MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	UNITED DIAMOND PTE LTD
Registered Office :	101 Cecil Street, #10-03 Tong Eng Building, 069533
Country :	Singapore
Date of Incorporation :	27.06.1997
Com. Reg. No.:	199704446-H
Legal Form :	Singapore Exempt Private
Line of Business :	Trading of Diamonds
No. of Employees :	3

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Singapore	A1	A1

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

SINGAPORE - ECONOMIC OVERVIEW

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 8.6% between 2004 and 2007. The economy contracted 1.0% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010 and 4.9% in 2011, on the strength of renewed exports. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to a compound annual growth rate of just 1.8% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

Source : CIA

* Adopted abbreviations :	SC - Subject Company (the company enquired by you)
	N/A - Not Applicable

EXECUTIVE SUMMARY

REGISTRATION NO.	:	199704446-H
COMPANY NAME	:	UNITED DIAMOND PTE LTD
FORMER NAME	:	N/A
INCORPORATION DATE	:	27/06/1997
COMPANY STATUS	:	EXIST
LEGAL FORM	:	SINGAPORE EXEMPT PRIVATE
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	101 CECIL STREET, #10-03 TONG ENG BUILDING, 069533, SINGAPORE.
BUSINESS ADDRESS	:	101 CECIL STREET #10-03 TONG ENG BUILDING, 069533, SINGAPORE.
TEL.NO.	:	65-63230793
FAX.NO.	:	65-63230172
CONTACT PERSON	:	SEJAL RAJESHKUMAR KANTILAL ( DIRECTOR )
PRINCIPAL ACTIVITY	:	TRADING OF DIAMONDS
AUTHORISED CAPITAL	:	500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 500,000.00
ISSUED AND PAID UP CAPITAL	:	500,000.00 ORDINARY SHARE, OF A VALUE OF SGD 500,000.00
SALES	:	N/A
NET WORTH	:	N/A
STAFF STRENGTH	:	3 [2012]
LITIGATION	:	CLEAR
FINANCIAL CONDITION	:	N/A
PAYMENT	:	N/A
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	HIGH
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	SATISFACTORY
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

The SC is an exempt private company whose shares are not held by any corporate body and has no more than 20 shareholders who are all natural persons. An exempt company is a type of private limited company. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, suing or be sued by other companies. An exempt private company with an annual turnover of less than SGD5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the SC has to file in a document duly signed by its director in charge of its finance and the company secretary stating that the SC is able to meet all its obligations as and when they fall due. The SC is not required to have their accounts audited. However, the SC will prepare unaudited accounts for purposes of AGMs and filing with Registry Office if it is unable to meet all its obligations as and when they fall due .

The SC is principally engaged in the (as a / as an) trading of diamonds.

The major shareholder(s) of the SC are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
KANTILAL RAJESHKUMAR NARESHCHANDRA +	5 TANJONG RHU ROAD 18-01, WATERSIDE, 436882, SINGAPORE.	S6866122F	495,000.00	99.00
KANTILAL SEJAL RAJESHKUMAR +	5 TANJONG RHU ROAD 18-01, WATERSIDE, 436882, SINGAPORE.	S7266126E	5,000.00	1.00
			---------------	------
			500,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	KANTILAL SEJAL RAJESHKUMAR
Address	:	5 TANJONG RHU ROAD 18-01, WATERSIDE, 436882, SINGAPORE.
IC / PP No	:	S7266126E
Nationality	:	SINGAPOREAN
Date of Appointment	:	27/06/1997

DIRECTOR 2

Name Of Subject	:	KANTILAL RAJESHKUMAR NARESHCHANDRA
Address	:	5 TANJONG RHU ROAD 18-01, WATERSIDE, 436882, SINGAPORE.
IC / PP No	:	S6866122F
Nationality	:	SINGAPOREAN
Date of Appointment	:	27/06/1997

MANAGEMENT

1)	Name of Subject	:	SEJAL RAJESHKUMAR KANTILAL
	Position	:	DIRECTOR

AUDITOR

Auditor	:	TAN, TEO & PARTNERS PAC
Auditor' Address	:	N/A

COMPANY SECRETARIES

1)	Company Secretary	:	KANTILAL SEJAL RAJESHKUMAR
	IC / PP No	:	S7266126E
	Address	:	5 TANJONG RHU ROAD 18-01, WATERSIDE, 436882, SINGAPORE.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SC

* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The SC refused to disclose its suppliers.

