MIRA INFORM REPORT

Report Date :

08.06.2011

IDENTIFICATION DETAILS

Name :	DHARAM CREATIONS (HK) LTD.

Registered Office :	Unit 7, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	07.07.2004

Com. Reg. No.:	34748434

Legal Form :	Private Limited Company

Line of Business :	Importer and Exporter of all kinds of diamonds and jewellery

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 :	No Complaints

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Hong Kong

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

Bottom of Form

Company name

DHARAM CREATIONS (HK) LTD.

Company ADDRESS

Unit 7, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2723 1466

FAX: 2722 6214

E-MAIL: info@dharamhk.com

manish@dharamhk.com

MANAGEMENT

Managing Director: Mr. Manishkumar Vallabhbhai Mangukia

SUMMARY

Incorporated on: 7th July, 2004.

Organization: Private Limited Company.

Capital: Nominal: HK$8,900,000.00

Issued: HK$7,470,000.00

Business Category: Diamond Trader.

Employees: 7.

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Unit 7, 1/F., Chevalier House, 45-51 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong.

Affiliated Offices:-

Mumbai Office
Dharmanandan Diamonds Pvt. Ltd.
1014-16, Prasad Chambers, Opera House, Mumbai 400004, India.
Tel:                         91 22 4004 1111 / 2 /3 / 4 / 5
Fax :                       91 22 6635 5533
E-mail:                    info@dharmanandan.com

Surat Factory
Dharmanandan Diamonds Pvt. Ltd.
Behind Patel Faliya, Gotalawadi, Katargam Road, Surat 395004, Gujarat, India.
Tel: 91 261 253 3777
Fax: 91 261 253 3775

USA Office
Dharm International LLC
Suite 405, 15 West, 47th Street, NY 10036, New York, USA.
Tel:                         1 212 398 7777 - 7778
Fax:                        1 212 398 7775
E-mail:                    bhavesh@dharmanandan.com

Belgium Office
Dharm Diam B.V.B.A.
30, Hoveniersstraat, Suite No.428, Box No.133, 2018, Antwerp, Belgium.
Tel:                         323 234 1444
Fax:                        323 234 1445
E-mail:                    sandip@dharmdiam.com

Holding Company:-

DDL Investment Ltd., Mauritius.

Associated/Affiliated Companies:-

· Dharm Diam B.V.B.A., Belgium.

· Dharm Exim (Exporters of Diamonds & Diamond Jewellery), India.

· Dharmanandan Diamonds Pvt. Ltd., India.

· Dharm International LLC, USA.

BUSINESS REGISTRATION NUMBER

34748434

COMPANY FILE NUMBER

0910307

MANAGEMENT

Managing Director: Mr. Manishkumar Vallabhbhai Mangukia

CAPITAL:

Nominal Share Capital: HK$8,900,000.00 (Divided into 500,000 Ordinary shares of HK$1.00 each and 840 Preference shares of HK$10,000.00 each)

Issued Share Capital: HK$7,470,000.00

SHAREHOLDERS

(As per registry dated 07-07-2010)

Name		No. of shares
		Ordinary	Preference
DDL Investment Ltd. Les Cascades, Edith Cavell Street, Port Louis, Mauritius.		44,100	615
Manishkumar Vallabhbhai MANGUKIA		11,000	50
Hareshbhai Ramajibhai PATEL		6,500	25
Vipulbhai Purshottambhai SUTARIYA		8,400	50
		––––––	–––
	Total:	70,000 =====	740 ===

DIRECTORS

(As per registry dated 07-07-2010)

Name (Nationality)	Address
Vipulbhai Purshottambhai SUTARIYA	16/B Balvant, Nagar, Singapore Char Rasta, Katargam Road, Surat, Gujarat, India.
Hareshbhai Ramajibhai PATEL	6 Dharmjivan Soc, Near Gurukul, Vedroad, Surat, Gujarat, India.
Manishkumar Vallabhbhai MANGUKIA	Flat C, 5/F., Holly Mansion, 37 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 07-07-2010)

Name	Address	Co. No.
Sovereign Secretaries (HK) Ltd.	Suite 1-3, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong.	0280990

HISTORY

The subject was incorporated on 7th July, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the registered address of the subject was located at Suite 1-3, 16/F., Kinwick Centre, 32 Hollywood Road, Central, Hong Kong, moved to the present address with effect from 25th August, 2008.

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

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of diamonds and jewellery.

Employees: 7.

Commodities Imported: Belgium, India, other Asian countries, etc.

