MIRA INFORM REPORT

Report Date :

20^th November, 2006

IDENTIFICATION DETAILS

Name :	DIASQUA (HONG KONG)

Registered Office :	Rm 401-3, 4/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.

Country :	Hong Kong

Date of Incorporation :	20.03.2000

Com. Reg. No.:	709126

Legal Form :	Private Limited Company

Line of Business :	Engaged in import & supply of diamond & gemstones.

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 :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Company Name & Address

DIASQUA (HONG KONG)

O/B DIASQUA INTERNATIONAL LTD.

RM 401-3, 4/F, GUARDFORCE CENTRE,

3 HOK YUEN STREET EAST, HUNGHOM, KOWLOON, HONG KONG.

TEL : 852 22096600

FAX : 852 22096620

EXECUTIVE SUMMARY

INCORPORATION DATE : 20-3-2000

REGISTRATION NO. : 709126

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : MEHTA NIMESH PIYUSH (DIRECTOR)

STAFF STRENGTH : 30

AUTHORIZED CAPITAL : HKD 40M = 40M SHARES @ HKD1.-

PAID-UP CAPITAL : HKD 40M

BUSINESS LINE : IMPORT & SUPPLY OF DIAMOND & GEMSTONES

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

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

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : MODERATE TO FAIRLY LARGE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.78772 = USD1 AS OF 2006-11-20

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

M - million

HKD – Hong Kong Dollars

The complete address of SC is the heading one instead of the one given by you.

SC is a private limited company registered under incorporation file no. 709126 on 20-3-2000.

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

Shareholders (as at 20-3-2006) Number of shares held

Mehta Nimesh Piyush 10,000,000

Mehta Rajul Nimesh 10,000,000

Mehta Romy Piyush 10,000,000

Mehta Vimesh Piyush 10,000,000

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

40,000,000

========

Directors (as at 20-3-2006)

Mehta Nimesh Piyush / P1463369

Mehta Priti Romy / R1517472

Mehta Rajul Nimesh / P1958643

Mehta Romy Piyush / R1489363

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

Change in capital : Authorised capital was increased from HKD20M to the present amount on 25-4-2005 with the creation of 20M shares of @ HKD1.-.

Paid-up capital: HKD40M.

Shares allotments on 25-4-2005:

Allottee(s) No. of share(s)

Mehta Nimesh Piyush 5M

Mehta Rajul Nimesh 5M

Mehta Romy Piyush 5M

Mehta Vimesh Piyush 5M

SC has 3 business names as follows:

- Diasqua (Hong Kong)

- Diaglobe (Hong Kong)

- Diajewel (Hong Kong)

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 : 17-5-2005

Charger(s) : SC

Chargee(s) : Bank of India

Secured amount : US$1.4M

Charge particulars : Letter of Lien *

Creation date : 31-10-2005

Charger(s) : SC

Chargee(s) : DBS Bank (HK) Ltd.

Secured amount : ANS

Charge particulars : Mortgage (Flat D, 8/F, Sunrise Villa, 33 Sung On St., Kln., Hong Kong.)

* Details of the charge particulars (letter of lien):

- Nature of deposit: 02H22/090905

- Date of deposit: 18-4-2005

- Amount: US$350,000

- Due date: 18-7-2005

- Interest rate: 2.00%

- Mode of payment of interest: On Maturity

Creation date : 9-5-2006

Charger(s) : SC

Chargee(s) : Commonwealth Finance Corporation Ltd.

Secured amount : ANS

Charge particulars : Letter of Hypothecation of Trade Finance

Creation date : 12-5-2006

Charger(s) : SC

Chargee(s) : Commonwealth Finance Corporation Ltd.

