MIRA INFORM REPORT

Report Date :

04.02.2012

IDENTIFICATION DETAILS

Name :	DAEMEX CO LTD - TAIWAN BRANCH (HK)

Registered Office :	13FL-9, 68 Jen Ai Rd Section 4 Ta-An Dist Taipei City 106

Country :	Taiwan

Date of Incorporation :	21.10.2002

Com. Reg. No.:	80345694

Legal Form :	Branch Office of Overseas Company

Line of Business :	Specializes in importing wide range of jewelry, diamonds and other related precious stones

No. of Employees :	04

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 10,000
Status :	Small Company
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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

Taiwan

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

company Name and address

DAEMEX CO LTD - TAIWAN BRANCH (HK)

13FL-9, 68 JEN AI RD SECTION 4 TA-AN DIST

TAIPEI CITY 106, TAIWAN

TEL: 886-2-27054591 FAX: 886-2-27054876

EXECUTIVE SUMMARY

INCORPORATION DATE : OCTOBER 21, 2002

REGISTRATION NO. : 80345694

LEGAL FORM : BRANCH OFFICE OF OVERSEAS COMPANY

CHIEF EXECUTIVE : MR. CHAUHAN SANJAY AMRUTLAL (CHAIRMAN)

STAFF STRENGTH : 4

CAPITAL : US$ 31,476

BUSINESS LINE : IMPORTER

TURNOVER : N/A (AS OF DEC. 31, 2009)

EQUITIES : N/A (AS OF DEC. 31, 2009)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 10,000

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : TWD 32.34919 = US$1

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

TWD –Taiwan New Dollars

Name in Local Language : 香港商黛美士有限公司台灣分公司

*Capital (Currency: NTD)

===================

Authorized Capital : 1,000,000

*Office & Facilities*

================

Size : 43 sq meters (Approx)

Location : Central Business District (CBD)

Property status : Owned by DAEMEX CO LTD - TAIWAN BRANCH (HK)

Type of building : Semi-residential building

Comments : Premises is shared with SHAYONA INT'L LTD

Previous Contact Details

---------------------------------

Address : 2Fl, 1-1 Nanking West Rd Chungshan Dist Taipei City 104

Tel No. : 2-25793482 / 25211891

Fax No. : 2-25785183 / 25710644

*Factories, Size & Locations*

=======================

The company is a trading house focused on importation of overseas products and maintains no manufacturing facilities.

*Corporate & Organization Structure*

=============================

A small-sized company operated and managed by the owner.

SC is not known to host website of its own at present.

E-mail: daemex2004@yahoo.com.in

For the past two years there is no record of litigation.

*Major Shareholders*

================

Total number of shareholders: 1

Total number of shares: N/A

Shareholders Country %

DAEMEX CO LTD Hong Kong 100.00

Management: Mr. Chauhan Sanjay Amrutlal, Chairman

Mr. Yogeshkumar Chakubh Jethva, General Manager

Name Nationality Job Description

Mr. Chauhan Sanjay Amrutlal Indian Chairman

Mr. Yogeshkumar Chakubh Jethva Indian General Manager

*COMPANY DIRECTORS*

=====================

Name : Mr. Chauhan Sanjay Amrutlal

Nationality : Indian

Country of Residence : Taiwan

Other Details : Work experience : More than 8 years

Responsibilities : Handles the daily operation of the firm including all financial and legal matters.

Name : Mr. Yogeshkumar Chakubh Jethva

Nationality : Indian

*Main Products & Services*

======================

Specializes in importing wide range of jewelry, diamonds and other related precious stones.

Products: Colored stones

Diamonds

Gemstones

Jewelry

*Payment Terms*

==============

Sales

------

Local : Cash

30-90 days credit

Purchases

---------------

Import : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

*Competitors*

===========

The following locally based firm supply similar range of products :

- CITY DIAMOND CO

- CATHAY-OVERSEAS CO LTD

- EMPEROR DIAMOND CO LTD

- KONSOL CORP

- PAODA ENTERPRISE CO LTD

- CITY JEWELLERY CO LTD

- DREAMER MEDIA LTD

- EADER INT'L CORP

- FAIRLACE INT'L CORP

- GLORIA SHELL & JEWELRY CO LTD

- LIAO'S ENTERPRISES CO LTD

- EASTERN HOME SHOPPING & LEISURE CO LTD

- IS INT'L CO LTD

- RICHEMONT ASIA PACIFIC LTD - TAIWAN BRANCH

- S B GEMS (HONG KONG) CO LTD TAIWAN BRANCH

- SWISS PRESTIGE LTD

- MARVEL EXPORTS LTD TAIWAN BRANCH (HK)

- GLACIAL CO LTD

- BOUCHERON TAIWAN CO LTD

- TA-SHE INT'L CO LTD

*Local Distribution Network*

=======================

100% of the annual turnover is attributed to local sales.