CLIENTELE

Local	:	YES	Percentage	:	100%
Domestic Markets	:	SINGAPORE
Overseas	:	NO	Percentage	:	0%
Credit Term	:	N/A
Payment Mode	:	CASH,CHEQUES

OPERATIONS

Goods Traded

:

DIAMONDS

Total Number of Employees:
YEAR	2012	2008
GROUP	N/A	N/A
COMPANY	3	3

Branch

:

NO

Other Information:

The SC is principally engaged in the (as a / as an) trading of diamonds.

The SC sells jewelleries and diamonds.

The SC however refused to disclose further information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	65-63230793
Match	:	N/A
Address Provided by Client	:	101 CECIL STREET 10-03 TONG ENG BUILDING,069533
Current Address	:	101 CECIL STREET #10-03 TONG ENG BUILDING, 069533, SINGAPORE.
Match	:	YES

Other Investigations

We contacted one of the staff from the SC and she provided some information on the SC.

FINANCIAL ANALYSIS

The SC is a private exempt company which does not need to file in its accounts with the Registrar of Companies for the information of the public. Therefore, we are not able to comment on the SC's financial performance.

Overall financial condition of the SC : N/A

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators :	2006	2007	2008	2009	2010
Population (Million)	4.40	4.58	4.84	4.98	5.08
Gross Domestic Products ( % )	8.7	8.8	1.5	<0.8>	14.5
Consumer Price Index	1.0	2.1	6.6	0.6	2.8
Total Imports (Million)	378,924.1	395,979.7	450,892.6	356,299.3	423,221.8
Total Exports (Million)	431,559.2	450,627.7	476,762.2	391,118.1	478,840.7
Unemployment Rate (%)	2.7	2.3	2.2	3.2	2.2
Tourist Arrival (Million)	9.75	10.28	10.12	9.68	11.64
Hotel Occupancy Rate (%)	85.2	87.0	81.0	75.8	85.6
Cellular Phone Subscriber (Million)	1.05	1.22	1.31	1.37	1.43
Registration of New Companies (No.)	21,495	25,903	25,327	26,414	29,798
Registration of New Companies (%)	10.2	20.5	<2.2>	4.3	12.8
Liquidation of Companies (No.)	8,980	9,226	10,493	22,393	15,126
Liquidation of Companies (%)	28.1	2.7	13.7	113.4	<32.5>
Registration of New Businesses (No.)	24,219	24,762	24,850	26,876	23,978
Registration of New Businesses (%)	3.17	2.24	0.36	8.15	<10.78>
Liquidation of Businesses (No.)	26,843	21,322	21,150	23,552	24,211
Liquidation of Businesses (%)	<52.3>	<20.6>	<0.8>	11.4	2.8
Bankruptcy Orders (No.)	2,983	2,767	2,326	2,058	1,537
Bankruptcy Orders (%)	15.8	<7.2>	<15.9>	<11.5>	<25.3>
Bankruptcy Discharges (No.)	1,634	1,626	1,500	3,056	2,252
Bankruptcy Discharges (%)	<2.9>	<0.5>	<7.7>	103.7	<26.3>
INDUSTRIES ( % of Growth ) :
Agriculture
Production of Principal Crops	3.91	5.26	<0.32>	3.25	<0.48>
Fish Supply & Wholesale	1.33	<3.91>	<6.31>	<1.93>	3.60
Manufacturing *	94.4	100.0	95.8	91.8	119.1
Food, Beverages & Tobacco	89.9	100.0	107.7	102.7	109.5
Textiles	119.9	100.0	92.6	75.0	62.8
Wearing Apparel	114.5	100.0	71.8	45.3	26.4
Leather Products & Footwear	100.3	100.0	84.7	52.6	54.1
Wood & Wood Products	107.1	100.0	88.8	68.3	70.0
Paper & Paper Products	92.5	100.0	98.8	93.3	103.7
Printing & Media	97.6	100.0	96.7	82.5	84.7
Crude Oil Refineries	100.2	100.0	101.0	86.1	85.4
Chemical & Chemical Products	93.8	100.0	95.1	90.4	109.9
Pharmaceutical Products	102.1	100.0	92.8	104.4	159.9
Rubber & Plastic Products	100.1	100.0	92.2	77.6	86.1
Non-metallic Mineral	113.1	100.0	83.1	79.1	79.7
Basic Metals	110.0	100.0	120.9	101.9	112.5
Fabricated Metal Products	97.8	100.0	95.0	85.2	97.2
Machinery & Equipment	83.9	100.0	97.4	85.8	117.7
Electrical Machinery	98.8	100.0	98.1	104.2	149.1
Electronic Components	96.1	100.0	93.0	85.1	115.5
Transport Equipment	85.3	100.0	106.7	100.2	99.3
Construction	46.60	45.60	45.90	<36.9>	14.20
Real Estate	12.9	40.8	<11.2>	1.4	21.3
Services
Electricity, Gas & Water	<5.3>	11.00	<1.3>	1.70	4.00
Transport, Storage & Communication	6.00	8.50	11.60	3.90	12.80
Finance & Insurance	6.40	41.50	<5.9>	<16.4>	<0.4>
Government Services	13.50	3.80	17.40	4.50	9.70
Education Services	1.10	1.80	0.50	0.10	<0.9>
* Based on Index of Industrial Production (2007 = 100)
(Source : Department of Statistics)

