MIRA INFORM REPORT

Report No. :	509452
Report Date :	19.05.2018

IDENTIFICATION DETAILS

Name :	PIONEER GEMS (H.K)
Registered Office :	Room 502, 5/F., Oriental Centre, 67-71 Chatham Road South, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	27.10.1997
Com. Reg. No.:	21335612-000-10
Legal Form :	Partnership
Line of Business :	Importer and Exporter of All Kinds of Gemstones
No. of Employees :	3

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 (30.09.2017)	Current Rating (31.12.2017)
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.

Excess liquidity, low interest rates and a tight housing supply have caused Hong Kong property prices to rise rapidly. The lower and middle-income segments of the population increasingly find housing unaffordable.

Hong Kong's open economy has left it exposed to the global economic situation. Its continued reliance on foreign trade and investment makes it vulnerable to renewed global financial market volatility or a slowdown in the global economy.

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 surged from 4.5 million in 2001 to 47.3 million in 2014, outnumbering visitors from all other countries combined. After peaking in 2014, overall tourist arrivals dropped 2.5% in 2015 and 4.5% in 2016. The tourism sector rebounded in 2017, with visitor arrivals rising 3.2% to 58.47 million. Travelers from Mainland China totaled 44.45 million, accounting for 76% of the total.

The Hong Kong Government is promoting the Special Administrative Region (SAR) as the preferred business hub for 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, RMB trade settlement is allowed, and investment schemes such as the Renminbi Qualified Foreign Institutional Investor (RQFII) Program was first launched in Hong Kong. Offshore RMB activities experienced a setback, however, after the People’s Bank of China changed the way it set the central parity rate in August 2015. RMB deposits in Hong Kong fell from 1.0 trillion RMB at the end of 2014 to 559 billion RMB at the end of 2017, while RMB trade settlement handled by banks in Hong Kong also shrank from 6.8 trillion RMB in 2015 to 3.9 trillion RMB in 2017.

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 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 66% 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 (CEPA), 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. On the basis of the Guangdong Agreement, the Agreement on Trade in Services signed in November 2015 further enhanced liberalization, including extending the implementation of the majority of Guangdong pilot liberalization measures to the whole Mainland, reducing the restrictive measures in the negative list, and adding measures in the positive lists for cross-border services as well as cultural and telecommunications services. In June 2017, the Investment Agreement and the Agreement on Economic and Technical Cooperation (Ecotech Agreement) were signed under the framework of CEPA.

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 Hong Kong- Shenzhen Stock Connect the Mutual Recognition of Funds, and the Bond Connect scheme are all important steps towards opening up the Mainland’s capital markets and have reinforced Hong Kong’s role as China’s leading offshore RMB market. Additional connect schemes such as ETF Connect (for exchange-traded fund products) are also under exploration by Hong Kong authorities. In 2017, Chief Executive Carrie 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

Note

(Formerly located at:

Room 1903, 19/F., Lane Crawford House,

68-70 Queen’s Road Central, Hong Kong.)

Company name and address

PIONEER GEMS (H.K)

ADDRESS: Room 502, 5/F., Oriental Centre, 67-71 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2368 0802

FAX: 852-2369 8189

E-MAIL: pgems@netvigator.com

MANAGEMENT:

Manager: Mr. Ajay Kumar Parakh

SUMMARY

Establishment: 27th October, 1997.

Organization: Partnership.

Capital: Not disclosed.

Business Category: Gemstone Trader.

Employees: 3.

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

Banking Relation: Satisfactory.

ADDRESS

Head Office:-

Room 502, 5/F., Oriental Centre, 67-71 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

Associated Companies:-

Cabs International, Hong Kong. (Same address)

Pioneer Gems LLC, US.

Siam Pioneer Gems Co. Ltd., Thailand.

V. Rajendra Exports, India.

BUSINESS REGISTRATION NUMBER

21335612-000-10

MANAGEMENT

Manager: Mr. Ajay Kumar Parakh

PARTNERS

Name: Mr. Ajay Kumar PARAKH

Residential Address: Room G, 18/F., Star Mansion, Tsimshatsui, Kowloon, Hong Kong.

Name: Mr. Kumar Sancheit RAJENDRA

Residential Address: Room G, 18/F., Star Mansion, Tsimshatsui, Kowloon, Hong Kong.

HISTORY

The subject was established on 27th October, 1997 as a partnership concern owned by Mr. Ajay Kumar Parakh and Mr. Kumar Sancheit Rajendra under the Hong Kong Business Registration Regulations.

At the very beginning, the subject was located at Room G, 18/F., Star Mansion, Tsimshatsui, Kowloon, Hong Kong, moved to Room 12, Block A, 12/F., Kok Pah Mansion, 58-60 Cameron Road, Tsimshatsui, Kowloon, Hong Kong in May 1998, to ‘Room 1903, 19/F., Lane Crawford House, 68‑70 Queen’s Road Central, Central, Hong Kong’ in July 2001, and further to the present address in March 2018.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of gemstones, etc.

Employees: 3.

Commodities Imported: India, Sri Lanka, other Asian countries, etc.

Markets: Hong Kong, North America, Southeast Asia, Middle East, Western Europe, etc.

Terms/Sales: CAD or as per contracted.

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

MEMBERSHIP

International Coloured Gemstone Association, Hong Kong.

FINANCIAL INFORMATION

Capital: Not disclosed.

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Slow but Correct.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Pioneer Gems (H.K) is a partnership jointly owned by Mr. Ajay Kumar Parakh [A K Parakh] and Mr. Kumar Sancheit Rajendra while both are Indian. They are Hong Kong ID Card holders and have got the right to reside in Hong Kong.

A K Parakh can be reached at his Hong Kong mobile phone number 852-9097 4740.

The subject is a gemstone trader. It is trading in all kinds of gemstones.

According to the subject, it has got an associated company in the United States which is known as ‘Pioneer Gems’.

Pioneer Gems has been in business for over three generations and established its office in New York City in the early 1980s. With a global network of offices in major markets, supplying gems and finished goods internationally.

It produces precious gems of all sizes and qualities in its factories. Some of its products are made in the United States.

Pioneer Gems is specialized in single stone sizes of natural emeralds, rubies, sapphires and diamonds. Its jewellery is made in Platinum and 18K Gold. Other materials used are emeralds, rubies, sapphires, diamonds and other gems.

The subject offers customers with the following products:-

· Emeralds: Natural, no enhancement; oil type; enhanced stones.

· Sapphire (Blue and Pink): Natural, no heat; heated stones.

· Ruby: Natural, no heat; heated stones.

· Diamond: Natural, untreated colored and white diamonds.

· Tsavorite: Natural green garnet.

According to the subject, it is specialized in Colombian Emerald.

Its jewellery products are made from gemstones and fine Platinum,

The subject’s prime markets are Hong Kong, North America, Southeast Asia, Western Europe, the Middle East, etc. It also has had associated companies in India and Thailand.

The subject has got an associated company Cabs International, a Hong Kong-registered company and located at the same address.

The subject’s history is chiefly handled by the two partners. A K Parakh is the contact person.

As the history of the subject is over 20 years and six months in Hong Kong, on the whole, consider it good for normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.96
UK Pound	1	INR 91.88
Euro	1	INR 80.28
HKD	1	INR 8.66

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TRU

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.