MIRA INFORM REPORT

Report Date :

20.11.2014

IDENTIFICATION DETAILS

Name :	5C HONG KONG LIMITED

Registered Office :	Room 1007B, 10/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	31.03.2006

Com. Reg. No.:	36760743

Legal Form :	Private Limited Liability Company

LINE OF BUSINESS :	TRADING OF JEWELRY

No. of Employees :	About 10 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 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

Contact Points

Company Name:	5C Hong Kong Limited
Supplied Name:	5C HONG KONG LTD
Trading Address:	Room 1007B, 10/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong
Supplied Address:	RM 10078, 10/F GUARDFORCE CENTRE, 3 HOK YUEN STREET EAST

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	5C HONG KONG LIMITED
Registered Address:	Room 1007B, 10/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong
Telephone Number:	+852-2627-0099
Fax Number:	+852-2627-0086
Date of Registration:	2006-3-31
Registered Number:	1035173
Business Registration No.:	36760743
Registered Capital:	USD 1,000,000
Paid-up Capital:	USD 1,000,000 = 1,000,000 Shares@ USD 1
Legal Form:	Private Limited Liability Company
SITC Code:	89731--Articles of jewellery and parts thereof, of precious metals or metals clad with precious metals (g)
Principal Activities:	Trading of jewelry
Staff:	About 10 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-3-31

History

Subject was incorporated on 2006-3-31 with the registered number 1035173 as Private Limited Liability Company in Hong Kong.

Transfer of Shares:

2014-3-13
Transferred From	No. of Shares Transferred	Transferred To
5C-Jewelry Bvba	125,000	Jasani Anuj

Corporate Structure

Related Company

Name:	5C-Jewelry Bvba
Registered Address:	2018 Antwerpen, Hoveniersstraat 30, Bus 147, Antwerpen, Belgium
Tel:	+323-234-3930
Fax:	+323-233-8506

Shareholders

Name	Subscription Shares	Proportion of Investment (%)
Jasani Anuj	1,000,000	100%
Total	1,000,000	100%

Major Shareholder Information:

Name:	Jasani Anuj
Registered Address:	Flat A, 5/F, Monmouth Villa, 3 Monmouth Terrace, Wan Chai, Hong Kong

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Jasani Anuj
Registered Address:	Flat A, 5/F, Monmouth Villa, 3 Monmouth Terrace, Wan Chai, Hong Kong
Position:	Director
ID Number:	R692165(4)
Passport Number:	EH975158
Issuing Country:	Belgium
2
Name:	SWCS Secretaries Limited
Address:	3907-08, 39/F, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong
Position:	Corporate Secretary
Registered Number:	1513500

Personnel Structure

Total Employees

About 10 Employees

Operation Information

Offices & Factories

	Office
Address:	Room 1007B, 10/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong

Premises Information

Office address:

Address:	Workshop Unit No.7 On 10th Floor Guardforce Centre No.3 Hok Yuen Street East Kowloon
Owners:	Tincho Development Company Limited
Memorial Number:	10092100330336
Date of Instrument:	2010-8-23
Date of Registration:	2010-9-21
Consideration Value:	HKD 6,380,000.00

History of Premises Owners’

1
Memorial No.:	12120601730140
Date of Instrument:	2012-11-19
Date of Registration:	2012-12-6
Nature:	Second Mortgage
In Favor of:	Dbs Bank (Hong Kong) Limited
Consideration:	All Moneys
2
Memorial No.:	10092100330353
Date of Instrument:	2010-8-23
Date of Registration:	2010-9-21
Nature:	Assignment Of Rentals
In Favor of:	Dbs Bank (Hong Kong) Limited
3
Memorial No.:	10092100330342
Date of Instrument:	2010-8-23
Date of Registration:	2010-9-21
Nature:	Mortgage
In Favor of:	Dbs Bank (Hong Kong) Limited
Consideration:	All Monies

Production Information

The subject is a trader of jewelry and etc without any production activities.

Purchase Information

It is introduced that subject imports the products mainly from the related factories or contract factories in India, Belgium and etc.

Sales Information

The subject is mainly engaged in sales of jewelry and etc.

It is introduced that subject’s major products include diamonds, diamond jewelry, gold jewelry, platinum jewelry, and etc.

It is introduced that subject’s selling territory is mainly in domestic market.

It is introduced that subject’s major customers are direct customers, manufactures or designers of jewelry and etc.

It is introduced that subject’s group has branch in Shanghai so that the subject can handle with the custom procesures for customers to export to the mainland of China.

Settlements

Purchase

Domestic Purchase

The subject has little purchase in domestic market.

Import

Products	Jewelry and etc.
Payment Terms	L/C. T/T and etc

Sales

Domestic Markets

Product	Jewelry and etc.
Selling Terms	Cash, T/T and etc

Export

The subject has little export.