Markets: Asia, Europe, North America, etc.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$8,900,000.00 (Divided into 500,000 Ordinary shares of HK$1.00 each and 840

Preference shares of HK$10,000.00 each)

Issued Share Capital: HK$7,470,000.00

Alternation of Capital:-

Initially	paid up	HK$ 3,570,000.00
23-10-2009	paid up	HK$ 3,900,000.00
		–––––––––––––––
Total:	paid up	HK$ 7,470,000.00 ==============

Increase of Nominal Capital:-

From

HK$5,000,000.00

HK$8,900,000.00

23-10-2009

Mortgage or Charge: (See attachment)

Profit or Loss: Making a small profit every years.

Condition: Keeping in an active state.

Facilities: Making active use of general banking facilities.

Payment: Met on time.

Commercial Morality: Satisfactory.

Bankers:-

· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

· Wing Lung Bank Ltd., Hong Kong.

· Bank of China (Hong Kong) Ltd., Hong Kong.

· Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.

· Bank of Baroda, Hong Kong Branch.

Standing: Normal.

GENERAL

Dharam Creations (HK) Ltd. was jointly owned by three Indian and an India firm. Its old holding company was Dharmanandan Diamonds Pvt. Ltd. which was an India-based firm. However, the holding company changed in late 2009. The equity of each shareholders also has changed. Now, its new holding company DDL Investment Ltd. is a Mauritius-registered firm.

The subject in fact is a member of Dharmanandan Group [Dharmanandan] which is one of the largest manufacturers of bigger size diamonds in India.

The subject is dealing in 0.01 cts to 3 cts diamond with D-J colour VVW. It is dealing in the following diamonds: loose diamonds, certified diamonds, pearls, loose diamond stones, loose round diamonds, loose polish diamonds, loose cut diamonds, colour diamonds, clarity diamonds, carats diamonds, loose princess diamond, loose emerald diamond, polished diamonds, loose diamond stone, round diamond, loose cut diamond, GIA certified diamonds, princess, marques, pears, baguettes, etc. Its products are exported to Southeast Asia, Africa, the Middle East, Central & South America, the United Kingdom, the United States, Canada, etc. and also marketed in Hong Kong.

The subject has got an employee stationing in China in order to penetrate the China market.

Dharmanandan, founded in 1992, is a Sightholder of the Diamond Trading Company [DTC]. Its factory is in Surat, India employing about 2,800 workers. The floor area of the factory is about 125,000 sq.ft. The factory supplies the subject with all kinds of loose diamond products. Dharmanandan got the ISO 9001-2000 certification in 2008.

Currently, Dharmanandan has set up an office in Antwerp, Belgium, where is a diamond trading centre. In recent year, it also has set up an office in New York, the United States. The US office makes the Group further penetrate the US market.

Business chiefly handled by Mr. Manishkumar Vallabhbhai Mangukia who is a Hong Kong ID Card holder, the subject is fully supported by Dharmanandan. Annual sales turnover is significant.

The subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. It usually takes part in Hong Kong International Jewellery Show which is held in Hong Kong annually.

The history of the subject in Hong Kong is about seven years.

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

REMARKS:

Court Cases: None per our.

Property information of the company:-

1. Property Location: Unit 7 on 1/F., Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.

Owner: Dharam Creations (HK) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
22-12-2010	-	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Mortgage to secure general banking facilities

2. Property Location: 5/F. of Block A, Kimberley Mansion, 15 Austin Avenue, Kowloon, Hong Kong.

Owner: Dharam Creations (HK) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
22-12-2010	-	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Mortgage to secure general banking facilities

MORTGAGE OR CHARGE

Date	Particulars	Amount
13-09-2008	Instrument: Debenture Property: 1) All stocks shares bonds and securities of any kind whether marketable or otherwise and all other interests including loan capital of the Company 2) All book and other debts revenues and claims 3) The uncalled capital goodwill and all patents patent applications trade marks trade names registered designs and copyrights and all licences and ancillary and connected rights 4) The undertaking and all other assets of the Company Mortgagee: Antwerpse DiamantBank NV (also known as Antwerp Diamond Bank NV), Hong Kong Branch.	All money and the discharge of all obligations and liabilities
14-06-2010	Instrument: Memorandum Property: Distinctive No. of Receipts Date of Issue Amount Due Date 91220300001202 09-06-2010 US$500,000.00 07-06-2011 Mortgagee: Bank of Baroda, Hong Kong Branch.	Loan or credit or other facilities
22-12-2010	Instrument: Mortgage Property: 193/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, and Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 7 on 1/F. of Chevalier House, 45-51 Chatham Road South, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure all moneys in respect of general banking facilities
22-12-2010	Instrument: Mortgage Property: 1/16th part or share of and in section A of Subsection 1 of Section A of Kowloon Inland Lot No. 6018 (5/F. of Block A of Kimberley Mansion, 15 Austin Avenue, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure all moneys in respect of general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.74
UK Pound	1	Rs.73.25
Euro	1	Rs.65.48

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
----	NB	New Business	----

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.