MIRA INFORM REPORT

Report Date :

30.01.2014

IDENTIFICATION DETAILS

Name :	DIVINE IMPEX
Registered Office :	Flat 1206, 12/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	18.06.2008
Com. Reg. No.:	39439949-000-06
Legal Form :	Sole Proprietorship
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds.
No. of Employees :	Not available

NOTES:

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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

Concern name

DIVINE IMPEX

Concern Address

Flat 1206, 12/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2312 2164

FAX: 3904 6849

MANAGEMENT

Manager: Mr. Piyushkumar Prakashkumar Shah

SUMMARY

Establishment: 18th June, 2008.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Diamond Trader.

Employees: Nil.

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

Banking Relation: Fair.

Concern Address

Registered Office:-

Flat 1206, 12/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong.

Associated Concern :-

Elegant Export, Hong Kong. (Same owner)

BUSINESS REGISTRATION NUMBER

39439949-000-06

MANAGEMENT

Manager: Mr. Piyushkumar Prakashkumar Shah

SOLE PROPRIETOR

Name: Mr. Piyushkumar Prakashkumar SHAH

Residential Address: At 8 Post Meghraj Nr. Parbadi, Ta Meghraj Dis.‑Sabarkanth, Gujarat-383350, India.

HISTORY

The subject was established on 18th June, 2008 as a sole proprietorship concern owned by Mr. Ketan Kumar Doshi under the Hong Kong Business Registration Regulations. However, a new partner Mr. Piyushkumar Prakashkumar Shah joined in on 16th August, 2010 while Doshi retired on 15th September, 2010.

Initially the subject was located at Flat 7, 9/F., Star Mansion, 3-5 Minden Row, Tsimshatsui, Kowloon, Hong Kong, moved to Flat 1, 11/F. of the same building in January 2009. In December 2012, the subject moved to Flat 6, 12/F. of the same building.

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.

Employees: Nil.

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

Markets: Hong Kong, China, other Asian countries, 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: Made a very small profit in 2012.

Condition: Business keeps on improving.

Facilities: Make fairly active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

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

Standing: Small.

GENERAL

Divine Impex is a sole proprietorship. It was set up and owned by Mr. Ketan Kumar Doshi who is an Indian. However, he retired on 15th September, 2010 and now the new sole proprietor Mr. Piyushkumar Prakashkumar Shah is also an Indian. Shah is an India passport holder and does not have the right to reside in Hong Kong permanently. He is the manager of the subject.

The subject’s registered address is located at Flat 1206, 12/F., Star Mansion, 3‑5 Minden Row, Tsimshatsui, Kowloon, Hong Kong. This office is not in a commercial building but a residential building. It is likely that this office is also the residence of Shah when he is in Hong Kong. The residential building is not trespassed by outsiders. The subject moved to this new address in December 2012.

The subject is a diamond importer, exporter and wholesaler. It is trading in the following commodities:-

Single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire.

Most of the commodities are imported from India, other Asian countries, etc. Prime markets are Hong Kong, Japan and the other Asian countries. Business keeps on improving.

Business handled by Shah himself, the subject is just a one-man concern . He has had close business ties with some of the diamond suppliers in Mumbai and Gujarat, India.

Besides operating the subject, Shah is also operating another firm known as Elegant Export located at the same address. This firm is also a diamond trader.

The history of the subject in Hong Kong is just over four years. However, the subject has been operated by the new owner since August 2010.

On the whole, since the registered office of the subject is in a residential 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.

- 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.62.20
UK Pound	1	Rs.103.12
Euro	1	Rs.84.96

INFORMATION DETAILS

Report Prepared by :

MNL

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