Financial Information

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Mr. Lee rejected to disclose the financial information, from other sources we could not obtain such information, either.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public

Mortgage Record

Company Name:	5C Hong Kong Limited (“the Company”)
Instrument of Creating Mortgage:	Debenture
Date of Creating Mortgage:	2008-10-10
Amount Secured:	In consideration of ABN AMRO Bank N.V. agreeing (subject to the terms of the Debenture) to grant general banking facilities to the Company, the Debenture is to secure all moneys which may from time to time be owing by the Company to ABN AMRO Bank N.V..
Name of Mortgagee:	ABN AMRO Bank N.V.
Address of Mortgagee:	38th Floor, Cheung Kong Centre, No. 2 Queen’s Road Central, Hong Kong
Description of Property Mortgaged:	All the company’s undertaking and property and assets whatsoever and wheresoever both present and future including all book and other debts revenues and claims both present and future due or owing or which may become due or owing to the Company, all its uncalled capital, goodwill and all patents, patent applications, trademarks, trade names, registered designs and copyrights and all license and ancillary and connected rights relating to the intangible property both present and future of the Company. The charge created by the Debenture is a continuing security and shall be a first floating charge (subject to Clause 3.02 of the Debenture) Clause 3.02 of the Debenture provides that if the company charges pledges or otherwise encumbers (whether by way of fixed or floating security) any of the undertaking, property and assets thereby charged or attempts as to do without the prior consent in writing of the Lender or if any creditor or other person attempts to levy and distress execution sequestration or other process against any of the undertaking, property and assets thereby charged, the floating charge thereby created over such undertaking, property and assets the subject thereof shall automatically without notice operate as a fixed charge instantly such event occurs. It is a term of the Debenture and Debenture contains a covenant that the Company will not (without prior consent in writing of the Lender) create or agree to create or permit to arise any mortgage, property and assets or any part thereof comprised in this security ranking in prority to or pari passu with this Debenture nor shall the Company sell, transfer, lease or in any way dispose of or any part thereof comprised in this security (whether by way of fixed or floating charge or otherwise) or enter into transactions, whether related or not (except in the case of stock in trade charged by way of floating charge only as aforesaid which may be sold at market value in the usual course of trading as now conducted and for the purpose of carrying on the business of the Company).

Lawsuits

Up to now, no present or latent litigation of the subject has been found.

High Court Action:	Clear
High Court Baukufty Bankruptcy Proceedings:	Clear
High Court Commercial Action:	Clear
High Court Construction & Arbitration Proceedings:	Clear
High Court Companies Winding-Up:	Clear

Special Note

Interview Details

Name	Mr. Lee
Department:	Sales Department

Industry Information

89731--Articles of jewellery and parts thereof, of precious metals or metals clad with precious metals (g)

Unit: HKD/000

	2014.05		2014.01~2014.05
	Quantity	Value	Quantity	Value
Imports
United Arab Emirates	360,811	286,593	1,910,636	2,509,526
Austria	3,452	187	14,139	4,212
Australia	28,455	20,576	193,679	76,769
Belgium	5,306	2,991	18,285	12,571
The Mainland of China	15,416,663	2,786,822	80,725,040	14,919,295
Exports
United Arab Emirates	34,144	20,993	266,704	182,114
Austria	895	1,895	2,797	5,247
Australia	15,794	11,843	141,972	57,892
Belgium	1,028	1,273	19,070	8,044
The Mainland of China	286,047	25,826	1,126,839	117,609

External Trade Information:

External Merchandise Trade Aggregate Figures

Unit: HKD/ Million

	Imports	Domestic Exports	Re-exports	Total exports	Year-on-year % change of Total exports	Merchandise trade balance
2011	3,764,596	65,662	3,271,592	3,337,253	+10.1	-427,343
2012	3,912,163	58,830	3,375,516	3,434,346	+2.9	-477,817
2013	4,060,717	54,364	3,505,322	3,559,686	+3.6	-501,031
2013.03	340,857	5,073	286,638	291,711	+11.2	-49,146
2013.04	332,963	4,503	285,763	290,267	+9.0	-42,696
2013.05	335,809	4,818	286,724	291,542	-1.0	-44,267
2013.06	327,309	4,476	273,161	277,637	-0.2	-49,673
2013.07	342,565	4,783	300,630	305,413	+10.6	-37,152
2013.08	347,059	4,932	302,558	307,490	-1.3	-39,570
2013.09	359,841	4,395	313,436	317,830	+1.5	-42,010
2013.10	361,196	4,458	318,686	323,144	+8.8	-38,052
2013.11	370,104	4,587	320,935	325,522	+5.8	-44,581
2013.12	365,228	4,596	306,281	310,877	0.0	-54,351
2014.01	323,436	4,299	299,157	303,456	-0.4	-19,979
2014.02	266,587	3,276	209,638	212,914	-1.3	-53,673
2014.03	351,889	5,120	296,403	301,523	+3.4	-50,365
2014.04	340,972	4,867	280,816	285,682	-1.6	-55,290
2014.05	348,323	5,299	300,673	305,973	+4.9	-42,350
2014.06	352,316	4,802	304,409	309,211	+11.4	-43,105

*Total exports figures have been rounded to the nearest final digit after summing up the constituent trade figures.

Attachment

Room 1007B, 10/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong

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.61.83
UK Pound	1	Rs.96.56
Euro	1	Rs.77.42

INFORMATION DETAILS

Analysis Done by :	KAR

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%)

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