MIRA INFORM REPORT

Report Date :

30.12.2014

IDENTIFICATION DETAILS

Correct Name :	JSK DIAMONDS PTY LTD
Registered Office :	Jacobson's Jewellery Room 16, Level 1, 428 George Street, Sydney, New South Wales, Zip Code NSW 2000
Country :	Australia
Date of Incorporation :	23.04.2012
Com. Reg. No.:	ACN: 157936797
Legal Form :	Australian Proprietary Company
Line of Business :	engaged in import and distribution of cut and Polished Diamond.
No of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management.]

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Australia	a1	a1

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

Australia ECONOMIC OVERVIEW

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA

IDENTIFICATION
Given
Subject name:	JSK DOIMOND
Address:	LEVEL 1, ROOM 16, DYMOCKS BLDG, 428 GEORGE STREET
Town:	SYDNEY
Zip/postal code:	NSW 2000
Country:	Australia
Verified
Subject name:	JSK DIAMONDS PTY LTD
Address:	Jacobson's Jewellery Room 16, Level 1, 428 George Street
Town:	Sydney
State/province:	New South Wales
Zip/postal code:	NSW 2000
Country:	Australia
Telephone:	N/A
Fax:	N/A
Remarks:	The Subject is not registered as a phone/fax user locally.
EXECUTIVE SUMMARY
Date registered:	23-04-2012
Legal form:	Australian Proprietary Company
Share capital	AUD 2
Main activities:	engaged in import and distribution of cut and Polished Diamond.
Employees:	Undetermined
REGISTRY DATA
Key Facts
Date registered:	23-04-2012
Legal form:	Australian Proprietary Company
Registration no:	ACN: 157936797
Registry auth.	Australian Securities and Investments Commission
Tax number:	ABN: 62157936797
Registry status:	Live/Active
LEGAL FILINGS
Bankruptcy filings:	None
Court judgements:	None
Tax liens:	None
Other:	None
MANAGEMENT & STAFF
Key Managers
Name:	Hitesh Mehta
Job title:	Director
Name:	Robert Saffo
Job title:	Director
Staff
No of employees	Undetermined
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Hitesh Mehta
Board function:	Director
Date appointed:	23/04/2012
Address:	Unit 7, 32 Cenntennial Avenue Lane Cove, NSW 2066 Australia
Biography:	Born: 12/12/1976 Birth Place: Mumbai, India
Name:	Robert Saffo
Board function:	Director
Date appointed:	23/04/2012
Address:	6 Woodlands Avenue Blakehurst, NSW 2221 Australia
Biography:	Born: 24/02/1979 Birth Place: Istanbul, Turkey
SHARE CAPITAL
Composition
Authorised:	AUD 2
Number/type:	2 ordinary shares
Share value:	AUD 1
Issued:	AUD 2
Paid-up:	AUD 2
Shareholders/Owners
How Listed	Full List
Composition
Name:	Robert Saffo
No. of shares:	1 ordinary share
% of shares:	50%
Address:	6 Woodlands Avenue Blakehurst, NSW 2221 Australia
Name:	Hitesh Mehta
No. of shares:	1 ordinary share
% of shares:	50%
Address:	Unit 7, 32 Cenntennial Avenue Lane Cove, NSW 2066 Australia
CORPORATE AFFILIATIONS
Comments	None reported.
FINANCIAL ACCOUNTS
Description
Required to file:	No
Source:	N/A
Comments	Private Companies in Australia are not required to file accounts unless classified as "Large", which at the moment means that two out of the following three conditions are met: - The company has a sales turnover of over AUD 25,000,000; - The company has total assets of over AUD 12,500,000; - The company employs 50 people or more. The Subject does not meet the criteria of being a large proprietary company. We were unable to contact the subject.
OPERATIONS & HISTORY
Activities
Full description:	engaged in import and distribution of cut and Polished Diamond.
PROPERTY & ASSETS
Premises	The Subject principally operates from premises located at the heading address, consisting of administrative offices.
PAYMENTS
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.
INVESTIGATIVE NOTES
Sources:		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.63.65
UK Pound	1	Rs.99.14
Euro	1	Rs.77.60

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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