MIRA INFORM REPORT

Report Date :

26^th February, 2007

IDENTIFICATION DETAILS

Name :	BUTANI JEWELLERY LTD.

Registered Office :	Rm 510-512, 5/F, Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon, Hong Kong

Country :	Hong Kong

Date of Incorporation :	27.02.1981

Com. Reg. No.:	94027

Legal Form :	Private Limited Company

Line of Business :	Engaged in supply of jewellery products.

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

Company Name & Address

BUTANI JEWELLERY LTD.

RM 510-512, 5/F, HOUSTON CENTRE, 63 MODY ROAD, TSIMSHATSUI EAST, KOWLOON, HONG KONG.

TEL : 852 23698245

FAX : 852 27219561

EXECUTIVE SUMMARY

INCORPORATION DATE : 27-2-1981

REGISTRATION NO. : 94027

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : BUTANI PAPU UDHARAM (DIRECTOR)

STAFF STRENGTH : 60

AUTHORIZED CAPITAL : HKD 1M = 100,000 SHARES @ HKD10.-

PAID-UP CAPITAL : HKD 1M

BUSINESS LINE : SUPPLY OF JEWELLERY PRODUCTS

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

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

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : FAIRLY LARGE AMOUNT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD 7.81392 = USD1 AS OF 2007-02-14

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 correct address of SC is the heading one instead of "Suite 510-512, Houtson Centre, 63 Mody Road, TST EOOT, Kowloon, Hong Kong" given by you.

SC is a private limited company registered under incorporation file no. 94027 on 27-2-1981.

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

Shareholders (as at 27-2-2006) Number of shares held

Butani Papu Udharam 90,000

Butani Lachmi Papu 10,000

---------

100,000

======

Directors (as at 27-2-2006)

Butani Lachmi Papu / XD003927(1)

Butani Papu Udharam / XE428361(7)

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

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

Change of business address : SC moved to the heading business address from Rm 1312, Houston Centre, 63 Mody Road, Tsimshatsui East, Kowloon, Hong Kong in Nov 2005.

SC also operates under business name"Diamex International".

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 : 28-2-2005

Charger(s) : SC

Chargee(s) : HSBC

Secured amount : ANS

Charge particulars : Mortgage (Rm 513 & 514, 5/F, Tower B, Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.)

Mortgage Index:

Year(s) in which mortgage registration(s) are filed: 1986, 1998, 2004, 2005

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

Butani Papu Udharam, director & main founder:

- In his 60's & married

- Embarked upon his career to present field as a junior salesman in his mid 20's

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

Registered residential address: House No.C-3, Flamingo Garden, Sai Kung, N.T., Hong Kong.

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

Butani Lachmi Papu, director:

- In his 30's & married

- Embarked upon his career to present field as a small businessman in his mid 20's

Registered residential address: Same as Butani Papu Udharam.

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 : 62 (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 supply of jewellery products.

Items available include sets, necklaces, watches, brooches, bracelets, earrings, rings, bangles, diamonds, pendants, cufflinks, other customized jewellery, precious & semi-precious jewellery.

A portion is sold under its own brand(s) "Butani".

Principal purchases :

Major types of sourcing : Raw materials & parts

Local--type of suppliers : Nil

Buying terms : Nil

Overseas--supplying countries : SE Asia, Europe, S. Africa & India

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

Principal market :

Local--type of customers : Retailers & designated clients

Selling terms : COD, cash, credit card payment & special agreed terms

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

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

Total number of employees : 60.

Location : Maintaining its office at the heading business address which occupies a gross area of 7,000 square feet at a commercial building in a commercial & shopping district.

Condition inside the premises during our visit : Normal.

Office/factory layout : Standard.

Property ownership : Current land search indicates the ownership details of the captioned premises as follows: (For Rm 510 of the captioned building)

- Owner(s) : SC

- Date of purchase & consideration : 30-9-2004 / HKD8,200,000

- Date of mortgage & secured amount : 30-9-2004 / ANS

- Mortgagee : China Construction Bank (Asia) Corporation Ltd.

Reportedly, SC maintains its sales office at Suite 1506, 15/F, Dubai Concorde Office Tower, A1 Maktroom Road, Deira, Dubai, U.A.E.

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 : SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

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:

- China Construction Bank (Asia) Corporation Ltd.

- HSBC

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 27-2-2006 was HKD39,429,809.35.

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

NOTES:

Current land search indicates that SC owns the following premises:

- Address: Rm 513 & 514, 5/F, Tower B, Mandarin Plaza, 14 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong.

- Owner(s): SC

- Date of purchase & consideration: NA

- Date of mortgage & secured amount: 28-2-2005 / ANS

- Mortgagee: HSBC

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

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%)

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