MIRA INFORM REPORT

Report Date :

04.05.2012

IDENTIFICATION DETAILS

Name :	KALP DIAM (HK) LTD.
Registered Office :	Flat A, 6/F., Luna Court, 55 Kimberley Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	17.05.2011
Com. Reg. No.:	58362282
Legal Form :	Private Limited Company
LINE OF BUSINESS :	IMPORTER AND WHOLESALER OF ALL KINDS OF POLISHED DIAMONDS.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

NB

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, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 and address

KALP DIAM (HK) LTD.

ADDRESS: Flat A, 6/F., Luna Court, 55 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2316 7090

MANAGEMENT

Managing Director: Mr. Suvir Kirankumar Shah

SUMMARY

Incorporated on: 17th May, 2011.

Organization: Private Limited Company.

Capital: Nominal: HK$500,000.00

Issued: HK$500,000.00

Business Category: Diamond Trader.

Employees: Nil.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Too early to comment.

ADDRESS

Registered Head Office:-

Flat A, 6/F., Luna Court, 55 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

58362282

COMPANY FILE NUMBER

1601381

MANAGEMENT

Managing Director: Mr. Suvir Kirankumar Shah

Director & Contact Person: Mr. Darshit Devangkumar Shah

CAPITAL

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

SHAREHOLDERS

(As per registry dated 27-06-2011)

Name		No. of shares
Darshit Devangkumar SHAH		130,000
Suvir Kirankumar SHAH		370,000
		–––––––
	Total:	500,000 ======

DIRECTORS

(As per registry dated 27-06-2011)

Name (Nationality)	Address
Darshit Devangkumar SHAH	28 Shrinivas Soc, New Sharda, Mandir Road, Sukhipura, Paldi, Ahmedabad, India.
Suvir Kirankumar SHAH	Room 16, 3/F., Sai Darshan, 99 Gowalia Tank 400026, India.

SECRETARY

(As per registry dated 17-05-2011)

Name	Address	Co. No.
Pan Pacific Consultants Ltd.	Room 1207, 12/F., Wing Tuck Commercial Centre, 177-183 Wing Lok Street, Sheung Wan, Hong Kong.	1254491

HISTORY

The subject was incorporated on 17th May, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Wholesaler.

Lines: All kinds of polished diamonds, etc.

Employees: Nil.

Commodities Imported: India, etc.

Market: Hong Kong.

Terms/Sales: As per contracted.

Terms/Buying: Prepayment, L/C, etc.

FINANCIAL INFORMATION

Nominal Share Capital: HK$500,000.00 (Divided into 500,000 shares of HK$1.00 each)

Issued Share Capital: HK$500,000.00

Alternation of Capital:-

17-05-2011	paid up	HK$ 26.00
27-06-2011	paid up	HK$ 499,974.00
		––––––––––––––
Total:	paid up	HK$ 500,000.00 ============

Profit or Loss: Too early to offer an opinion.

Condition: Business is under development.

Facilities: Making fairly active use of general banking facilities.

Payment: Unknown .

Commercial Morality: Too early to comment.

Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standing: Small.

GENERAL

Having issued 500,000 ordinary shares of HK$1.00 each, Kalp Diam (HK) Ltd. is jointly owned by Mr. Suvir Kirankumar Shah, holding 74% interests, and Mr. Darshit Devangkumar Shah, holding 26%. The two Shahs are Indian. Both are India passport holders and do not have the right to reside in Hong Kong permanently. The directors of the subject are also the two shareholders. The subject is in fact operated by the Shah family.

The subject does not have its own operating office. Its registered address is in a private building located at Flat A, 6/F., Luna Court, 55 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong. This is supposed to be the residence of the Shahs when they are in Hong Kong. The residential building is not trespassed by outsiders. However, Darshit Devangkumar Shah can be reached at your given phone number 852-2316 7090.

The subject has no employees in Hong Kong. It is a diamond importer and wholesaler. It is trading in loose, polished and cut diamonds [chiefly “D”]. Most of the commodities are imported from India. Prime market is just Hong Kong. Business is still under development.

The subject is just a two-man company. Business is chiefly handled by the Shahs themselves. History in Hong Kong is just over seven months.

Since the registered office of the subject is in a residential building, on the whole, consider it good for normal business engagements on L/C 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.53.23
UK Pound	1	Rs.86.14
Euro	1	Rs.69.98

INFORMATION DETAILS

Report Prepared by :

SDA

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.