MIRA INFORM REPORT

Report Date :

30.01.2014

IDENTIFICATION DETAILS

Name :	GLOW STAR
Registered Office :	c/o WinGate Business Group Ltd. Room 2301, 23/F., World-Wide House, 19 Des Voeux Road Central
Country :	Hong Kong
Date of Incorporation :	05.03.2010
Com. Reg. No.:	51876088-000-03
Legal Form :	Sole Proprietorship
Line of Business :	Importer, Exporter and Wholesaler of All kinds of diamonds.
No. of Employees :	No Employees in Hong Kong [It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.]

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 name

GLOW STAR

ADDRESS

c/o WinGate Business Group Ltd.

Room 2301, 23/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong.

PHONE: 852-2830 9999

FAX: 852-2830 9998

MANAGEMENT

Manager: Mr. Amitkumar Chhanalal Shah

SUMMARY

Establishment: 5th March, 2010.

Organization: Sole Proprietorship.

Capital: Not disclosed.

Business Category: Diamond Trader.

Employees: Nil.

Main Dealing Banker: China CITIC Bank International Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

GLOW STAR

ADDRESS

Head Office:-

c/o WinGate Business Group Ltd.

Room 2301, 23/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong.

Associated Companies:- (Same owner)

Honeywell Impex, Hong Kong.

BUSINESS REGISTRATION NUMBER

51876088-000-03

MANAGEMENT

Manager: Mr. Amitkumar Chhanalal Shah

SOLE PROPRIETOR

Name: Mr. Amitkumar Chhanalal SHAH

Residential Address: 21/A, Baba Ramdas Building, Hemu Colony Cross Road, 2 Irani Wadi, Kandivali (W), Mumbai-400067, India.

HISTORY

The subject was established on 5th March, 2010 as a sole proprietorship concern owned by Mr. Amitkumar Chhanalal Shah under the Hong Kong Business Registration Regulations.

Formerly the registered address of the subject was located at Room 2301, 23/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong where was the operating address of its commercial service provider WinGate Business Group Ltd. [WinGate]. WinGate moved to the present address in November 2012, so did the subject.

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, Europe, etc.

Markets: Hong Kong, Japan, other Asian countries, Europe, 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: Keeping a balance account.

Condition: Business is under development.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

Banker: China CITIC Bank International Ltd., Hong Kong.

Standing: Small.

GENERAL

Glow Star is a sole proprietorship set up and owned by Mr. Amitkumar Chhanalal Shah who is an Indian. He is an India passport holder and does not have the right to reside in Hong Kong permanently.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at Room 2305A, 23/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong known as WinGate Business Group Ltd. [WinGate] which is handling its correspondences and documents.

The subject has no employees in Hong Kong.

The subject is a diamond importer, exporter and wholesaler. It is trading in loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds which are over 0.05 cts. Most of the commodities are imported from India. Prime markets are Hong Kong, Japan and the other Asian countries. Business is not active in Hong Kong.

To our knowledge, Shah has got a number of suppliers in Mumbai, India. The subject is just a one-man company. Business is chiefly handled by Shah himself.

Your given phone number 852-9379 5878 is a mobile phone number belongs to Mr. Shyam who is also an Indian. Mr. Shyam is a friend of Amitkumar Chhanalal Shah. According to Shyam, A. C. Shah currently is in India. He is just using Shyam’s phone number as a contact point of the subject.

Shah is also the owner of Honeywell Impex [Honeywell] which is located at the operating office of another secretarial firm. Established on 22nd September, 2009, Honeywell is a Hong Kong-registered firm also trading in diamonds.

The history of the subject in Hong Kong is just about three years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on L/C basis.

NOTE:

It is to be noted that the company does not have its own operating office in Hong Kong. The company uses the address of its secretariat as its correspondence address only. Subject operates from some other country and does not have a base in Hong Kong. Such companies are registered in Hong Kong just to tax benefit purpose and due to the strict privacy laws prevailing in the country. In such cases, the companies are not required to have any employees in Hong Kong nor do have an office there.

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 :

NNA

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