MIRA INFORM REPORT

Report Date :

16.08.2014

IDENTIFICATION DETAILS

Name :	GEMS LUCK HK LTD.
Registered Office :	Room 1505, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon,
Country :	Hong Kong
Date of Incorporation :	15.07.2009
Com. Reg. No.:	50918130
Legal Form :	Private Limited Company
Line of Business :	· Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products engaged in manufacturing and marketing loose diamonds like Marquise, Pears, Tappers, Buggets and Rose Cut Diamonds range from 0.05 cts to 0.60 cts.
No. of Employees	03

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 :	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 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Hong Kong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies

Source : CIA

Company name and address

GEMS LUCK HK LTD.

ADDRESS: Room 1505, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2366 2245

FAX: 852-2366 4245

MANAGEMENT

Managing Director: Mr. Amit Kumar

SUMMARY

Incorporated on: 15th July, 2009.

Organization: Private Limited Company.

Capital: Nominal:HK$10,000.00

Issued: HK$10,000.00

Business Category: Diamond Trader.

Employees: 3.

Main Dealing Banker: Public Bank of Hong Kong, Hong Kong.

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

Room 1505, 15/F., Lee Wai Commercial Building, 1-3 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

Affiliated/Associated Companies:-

Anki Impex Ltd., Hong Kong. [Dissolved]

Blue Sparks Ltd., Hong Kong.

Diva Diam, Hong Kong.

DVH Industries (Asia) Ltd., Hong Kong.

Victory Jewellery, Hong Kong. [Business ceased]

BUSINESS REGISTRATION NUMBER

50918130

COMPANY FILE NUMBER

1353135

MANAGEMENT

Managing Director: Mr. Amit Kumar (Mobile: 852-9042 6959)

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDER: (As per registry dated 15-07-2013)

Name	No. of shares
Amit KUMAR	10,000 =====

DIRECTOR: (As per registry dated 15-07-2013)

Name (Nationality)	Address
Amit KUMAR	Flat E, 45/F., Block 16, Caribbean Coast, Crystal Cove, 1 Kin Tung Road, Tung Chung, Lantau Island, Hong Kong.

SECRETARY: (As per registry dated 15-07-2013)

Name	Address	Co. No.
Buttar.HK Ltd.	1/F., Mau Lam Commercial Building, 16-18 Mau Lam Street, Jordan, Kowloon, Hong Kong.	0975326

HISTORY

The subject was incorporated on 15th July, 2009 as a private limited liability company under the Hong Kong Companies Ordinance.

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

Employees: 3.

Commodities Imported: India, other Asian countries, etc.

Markets: Hong Kong, Japan, other Asian countries, North America, etc.

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

Terms/Buying: L/C, T/T, pre-payment, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

Profit or Loss: Made small profits in past three years.

Condition: Business is normal.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Bankers:-

Public Bank (Hong Kong) Ltd., Hong Kong.

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

Standing: Small.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Gems Luck HK Ltd. is wholly-owned by Mr. Amit Kumar who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently. He is also the only director of the subject.

Incorporated in July 2009, the subject is a diamond trader.

Besides operating the subject, Kumar also had operated another firm Anki Impex Ltd. which was also a Hong Kong registered firm. Anki Impex was also a diamond trader but was dissolved by deregistration on 21st June, 2013.

Besides, Kumar is also the director of Blue Sparks Ltd., a Hong Kong-registered firm also engaged in diamonds trading. Blue Sparks was incorporation on 15th June, 2009.

Kumar is also the manager and sole proprietor of Diva Diam, a Hong Kong-registered firm, which was established on 9th September, 2006. Diva Diam is also a diamond trader.

Kuma was also the owner and operator of Victory Jewellery which was a Hong Kong-registered firm. However, this firm has ceased business since 14th January, 2012.

Kuma can be reached at his Hong Kong mobile phone number 852-9042 6959.

The subject is a diamond importer, exporter and wholesaler. It is engaged in manufacturing and marketing loose diamonds like Marquise, Pears, Tappers, Buggets and Rose Cut Diamonds range from 0.05 cts to 0.60 cts.

Commodities are chiefly imported from India. Products are marketed in Hong Kong, exported to Japan, China, Thailand and the other Asian countries, Europe, the Middle East. Business is improving.

In the years ahead, it will take part in fairs and exhibitions which are held in Hong Kong.

The history of the subject is just over four years. Business is chiefly handled by Kumar himself.

On the whole, consider it good for normal business engagements in moderate credit amounts.

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.61.05
UK Pound	1	Rs.101.84
Euro	1	Rs.81.55

INFORMATION DETAILS

Report Prepared by :

TPT

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.