MIRA INFORM REPORT

Report No. :	499237
Report Date :	27.03.2018

IDENTIFICATION DETAILS

Name :	KC DIAMONDS (HK) LIMITED

Registered Office :	Flat 1608, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsim Sha Tsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	05.02.2015

Com. Reg. No.:	64389909

Legal Form :	Private Limited Company

Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds

No. of Employees :	4

RATING & COMMENTS

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

MIRA’s Rating :

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

(30.09.2017)

Current Rating

(31.12.2017)

Hong Kong

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, 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. In 2017, Chief Executive Lam announced plans to increase government spending on research and development, education, and technological innovation with the aim of spurring continued economic growth through greater sector diversification.

Source : CIA

Company name and address

KC DIAMONDS (HK) LIMITED

ADDRESS: Flat 1608, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsim Sha Tsui,

Kowloon, Hong Kong.

PHONE: 852-2368 1022, 6028 5175

MANAGEMENT: Managing Director: Mr. Karan Mihir Mehta

SUMMARY

Incorporated on: 5th February, 2015.

Organization: Private Limited Company.

Issued Share Capital: US$100,000.00

Business Category: Importer, Exporter and Wholesaler.

Employees: 4.

Main Dealing Banker: Bank of India, Hong Kong Branch.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Flat 1608, 16/F., Winfield Commercial Building, 6-8A Prat Avenue, Tsim Sha Tsui, Kowloon, Hong Kong.

Holding Company:-

Ananta Jewels Private Ltd., India.

Associated Companies:-

Crossword Properties Pvt. Ltd., India.

Facets Diamonds Manufacturing Co. Pvt. Ltd., India.

Imaginative Investment & Trading Co. Pvt. Ltd., India.

Infinity Investment & Trading Co. Pvt. Ltd., India.

K.C. Diamonds Pvt. Ltd., India.

Kantilal Chhotalal, India.

KC Jewellery Mfg. LLP, India.

BUSINESS REGISTRATION NUMBER

64389909

COMPANY FILE NUMBER

2200913

MANAGEMENT

Managing Director: Mr. Karan Mihir Mehta

ISSUED SHARE CAPITAL

US$100,000.00

SHAREHOLDER

(As per registry dated 05-02-2018)

Name

No. of shares

Ananta Jewels Private Ltd.

A2 Hermes House, Opera House, 33/35 M P Marg, Mumbai 400004, India.

100,000

======

DIRECTORS

(As per registry dated 19-03-2018)

Name

(Nationality)

Address

Karan Mihir MEHTA

Flat A, 3/F., Block B, Greenheight Villa, 1-3 Sha Tin Heights Road, Shatin, New Territories, Hong Kong.

Akshar Milan MEHTA

Flat No. 401, 4/F., Waves Building, Navroji Gamadia Cross Road, Peddar Road, Mumbai 400 026, India.

SECRETARY

(As per registry dated 05-02-2018)

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 5th February, 2015 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject’s registered address was located at Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong where was the operating office of Pan Pacific Consultants Ltd., moved to the present address in March 2015.

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: 4.

Commodities

Imported: India, Europe, etc.

Markets: Hong Kong, China, Cambodia, Vietnam, the other Asian countries, etc.

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

Terms/Buying: L/C, T/T, etc.

FINANCIAL INFORMATION

Issued Share Capital: US$100,000.00

Profit or Loss: Made a small profit in 2017.

Condition: Business is normal.

Facilities: Making active use of general banking facilities.

Payment: slow but correct .

Commercial Morality: Satisfactory.

Banker: Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

KC Diamonds (HK) Limited is a wholly-owned subsidiary of Ananta Jewels Private Ltd. [Ananta] which is an India-based company.

The directors of the subject are Karan Mihir Mehta [K M Mehta] and Mr. Akshar Milan Mehta, both are India merchants. The former is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently. He is also managing director of the subject.

K M Mehta can be reached at his Hong Kong mobile phone number
852-6028 5175. He has been in Hong Kong for a very long time as he has got his Hong Kong ID before the subject was set up in February 2015.

The subject is trading in polished diamonds. Ananta was set up on 7th March, 1977 in India. Its Director is Mr. Ashish Kantilal Mehta. Mr. Ashish Kantilal Mehta is a partner of Kantilal Chhotalal, one of the leading players in diamond and jewellery industry. Kantilal Chhotalal is one of the pioneers of this business in India established in 1941.

The subject and Ananta are owned and operated by the Mehta family.

The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut diamonds. Most of the commodities are imported from India. Prime markets are Hong Kong, China, India, Cambodia, Vietnam and the other Asian countries. Business is still under development.

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 took part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2018” which had been held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 27th February to 3rd March, 2018. Its booth No. was AWE 2-E33.

The business of the subject is chiefly handled by Mr. K M Mehta himself. History in Hong Kong is over three years and a month.

The subject is fully supported by Ananta and Mehta family of India.

On the whole, consider it good for normal business engagements in small credit amounts for the time being.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.91
UK Pound	1	INR 91.87
Euro	1	INR 80.26
HKD	1	INR 8.25

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

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	KET

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.