MIRA INFORM REPORT

Report Date :

22.09.2011

IDENTIFICATION DETAILS

Name :	DIMEXON (HONG KONG) LTD.

Formerly Known As :	Dimexon Eurostar (Hong Kong) Ltd

Registered Office :	Unit 6-8, 11/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon

Country :	Hong Kong

Date of Incorporation :	01.02.2005

Com. Reg. No.:	35322532

Legal Form :	Private Limited Company.

Line of Business :	Manufacturer, Exporter and Wholesaler of all kinds of diamond and jewellery products such as rings, pendants, earrings, bracelets and bangles, etc.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Moderate
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

DIMEXON (HONG KONG) LTD.

Company ADDRESS

Unit 6-8, 11/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

PHONE: 2810 7751, 3473 7777

FAX: 2810 7772, 3473 7999

E-MAIL: infohk@dimexon.com

MANAGEMENT

Managing Director: Mr. Vishal P. Mehta

SUMMARY

Incorporated on: 1st February, 2005.

Organization: Private Limited Company.

Capital: Nominal: HK$195,000,000.00

Issued: HK$140,400,000.00

Business Category: Diamond and Jewellery Manufacturer and Exporter.

Employees: 15.

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

Banking Relation: Satisfactory.

Company ADDRESS

Registered Head Office:-

Unit 6-8, 11/F., Hilder Centre, 2 Sung Ping Street, Hunghom, Kowloon, Hong Kong.

China Factory:-

Qingdao Dimexon Eurostar Diamond & Jewellery Co. Ltd.

Qingdao, Shandong Province, China.

Overseas Offices:

Belgium, China (Shanghai), India, Italy, UAE and USA.

Holding Company:-

Dimexon International Holdings B.V., the Netherlands.

Associated/Affiliated Companies:-

Dimexon Group of Companies

· Benchmark Softec (Pvt.) Ltd., India.

· Benchmark Softec Inc., USA.

· Benchmark Softec Ltd., Belgium.

· Benchmark Softec Ltd., Germany.

· Benchmark Softec Ltd., UAE.

· Benchmark Softec Ltd., UK.

· Dimexon (Shanghai) Ltd., China.

· Dimexon Antwerp NV, Belgium.

· Dimexon Diamond Traders, Italy.

· Dimexon Diamonds Ltd., India.

· Dimexon ME DMCC, UAE.

· Dimexon USA Inc., USA.

· Eurostar (Far East) Ltd., Hong Kong.

· Eurostar Belgium Inc., USA.

· Eurostar Diamond Traders (Shanghai) Co. Ltd., China.

· Eurostar Diamond Traders NV, Belgium.

· Eurostar Diamond Traders, Hong Kong.

· Kirtilal Kalidas & Co., India.

· Kirtilal Kalidas Jewellers Pvt. Ltd., India.

· Vispart Jewellery Manufacturers (Pvt.) Ltd., India.

etc.

BUSINESS REGISTRATION NUMBER

35322532

COMPANY FILE NUMBER

0949783

MANAGEMENT

Managing Director: Mr. Vishal P. Mehta

CAPITAL

Nominal Share Capital: HK$195,000,000.00 (Divided into 195,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$140,400,000.00

SHAREHOLDER

(As per registry dated 01-02-2011)

Name		No. of shares
Dimexon International Holding B.V. c/o Van Lanschot Trust, Westblaak, 204, P.O. Box 820, 3000 AV Rotterdam, the Netherlands.		140,400,000 =========

Name

No. of shares

Dimexon International Holding B.V.

c/o Van Lanschot Trust, Westblaak, 204, P.O. Box 820, 3000 AV Rotterdam, the Netherlands.

140,400,000

=========

DIRECTOR

(As per registry dated 01-02-2011)

Name (Nationality)	Address
Vishal P. MEHTA	Sunita 9th Floor, 9-B Ridge Road, Mala Bar Hill, Mumbai-400006 (M.S.), India.

