MIRA INFORM REPORT

Report No. :	484610
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	KIRAN EXPORTS (HONG KONG) LIMITED
Registered Office :	Room 607-608, 6/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon
Country :	Hong Kong
Date of Incorporation :	12.11.2003
Com. Reg. No.:	34110655
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of All Kinds of Diamonds and Jewellery Products, Emerald, Precious Stones.
No. of Employees :	11

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 :	Good
Payment Behaviour :	Regular
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)
Hong Kong	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

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 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, effective 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 4.4% in 2014, but slowed to 2.9% in 2015. 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 & address

KIRAN EXPORTS (HONG KONG) LIMITED

ADDRESS: Room 607-608, 6/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

PHONE: 852-2366 2488, 2366 2411, 3692 4797

FAX: 852-2739 8288

E-MAIL: infohk@kirangems.com

MANAGEMENT

Managing Director: Mr. Gautam Bhikhabhai Gopani

SUMMARY

Incorporated on: 12th November, 2003.

Organization: Private Limited Company.

Issued Share Capital: HK$170,539,430.00

Business Category: Diamond Trader.

Employees: 11.

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

Banking Relation: Satisfactory.

Name

KIRAN EXPORTS (HONG KONG) LIMITED

ADDRESS

Registered Head Office:-

Room 607-608, 6/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

Headquarters:-

Kiran Gems Pvt. Ltd.

109, Prasad Chambers, Opera House, Mumbai-400004, India.

[Tel: 91-22-4050 4444

Fax: 91-22-4050 4455

E-mail: info@kirangems.com]

Factories:- [Under the name of Kiran Gems Pvt. Ltd.]

Plot No. 9, G/F., Near Affil Tower, Lambe Hanuman Road, Varachha, Surat-395 006, Gujarat, India.
Tel: 91 261 255 4514
Fax: 91 261 255 2606
E-mail: infosurat@kirangems.com

217-218, Tarabaug Estate, Opp: Jeevandhara Hotel, Varachha Road, Surat 395 006, Gujarat, India.
Tel: 91 261 255 3983
Fax: 91 261 255 3982
E-mail: kiranbvn@yahoo.com

Holding Company:-

Diaglow Diamonds DMCC, United Arab Emirates.

Associated Companies:-

IDD Inc., USA.

Kiran Designs, India.

Kiran Exports B.V.B.A., Belgium.

Kiran Gems (Shanghai) Ltd., China.

Kiran Gems DMCC, UAE.

Kiran Jewelry, India.

Kiran Jewels (HK) Ltd., Hong Kong. [Dissolved]

Kiran Jewels (India), India.

Kiran Jewels Inc., USA.

Kiran Jewels LLC, UAE.

Kiranmani Diamons Pvt. Ltd., India.

Kiranmani Investment & Finance Pvt. Ltd., India.

Prestige International Jewellery Inc., USA.

SDIL Inc., USA.

BUSINESS REGISTRATION NUMBER

34110655

COMPANY FILE NUMBER

0870142

MANAGEMENT

Managing Director: Mr. Gautam Bhikhabhai Gopani

ISSUED SHARE CAPITAL

HK$170,539,430.00 (7,849,943 fully paid ordinary shares and 9,204,000 fully paid redeemable preference shares)

SHAREHOLDERS

(As per registry dated 12-11-2017)

Name		No. of shares
		Ordinary	Redeemable preference
Gautam Bhikhabhai GOPANI		5,000	-
Diaglow Diamonds DMCC Unit No. 3634, DMCC Business Centre, Level No. 1, Jewellery & amp; Gemplex 3, P.O. Box 28632, Dubai, U.A.E.		7,844,943	-
Ashish Babulal LAKHANI		-	9,204,000
		––––––––	––––––––
	Total:	7,849,943 =======	9,204,000 =======

DIRECTORS

(As per registry dated 12-11-2017)

Name (Nationality)	Address
Gautam Bhikhabhai GOPANI	Flat B, 12/F., Tower 8, Laguna Verde Avenue, 8 Tai Wan Road East, Hunghom, Kowloon, Hong Kong.
Ami Gautam GOPANI	Flat B, 12/F., Tower 8, Laguna Verde Avenue, 8 Tai Wan Road East, Hunghom, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 12-11-2017)

Name	Address	Co. No.
Champion Corporate Ltd.	Unit 907, 9/F., Silvercord Tower 2, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong.	0657221

HISTORY

The subject was incorporated on 12th November, 2003 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, emerald, precious stones.