Sales are achieved through the following distribution channels:

1. Local retail jewelry shops

2. Local consumers directly, the conditional purchase amount is in excess of USD 10,000.

*International Trade Activity*

=======================

There is no record of export since the prime focus of the publisher's activity is concentrated on local sales only.

Note : At the time of performing this report, the 2007 export figures had not yet been released by the Ministry of Economic Affairs which monitors exports and imports.

Direct Parent : DAEMEX CO LTD

Country : Hong Kong

*(Subsidiaries , Joint-ventures & Affiliates)

================================

Business Entity Name : SHAYONA INT'L LTD

Address : 13Fl-9, 68 Jen Ai Rd Section 4 Ta-an Dist Taipei City 106 Taiwan

Country : Taiwan

Relationship : Affiliate

Legal Form : Private Company with Limited Liability

Company Type : Importer

Industry : Giftware & Jewellery

PAYMENT RATING : 3 OBTAINED SCORES : 53

Rating Key	Implication	Implications
1	Scores 85–100	Excellent
2	Scores 75 – 84	Above Average
3	Scores 50 – 74	Average
4	Scores 35 – 49	Fair
5	Scores 15 – 34	Below Average
6	Scores 01 – 14	Poor
NR	No Data	No Data

The rating indicates the payment pattern of SC based upon our Payment Database, comments from suppliers of SC, information from banks (if available), as well as industrial sources.

Dealings on open terms may be possible for SMALL amounts depending on individual judgement experience.

As a branch office of overseas company there is no legal requirement according to local corporate law for public disclosure of detailed financials.

Although financial summaries were obtained for reference.

*BANK DETAILS*

===============

Bank Name : FIRST COMMERCIAL BANK CO LTD

Branch : Chungcheng Dist,Taipei City

Branch Address : 10Fl, 30 Chungking South Rd Section 1 Chungcheng Dist Taipei City 100 (Head Office)

SWIFT Code : FCBKTWTP

Bank Name : BANK OF TAIWAN

Branch : Chungcheng Dist,Taipei City

Branch Address : 120 Chung Ching South Rd Section 1 Chungcheng Dist Taipei City 100 (Head Office)

SWIFT Code : BKTWTWTP

Bank Name : CHINATRUST COMMERCIAL BANK LTD

Branch : Hsin-i Dist,Taipei City

Branch Address : 14Fl China Trust Bldg 3 Sung Shou Rd Hsin-i Dist Taipei City 110 (Head Office)

SWIFT Code : CTCBTWTP

*Financial Summary (Currency: U.S. $'s)

==============================

Year Sales Assets Net Income

2006 $1,256,650.54 $19,649.33 $57,436.52

2007 $1,258,298.13 $19,915.51 $59,746.53

2008 $1,313,664.60 $20,807.45 $62,732.92

2009 $1,398,818.78 $20,826.86 $71,495.18

*Int´l Trade Activity (Currency: U.S. $'s)

===============================

Year Imports Exports Total

2003 $300,000.00 n/a $300,000.00

2004 $400,000.00 n/a $400,000.00

2005 $600,000.00 n/a $600,000.00

2006 $600,000.00 n/a $600,000.00

2007 $567,000.00 $0.00 $567,000.00

2008 $598,000.00 $0.00 $598,000.00

2009 $632,000.00 $0.00 $632,000.00

SC is considered small-sized in its line with a development history of 8 years. Taking into consideration of SC’s general performance, a credit line up to USD 10,000 appears to be within SC’s capacities.

Attached: trade references

SIC PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Importing 3281 Cut stone and stone products

Importing 3911 Jewelry, of precious metal

Importing 3961 Jewelry of materials other than solid gold, platinum & silver

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Importing 6802990060 Other stone

Importing 7102 Diamonds, worked or not, not mounted or set

Importing 7102390010 Diamonds nonindustrial, (cut, faceted, not set or mounted) weighing less than 0.5 carat each

Importing 7103991000 Gemstones, cut but not set suitable for use in jewelry

Importing 7113 Articles of jewelry & parts, of precious metal or clad

INTERNATIONAL TRADE: ACTIVITY & MARKETS

Country / Region Main Trading Activity

Asia / Pacific Importing

North America Importing

South America Importing

India Importing

USA Importing

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.48.96
UK Pound	1	Rs.77.47
Euro	1	Rs.64.39

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.

MIRA INFORM REPORT

company Name and address

EXECUTIVE SUMMARY

Unit