MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Name :	LAXMI DIAMOND (HK) LTD.
Registered Office :	Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.12.2003
Com. Reg. No.:	34135130
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of all kinds of diamonds and jewellery products, emerald, 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 :	Usually Correct
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

Name and address

LAXMI DIAMOND (HK) LTD.

ADDRESS: Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

PHONE: 2311 9628

FAX: 2311 4498

E-MAIL: laxmi@laxmidiamondhk.com

MANAGEMENT

Managing Director: Mr. Monikaben Rakesh Gajera

SUMMARY

Incorporated on: 5th December, 2003.

Organization: Private Limited Company.

Capital: Nominal: HK$8,000,000.00

Issued: HK$800,000.00

Business Category: Diamond Trader.

Employees: 8.

Main Dealing Banker: Wing Lung Bank Ltd., Hong Kong.

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 802, 8/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

Affiliated Companies:-

Cygnus Jewelry Inc., USA.

Komal Gems N.V., Belgium.

Komal Gems, Hong Kong. (Same address)

L. D. Creations, Hong Kong. (Same address)

Laxmi Dia Jewels Pvt. Ltd., India.

Laxmi Diamond (Shanghai) Ltd., China.

Laxmi Diamond Private Ltd., India.

Laxmi Jewel Pvt. Ltd., India.

Mili Star (N.Y.) Inc., USA.

Mili Star Co. Ltd., Thailand.

BUSINESS REGISTRATION NUMBER

34135130

COMPANY FILE NUMBER

0874076

MANAGEMENT

Managing Director: Mr. Monikaben Rakesh Gajera

CAPITAL

Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$800,000.00

SHAREHOLDERS

(As per registry dated 05-12-2010)

Name		No. of shares
Laxmi Diamond Private Ltd. GJ-66 SDF VII, Seepz, Andheri (E), Mumbai 400 096, India.		160,000
Monikaben Rakesh GAJERA		640,000
		–––––––
	Total:	800,000 ======

DIRECTORS

(As per registry dated 05-12-2010)

Name (Nationality)	Address
Monikaben Rakesh GAJERA	Room 802, 8/F., Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Ashokkumar Haribhai GAJERA	416, Prasad Chambers, Opera House, Mumbai‑400 004, India.

SECRETARY

(As per registry dated 05-12-2010)

Name	Address	Co. No.
Wilson Business Administration Ltd.	Room 1406& 1412, 14/F., 655 Nathan Road, Mongkok, Kowloon, Hong Kong.	0143657

HISTORY

The subject was incorporated on 5th December, 2003 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Komal Gems Ltd., name changed to the present style on 19th November, 2005.

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 products, emerald, etc.

Employees: 8.

Commodities Imported: India, Belgium, Israel, etc.

Markets: Japan, Thailand, other Asian countries, etc.

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

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

MEMBERSHIP

Hong Kong Jewelry Manufacturers’ Association, Hong Kong.

FINANCIAL INFORMATION

Nominal Share Capital: HK$8,000,000.00 (Divided into 8,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$800,000.00

Mortgage or Charge: (See attachment)

Profit or Loss: Maintaining a small profit every year.

Condition: Business is active and steady.

Facilities: Making active use of general banking facilities.

Payment: Met on time.

Commercial Morality: Satisfactory.

Bankers:-

Wing Lung Bank Ltd., Hong Kong.

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

Standing: Normal.

GENERAL

Having issued 800,000 ordinary shares of HK$1.00 each, Laxmi Diamond (HK) Ltd. was jointly owned by four Indian. Of the four, Hirenkumar Ramsehbhai Khunt was the largest shareholder holding 51% interests. The subject was reshuffled on 23rd September, 2008 and the subject is now jointly owned by Laxmi Diamond Private Ltd. [Laxmi Diamond], an Indian firm holding 20% interests, and Mr. Monikaben Rakesh Gajera, holding 80%. M. R. Gajera is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

Being an associated company of Laxmi Diamond which is in India, the subject is one of the major diamond wholesalers in the Asia Pacific region. Having more than 30 years experience in manufacturing diamonds products, Laxmi Diamond is now one of the largest diamond manufacturing companies in India. Laxmi Diamond is a sightholder of the Diamond Trading Company [DTC] of India.

The subject is specialised in diamonds and precious stones such as the following products:-

Round Brilliant:

• White -2, -6.5, +11, +15.5
• TTLB -2, -6.5, +6.5, +11, +15.5 (All Shades)
• Natts -2, -6.5, +6.5, +11, +15.5

Fancy Sharp:

• Princess Cut
• MQ
• Pear

Special Cut:

• Gabrielle Diamond (105 facet)

The subject’s products include SI diamond, TTLB diamond, diamond earrings, TTLB diamond, diamond pendant, loose diamond and white diamond which are exported to Southeast Asia, Eastern Europe, Japan, South Korea, North America, Scandinavia, Taiwan, Western Europe, etc.

Besides the subject, Laxmi Diamond has got affiliated companies in India, Belgium, China, Thailand and the United States.

Laxmi Diamond has had three jewellery brands: “Cygnus” in India, “Noor” in the United States and a branded diamond “Gabrielle” also in the United States.

Currently, the Chairman of Laxmi Diamond Group is Mr. Vasant Gajera.

The subject has got an associated company L. D. Creations located at its operating address. L. D. Creations is a sole proprietorship owned by Mr. Rakesh Girdharlal Gajera who is an Indian belongs to the Gajera family. L. D. Creations is also controlled by the Gajera family.

Besides L. D. Creations, the subject has had another associated company Komal Gems located at the same address. Komal Gems N.V. [Komal] is a Belgium-based firm which is a manufacturer and wholesaler of diamonds and gems. Komal is a subsidiary of Lamxi Diamond. It is one of the largest diamond wholesalers in Southeast Asia.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is also going to take part in Hong Kong International Jewellery Show which will be held during the period of 16th to 20th February, 2012.

The subject is fully supported by Laxmi Diamond and the Indian family. Overall business is satisfactory. History in Hong Kong is over seven years and five months.

The annual sales turnover of Laxmi Diamond is very significant.

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

REMARKS

Court Cases: None per our.

Property information of the company:-

Property Location: Unit No. 2 on 8/F., Guardforce Centre, 3 Hok Yuen Street East, Kowloon, Hong Kong.

Owner: Laxmi Diamond (HK) Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
29-01-2008	-	Wing Lung Bank Ltd., Hong Kong.	Mortgage to secure general banking facilities

MORTGAGE OR CHARGE

Date	Particulars	Amount
19-01-2005	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 liabilities
29-01-2008	Instrument: Mortgage Property: 5/718th parts or shares of and in Section E of Kowloon Marine Lot No. 113 (Workshop Unit No. 2 on 8/F. of Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.) Mortgagee: Wing Lung Bank Ltd., Hong Kong.	All sums

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

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.