MIRA INFORM REPORT

Report Date :

13.12.2014

IDENTIFICATION DETAILS

Name :	STAR GEMS & JEWELLERY LIMITED
Registered Office :	8 Mana Place, Wiri Auckland Po Box 75018
Country :	New Zealand
Date of Incorporation :	24.09.2001
Com. Reg. No.:	1164026
Legal Form :	Private Limited Liability Company
Line of Business :	Wholesale trade of diamond and jewellery
No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
New Zealand	A1	A1

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

NEW ZEALAND - ECONOMIC OVERVIEW

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy pulled out of recession late in 2009, and achieved 2-3% per year growth in 2010-13. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending

Source : CIA

Company name and address

Subject name:	STAR GEMS & JEWELLERY LIMITED
Address:	8 Mana Place, Wiri	Postal address:	Po Box 75018
Town:	Auckland	Town:	Auckland
Zip/postal code:	2104	Zip/postal code:	2243
Country:	New Zealand
Telephone:	+64 (9) 2612638
Fax:	+64 (9) 2634639
Email:	stargems@paradise.net.nz
Remarks:	The Subject's registered address is: 91 Eugenia Rise Silkwood Heights, Manukau City 2105 Auckland New Zealand

EXECUTIVE SUMMARY

Date registered:	24-09-2001
Legal form:	Private Limited Liability Company
Paid up capital	NZD 1,000
Main activities:	Wholesale trade of diamond and jewellery.
Employees:	Less than 10

REGISTRY DATA

Key Facts
Date registered:	24-09-2001
Legal form:	Private Limited Liability Company
Registration no:	1164026
Registry auth.	Registrar of Companies
Other reg.:	NZ Business Number: 9429036760824
Registry status:	Live/Active

LEGAL FILINGS

Bankruptcy filings:	None
Court judgements:	None
Tax liens:	None
Other:	None

MANAGEMENT & STAFF

Key Managers
Name:	Tilak Wadhwa
Job title:	Director
Name:	Upasana Wadhwa
Job title:	Director
Staff
No of employees	Less than 10

BOARD OF DIRECTORS / OTHER APPOINTMENTS

Appointments
Name:	Tilak Wadhwa
Board function:	Director
Address:	91 Eugenia Rise Totara Heights Manukau 2105 New Zealand
Name:	Upasana Wadhwa
Board function:	Director
Address:	91 Eugenia Rise Totara Heights Manukau 2105 New Zealand

SHARE CAPITAL

Composition
Number/type:	1,000 shares
Share value:	NZD 1
Issued:	NZD 1,000
Paid-up:	NZD 1,000

Shareholders/Owners

How Listed	Full List
Composition
Name:	Tilak Wadhwa
No. of shares:	1,000 shares
% of shares:	100%
Address:	91 Eugenia Rise Totara Heights Manukau 2105 New Zealand

CORPORATE AFFILIATIONS

Comments

None reported.

BANKING & FINANCING

Charges & Mortgages

Time of Registration: 15-Jun-2004 13:41 Debtor Name: STAR GEMS & JEWELLERY LIMITED Financing Statement Registration No: FP22D4225J50FK12/C0006 Incorporation No: 1164026 City/Town: Auckland Collateral Type: All present and after acquired personal property Time of Registration: 26-Aug-2008 12:14 Debtor Name: STAR GEMS & JEWELLERY LIMITED Financing Statement Registration No: FR284TZ0JC962285/C0003 Incorporation No: 1164026 City/Town: Auckland Collateral Type: Goods - Other Time of Registration: 11-Nov-2013 15:14 Debtor Name: STAR GEMS & JEWELLERY LIMITED Financing Statement Registration No: FC324UR742YJ6520 Incorporation No: 1164026 City/Town: Auckland Collateral Type: All present and after acquired personal property

FINANCIAL ACCOUNTS

Description
Required to file:	No
Source:	N/A
Comments	The Subject's financial statements were not available in the course of our investigation and respondents contacted at the Company were not prepared to release such documents.

OPERATIONS & HISTORY

Activities
Full description:	The Subject is engaged in wholesale trade of diamond and jewellery.

PROPERTY & ASSETS

Premises

The Subject principally operates from premises located at the heading address, consisting of administrative offices.

PAYMENTS

Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	L/Cs Credits 30 days net
Sales Terms
Local:	Cash Credits 14-30 days
Exports:	L/Cs Credits 30 days net
Debt Collections / Judgements	No negative information was found.
Payment Experience
Payment behaviour:	As trade references were not supplied, the Subject's payment track record history CANNOT BE ACCURATELY DETERMINED, but payments are believed to be PROMPT.

INVESTIGATIVE NOTES

Sources:

Interviews and material provided by the Subject Other official and local business sources

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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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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