MIRA INFORM REPORT

Report Date :

24.07.2012

IDENTIFICATION DETAILS

Name :	SHANGHAI SUMMIT LTD.
Registered Office :	c/o Crisp Business Services (HK) Ltd., 9/F., Bel Trade Commercial Building, 3 Burrows Street, Wanchai
Country :	Hong Kong
Date of Incorporation :	07.04.2010
Com. Reg. No.:	52438706
Legal Form :	Private Limited Liability Company
Line of Business :	subject is a diamond trader
No. of Employees :	Not Available

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 :	No Operating Office in Hong Kong
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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Hong Kong	A2	A2

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

Company name

SHANGHAI SUMMIT LTD.

Company ADDRESS

Registered Office:-

c/o Crisp Business Services (HK) Ltd.

9/F., Bel Trade Commercial Building, 3 Burrows Street, Wanchai, Hong Kong.

Associated Companies:-

Diagold Creation Pvt. Ltd., India.

East West Trader, Hong Kong.

BUSINESS REGISTRATION NUMBER

52438706

COMPANY FILE NUMBER

1439474

DATE OF INCORPORATION

7th April, 2010.

CAPITAL

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000.00

SHAREHOLDER

(As per registry dated 07-04-2012)

Name	No. of shares
Rajesh Mahendrakumar DOSHI	10,000 =====

DIRECTOR

(As per registry dated 07-04-2012)

Name (Nationality)	Address
Rajesh Mahendrakumar DOSHI	58/110 Bharja Bhuvan, Kika Street, Gulalwadi, Mumbai 400004, India.

SECRETARY

(As per registry dated 07-04-2012)

Name	Address	Co. No.
Crisp Business Services (HK) Ltd.	9/F., S.P.A. Centre, 55 Lockhart Road, Wanchai, Hong Kong.	1147350

GENERAL

Shanghai Summit Ltd. was incorporated on 7th April, 2010 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject does not have its own operating office. Its registered office is in a commercial service firm located at 9/F., S P A Centre, 55 Lockhart Road, Wanchai, Hong Kong where is the operating address of Crisp Business Services (HK) Ltd. [Crisp] which is handling its correspondences and documents. Crisp is also the corporate secretary of the subject.

Formerly the registered address of the subject was located at 9/F., Bel Trade Commercial Building, 3 Burrows Street, Wanchai, Hong Kong where was the old operating address of Crisp. The subject’s registered address moved to the present address in June 2011.

The subject has no employees in Hong Kong.

According to the Companies Registry of Hong Kong, the subject has issued 10,000 ordinary shares of HK$1.00 each which are wholly-owned by Mr. Rajesh Mahendrakumar Doshi who is an Indian. He is an India passport holder and does not have the right to reside in Hong Kong permanently. Currently, he is residing in Mumbai, India.

The subject is a diamond trader. It is trading in loose diamonds, polished and cut diamonds. Most of the commodities are imported from India. Hong Kong and the other Asian countries are its prime markets.

Besides operating the subject, Doshi is operating another firm known as East West Trader in Hong Kong. This firm is also a diamond trader.

The subject has got another associated company in India known as Diagold Creation Pvt. Ltd. [Diagold] which is also operated by Doshi.

Diagold has a manufacturing unit in the Special Economic Zone of Mumbai India. Its production capacity is 15,000 diamond studded pieces in a month. Its product lines include Rings, Pendants, Earrings, Bracelets, etc.

The subject’s business in Hong Kong is not active. History is just over two years.

Since the subject does not have its own operating office and has no employees in Hong Kong, consider it good for business engagements on secured basis.

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.55.76
UK Pound	1	Rs.86.80
Euro	1	Rs.67.43

INFORMATION DETAILS

Report Prepared by :

MNL

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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