MIRA INFORM REPORT

Report Date :

28.02.2013

IDENTIFICATION DETAILS

Name :	SINO STAR DIAMOND LIMITED
Registered Office :	Suite 605, 6/F, China Insurance Group Building, 141 Des Voeux Road Central, Central, Hong Kong Island
Country :	Hong Kong
Date of Incorporation :	13.12.2005
Com. Reg. No.:	1013352
Legal Form :	Private Limited Company
Line of Business :	Exporter of diamonds
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 :	Moderate
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Hong Kong	A2	A2

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

Hong Kong - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA

company OVERVIEW

Subject's Registered Name (in English ~ Chinese):	Sino Star Diamond Limited
Companies Registry No. (CR No.):	1013352
Subject's Business Name (in English ~ Chinese):	N/A

Registered Address:

Suite 605, 6/F, China Insurance Group Building, 141 Des Voeux Road Central, Central, Hong Kong Island, Hong Kong.

Operating/Business Address:	c/o Suite 605, 6/F, China Insurance Building, 141 Des Veoux Road Central, Central, Hong Kong Island, Hong Kong.
Telephone:	c/o 23763611
Fax:	c/o 27365115

NACE - Code & Industry:	N/A
Certification:	N/A
Business/Industry Trend:	N/A
Public Filings Compliance:	N/A

ALL FIGURES QUOTED IN LOCAL CURRENCY UNLESS OTHERWISE STATED

NACE stands for "Nomenclature Generale des Activites Economiques dans I`Union Europeenne" (General Name for Economic Activities in the European Union). NACE code system is the European standard for industry classifications and was introduced in 1970. In 1990 a revised version became applicable. The latest 2008 version is based on "International Standard Industrial Classification of all economic activities" (ISIC) of the United Nations. The codes start with numeric (e.g. 1. Agriculture, forestry and fishing) are from the 1990 version and those ones start with alphabet (e.g. A - Agriculture, forestry and fishing) are from the latest 2008 version.

Public Filings Compliance - looks into a number of compliance requirements such as whether Subject is promptly filing its annual return (e.g. within 42 days after the anniversary of the date of incorporation (for private companies having a share capital); whether Subject's individual director is reporting a residential address and/or whether Subject is reporting its status under the Mortgage and Charges section for Total Amount Outstanding.... etc.

Company SUMMARY

Despite repeated attempts of investigations and enquiries we have been unable to contact Subject, its sole shareholder and director.

Some sections in this report are resulted as -N/A- or -Not learned- due to the unavailability of related information and local operation.

In view of the above, we now cease our investigation and advise we are unable to facilitate appraisal or score for Subject due to its status.

Subject is a Belgium owned company believed merely maintaining a registered and corresponding office in Hong Kong.

Further attention should be given to its tiny paid up capital.

Total Credit Appraisal (TCA): NR:
-With acquired and/or offered information being insufficient or inappropriate to facilitate rating (e.g. companies that are dormant, applying or planning to cease business or not having a place of business operation locally). The given rating will be NR.- 

CORPORATE STRUCTURE

The following statutory information is based on the examination of Subject's file at the Companies' Registry (CR), Hong Kong.

(For Listed Company, only Substantial Shareholders ("SS") are listed, as based on the latest available annual or interim reports. It is noted that some of the shares held (including long, short and other positions) might have been duplicated due to capacities of "Beneficial owner", "Interest of controlled corporation", "Interest of spouse", "Family interest", etc., which mean the total number of shares held by SS may exceed the authorized and/or issued shares. Duplicate holding (if any) will be elaborated under the "Notes to Substantial Shareholders" on the Structure Remark section.)

Co. File Examined	21 Feb 2013
Companies Registry No. (CR No.)	1013352
Business Registration No. (BR No.)	36347717
Legal Status	Private Limited Company
Active Status	Live
Date of Incorporation / Registration	13 Dec 2005

Name Changed

N/A

Authorized Share Capital

HKD10,000 

No. of Shares Issued

2  

Issued Share Capital

HKD2  

Paid up Capital (excluding premium)

HKD2 

Class of Share

Ordinary  

Last Annual Return Date

13 Dec 2012 

Year(s) of "Annual Return of No Change" Filed

N/A 

Branches/Trading As

N/A 

Chief Executive

RAKYAN Siddhanta 

Company Secretary

Name	ID/CR No.	Passport No.	Issuing Country	Address
Prima Secretaries Limited	569406	N/A	N/A	Suite 605, 6/F, China Insurance Group Building, 141 Des Voeux Road Central, Central, Hong Kong Island, Hong Kong.