Name

(Nationality)

Address

Vishal P. MEHTA

Sunita 9th Floor, 9-B Ridge Road, Mala Bar Hill, Mumbai-400006 (M.S.), India.

SECRETARY

(As per registry dated 01-02-2011)

Name	Address	Co. No.
Jetwell Secretarial Services Ltd.	13/F., Sun House, 181 Des Voeux Road Central, Hong Kong.	0642062

HISTORY

The subject was incorporated on 1st February, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

It was originally registered under the name of Dimexon Eurostar (Hong Kong) Ltd., name changed to the present style on 22nd May, 2008.

Formerly the subject was located at Room 402, 4/F., Tower 2, Harbour Centre, 8 Hok Cheung Street, Hunghom, Kowloon, Hong Kong, moved to the present address with effect from 22nd December, 2008.

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

OPERATIONS

Activities: Manufacturer, Exporter and Wholesaler.

Lines: All kinds of diamond and jewellery products such as rings, pendants, earrings, bracelets

and bangles, etc.

Employees: 15.

Raw Materials: Sourced from China and India factories.

Markets: Italy, Japan, USA, UK, Middle East, etc.

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

MEMBERSHIP

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKD0685]

FINANCIAL INFORMATION

Nominal Share Capital: HK$195,000,000.00 (Divided into 195,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$140,400,000.00

Indebtedness: HK$11,800,000.00 (Total amount outstanding on all mortgages and charges as per last

Annual Return dated 01-02-2011)

Mortgage or Charge: (See attachment)

Profit or Loss: Operation is profitable.

Condition: Keeping in a normal manner.

Facilities: Making active use of general banking facilities.

Payment: So far so good.

Commercial Morality: Satisfactory.

Bankers:-

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

· ICICI Bank Ltd., Hong Kong Branch.

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

· ABN AMRO Bank N.V., Hong Kong Branch.

Standing: Normal.

GENERAL

Dimexon (Hong Kong) Ltd., formerly known as Dimexon Eurostar (Hong Kong) Ltd., was incorporated in Hong Kong as a private limited company on 1st February, 2005.

The subject is an integral part of the Dimexon Group — a leading international diamond manufacturing and jewellery conglomerate that is specialized in crafting diamonds and jewellery. The Group’s products are retailed in India and exported to worldwide countries. Besides the diamond jewellery industry, the Dimexon Group is also involved in infrastructure development and information technology.

The Group’s business is divided into two sections: Diamonds Cutting & Polishing and Jewellery Manufacturing. Diamonds Cutting & Polishing are conducted by the India plant while Jewellery Manufacturing is conducted by the Qingdao plant in China.

The Group’s flagship Dimexon Diamonds Ltd. [Dimexon] is based in India. It is a diamond and jewellery manufacturing and trading conglomerate with operation in India, Europe, China, Japan and the United States. Dimexon and its affiliates are located in India at some of the world’s finest diamond production, jewellery designing units, B2B distribution centres and retail stores. It is a leading international group in the diamond and jewellery business operating in the high-end segment of the market, serving brands and top international retailers. The Group has a wide network of its own factories and offices worldwide operating in more than 11 countries and employing over 15,000 people.

Founded in 1966, Dimexon has evolved into a well respected global player in diamond manufacturing and distribution. As part of a market that demands the highest degree of quality, it has earned a reputation for being innovative and able to executive with impeccable precision and uncompromising consistency. Its employees consist of a team of master diamond artisans, gemmologists and professionals.

As a leading sightholder of the Diamond Trading Company (London), Dimexon is one of the largest manufacturers of gem diamonds in the world. Presently, Dimexon has become one of the leading diamond and jewellery companies in the world and is strongly supported by its largest suppliers and diamond mining companies, esteemed customers and brand owners, etc.

Dimexon’s significant products are Calibrated Smalls. Each identically cut using microscopes and micrometers and each scientifically assessed to within the industry standard of 0.05mm tolerance.

Dimexon’s diamond portfolio contains an enviable range of diamonds, including Hearts & Arrows, Carat Plus, Triple Excellent and various proprietary cuts as well as a wide range of Forevermark diamonds. Most of Dimexon’s diamonds have got GIA, HRD and IGI certifications.

