MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	SMART ZONE CORPORATION LTD.

Registered Office :	c/o Global Associates Ltd., Unit S, 10/F., 48 Gilman Street, Central

Country :	Hong Kong

Date of Incorporation :	23.12.2011

Com. Reg. No.:	59289572

Legal Form :	Private Limited Liability Company

Line of Business :	trading in all kinds of loose diamonds such as marquise, pears, tappers, buggets and rose cut diamonds

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
----	NB	New Business	----

Status :	New company

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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

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

Company name

SMART ZONE CORPORATION LTD.

company ADDRESS

Registered Office:-

c/o Global Associates Ltd.

Unit S, 10/F., 48 Gilman Street, Central, Hong Kong.

[Tel: 6485 6981; Fax: 2345 6116]

Associated Company:-

Loyal Grand Trading Ltd., Hong Kong.

BUSINESS REGISTRATION NUMBER

59289572

COMPANY FILE NUMBER

1693629

DATE OF INCORPORATION

23rd December, 2011.

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

Alternation of Capital:-

23-12-2011	paid up	HK$ 1.00
04-01-2012	paid up	HK$ 9,999.00
		–––––––––––––
Total:	paid up	HK$ 10,000.00 ============

SHAREHOLDERS

(As per registry dated 04-01-2012)

Name		No. of shares
GNL11 Ltd., Hong Kong.		1
Manish JAIN		9,999
		––––––
	Total:	10,000 =====

DIRECTOR

(As per registry dated 04-01-2012)

Name (Nationality)	Address
Manish JAIN	156/17, Purani Mandi, Ajmer, Rajasthan, India.

Name

(Nationality)

Address

Manish JAIN

156/17, Purani Mandi, Ajmer, Rajasthan, India.

SECRETARY

(As per registry dated 04-01-2012)

Name	Address	Co. No.
Global Associates Ltd.	10/F., 48 Gilman Street, Central, Hong Kong.	1695695

GENERAL

Smart Zone Corporation Ltd. was incorporated on 23rd December, 2011 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 Unit S, 10/F., 48 Gilman Street, Central, Hong Kong known as Global Associates Ltd. which is handling its correspondences and documents. This firm is also the corporate secretary of the subject.

Formerly the subject’s registered address was located at Room 1001-1004A, 10/F., Champion Building, 287-291 Des Voeux Road Central, Sheung Wan, Hong Kong where was the operating address of a secretarial firm known as GNL11 Ltd. The subject changed its registered address to the present one with effect from 4th January, 2012 as it has changed its commercial service provider since then. 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. Manish Jain who is an Indian. He is an India passport holder and does not have the right to reside in Hong Kong permanently. Currently, Jain is in Hong Kong. He can be reached at his mobile phone number 852-6485 6981. The subject’s fax number is 852-2345 6116.

According to Jain, his firm is trading in all kinds of loose diamonds such as marquise, pears, tappers, buggets and rose cut diamonds. Commodities are imported from India. It also provides other products as required by customers. Prime market is Hong Kong. It will expand its business to the other Asian countries in the immediate future. Business is under development.

Besides operating the subject, Jain is operating another firm known as Loyal Grand Trading Ltd. [Loyal Grand] which is also a Hong Kong-registered firm. Incorporated on the same date as the subject, Loyal Grand is also located at the same floor and same building. The subject and Loyal Grand are engaged in the same lines of business.

The subject may have got an associated company in India which is also operated by Jain. It is likely that the India firm deals with foreign parties under the name of the subject and let foreign firms correspond with the subject’s registered address in Hong Kong. The India firm also exports commodities to foreign markets under the name of the subject and its registered address in Hong Kong.

The history of the subject in Hong Kong is just over two months.

Since the subject does not have its own operating office, history is short 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.50.02
UK Pound	1	Rs.79.00
Euro	1	Rs.66.18

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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