MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	ASTRAL HOLDINGS LTD.
Formerly Known As :	VERIGOLD JEWELRY (H.K.) LTD.
Registered Office :	Room M28, 2/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon
Country :	Hong Kong
Date of Incorporation :	08.10.2004
Com. Reg. No.:	35001550
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of jewellery and diamonds, etc.
No. of Employees :	1

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 :	No Complaints
Litigation :	Clear

NOTES :

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ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Hong Kong	A2	A2

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

HONG KONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA

Company name and address

ASTRAL HOLDINGS LTD.

Address: Room M28, 2/F., Phase 3, Kaiser Estate,

11 Hok Yuen Street, Hunghom,

Kowloon, Hong Kong.

[Formerly known as:

VERIGOLD JEWELRY (H.K.) LTD.]

PHONE: 2765 6886

FAX: 2765 8111

MANAGEMENT

Managing Director: Mr. Dhiren Chandrakant Shah

SUMMARY

Incorporated on: 8th October, 2004.

Organization: Private Limited Company.

Capital: Nominal: HK$100,000.00

Issued: HK$10,000.00

Business Category: Importer, Exporter and Wholesaler.

Employee: 1.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room M28, 2/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hunghom, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

35001550

COMPANY FILE NUMBER

0926506

MANAGEMENT

Managing Director: Mr. Dhiren Chandrakant Shah

CAPITAL

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

Issued Share Capital: HK$10,000.00

SHAREHOLDERS

(As per registry dated 08-10-2012)

Name		No. of shares
Dhiren Chandrakant SHAH		9,000
Nimish ZAVERI		1,000
		––––––
	Total:	10,000 =====

DIRECTOR

(As per registry dated 08-10-2012)

Name (Nationality)	Address
Dhiren Chandrakant SHAH	Fruithoflaan 99, 2600 Antwerpen, Belgium.

SECRETARY

(As per registry dated 08-10-2012)

Name	Address	Co. No.
RJA Management Ltd.	Room A&B, 2/F., Lee Kee Commercial Building, 221-227 Queen’s Road Central, Hong Kong.	1044456

HISTORY

The subject was incorporated on 8th October, 2004 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Verigold Jewelry (H.K.) Ltd., name changed to the present style on 21st January, 2008.

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

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of jewellery and diamonds, etc.

Employee: 1.

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

Markets: Hong Kong, other Asian countries, Europe, etc.

Terms/Sales: L/C or as per contracted.

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$10,000.00

Profit or Loss: Made a small profit in the past four years.

Condition: Keeping in a normal manner.

Facilities: Is making use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory.

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

Standing: Small.

GENERAL

Having issued 10,000 ordinary shares of HK$1.00 each, Astral Holdings Ltd. is jointly owned by Mr. Dhiren Chandrakant Shah, holding 90% interests; and Mr. Nimish Zaveri, holding 10%. Both are Indian. The former is a Belgium passport holder and does not have the right to reside in Hong Kong permanently. He is also the only director of the subject. Currently, Nimish Zaveri is residing in Mumbai, India.

The subject’s registered address is in a business centre located at Room M28, 2/F., Phase 3, Kaiser Estate, 11 Hok Yuen Street, Hung Hom, Kowloon, Hong Kong. It has had an employee but the employee is always not in the small office.

The subject is a diamond importer, exporter and wholesaler. It is trading in loose, polished and cut diamonds. Most of the commodities are imported from India and Belgium. It also trades in jewellery products. Prime markets are Hong Kong, Japan, the other Asian countries, Belgium, etc.. Business is fairly active.

The subject has had associated or affiliated firms both in India and Belgium. The India firm is administered by Nimish Zaveri while the Belgium firm by Dhiren Chandrakant Shah.

The subject was able to make a small profit in the past five years.

On the whole, as the history of the subject is over eight years and two months in Hong Kong, consider it good for normal business engagements in small credit amounts.

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

PRL

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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