The subject’s corporate office is based in Hong Kong and has had a state‑of‑the-art manufacturing facility in Qingdao, China, producing high‑quality jewellery products which are exported throughout the world.

The subject’s affiliate, Kirtilal Kalidas & Co. was established in India as a high quality diamond jewellery retailer in 1939. From a “one man show” in 1939, it has today employed more than 600 people serving 300,000 retail customers a year.

Dimexon has had associated companies in Antwerp of Belgium, Mumbai of India, Shanghai and Shenzhen SEZ of China, Dubai of the United Arab of Emirates. Dimexon is the main supplier of the subject.

The history of the subject in Hong Kong is over six years and five months.

On the whole, in view of its background and parentage, consider it good for normal business engagements.

REMARKS:

Court Cases: None per our.

Property information of the company:-

Property Location: Workshop Unit No. 6, 7 & 8 on 11/F. and Car Parking Space No. L8 on G/F., Hilder Centre, Kowloon, Hong Kong.

Owner: Dimexon (Hong Kong) Ltd.

Date of Purchase: n.a.

Purchased Price:

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
18-12-2007	-	The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Mortgage to secure general banking facilities

MORTGAGE OR CHARGE

Date	Particulars	Amount
23-11-2007	Instrument: Debenture Property: (A) assign to the Bank the proceeds of each policy of insurance now or in the future issued in relation to the Secured Assets (B) charge to the Bank by way of a floating charge all shares, stock, bonds, debentures, certificates of deposit, promissory notes, warrants, futures, options, funds, units, notes and other securities (C) charge to the Bank by way of floating charge all book debts and other debts now and in the future owing to the Company and the proceeds of payment or realisation of each of them until the payment of such proceeds into the Collection Account (D) charge to the bank by way of floating charge all negotiable instruments at any time drawn, issued or endorsed in favour of, or held by or on behalf of, the Company in relation to Secured Assets including any such instruments which at any time have been deposited with the Bank (E) charge to the Bank by way of floating charge all funds standing to the credit of the Company from time to time on any account with any bank or financial institution, including the Collection Account; and (F) charge to the Bank by way of floating charge all choses in action and claims now and in the future belonging to the Company, in relation to the Secured Assets and not otherwise charged or assigned by paragraphs (A) to (E) Mortgagee: ICICI Bank Ltd., Hong Kong Branch.	All monies
18-12-2007	Instrument: Mortgage Property: 32/1,148th parts or shares of and in Section B of Kowloon Marine Lot No. 113 (Workshop Unit No. 6, 7 & 8 on 11/F. and Car Parking Space No. L8 on G/F. of Hilder Centre, Kowloon, Hong Kong.) Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure “all moneys” in respect of general banking facilities
20-02-2008	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 both present and future in any company firm consortium or entity including all allotments accretions offices rights benefits and advantages at any time accruing offered or arising in respect of or incidental to such stocks shares bonds and securities and all stocks shares rights money or property accruing to such stocks shares bonds and securities or offered at any time by way of conversion redemption bonus preference option or otherwise in respect of such property; (2) all book and other debts revenues and claims both present and future due or owing or which may become due or owing to or purchased or otherwise acquired by the Company and the full benefit of all rights and remedies relating to such property including but not limited to any negotiable or non-negotiable instruments guarantees indemnities debentures legal and equitable charges and other security reservation of proprietary rights of tracing liens and all other rights and remedies of any nature in respect of such property; (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 relating to the intangible property both present and future of the Company; (4) the undertaking and all other assets of the Company both present and future including the stock in trade of the Company and the heritable property which are or may be from time to time while the Debenture is in force comprised in the property and undertaking 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
24-07-2009	Instrument: Debenture Property: All the Company’s undertaking and property and assets Mortgagee: ABN AMRO Bank N.V., Hong Kong Branch.	General banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.89
UK Pound	1	Rs.75.31
Euro	1	Rs.65.64

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%)

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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.