MIRA INFORM REPORT

Report Date :

28.03.2011

IDENTIFICATION DETAILS

Name :	ASIA DIAM (HK) LTD.
Registered Office :	Suite A, 23/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	16.03.2006
Com. Reg. No.:	36674594
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds and jewellery products, precious stones, etc.

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Small Company
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
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

ASIA DIAM (HK) LTD.

Company ADDRESS

Suite A, 23/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2854 2906

FAX: 2854 2901

MANAGEMENT

Managing Director: Mr. Jigar Shailesh Shah

SUMMARY

Incorporated on: 16th March, 2006.

Organization: Private Limited Company.

Capital: Nominal: HK$100,000.00

Issued: HK$100,000.00

Business Category: Diamond Trader.

Employees: 3.

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Suite A, 23/F., Chatham Square, 8 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

Holding Company:-

Janam Diamonds Pvt. Ltd.

235, Panchratna Building, 2/F., M.P. Marg, Opera House, Mumbai‑400004, Maharashtra, India.

[ Tel: (91) 22-2369 0674, 2369 3993

Fax: (91) 22-2363 3390, 2369 5845

E-mail: info@janamdiamonds.com ]

BUSINESS REGISTRATION NUMBER

36674594

COMPANY FILE NUMBER

1030798

MANAGEMENT

Managing Director: Mr. Jigar Shailesh Shah

CAPITAL

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$100,000.00

SHAREHOLDER

(As per registry dated 16-03-2010)

Name	No. of shares
Janam Diamonds Pvt. Ltd. 235, Panchratna Building, 2/F., M.P. Marg, Opera House, Mumbai-400004, Maharashtra, India.	100,000 ======

DIRECTORS

(As per registry dated 10-05-2010)

Name (Nationality)	Address
Jigar Shailesh SHAH	8A, Abhilasha Building, 46, A. K. Marg, Mumbai 400036, Maharashtra, India.
Jay Mahendra PARIKH	184, Tahnee Heights, Petit Hall, Nepeansea Road, Mumbai 400006, Maharashtra, India.

SECRETARY

(As per registry dated 16-03-2010)

Name	Address	Co. No.
Lodestar Secretaries Ltd.	13/F., Wah Kit Commercial Centre, 302 Des Voeux Road Central, Hong Kong.	0113023

HISTORY

The subject was incorporated on 16th March, 2006 as a private limited liability company under the Hong Kong Companies Ordinance.

Formerly the subject was located at Room 1702, 17/F., Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong, moved to the present address with effect from 21st August, 2008. The name of the building, which is the subject located, located at “8 Hart Avenue” is also known as “Chatham Square”.

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, precious stones, etc.

Employees: 3.

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

Markets: Japan, India, other Asian countries, USA, Europe, etc.

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

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

FINANCIAL INFORMATION

Nominal Share Capital: HK$100,000.00 (Divided into 100,000 shares of HK$1.00 each)

Issued Share Capital: HK$100,000.00

Mortgage or Charge: (See attachment)

Profit or Loss: Making a small profit in the past two years.

Condition: Keeping in a satisfactory manner.

Facilities: Making rather active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

Bankers:-

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

· Hang Seng Bank Ltd., Hong Kong.

Standing: Normal.

GENERAL

Having issued 100,000 ordinary shares of HK$1.00 each, Asia Diam (HK) Ltd. is a wholly-owned subsidiary of Janam Diamonds Pvt. Ltd. [Janam] which is an India-based firm. The directors of the subject are India passport holders and do not have the right to reside in Hong Kong permanently.

The subject is a diamond importer, exporter and wholesaler. It is also a commission agent.

Janam is one of the diamond and jewellery product manufactures in Mumbai, India. Business is very active. Janam, founded in 1975 by Mahendra Amrutlal Parikh, is a family owned and operated business. Over the last three decades, Janam has become a rather reputable name in the diamond industry worldwide.

Janam is trading in diamonds which sizes range from 0.001 to 0.99 carat. It is using “an eighteen clarity grading system” to grade its diamonds. This particular grading method allows for a stringent and meticulous assortment of each diamond parcel. The subject is also using this system to grade its diamonds.

Janam is sourcing 100% natural diamonds directly from Kimberly Process Compliant mines worldwide. The diamonds are then cut and polished in house at a state-of-the-art factory in Surat, India. The factory houses approximately 250 workers and utilizes technologically advanced equipment.

Now, Janam has had offices in major cities like Mumbai, Hong Kong and Los Angeles. The Hong Kong office is the subject.

The subject is a dealer dealing in fine coloured diamonds and rare gem stones. Products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds. Most of its products are supplied by its parent Janam in India.

The subject also imports rough products from Belgium and other European countries. Rough diamonds are processed in Hong Kong or China. Finished products and polished diamonds are exported or re-exported to Japan, India and other Asian countries, the Middle East, etc. Business is improving.

The subject’s directors are also the Chief Executive Officers of Janam. Currently, the directors of the subject are in Mumbai, India.

The subject is fully supported by Janam.

On the whole, since the history of the subject is over five years in Hong Kong, consider it good for normal business engagements.

REMARKS

Court Cases: None per our.

Property information of the company:-

Property Location: Unit 3 on 11/F., Chevalier House, 45-51 Chatham Road, Kowloon, Hong Kong.

Owner: Asia Diam (HK) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
21-09-2010	-	Hang Seng Bank Ltd., Hong Kong.	Mortgage to secure general banking facilities
21-09-2010	-	- ditto -	Rental assignment

MORTGAGE OR CHARGE

Date	Particulars	Amount
21-09-2010	Instrument: Mortgage Property: 105/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 3 on 11/F. of Chevalier House, 45-51 Chatham Road, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong.	All moneys
21-09-2010	Instrument: Rental Assignment Property: 105/19,060th parts or shares of and in The Remaining Portion of Kowloon Inland Lot No. 7072, Kowloon Inland Lot No. 8670, 8567 & 7074 (Unit 3 on 11/F. of Chevalier House, 45-51 Chatham Road, Kowloon, Hong Kong.) Mortgagee: Hang Seng Bank Ltd., Hong Kong.	All moneys

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.65
UK Pound	1	Rs.71.91
Euro	1	Rs.63.28

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.