MIRA INFORM REPORT

Report No. :	490406
Report Date :	09.02.2018

IDENTIFICATION DETAILS

Name :	CHARMING DIAMONDS (H.K.) LIMITED
Registered Office :	Room 1005, 10/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon
Country :	Hongkong
Date of Incorporation :	30.09.2006
Com. Reg. No.:	37469988
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of Diamonds and Jewellery Products.
No. of Employees :	5

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Hongkong	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

HONGKONG - 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 reexports, 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 continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

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 aided a more rapid initial recovery 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 9.4% of total system deposits in Hong Kong by the end of 2015. 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 47.3 million in 2014, outnumbering visitors from all other countries combined. Mainland visitors to Hong Kong declined 3% in 2015 to approximately 45.7 million, reflecting an overall drop of 2.5% in total visitors to Hong Kong. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2015, mainland Chinese companies constituted about 51% of the firms listed on the Hong Kong Stock Exchange and accounted for about 62.1% 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. In 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, which took effect in March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

Credit expansion and a tight housing supply have caused Hong Kong property prices to rise rapidly; consumer prices increased 2.6% in 2016, but slowed to 2.0% in 2017. Lower- and middle-income segments of the population are increasingly unable to afford adequate housing.

Hong Kong’s economic integration with the mainland continues to be most evident in the banking and finance sector. Initiatives like the Hong Kong-Shanghai Stock Connect, the Mutual Recognition of Funds, and The Hong Kong Shanghai Gold Connect are all important steps towards opening up the Mainland’s capital markets and has reinforced Hong Kong’s leading role as China’s offshore RMB market. Additional connect schemes from bonds to commodities and other investment products are also under exploration by Hong Kong authorities.

Source : CIA

Company name and address

CHARMING DIAMONDS (H.K.) LIMITED

ADDRESS: Room 1005, 10/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui,

Kowloon, Hong Kong.

PHONE: 852-2721 3353

FAX: 852-2721 3354

MANAGEMENT

Managing Director: Mr. Romil Milan Mehta

SUMMARY

Incorporated on: 30th September, 2006.

Organization: Private Limited Company.

Issued Share Capital: HK$6,241,000.00

Business Category: Diamond Trader.

Employees: 5.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 1005, 10/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Chintamani DMCC, UAE.

Associated Companies:-

Chintamani (Shanghai) Ltd., China.

Chintamani BVBA, Belgium.

Chintamani USA, Inc.

BUSINESS REGISTRATION NUMBER

37469988

COMPANY FILE NUMBER

1077655

MANAGEMENT

Managing Director: Mr. Romil Milan Mehta

Contact Person: Mr. Zubin Oza

ISSUED SHARE CAPITAL

HK$6,241,000.00 (624,100 fully paid ordinary shares)

SHAREHOLDER

(As per registry dated 30-09-2017)

Name	No. of shares
Chintamani DMCC Office No. 1D03, Building No. 1, Plot No. 550-554, DMCC Dubai, UAE.	624,100 ======

DIRECTORS

(As per registry dated 30-09-2017)

Name (Nationality)	Address
Gaurang Narendra SHAH	42 Lotus House, Dinanath Mangeshker, Marg, Forjett Street, Tardeo, Mumbai 400034, India.
Romil Milan MEHTA	Flat No. 509, 1 BR, Plot No. 316-0695, Ali Ahmed Khalfan, Al Rawda Residence, Al Raffa, Bur Dubai, UAE.

SECRETARY

(As per registry dated 30-09-2017)

Name	Address	Co. No.
Pan Pacific Consultants Ltd.	Room D, 3/F., Thomson Commercial Building, 8-10 Thomson Road, Wanchai, Hong Kong.	1254491

HISTORY

The subject was incorporated on 30th September, 2006 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: 5.

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

Markets: Hong Kong, Japan, Southeast Asia, Europe, Middle East, etc.

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

Terms/Buying: L/C, T/T, D/P, O/A, etc.

FINANCIAL INFORMATION

Issued Share Capital: HK$6,241,000.00 (624,100 fully paid ordinary shares)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Having issued 624,100 ordinary shares of HK$10.00 each, Charming Diamonds (H.K.) Limited is wholly owned by Chintamani DMCC, a UAE-based company.

The directors of the subject are Gaurang Narendra Shah and Romil Milan Mehta. The former is an India passport holder and residing in Mumbai, India while the latter is a Belgium passport holder but residing in the United Arab Emirates.

The subject is a loose diamond importer, exporter and wholesaler. It is engaged in manufacturing loose diamonds like marquise, pears, tappers, buggets and rose cut diamonds. Rough diamonds are imported from India, Belgium, other Asian countries, the United States, etc. Finished products are exported to Japan, Taiwan, other Asian countries, Belgium, the United Arab Emirates, etc.

The subject’s holding company Chintamani DMCC is also a jewellery and diamond trader. Chintamani DMCC imports commodities from the subject and distributes in the United Arab Emirates. Its associated company is Chintamani BVBA. Chintamani DMCC is also trading in machinery and equipment for jewellery and diamond processing.

Chintamani BVBA is specialised in the manufacture and distribution of small round polished diamonds. It is one of the leading suppliers in this line of business.

All the diamonds of Chintamani BVBA are sourced from Kimberley certified rough and are predominantly sourced from the major rough producers De Beers, BHP, Rio Tinto and Alrosa whose goods are readily available on the secondary market.

The subject’s business is handled by Mr. Zubin Oza, an Indian, who is the contact person. Overall business is satisfactory.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2018” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 27th February to 3rd March, 2018. Its booth No. is AWE 5-H11.

As the history of the subject in Hong Kong is over eleven years and four months, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.16
UK Pound	1	INR 89.19
Euro	1	INR 78.75
HKD	1	INR 8.23

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.