MIRA INFORM REPORT

Report No. :	306255
Report Date :	10.02.2015

IDENTIFICATION DETAILS

Name :	TAPOJA TRADING (HK) LIMITED
Registered Office :	Unit 8A, Kam Chung Commercial Building, 19-21 Hennessy Road, Wanchai
Country :	Hong Kong
Date of Incorporation :	10.05.2010
Com. Reg. No.:	52228288
Legal Form :	Private Limited Liability Company
Line of Business :	Engaged in trading of Loose, Polished and Cut Diamonds.
No of Employees :	About 2 Employees

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 :	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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Hong Kong	A1	A1

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:	Tapoja Trading (HK) Limited
Supplied Name:	Tapoja Trading HK Ltd
Trading Address:	Flat F, 6/F., Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, Kowloon, Hong Kong
Supplied Address:	Flat F-6/F Tin Man Court No 2A Kimberly Street Tshimshtsul Kl

Note: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Tapoja Trading (HK) Limited
Registered Address:	Unit 8A, Kam Chung Commercial Building, 19-21 Hennessy Road, Wanchai, Hong Kong
Telephone Number:	+852-3112-2456
Fax Number:	+852-3112-2457
E-mail:	parikh_purav@yahoo.com
Date of Registration:	2010-5-10
Registered Number:	1454516
Business Registration No.:	52228288
Paid-up Capital:	HKD 10,000 (USD 1,290) = 10,000 Shares@ HKD 1 (As of 2015.02, 1 HKD = 0.129 USD)
Legal Form:	Private Limited Liability Company
SITC Code:	66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)
Principal Activities:	Engaged in trading of Loose, Polished and Cut Diamonds.
Staff:	About 2 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-5-10

History

Subject was incorporated on 2010-5-10 with the registered number 1454516 as Private Limited Liability Company in Hong Kong.

Corporate Structure

Subject did not introduce whether it has any subsidiaries or branches; from other source we could not obtain the relevant information, either.

Shareholder

Name	Subscription Shares	Proportion of Investment (%)
Tapoja Trading Company	10,000	100%
Total	10,000	100%

Major Shareholder Information:

Name:	Tapoja Trading Company
Address:	304, Vasant Aagan, Behind Patel Nagar, MG Cross Road, No.4 Kandivali Mumbai 400 067, India

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Parikh Purav Prakashkumar
Address:	Flat F, 6/F., Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, Kowloon, Hong Kong
Position:	Director
ID Number:	R902929(9)
Date of Appointment:	2014-9-4
2
Name:	CBS Pacific Limited
Address:	Unit 8A, Kam Chung Commercial Building, 19-21 Hennessy Road, Wanchai, Hong Kong
Position:	Corporate Secretary
Registered Number:	582043
E-mail:	info@cbspacific.com

Former Directors:

1
Name:	Kamdar Jayshree Kiran
Address:	Rushi Mangal, 1^st Floor, 108 Valkeshwar Road, Malabar Hill, Mumbai 400 006, India
Passport Number:	B2829408
Issuing Country:	India
Date of Resignation:	2014-6-11
2
Name:	Parikh Nidhi Purav
Address:	Flat F, 6/F., Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, Kowloon, Hong Kong
Position:	Director
ID Number:	R869897(9)
Date of Appointment:	2014-6-11
Date of Resignation:	2014-9-4

Operation Information

Offices & Factories

	Office
Address:	Flat F, 6/F., Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, Kowloon, Hong Kong

Premises Information

Office address:

Address:	Flat F on 6^th Floor, Tin Man Court, No.2A Kimberley Street, Kowloon
Owners:	Chan Bo Hing
Memorial Number:	11051800960071 Assignment
Date of Instrument:	2011-5-9
Date of Registration:	2011-5-18
Consideration Value:	HKD 2,170,000.00

History of Premises Owners’

1
Memorial No.:	14042502430010
Date of Instrument:	2014-4-22
Date of Registration:	2014-4-25
Nature:	Mortgage
In Favor of:	The Hongkong and Shanghai Banking Corporation Limited
Consideration:	All monies
2
Memorial No.:	11042000590034
Date of Instrument:	2011-4-7
Date of Registration:	2011-4-20
Nature:	Agreement for sale and purchase Remarks: See assignment mem. no. 11051800960071
In Favor of:	Chan Bo Hing
Consideration:	HKD 2,170,000.00
3
Memorial No.:	10031800480130
Date of Instrument:	2010-3-11
Date of Registration:	2010-3-18
Nature:	Agreement for sale and purchase Remarks: See assignment mem. no. 10050600230013
In Favor of:	Or Wing Yee Tammy
Consideration:	HKD 1,730,000.00

Production Information

l Subject is a trader of diamonds without any production activities.

Purchase Information

l Subject purchases products mainly from India.

Sales Information

l Subject is engaged in sale of Loose, Polished and Cut Diamonds

l Some diamonds sold by subject with the certification of GIA and HRD

l Subject’s sales region focuses on Asia market.

l Subject’s major customers are retailers, jeweler manufacturers and designers

Settlements

Purchase

1. Domestic Purchase

Subject has little domestic purchase.

2. Import

Products	Diamonds
Payment Terms	T/T

Sales

1. Domestic Markets

Product	Diamonds
Selling Terms	Cash, T/T

2. Export

Product	Diamonds
Selling Terms	T/T

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 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

No mortgage record of subject was found.

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. Parikh
Department:	Sales Department

Industry Information

66729--Diamonds, non-industrial, otherwise worked, but not mounted or set (cm)

Unit: HKD/000

	2014.05		2014.01~2014.05
	Quantity	Value	Quantity	Value
Imports
United Arab Emirates	96,110	728,817	662,210	4,475,744
Armenia	--	--	461	1,049
Australia	1,756	23,658	3,733	54,816
Belgium	84,515	1,239,263	423,171	6,622,381
Canada	476	2,771	2,771	48,195
Switzerland	8,077	206,582	32,377	858,188
Germany	709	2,321	12,087	20,158
Britain	1,277	88,340	9,442	386,120
Israel	65,772	1,433,655	360,130	8,238,886
India	981,536	4,727,211	5,338,417	26,201,042
Malaysia	3,860	18,103	19,791	137,275
USA	129,016	1,115,405	703,068	6,169,441
The Mainland of China	114,204	798,063	516,495	3,689,202
Exports
United Arab Emirates	--	--	53	749
Israel	--	--	50	24,803
Japan	--	--	3	116
Singapore	--	--	17	208
Belgium	13	4,441	249	67,929
Thailand	--	--	251	732
USA	33	924	465	35,419
The Mainland of China	157	184	2,711	8,359

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

Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, Kowloon, Hong Kong

Flat F, 6/F., Tin Man Court, No. 2A, Kimberly Street, Tsim Sha Tsui, 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.62.14
UK Pound	1	Rs.94.79
Euro	1	Rs.70.38

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	MNL

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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