MIRA INFORM REPORT

Report Date :

31^st January, 2007

IDENTIFICATION DETAILS

Name :	MAYAR (H.K.) LTD.

Registered Office :	Unit 604, 6/F, Tower 1, Lippo Centre, 89 Queenway, Admiralty, Hong Kong

Country :	Hong Kong

Date of Incorporation :	16-9-1993

Com. Reg. No.:	449525

Legal Form :	Private Limited Company

Line of Business :	Engaged in trading of timber logs & newsprint paper

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

name & address

MAYAR (H.K.) LTD.

UNIT 604, 6/F, TOWER 1, LIPPO CENTRE,

89 QUEENWAY, ADMIRALTY, HONG KONG.

TEL: 852 28507366

FAX: 852 25422302

EXECUTIVE SUMMARY

INCORPORATION DATE : 16-9-1993

REGISTRATION NO. : 449525

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : SUD AJIT KUMAR (CHAIRMAN & DIRECTOR)

STAFF STRENGTH : 10

AUTHORIZED CAPITAL : US$9,375,000 = 75,000 SHARES @ US$125

PAID-UP CAPITAL : US$7,972,000

BUSINESS LINE : TRADING OF TIMBER LOGS & NEWSPRINT PAPER

TURNOVER : US$45M (GROUP, YEAR ENDED 31-3-2005)

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 7.77298 = USD1 AS OF 2006-08-1

SC is a private limited company registered under incorporation file no. 449525 on 16-9-1993.

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

Shareholders (as at 16-9-2005) Number of shares held

Mayar India Ltd. 63,744

Sud Ajit Kumar 16

Deepak Ajay 16

--------

63,776

=====

Directors (as at 19-10-2005)

Sud Ajit Kumar/ Z1394406

Sud Ashit/ P993566(9)

Sud Abhit / B3683642

Deepak Ajay / P709056(4)

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

Patel Dahyalal Kapurchand 18-6-2004

Sud Loveleen 29-6-2004

Talwar Satyapal 19-10-2005

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

Sud Abhit 29-6-2004

Deepak Ajay 29-6-2004

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 : (X) see below ( ) see attached sheet

Date : 30-3-2005

Defendant(s) : SC

Plaintiff(s) : Dibb Lupton Alsop Dla

Cause of claim : Service rendered

Claimed amount : HKD141,479

Date : 20-7-2002

Defendant(s) : SC

Plaintiff(s) : Houlder Insurance Broker Far East Ltd.

Cause of claim : Breach of Contract

Claimed amount : ANS

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

Creation date : 30-6-2006

Charger(s) : SC

Chargee(s) : HSBC

Secured amount : ANS

Charge particulars : Security over Deposits (Deposit: US$500,000)

Creation date : 29-6-2006

Charger(s) : SC

Chargee(s) : HSBC

Secured amount : ANS

Charge particulars : Mortgage (address: Unit E, 8/F, Blk 7, City Garden,233 Electric Road, North Point, HONG KONG)

Creation date : 30-3-2005

Charger(s) : SC

Chargee(s) : UCO Bank

Secured amount : ANS

Charge particulars : Undertaking Relating to Deposits (Deposit: US$310,000)

Creation date : 22-6-2005

Charger(s) : SC

Chargee(s) : HSBC

Secured amount : ANS

Charge particulars : Charge Over Securities & Receivables

Creation date : 13-4-2004

Charger(s) : SC

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

Secured amount : ANS

Charge particulars : Memorandum (Deposit: US$1,069,131.60)

Creation date : 14-7-2004

Charger(s) : SC

Chargee(s) : Bank of India

Secured amount : ANS

Charge particulars : Letter of Set-Off Appropriation (US$200,931.08)

Creation date : 25-6-2004

Charger(s) : SC

Chargee(s) : UCO Bank

Secured amount : ANS

Charge particulars : Mortgage (same as the heading business)

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 1994 - 2005

Year(s) in which mortgage satisfaction record(s) are filed: 1998 - 2002, 2005

SC is a subsidiary of Mayar India Ltd. whose partial information is as follows:

Year established: NA

Registered/business address: Mayar Towers, 12 Jamuna Road, Delhi 110054, India.

Business line: As a holding co with diverse interests in trading of timber logs, newsprint paper, metal ores, concentrates & biotech products

No. of employees: 350 (group)

Civil litigation & winding-up petition records : None in our database

Turnover: US$45M (year ended 31-3-2005)

The said co. maintains its branch offices in Myanmar, Malaysia, HONG KONG, Ecuador & Ukraine.

Sud Ajit Kumar, chairman & director:

- Born in 1946 & married

- He is by Indian nationality

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

- Also currently executive officer of Mayar India Ltd.

Currently residing in India & only visits Hong Kong for business occasionally.

Registered residential address: 2-A, Shankracharya Marg, Behind I.P. College, Civil Lines, New Delhi-54, India.

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

Deepak Ajay, director:

- In his late 50's & married

- He is by Indian nationality

- Embarked upon his career to present field in his mid 20's

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

Registered residential address: Flat 10A, Blk 8, City Garden, 233 Electric Road, North Point, HONG KONG.

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

- Owner(s) : Wong Lily

- Date of purchase & consideration : 23-3-1995 / HKD7.1M

- Date of mortgage & secured amount : 23-5-1997 / ANS

- Mortgagee : Wing Lung Bank 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

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 trading of timber logs & newsprint paper.

Items available include paper, paperboard, article paper, etc.

Principal purchases :

Major types of sourcing : Merchandise

Local--type of suppliers : Nil

Buying terms : NIl

Overseas--supplying countries : Russia & Australia (for newsprint paper); Indonesia & SE Asian countries (for timber logs)

Buying terms : L/C & T/T

Principal market :

Local--type of customers: Nil

Selling terms: Nil

Overseas--buying countries: India & other Asian countries

Selling terms: D/P, D/A & T/T

Total number of employees : 10.

Location : Maintaining its office at the heading business address which occupies a gross area of 3,000 square feet at a commercial building in a commercial & shopping 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 : 30-10-1998 / HKD9M

- Date of mortgage & secured amount : 25-6-2004 / ANS

- Mortgagee : UCO Bank

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:

- HSBC

- Indian Overseas Bank

- Indo Hong Kong International Finance Ltd.

- UCO Bank

- Bank of India

- 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.

Sources indicated that SC's group turnover for the year ended 31-3-2005 was US$45M.

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 16-9-2005 was nil.

SC is considered a normally advancing concern with steady customers and good bare to meet its trade engagements. Credit in the range of moderate amount can be considered. But some attention should be paid to SC's writ record.

NOTES:

Current land search indicates that SC owns the following premises:

- Address: Unit E, 8/F, Blk 7, City Garden, 233 Electric Road, North Point, HONG KONG.

- Owner(s): SC

- Date of purchase & consideration: 29-6-2006 / HKD5.88M

- Date of mortgage & secured amount: 29-6-2006/ ANS

- Mortgagee: HSBC

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

- Address: Unit G, 11/F, Tower 18, South Horizons Tower, Mei Hay Court, 18 South Horizon Drive, Ap Lei Chau, HONG KONG.

- Assignor: SC

- Assignee: Lai Ho Wah & Cheng Wai Yee Wendy

- Date of disposal & amount: 16-10-2000 / HKD4.9M

Note: The said premises was formerly purchased by SC at a consideration of HKD4.7M on 19-11-1998.

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

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