by :

SDA

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.