Shareholders/ Subscribers (as at 13 Dec 2012)

Shareholders/ Subscribers	ID/CR No.	Passport No.	Issuing Country	Address	No. of Shares	Class of Share	% Of Share Capital
Rajesh Kumar Singh Bhandia	N/A	N/A	N/A	48A Gulmohar, Apartment 3B, Indian Mirror Street, Calcutta-13 (W.B), India.	1	Ordinary	50.00
RAKYAN Siddhanta	N/A	EI545283	Belgium	Berken Laan 37, 2610 Wilrijk, Belgium.	1	Ordinary	50.00
				Total:	2

Directors ~ (as at 13 Dec 2012)

Directors ~	ID/CR No.	Passport No.	Issuing Country	Address
RAKYAN Siddhanta	N/A	EI545283	Belgium	Berken Laan 37, 2610 Wilrijk, Belgium.

HISTORY SUMMARY
Change of Ownership & Capital/ Share Allotment/Other Changes	N/A
Appointment and/or Resignation of Directors or Secretary	N/A
Admission or Retirement of Sole Proprietor/Partner	N/A
Parent	N/A

MANAGEMENT BACKGROUND

Name

RAKYAN Siddhanta 

Position (Title)

Chief Executive 

Nationality

Belgium 

Experience

N/A 

Profile / Responsibility

Sole shareholder and director. Could not be reached during the report compilation. 

Business Capacity

Company Name	CR/BR No.	Capacity	As at:
Sino Star Diamond Limited	1013352	Director ~ 董事	13 Dec 2012
Sino Star Diamond Limited	1013352	Shareholder/Investor ~ 股东投资人	1 Dec 2012

Court Action

As Defendant


None found in our database

Profile/Responsibility and Business Capacity indicated are based on -on-file, sources, and enquiries and investigations recently conducted but do not necessarily represent the full or most updated. For example, the status indicated under Business Capacity is based on the date shown (if available) as recorded, which might have been changed at the time the report is compiled.

FINANCIAL

Current Interviews & Investigations

Its sole shareholder and director was unreachable for interview during the report compilation.

Sources and records reveal no related information.

Private companies in Hong Kong (include private limited, sole proprietorship and partnership) are not required to file or disclose their financial information for public inspection.

GROUP PROFILE & FINANCIALS

N/A

BANKING

No banking information was learned.

TRADE RECORD

N/A

TOTAL DEBT SCANNER (TDS)

TDS reveals if subject has been listed as debtor in our debt database in the past 5 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed. It should be noted that the collection record contained in the report might have been paid, terminated, vacated, settled or released prior to the date of report compiled.

Search Result:

Subject

None found in our database

Related Members

None found in our database

Related Companies

None found in our database

PUBLIC FILINGS

Mortgages and Charges (M&C)

M&C records, if any, are extracted from the Companies Registry, Hong Kong ("CRHK"). Details of "Creating Instrument" and "Description of Property Mortgaged or Charged" are available subject to the prevailing fees as per document charged by CRHK. Please indicate/select "Full Mortgage/Charge" when ordering our services/reports (e.g.: Total Limited Company Search or Total Company Credit Report). Request for Full mortgage/Charge made 7 days after the report delivery will be treated as a new order and is subject to our "Official Document Retrieval (ODR)" service charge + related government fees. M&C brief particulars may not be available from CRHK for mortgage/charge registered before 28 Feb 2005.

Records filed in:

N/A

Total Amount outstanding as of the date of this Return on all mortgages and charges which are required to be registered with the Registrar of Companies pursuant to sections 80 and 82 of the Companies Ordinance: Not Stated

TOTAL WRIT SCANNER (TWS)

TWS reveals if subject has been listed as Defendant/Debtor/Respondent, Plaintiff/Creditor/Applicant, in liquidation or bankruptcy within our court database in the past 7 years and that is subject to the "Code of Practice on Consumer Credit Data" issued by Office of the Privacy Commissioner for Personal Data, Hong Kong. It should be noted that the court record contained in a report might have been paid, terminated, vacated, settled or released prior to the date of a report was compiled. Civil claims are filed as the result of disputes of a commercial or other nature. The Defendant/Debtor/Respondent is not liable nor the Plaintiff/Creditor/Applicant eligible to the claim until judgement is obtained from the relevant court, which is not open for public inspection at present. Only the latest 50 records will be shown when total records exceed 50.

