MIRA INFORM REPORT

Report Date :

2^nd November 2006

IDENTIFICATION DETAILS

Name :	C & H (DIA.) TRADING LTD.

Registered Office :	Rm 1402, 14/F, Tung Shun Hing Commerical Centre, 20 - 22 Granville Road, Tsimshatsui, Kowloon, Hong Kong.

Country :	Hong Kong.

Date of Incorporation :	16-5-1995

Com. Reg. No.:	514669

Legal Form :	Private Limited Co.

Line of Business :	Engaged in trading of precious stones.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Name & address

C & H (DIA.) TRADING LTD.

RM 1402, 14/F, TUNG SHUN HING COMMERICAL CENTRE,

20 - 22 GRANVILLE ROAD, TSIMSHATSUI, KOWLOON, HONG KONG.

TEL: 852 23170977

FAX: 852 23753700

EXECUTIVE SUMMARY

INCORPORATION DATE : 16-5-1995

REGISTRATION NO. : 514669

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : SHARMA ANILKUMAR (MANAGING DIRECTOR)

STAFF STRENGTH : 4

AUTHORIZED CAPITAL : HKD 10.5M = 10.5M SHARES @HKD1.-

PAID-UP CAPITAL : HKD 10.5M

BUSINESS LINE : TRADING OF PRECIOUS STONES

TURNOVER : N/A (AS OF DEC. 31, 2005)

EQUITIES : N/A (AS OF DEC. 31, 2005)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.77820 = USD1 AS OF 2006-11-2

SC is a private limited company registered under incorporation file no. 514669 on 16-5-1995.

SC's shareholders & directors are shown to be as follows:

Shareholders (as at 16-5-2006) Number of shares held

Sharma Anilkumar 6,000,000

Shah Devang Sevantilal 4,500,000

------------

10,500,000

========

Directors (as at 16-6-2006)

Sharma Anilkumar / P460268(8)

The above registration information is based on SC's annual return filed at Companies Registry within the last 2 years.

Our current search reveals certain material change or amendment of SC has been recorded within the last 2 years & noted as follows:

Partial change in SC's directorship as follows:

Name(s) of resigned director(s) Resignation date

Shah Devang Sevantilal 16-6-2006

Name(s) of newly appointed director(s) Appointment date

Nil Nil

This section will contain the civil litigations & winding-up petitions filed against SC for the last 6 years (as stored in our database), and the mortgage/charge filed by SC for the last 2 years. In Hong Kong, creation of such mortgages/charges by an unlimited co is not required to be registered in the public records.

Civil litigation/winding-up petitions : None in our database.

Mortgage/charge record(s) : (X) see below ( ) see per attached

Creation date : 15-7-2006

Charger(s) : SC

Chargee(s) : Bank of Baroda (Hong Kong) Ltd.

Secured amount : ANS

Charge particulars : Memorandum (Deposit: US$0.3M)

Creation date : 16-8-2005

Charger(s) : SC

Chargee(s) : Indian Overseas Bank

Secured amount : ANS

Charge particulars : Undertaking relating to deposits (Deposit: US$128,500)

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 2002 - 2006

Year(s) in which mortgage satisfaction record(s) are filed: Nil

Sharma Anilkumar, managing director & co-founder:

- In his mid 50's

- Embarked upon his career to present field as an executive trainee in his mid 20's

Currently active in SC's day-to-day operations & is responsible for its management.

Registered residential address: Flat D, 8/F, Windsor Mansion, 29 - 31 Chatham Road South, Tsimshatsui, Kowloon, HK.

Credit history check : This refers to a check of our database whether the said person has been involved in any of the following records stored by us within the last 6 years:

Civil litigation as defendants : None in our database

Bankruptcy/winding-up petitions : None in our database

Delinquent payment records : None in our database

Debt collection records : No overdue amount owed by the said person was placed to us

for collection

Ownership background appraisal:

Rating :3 Obtained scores : 53 (see explanatory notes below)

Keys :1 : scores 81-100 : Excellent

2 : scores 61-80 : Good

3 : scores 46-60 : Average

4 : scores 21-45 : Fair

5 : scores 01-20 : Poor

The rating indicates the personal financial & operational strength of SC's major principals. It is calculated from a composite of scores obtained from the following 5 factors which carry equal weight in our analysis:

Personal financial strength, credit history & trade reputation, business experience & track record, market connection and management skill.

Business categories :

SC is engaged in trading of precious stones.

Items available include diamond, outdiamond, sapphire, emerald and ruby.

Principal purchases :

Major types of sourcing : Gemstones

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : Israel, India, Belgium & South Africa

Buying terms : Special agreed terms

Principal market :

Local--type of customers : Wholesalers & dealers

Selling terms : Consignment & special agreed terms

Overseas--buying countries : PR China & SE Asia

Selling terms : L/C, D/A & T/T

Total number of employees : 4.

Location : Maintaining its office at the heading business address which occupies a gross area of 1,000 square feet at a commercial building in a commercial & shopping district.

SC is not known to have any subsidiary at present.

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment records and our debt collection record concerning SC.

Trade payment experience : Owing to the nature of its business, SC is not an active seeker of local commerical credit since merchandise/materials are imported. Its expenses in the form of accruals and servicing are reportedly met in prompt manner.

Delinquent payment record : None in our database.

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

Banking relations are maintained principally with:

- Indo HK International Finance Ltd.

- Indian Overseas Bank

- ABN AMRO Bank N.V.

- Bank of Baroda (Hong Kong) Ltd.

During our report preparation, the principals could not be contacted while the staff members hesitated to release financial information without the principals' consent.

As per current co. search, total amount of indebtedness of SC in respect of all mortgages and charges which are required to be registered with Companies Registry as at 16-5-2006 was NA.

SC is considered small-sized in its line locally with acceptable base to meet its normal dealings. Credit up to moderate amount may be considered.

-- Asset Tracing --

Upon our current investigation, our database & sources consulted indicate that SC was not involved in any property transaction (both purchase & disposal) in Hong Kong for the last 6 years.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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