MIRA INFORM REPORT

Report No. :	318203
Report Date :	17.04.2015

IDENTIFICATION DETAILS

Name :	EST DIAMOND LIMITED

Registered Office :	8/F, Kam Lung Commercial Centre, 2 Hart Avenue, Tsim Shat Sui, Kowloon

Country :	Hong Kong

Date of Incorporation :	10.06.2013

Com. Reg. No.:	61569742

Legal Form :	Private Limited Liability Company

Line of Business :	Engaged in Jewelry and Precious Stones (Not Confirmed)

No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Hong Kong

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 40.7 million in 2013, 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 48.5% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56.9% 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. As of year-end 2014, the Democracy protests that began in late September probably will have some adverse effects on economic growth, particularly retail sales.

Source : CIA

Contact Points

Company Name:	EST Diamond Limited
Supplied Name:	EST Diamond Limited
Supplied Address:	8th Floor, Kan Lung Comm Centre-2, Hort Avenue, Tst Kowloon Hong Kong

Credit Summary

Credit Opinion:

In view of the absence of information about subject’s status, caution should be exercised.

Special Note

We made an on-site visit to the supplied address, and found that subject is no at this location. And the relevant staff locating at the supplied address, refused to introduce any information for us.

From public files, we found a telephone number +852-2543-3505 belongs to the subject, the relevant staff who answered the phone introduced that her company’s name is “C. K. Liu & Company” which is mainly engaged in providing the registration and accounting services. However, she refused to disclose introduce the further information for us.

According to the supplied name and address, we can not find any operation information or valid contact information of subject.

Update to date of reporting, we failed to get in touch with subject. If you can supply a current telephone, we’d like to have the investigation resumed.

We found subject’s registration information as follows for reference.

Company Identification Details

Registered Name:	EST Diamond Limited
Registered Address:	8/F, Kam Lung Commercial Centre, 2 Hart Avenue, Tsim Shat Sui, Kowloon, Hong Kong
Date of Registration:	2013-6-10
Registered Number:	1920723
Business Registration No.:	61569742
Paid-up Capital:	HKD 10,000 (USD 1,290) = 10,000 Shares@ HKD 1 (As of 2015.01, 1 HKD = 0.129 USD)
Legal Form:	Private Limited Liability Company
Principal Activities:	N/A
Staff:	N/A
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-6-10

Notes: Since we didn’t contact subject successfully, the principal activities and staff number are not available from any sources.

History

Subject was incorporated on 2013-6-10 with the registered number 1920723 as Private Limited Liability Company in Hong Kong.

Corporate Structure

Subject did not register any subsidiaries or branches, from other source we can not obtain the relevant information, either.

Shareholders

Name	Subscription Shares	Proportion of Investment (%)
Bhansali Sandhya Kunal	10,000	100%
Total	10,000	100%

Major Shareholder Information:

Name:	Bhansali Sandhya Kunal
Address:	280 Sir P.M. Road, 3 Seema Bldg Kaku Wadi, Ville Parle (East) Mumbai-400057 India

Management Information

Core Management

Detailed Information of Directors:

1
Name:	Bhansali Sandhya Kunal
Address:	280 Sir P.M. Road, 3 Seema Bldg Kaku Wadi, Ville Parle (East) Mumbai-400057 India
Position:	Director
Passport Number:	Z2320073
Issuing Country:	Republic of India
2
Name:	Lodestar Secretaries Limited
Address:	13/F, Wah Kit Commercial Centre 302 Des Voeux Road Central Hong Kong
Position:	Corporate Secretary
Registered Number:	113023

Operation Information

From the public files, we found subject’s operation information is as following:

Jewelry and Precious Stones

Since we didn’t contact subject successfully, the information above wasn’t confirmed by subject.

Settlements

Since we didn’t contact subject successfully, the settlement information is not available from any sources.

Financial Information

The subject has no obligation to supply its financial statement to the third party according to the relevant policy in Hong Kong and the only source from which we can obtain the information is the subject itself.

Since we didn’t contact subject successfully, the financial information is not available from any sources.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public

Mortgage Record

No mortgage record of subject was found.

Lawsuits

Up to now, no present or latent litigation of the subject has been found.

High Court Action:	Clear
High Court Baukufty Bankruptcy Proceedings:	Clear
High Court Commercial Action:	Clear
High Court Construction & Arbitration Proceedings:	Clear
High Court Companies Winding-Up:	Clear

Attachment

8/F, Kam Lung Commercial Centre, 2 Hart Avenue, Tsim Shat Sui, Kowloon, Hong Kong

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.62.37
UK Pound	1	Rs.92.44
Euro	1	Rs.66.56

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	ASH

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.