MIRA INFORM REPORT

Report Date :

18.02.2011

IDENTIFICATION DETAILS

Name :	EMPEE DIAMONDS INC

Registered Office :	606 S Hill St Ste 608, Los Angeles, CA 90014

Country :	United States

Date of Incorporation :	26.01.2001

Legal Form :	Corporation for Profit

Line of Business :	Wholesaler of diamond

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation: Stable

IDENTIFICATION

Ordered as:	Empee Diamonds Inc
Address in the order:	606, South Hill Street, Suite #608, Los Angeles California
Legal Name:	EMPEE DIAMONDS INC
Legal Address	606 S HILL ST STE 608,LOS ANGELES, CA 90014, USA
Telephone:	+ 1 (213) 688-87 04	Document Number :	C2304011
Fax:	+ 1 (213) 688-87 04	Legal Form:	Corporation for Profit
Email:	NA	Registered in:	California
Website:	NA	Date Created:	1989
Manager:	Suresh Bhojani, President	Date Incorporated:	January 26th, 2001
Staff:	05 employees	Stock:	NA
		Value:	NA
Activity:	Wholesaler of diamond.

BANKS

Name of the Bank	Comerica Bank
Name of the Bank	Citibank

BUSINESS

HISTORY
	Empee Diamonds Inc is a private company created in 1989 and based in California.
PRINCIPAL ACTIVITY
	Empee Diamonds Inc is in the wholesale and distribution of diamonds. The company is still establishing.
Products/Services description:
	The company sells rings, bracelets necklaces and similar products.
Sales are:
	Wholesale
Clients:
	Retailers
Operations area:
	National, International
The company imports from Israel, South Africa, Europe and India
The company does not export
Trade References:
	Despite our searches we were not able to find any company's trade references.
The subject employs 05 employee(s)
PAYMENTS
	Regular
LOCATION
Headquarters
	The company is headquartered at 606 S Hill Street # 608 Los Angeles, CA 90014, USA
Business Overview:
	The US jewelry retail 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. Jewelry is sold not only by specialized jewelry retailers, but also by department stores and 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. Jewelry is often classified as bridal merchandise (engagement, bridal and anniversary rings - about 35 percent of the market); fashion jewelry (rings, bracelets, earrings, pins, gold chains); and watches, silver flatware, and other giftware. Diamond jewelry and loose diamonds account for the largest share of total jewelry store sales (46 percent); gold jewelry for 11 percent; colored gemstone jewelry (rubies, sapphires, emeralds, etc.) 9 percent; and watches 4 percent. Jewelry is expensive, intimidating, difficult for consumers to evaluate, and usually not branded. Purchases therefore require a good deal of service and expertise. Consumers are most likely to buy jewelry from a merchant they feel is trustworthy: either a well-known local jeweler or a retailer such as Tiffany.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	Despite our long searches we could not identify any company's shareholder.
Management:
	SURESH BHOJAN, President

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

However our financial sources could provide us with the following data.

Those figures are estimates provided by confidential banking and financial institutions working with the company.

Currency	DATE
USD	2009
Turnover	1,500,000
The cash flow is	Normal

Currency	DATE
USD	2007
Turnover	1,420,000
Operating Income	258,000
Net Income	185,000
Net worth	500,000
The cash flow is	Normal

Currency	DATE
USD	2006
Turnover	1,300,000
Operating Income	210,000
Net Income	165,000
Bank liabilities	130,000
The cash flow is	Normal

Legal Fillings

There are no UCC files listed with the Secretary of State of California.

There are no legal filings listed with the District Court.

For information:

The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a medium credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

The cash flow is normal.

This is a small company with medium income.

We did not find any adverse record on the company.

The subject evolves in a pretty stable sector.

It is also important to notice that the company's income has slightly increased in 2009.

Monitoring is required.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public Records	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	NORMAL

APPENDIX

Person Interviewed
	Surish Bhojani
Position
	President
Comments
	He was able to confirm us the information included in the report.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.38
UK Pound	1	Rs.73.08
Euro	1	Rs.61.60

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	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

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%)

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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.