MIRA INFORM REPORT

Report Date :

29.12.2014

IDENTIFICATION DETAILS

Name :	STAR DIAM LTD.
Registered Office :	Room 1406, 14/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	28.05.2005
Com. Reg. No.:	35669566
Legal Form :	Private Limited Company
Line of Business :	Trader of Diamond.
No. of Employee :	3

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
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)
Hong Kong	A1	A1

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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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 34.9 million in 2012, 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 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

Source : CIA

Company name and address

STAR DIAM LTD.

ADDRESS: Room 1406, 14/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 852-2369 6909

FAX: 852-2369 6906

E-MAIL: nimitshah_99@hotmail.com

MANAGEMENT:

Managing Director: Mr. Nimit Shailesh Shah

SUMMARY

Incorporated on: 28th May, 2005.

Organization: Private Limited Company.

Issued Share Capital: HK$1.00

Business Category: Diamond Trader.

Employees: 3.

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

Banking Relation: Satisfactory.

ADDRESS

Registered Head Office:-

Room 1406, 14/F., Hart Avenue Plaza, 5-9 Hart Avenue, Tsimshatsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

35669566

COMPANY FILE NUMBER

0973603

MANAGEMENT

Managing Director: Mr. Nimit Shailesh Shah

ISSUED SHARE CAPITAL

HK$1.00

SHAREHOLDER

(As per registry dated 28-05-2014)

Name	No. of share
Nimit Shailesh SHAH	1 =

DIRECTORS

(As per registry dated 28-05-2014)

Name (Nationality)	Address
Nimit Shailesh SHAH	Flat L, 17/F., Tower 2, Royal Peninsula, 8 Hung Lai Road, Hunghom, Kowloon, Hong Kong.
Nirav Shailesh SHAH	Lady North Court Building No. 2, 4/F., 5 Chowpatti Road, Mumbai 7, India.

SECRETARY

(As per registry dated 28-05-2014)

Name	Address
Bayani Divino Bautista PONCE	Unit 324, 3/F., Hankow Centre, 5-15 Hankow Road, Tsimshatsui, Kowloon, Hong Kong.

HISTORY

The subject was incorporated on 28th May, 2005 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, Exporter and Wholesaler.

Lines: All kinds of diamonds,

Brand Name: Star Diam.

Employees: 3.

Commodities Imported: India, Belgium, other European countries,

Markets: Hong Kong, Japan, other Asian countries, Europe,

Terms/Sales: L/C, T/T,

Terms/Buying: L/C, T/T, D/P,

FINANCIAL INFORMATION

Issued Share Capital: HK$1.00

Mortgage or Charge: (See attachment)

Profit or Loss: Operation is conducted on a profitable basis.

Condition: Business is rather active.

Facilities: Adequate for current running.

Payment: Met trade commitments as contracted.

Commercial Morality: Satisfactory.

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

Standing: Normal.

GENERAL

Having issued just 1 ordinary share of HK$1.00, Star Diam Ltd. previously was wholly owned by M. Shailesh & Company which was an India-based firm. On 17th December, 2009, M. Shailesh & Company transferred its single share to Mr. Nimit Shailesh Shah who is an India merchant. Now, the subject is wholly-owned by N. S. Shah who is also the Managing director of the subject. He is a Hong Kong ID holder and has got the right to reside in Hong Kong permanently. The other director Mr. Nirav Shailesh Shah is also an Indian. However he is an India passport holder.

The subject is a diamond importer, exporter and wholesaler. It also trades in polished and cut diamonds.

The subject is also the supplier, importer and exporter of versatile range of diamonds in a wide variety like rose cut diamonds, rose cut heart, rose cut round, rose cut pears, rose cut oval, rose cut marquise, emerald cut, taper, tapered baguette, fancy cut and fancy colour diamonds, briollets beads, old mine cut diamonds round brilliant cut diamonds, marquise, pears, oval, heart, trilliant, It is also specialised in white diamonds, from PK quality to VS quality, TTLB, off white, black, dark brown, treated diamonds in round shape. Caret size is 6.5 or over. Most of its products bear the brand name Star Diam.

The subject’s loose and fancy diamonds are chiefly imported from India. Other diamonds are imported from Belgium and the other European countries. Finished products are marketed in Hong Kong, China, exported to Japan, the other Asian countries, Europe, Business is active.

The subject is trying to penetrate the China market further.

The subject’s former parent company M. Shailesh & Company is in Mumbai, Maharashtra, India which is a diamond manufacturer and trader. It is the chief supplier of the subject.

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities. For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015.

The history of the subject in Hong Kong is over nine years and six months. The subject is solely operated by the Shah family.

On the whole, consider it good for normal business engagements.

MORTGAGE OR CHARGE

Date	Particulars	Amount
13-08-2007	Instrument: Assignment of Receivables – General with Notice of Assignment Property: In consideration of the Banking Facilities, the Customer, as beneficial owner and by way of security for the payment of the Secured Monies, hereby assigns, and agrees to assign, to the Bank the Receivables until all the Secured Monies have been paid or discharged Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	To secure all monies in respect of banking facilities
22-04-2010	Instrument: Assignment of Life Insurance Property: (i) All the Assignor’s claims, options, privileges, right, title, interest and benefit in and under the Insurance; and (ii) all the Assignor’s claims and rights against the issuer of the Policy in respect of the Policy Mortgagee: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.	Secured Indebtedness

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.63
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ANK

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.