Secured amount : ANS

Charge particulars : Charge Over Deposits (Deposit: US$0.3M)

Creation date : 7-7-2006

Charger(s) : SC

Chargee(s) : Bank of India

Secured amount : US$3M

Charge particulars : Letter of Lien **

** Details of the said charge particulars (letter of lien):

- Nature of deposit : Term deposits

- Date of deposit : 7-7-2006

- Amount : US$750,000

- Due date : 7-7-2007

- Interest rate : 5.00%

- Mode of payment of interest : Cumulate

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 2003, 2006

Year(s) in which mortgage satisfaction record(s) are filed: 2004, 2005

Mehta Nimesh Piyush, director:

- In his 50's & married

- He is by Israeli nationality

- Moved to Hong Kong from Israel in his 30's

- Also currently director of:

~ Prismdia Ltd.

~ Gemasia (Hong Kong) Ltd.

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

Registered residential address: Flat B2, 20/F, Greenfield Terrace, 26 Homantin Hill Road, Kowloon, Hong Kong.

Property ownership: Current land search indicates the said premises ownership as follows:

- Owner(s) : Mehta Nimesh Piyush & Mehta Rajul Nimesh

- Date of purchase & consideration : 1-8-2000 / HKD4.8M

- Date of mortgage & secured amount : 30-10-2003 / ANS

- Mortgagee : Bank of China (HK) Ltd.

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

Mehta Rajul Nimesh, director:

- In her 40's & married

- She is by Israeli nationality

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

Registered residential address: Same as Mehta Nimesh Piyush.

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:

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

Civil litigations : (X) see below ( ) see per attached

Date : 26-8-1999

Defendant(s) : The said person

Plaintiff(s) : Commissioner of Inland Revenue

Cause of claims : Tax

Claimed amount : HKD127,785

Ownership background appraisal:

Rating : 2 Obtained scores : 65 (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 import & supply of diamond & gemstones.

Items available include a wide range of polished diamonds in various sizes, colours & shapes as follows:

- Sizes: From 0.005 ct. (1/200) to 3.00 ct.

- Colours: White from the light to the darker, brown, capes & other natural fancy colours

- Shapes: Brilliant, princess, marquise, pear, rose-cut, tapper & banguette, briolette, heart, oval.

Principal purchases :

Major types of sourcing : Merchandise

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : Israel, India, Thailand, Russia & Belgium

Buying terms : L/C & T/T

Principal market :

Local--type of customers : Manufacturers & retailers

Selling terms : COD & credit of 30 to 45 days

Overseas--buying countries : PR China, USA, Europe & SE Asia

Selling terms : L/C & T/T

Total number of employees : 30.

Location: Maintaining its office & workshop at the heading business address which occupies a whole floor at an industrial building in an industrial district.

Condition inside the premises during our visit : Normal.

Office/factory layout : Standard.

The premises is owned by SC.

Property ownership : Current land search indicates the ownership details of the captioned premises as follows:

- Owner(s) : SC

- Date of purchase & consideration : 15-4-2004 / HKD20,180,000

- Date of mortgage & secured amount : 15-4-2004 / ANS

- Mortgagee : DBS Bank (HK) Ltd.

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 commercial 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:

- Bank of China (HK) Ltd.

- DBS Bank (HK) Ltd.

- Bank of India

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 20-3-2006 was nil.

From all indications, SC is believed to have made a steady and successful trend of development. Credit in the range of moderate to fairly large amount can be considered.

NOTES:

Current land search indicates that SC owns the following premises:

- Address : Flat D, 8/F, Sunrise Villa, 33 Sung On St., Kln., Hong Kong.

- Owner(s) : SC

- Date of purchase & consideration : 31-10-2005 / HKD2.7M

- Date of mortgage & secured amount : 31-10-2005 / ANS

- Mortgagee : DBS Bank (HK) Ltd.

Current land search indicates that SC was involved in the following property transaction:

- Address : Unit 2, 8/F, Guardforce Centre, 3 Hok Yuen Street East,

Hunghom, Kln., Hong Kong.

- Assignor : SC

- Assignee : Komal Gems Ltd.

- Date of disposal & consideration : 26-4-2004 / HKD2,592,550

The said premises was formerly purchased by SC at a consideration of HKD1,962,880 on 26-9-2003.

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