INDUSTRY ANALYSIS

INDUSTRY :	TRADING
The 1st Quarter 2012 total retail sales is expected to grow from a forecast SGD44.45bn (US$35.28bn) in 2011 to SGD51.50bn (US$46.82bn) by 2015. Singapore lacks the advantage of a massive consumer base, its low unemployment rate, the rapid influx of foreign immigrants and increasing visitor arrivals will continue to instill dynamism into the local retail scene and further buoy consumer spending.
The February 2011 budget provided a boost to consumer spending power, with the SGD6.6bn (US$5.2bn) Total Benefits package earmarked for households in 2011-2012 expected to have positive implications for the Singapore consumer.
In terms of retail sub-sectors, the over-the-counter pharmaceutical sector to be worth US$0.15bn in 2011 and for sales to increase by more than 35% to US$0.20bn by 2015. Sales of consumer electronics products are expected to increase by nearly 24%, from US$3.96bn in 2011 to US$4.90bn by the end of the forecast period on the back of strong demand for high-end products such as multimedia notebooks, 3G phones and smartphones.
The food retail segment will have a market share of 21.3% in 2011, when the sub-sector is forecast to be worth US$7.50bn. Sales are expected to grow to US$8.11bn by 2015.
Mass grocery retail sales are forecast to be US$3.46bn in 2011 and to grow by more than 25% to US$4.45bn by 2015, more than three times the rate of growth for overall food sales. This would take mass grocery retail's share of the overall food market from 45.7% in 2011 to 52.9% by the end of the forecast period.
Retail sales of Asian countries in 2011 are forecast US$3.13trn. China and India are predicted to account for nearly 91% of regional retail sales in 2011, and by 2015 their share of the regional market is expected to be more than 92%. Growth in regional retail sales for 2011-2015 is forecast at 71.6%, an annual average 14.4%. India should experience the most rapid rate of growth, followed by China. Singapore's market share of 1.1% in 2011 is forecast to fall to 0.8% by 2015.
OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1997, the SC is a Exempt Private company, focusing on trading of diamonds. Having been in the industry for over a decade, the SC has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. With a weak shareholders' backing, the SC's capital position is weak. Inadequate capital may be a constraint to the SC as it limits its ability to expand its business in future.

Investigation revealed that the SC concentrates only on the local market. This narrow market segment has placed the SC at high business risk and limits its business expansion opportunities. Any adverse changes to the local economy might have a negative impact on the SC's business performance. Being a small company, the SC's business operation is supported by 3 employees. Overall, we regard that the SC's management capability is average.

As the SC is registered as an Exempt Private company, it is not required to file financial statements for public review. As such, we are unable to ascertain its present financial health.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the SC is expected to benefit from the favourable outlook of the industry. However, the SC has to implement aggressive marketing strategies in order to capture its own market shares in the market and to compete with other well established players in the same field.

In view of the above, we only recommend credit be proceeded to the SC with guarantee.

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%)

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.