MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	ROYAL INDIGO TRADING CO.

Registered Office :	Flat D-4, 10/F., Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshaitsui, Kowloon

Country :	Hong Kong

Date of Incorporation :	23.05.2006

Com. Reg. No.:	36769789-000-05

Legal Form :	Sole Proprietorship

Line of Business :	subject had traded in loose diamonds and precious stones

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Business Ceased

Payment Behaviour :	---

Litigation :	---

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

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

Company name

ROYAL INDIGO TRADING CO.

Company ADDRESS

Registered Office:-

Flat D-4, 10/F., Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshaitsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

36769789-000-05

ESTABLISHMENT

23rd May, 2006.

SOLE PROPRIETOR

Name: Mr. Katheeb Muzammil SEYED AHAMED

Residential Address: Flat D-4, 10/F., Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshaitsui, Kowloon,

Hong Kong.

GENERAL

Please be advised that Royal Indigo Trading Co. has ceased business since 12th June, 2009.

Royal Indigo Trading Co. was a sole proprietorship set up and owned by Mr. Katheeb Muzammil Seyed Ahamed who is an Indian. He is a Hong Kong ID Card holder and has got the right to reside in Hong Kong permanently.

The subject did not have its own operating office. Its registered address was in the residence of the sole proprietor which is located at Flat D-4, 10/F., Tsim Sha Tsui Mansion, 83-97 Nathan Road, Tsimshaitsui, Kowloon, Hong Kong.

Business commenced in May 2006, the subject had traded in loose diamonds and precious stones, etc. It also had carried colour stones such as emerald, ruby, and sapphire (pink sapphire, yellow sapphire, blue sapphire, green garnet [Tsavorite], princess cut, marquise, ovals, round and fancy sapphire) and also semi precious stones like blue topaz, amethyst, citrine, peridot, aquamarine, garnet, etc. India and Thailand were its main supplying countries. Its products were wholesaled in Hong Kong or re-exported to Japan and other Asian countries, the Middle East, etc.

The subject was just a one-man company. Business was chiefly handled by Seyed Ahamed himself.

The subject has ceased business for over two years and six months.

Since the subject has ceased business, on the whole, consider it not suitable for any business engagements.

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.55.79
UK Pound	1	Rs.86.37
Euro	1	Rs.70.07

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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