MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	SPARKLES AND COLORS, INC.

Registered Office :	103 Regal Dr, Laredo, Tx 78041

Country :	United States

Date of Incorporation :	22.09.2005

Com. Reg. No.:	0800549024

Legal Form :	Corporation for Profit

Line of Business :	Jewlery Import, Wholesale, Retail

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company

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)

United States

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

Bottom of Form

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation: Competitive

IDENTIFICATION

Ordered as:	Sparkels & Colors
Address in the order:	103, Regal Drive, Laredo TX-78041

Legal Name:	SPARKLES AND COLORS, INC.

Legal Address	103 REGAL DR LAREDO, TX 78041
Operative Address	8511 Mcpherson Road ,Suite 204 Laredo, TX 78045
Telephone:	956-251-2525	Registration Number :	0800549024
Fax:	N.A.	Legal Form:	Corporation for Profit
Email:	shaker786@gmail.com	Registered in:	Texas
Website:	http://lakhigemsgroup.com	Date Created:	1981
Manager:	SAILESH LAHKI	Date Incorporated:	September 22, 2005
Staff:	4	Stock:	N.A.
		Value:	N.A.
Activity:	Jewlery Import, Wholesale, Retail

BANKS

Name of the Bank	Bank of America
Name of the Bank	Falcon International Bank

BUSINESS

PRINCIPAL ACTIVITY
	The company is a jewelry importer.
Products/Services description:
	Watches, diamonds, gold and others; its product line is mostly in 18kt,14kt,10kt,Silver and Stainless Steel.
Sales are:
	Wholesale, Retail
Clients:
	Jewelry retailers and final consumers
Operations area:
	National, International
The company imports from Italy, Turkey, India and China
The company export to Canada and Mexico
Trade References:
	The person contacted refused to provide the names of their suppliers for us to check the trade references.
Competitors:
	Mitsui & Co (U S A ), Inc Tiffany & Co Fossil, Inc
The subject employs 4 employee(s)
PAYMENTS
	regular
LOCATION
Headquarters
	The company is headquartered and single located at the above operative address. The legal address is the one registered at the Secretary of State of Texas and is that of the registered agent.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	The company is a unit of the Lakhi Gems Group located at: 395,2nd Floor, Hanuman Ji Street,Rasta Gopalji ,Johari Bazar ,Jaipur 302003 India
Management:
	PRESIDENT SAILESH LAHKI TREASURER CHANDER S GIANCHANDANI SECRETARY MINA GIANCHANDANI

Financials - COMMERCIAL TRENDS AND FORECAST

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

We have contacted the manager who provided us with the following data:

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	2010
Turnover	1 500 000
The cash flow is	normal

Comments on the financial data: The person interviewed did not give the net income but said it was low although not negative.

Legal Fillings

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

There are no legal filings listed with the District Court.

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

For information:

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** 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 correct credit rate.

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

Final Opinion

The company has 30 years in the business.

It is a small sized American company, evolving in a competitive sector.

Profitability is low, indebtedness is controlled, cash is normal and payments are regular.

We did not find a specific adverse record against the subject.

SUMMARY

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

APPENDIX

Person Interviewed
	Shaker
Position
	Manager
Comments
	He provided us with some information to complete this report.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.82
UK Pound	1	Rs.72.84
Euro	1	Rs.64.58

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.