Search Result:

Subject

As Defendant

None found in our database

As Plaintiff

None found in our database

Comments

N/A

Related Members

As Defendant

None found in our database

Comments

N/A

Related Companies

As Defendant

None found in our database

Comments

N/A

OPERATION & ACTIVITIES

Business Lines

Principal Business Line	Exporter of diamonds (reportedly)
Second Business Line	N/A

Product/Production

China Factory	N/A
Size of China Factory (sq. ft.)	N/A
No. of Staff / Workers in China (or Overseas)	N/A
Product / Production Remarks	N/A

Supplies/Purchases

Hong Kong and China
Types of Supplies	N/A
Buying Terms	N/A
Overseas
Import Countries	N/A
Types of Supplies	N/A
Buying Terms	N/A
Remarks	Subject is believed an inactive seeker of local trade credit.

Markets

Major Market	Western Europe (reportedly)
Minor Market	N/A
Selling Products / Services	N/A
Selling Terms	N/A
Remarks	N/A

Brands

Own Brands	N/A
OEM (Clients) Brands	N/A
Remarks	N/A

Premises and Staff

Hong Kong Office
Area (sq. ft.)	N/A
Type	Commercial
Staff Range	N/A
China Office
Staff Range	N/A
Premises Remarks	Renting its registered and corresponding office at the captioned address, which is the office of its corporate secretary, at a 46-year-old commercial building.
Total No. of Staff in Hong Kong (China)	N/A

TOTAL PROPERTY OWNERSHIP SEARCH (TPOS)

TPOS reveals if subject has been involved in property transaction record in our database since 1996. TPOS does not represent the full record or history of all transactions relating to the registered charges, mortgages or ownerships. Some of the charges, mortgages or ownerships might have been released and/or changed. There could be latest mortgages, charges, ownerships or transactions not reflected. TPOS also checks on Subject's shareholder, director, sole proprietor, partner (collectively listed under "Related Members" in this section) and/or related company while related records will be revealed when appropriate.

Search Result:

Subject

No Trace

Related Members

No Trace

Related Companies

No Trace

Abbreviations:
S&P = Sales and Purchase
GBF = General Banking Facilities
N/A = Not Available/Applicable

RELATED COMPANIES

Related companies mean Parent Company, Subsidiary Company, Director's Other Business/Capacity, etc.

N/A

ECONOMIC AND TRADE INFORMATION ON HONG KONG

Major Economic Indicators

	2009	2010	2011	Forecast/Latest
Population, Mid-year (million)	6.97	7.02	7.07	7.14^a
Gross Domestic Product (US$billion)	208.0	223.3	243.2	250.5-252.9^b
GDP Per Capita (US$)	29,800	31,800	34,400	35,100-35,400^b
Real GDP Growth (%)	-2.6	+7.1	+5.0	+1-2^b
Inflation (% Change in Composite CPI)	+0.5	+2.4	+5.3	+4.7^c
Unemployment Rate, seasonally adjusted (%)	5.4	4.4	3.4	3.2^d
Retail Sales Growth (%)	+0.6	+18.3	+24.9	+13.1^c
Visitor Arrival Growth (%)	+0.3	+21.8	+16.4	+15.5^c

^a 2012; ^b government forecast for 2012; ^c year-on-year change in January-June 2012; ^d April-June 2012.

Merchandise Trade Performance

	2010		2011		January-June 2012
	US$billion	Growth %	US$billion	Growth %	US$billion	Growth %
Total Exports	388.6	+22.8	427.9	+10.1	207.6	+0.3
Domestic Exports	8.9	+20.4	8.4	-5.5	3.6	-19.4
Re-exports	379.7	+22.8	419.8	+10.5	204.0	+0.7
Imports	431.4	+25.0	482.6	+11.9	236.0	+1.4
Total Trade	820.0	+23.9	910.5	+11.0	443.6	+0.9
Trade Balance	-42.8	N/A	-54.8	N/A	-28.4	N/A

Service Trade Performance

	2010		2011		January-June 2012
	US$billion	Growth %	US$billion	Growth %	US$billion	Growth %
Exports	105.7	+23.1	121.2	+14.6	60.2	+7.6
Imports	50.8	+16.3	55.8	+9.8	27.4	+3.7
Total Trade	156.5	+20.8	177.0	+13.1	87.6	+6.4
Trade Balance	54.9	N/A	64.9	N/A	32.8	N/A

Current Economic Situation

• The world's freest economy

• The world’s most competitive economy

• The world's most services-oriented economy (services sectors accounting for more than 90% of GDP)

• The world's second highest per capita holding of foreign exchange reserves

• The largest source of foreign direct investment (FDI) in Asia, after Japan

· The second largest recipient of FDI in Asia, after Chinese mainland

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.54.06
UK Pound	1	Rs.82.15
Euro	1	Rs.70.61

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%)

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.