Employees: 11.

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

Markets: Worldwide countries.

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$170,539,430.00 (7,849,943 fully paid ordinary shares and 9,204,000 fully paid

redeemable preference shares)

Mortgage or Charge (since 2009): (See attachment)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory and active condition.

Facilities: Making active use of general banking facilities.

Payment: Regular.

Commercial Morality: Satisfactory.

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

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

Standing: Very Good.

GENERAL

Kiran Exports (Hong Kong) Limited is chiefly owned by the Lakhani family, all of whom are Indian. Formerly the holding company of the subject was Kiranmani Diamonds Private Ltd. which was an India-based company. Now, its holding company is Diaglow Diamonds DMCC which is in Dubai, the United Arab Emirates.

The subject’s issued ordinary share capital has been increased and its shareholders have been reshuffled for twice.

The subject has got an associated company Kiran Gems Pvt Ltd. [KGPL] in India.

The subject belongs to Kiran Group [Kiran / Group / KG].

The subject is a diamond trader. It is specialized in white diamonds of 0.005 carats to 0.5 carats, ranging from IF to I2 clarities in D - M colours. It also trades in GIA certified stones which range from 0.30 carats to 5.00 carats in all colour and clarities. 3EX, H&A are available.

Kiran has been a diamond manufacturer since 1985 and today has claimed to be “The Largest Manufacturer of white diamonds under 1 carat”. It is also one of the India’s largest employment opportunity creators with more than 31,000 skilled professionals under its umbrella adding value to polished diamonds and the jewels it creates.

Kiran has a vision of becoming a global customer centric enterprise with a totally integrated value chain from rough diamonds processing to diamonds retailing.

Kiran is a DTC sightholder company.

With a massive production of nearly 1,610,000 (1.61 million) carats of polished diamonds annually, Kiran facilitates in the growth of over a 1,000 excelling jewellery businesses world-wide.

Kiran’s product range includes finely cut and crafted natural diamonds of different shapes — round, marquise, pears princess, emeralds, hearts and ovals from the smallest to 1.5 cts stone.

Kiran has added 11 factories, with top of the line machinery to manage the value addition process for such a huge volume of rough diamonds that it had sourced from all the major miners like De Beers, Alrosa, Dominion and others. Kiran Gems currently has 155 specialised factories and the latest technology in factories makes it possible to plan each and every stone under machines. A new factory of 400,000 sq.ft. was completed and has been put into operation.

Kiran Gems group has exported to over 39 countries its diamond and diamond jewellery products in the past financial year. Currently Kiran Gems cuts and polishes approximately 5% of the global rough production.

Besides the subject in Hong Kong, Kiran has set up associated companies in Belgium, Thailand, Israel, Malaysia, the United States, the United Arab Emirates, Switzerland, the United Kingdom and India. It has had two factories in Varachha, Surat, India.

Kiran also manufactures jewellery. Its prime markets are Hong Kong, the Unites States, and the Unite Arab Emirates. Kiran now has become one of the top five jewellery vendors in the United States. Business is active.

Over the years, Kiran Group has established its position as dominant exporter of cut and polished diamonds from India. KGPL has been receiving top exporter performance awards for the past seven consecutive years.

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.

The subject is fully supported by Kiran. History in Hong Kong is over fourteen years and a month.

The subject operates from its own office.

On the whole, consider it good for normal business engagements.

REMARKS

Property information of the company:-

1. Property Location: Unit 607-608, 6/F., Hilder Centre, 2 Sung Ping Street, Kowloon, Hong Kong.

Owner: Kiran Exports (Hong Kong) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
16-04-2013	-	Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	Mortgage

2. Property Location: Flat F, 29/F., Tower 16, Laguna Grande (Phase IV A), Laguna Verde, 8 Laguna Verde Avenue, Kowloon, Hong Kong.

Owner: Kiran Exports (Hong Kong) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
16-04-2013	-	Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.	Mortgage

MORTGAGE OR CHARGE

(Since 2009)

Date	Description of Instrument	Mortgagee
29-09-2010	Debenture constituting a fixed and/or floating charge over all the assets of the Company	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
16-12-2014	Mortgage	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
16-12-2014	Mortgage	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92
HKD	1	INR 8.14

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

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)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.