MIRA INFORM REPORT

Report Date :

15.09.2008

IDENTIFICATION DETAILS

Name :	PRECIOUS DIAMONDS CO.

Registered Office :	6222 Richmond Ave, Suite 370, Houston, TX 77056

Country :	United States

Date of Incorporation :	01.01.1990

Legal Form :	Private Ownership

Line of Business :	Wholesales Diamonds and Precious Stones

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	No Complaints

Litigation :	Clear

GEOPOLITICS

POLITICAL DATA

ECONOMIC DATA

FORM OF GOVERNMENT

ECONOMIC RISK

Federal

None

CURRENCY

BRANCH SITUATION

USD

Satisfying

IDENTIFICATION

Company Name:

Shah, Deepak K. Dba Precious Gems Co; Precious Diamonds Co.

Address:

6222 Richmond Ave, Suite 370,

Houston, TX 77056,

USA

Phone:

Facsimile:

ID:

State:

Managers:

+ 1 (713) 952-2227

Deepak Shah, Principal

Date founded:

Jan 1, 1990

Private Ownership

N.A.

1 employees

Legal form:

Stock:

Value:

Staff:

Business:

Wholesales diamonds and precious stones

BANKS

Bank of America

BUSINESS

Business & Operations:

Shah, Deepak K. Also does business as Precious Gems Co; Precious Diamonds Co.

The company is a sole proprietorship wholesaling diamonds and precious stones.

Industry Overview:

The US jewelry industry generates annual revenues of about $25 billion from 30,000 specialty stores. Large companies include Zale, Tiffany, and Sterling Jewelers. The industry is fragmented: the top 50 jewelry chains hold less than half of the market.

Jewelry sales depend partly on consumer income. Small jewelers can effectively compete with large chains because price isn't the main factor determining sales. Profitability depends on merchandising and effective marketing. Average industry revenue per worker is about $160,000.

Jewelry is also sold in department and discount stores, and by mass merchants. Because regular gross margins are very high, often 50 percent, mass merchants have been able to cut prices and take market share. Wal-Mart is the largest jewelry retailer in the US.

SHAREHOLDERS – SUBSIDIARIES – MANAGERS

The owner of this impersonal company is:

Deepak Shah, Principal.

FINANCIALS – COMMERCIAL TRENDS AND FORECAST

Shah, Deepak K. does not publish any financial statement.

However our financial sources could provide us with the following information:

Fiscal Year

In USD

12/31/2007

Turnover

110,000

LEGALS

0 Suits

0 Judgments

0 Liens

0 Collection Claims Reported

0 NSF Cheques Reported

0 UCC Filings

RATING

This is an impersonal company.

The legal form is a private ownership non-registered.

For these reasons, we suggest caution.

SUMMARY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.63
UK Pound	1	Rs.83.76
Euro	1	Rs.66.49

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

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