MIRA INFORM REPORT

Report Date :

18.02.2011

IDENTIFICATION DETAILS

Name :	SHRENUJ JEWELRY (FAR EAST) LTD.
Registered Office :	5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	13.05.2006
Com. Reg. No.:	36752328
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, etc.

RATING & COMMENTS

MIRA’s Rating :

Ba

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)
Hong Kong	A2	A2

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

Company name

SHRENUJ JEWELRY (FAR EAST) LTD.

company ADDRESS

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2766 3800

FAX: 2766 3893

E-MAIL: shrenujjos@shrenuj.com

MANAGEMENT

Managing Director: Mr. Nihar Nitin Parikh

SUMMARY

Incorporated on: 13th May, 2006.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$936,000.00

Business Category: Diamond Trader.

Group Turnover: Rs 188,995.87 million (Year ended 31-03-2010)

Employees: 50. (Including affiliates)

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

Banking Relation: Satisfactory.

company ADDRESS

Registered Head Office:-

5/F., Kaiseng Commercial Centre, 4-6 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Shrenuj (Mauritius) Pvt. Ltd., Republic of Mauritius.

Ultimate Holding Company:-

Shrenuj & Co. Ltd., India.

Affiliated Companies:-

Shrenuj Group of Companies

Alija International Pty. Ltd., Australia.

Arisia Jewellery Pvt. Ltd., India.

Astral Holding Inc., USA.

Astral Jewels LLC, USA.

Astral USA Inc., USA.

Bernie’s International LLC, USA.

Copem & Shrenuj, Italy.

Daily Jewellery Ltd., Hong Kong. [Trading as Joeliesse] (Same address)

Ever Gold (HK) Ltd., Hong Kong. (Same address)

Facet (Hong Kong) Ltd., Hong Kong. (Same address)

Global Marine Diamond Corporation, USA.

Inter-Gems (H.K.) Ltd., Hong Kong. (Same address)

Jomard SAS, France.

Kiara Jewellery (H.K.) Ltd., Hong Kong. (Same address)

Kiara Jewellery Pvt. Ltd., India.

Lume Germany GmbH, Germany.

Lume Group AG, Switzerland.

Shrenuj (Shanghai) Diamonds Pvt. Ltd., China.

Shrenuj Australia Pty. Ltd., Australia.

Shrenuj Botswana Pty. Ltd., Botswana.

Shrenuj Diajewels Ltd., India.

Shrenuj DMCC, UAE.

Shrenuj Gems & Jewellery Ltd., India.

Shrenuj GmbH, Germany.

Shrenuj Japan Corporation, Japan.

Shrenuj Lifestyle Ltd., India.

Shrenuj N.V., Belgium.

Shrenuj Overseas Ltd., India.

Shrenuj South Africa Pty. Ltd., South Africa.

Shrenuj USA LLC, USA.

Simon Golub & Sons Inc., USA.

SWA Trading Ltd., Israel.

Trapz LLC, USA.

etc.

BUSINESS REGISTRATION NUMBER

36752328

COMPANY FILE NUMBER

1044799

MANAGEMENT

Managing Director: Mr. Nihar Nitin Parikh

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$936,000.00

SHAREHOLDER

(As per registry dated 13-05-2010)

Name	No. of shares
Shrenuj (Mauritius) Pvt. Ltd. St. James Court, Suite 308, St. Denis Street, Port Louis, Republic of Mauritius.	936,000 ======

DIRECTORS

(As per registry dated 13-05-2010)

Name (Nationality)	Address
Nihar Nitin PARIKH	D-33 Tahnee Heights, Petit Hall, 66 Nepean Sea Road, Mumbai-6, India.
Vishal Shreyas DOSHI	405 Dharam Palace 100-103, N.S. Patkar Marg, Mumbai-400 007, India.

SECRETARY

(As per registry dated 13-05-2010)

Name	Address	Co. No.
Reliable Computing & Accounting Ltd.	Room 903, 9/F., Nathan Centre, 580G-K Nathan Road, Mongkok, Kowloon, Hong Kong.	0227077

HISTORY

The subject was incorporated on 13th May, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Shrenuj (Jewelry Outsourcing) Ltd., name changed to the present style on 12th October, 2007.

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, etc.

Employees: 50. (Including affiliates)

Commodities Imported: India, Europe, etc.

Markets: Hong Kong, other Asian countries, Europe, etc.

Group Turnover: Rs 146,010.03 million (Year ended 31-03-2009)

Rs 188,995.87 million (Year ended 31-03-2010)

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$1,000,000.00 (Divided into 1,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$936,000.00

Group Profit After Taxation: Rs 2,369.38 million (Year ended 31-03-2009)

Rs 5,115.88 million (Year ended 31-03-2010)

Profit or Loss: Making a small profit every year.

Condition: Keeping in a satisfactory manner.

Facilities: Making active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Banker: Bank of India, Hong Kong Branch.

Standing: Normal.

GENERAL

Shrenuj Jewelry (Far East) Ltd. is a wholly-owned subsidiary of Shrenuj (Mauritius) Pvt. Ltd. [SMPL] which was registered in the Republic of Mauritius. The ultimate holding company of the subject is Shrenuj & Co. Ltd. [Shrenuj], an India-based firm. The directors of the subject are in India.

The subject shares the same operating address with Facet (Hong Kong) Ltd. [Facet] which is also a Hong Kong-registered firm. Facet is also a diamond trader.

The subject is a diamond trader. It is trading in the products of its ultimate parent Shrenuj. Shrenuj is a listed firm with shares actively traded on Bombay Stock Exchange [BSE] and National Stock Exchange [NSE].

The followings are the financial statements of the subject:-

	Year ended 31-03-2010 (Unit: Rs million)
Capital	49.47
Reserves	213.92
Total Assets	263.39
Total Liabilities	263.39
Turnover	565.71
Profit Before Taxation	3.38
Profit After Taxation	3.38

Shrenuj is one of the largest diamond and jewellery manufacturing companies in India having an international presence in 15 countries with a geographically diversified customer base, favourable economies of scale, ability to source roughs from strategic partners, growing retail presence and market linked production mix. Its activities are carried out in accordance with good corporate practices.

Shrenuj’s policies and practices are not only consistent with the statutory requirement but also underline its commitment to operate in the best interest of the stakeholders. It will continue to focus its resources, strengths and strategies to achieve its vision of becoming a global company, while upholding the core values of transparency, integrity, honesty and accountability.

The world diamond market has recovered well from the bottoms of 2008-09. The recovery has been prompt and sustained and we expect the trend to continue over the coming years. The US market cannot remain on the margin for long, given its resilience in the past. Shrenuj also expects the Euro zone to emerge out of the current crisis within the next twelve months. The markets in China and India continue to perform well while the smaller markets of Australia and South East Asia hold promise for the future.

For the year ended 31st March, 2010, the turnover of the Group amounted to Rs 188,995.87 million (2009: Rs 146,010.03 million). Group profit after taxation for the year was Rs 5,115.88 million (2009: Rs 2,369.38 million).

The subject has had an affiliated company in Hong Kong known as Inter‑Gems (H.K.) Ltd. This firm is 85% owned by SMPL.

The subject is fully supported by the Shrenuj Group.

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

COURT CASES: None per our.

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.