MIRA INFORM REPORT

Report Date :

26^th February, 2007

IDENTIFICATION DETAILS

Name :	STAR ASIA (MFG.) CO., LTD.
Registered Office :	Rm 1103, 11/F, Guardforce Centre, 3 Hok Yuen Street East, Hunghom, Kowloon, Hong Kong.
Country :	Hong Kong
Date of Incorporation :	17.05.2004
Com. Reg. No.:	901550
Legal Form :	Private Limited Company
Line of Business :	Engaged in import & export of fine jewellery.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Company Name & Address

STAR ASIA (MFG.) CO., LTD.

RM 1103, 11/F, GUARDFORCE CENTRE, 3 HOK YUEN STREET EAST, HUNGHOM, KOWLOON, HONG KONG.

TEL : 852 27226333

FAX : 852 27211173

EXECUTIVE SUMMARY

INCORPORATION DATE : 17-5-2004

REGISTRATION NO. : 901550

REGISTERED LEGAL FORM : PRIVATE LIMITED CO.

CHIEF EXECUTIVE : SHAH KAMLESH VINAYKANT (DIRECTOR)

STAFF STRENGTH : 15.

AUTHORIZED CAPITAL : HKD 10,000 = 10,000 SHARES @ HKD1.-

PAID-UP CAPITAL : HKD 3

BUSINESS LINE : IMPORT & EXPORT OF FINE JEWELLERY

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 7.80930 = USD1 AS OF 2007-02-25

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 name of SC is the heading one instead of "Star Asia Mfg. Co Ltd" given by you.

SC's registered office address is: Room 905, 9/F, Tower 2, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, HK.

SC is a private limited company registered under incorporation file no. 901550 on 17-5-2004.

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

Shareholders (as at 17-5-20065) Number of shares held

Mehta Rajul Nimesh 1

Shah Kamlesh Vinaykant 1

Shah Manisha Kamlesh 1

---

3

==

Directors (as at 11-8-2006)

Shah Kamlesh Vinaykant / P850225(4)

Shah Vipul Prabodhchandra / Z1543790

Bhansali Gitesh Pravin / R376458(2)

Shah Himanshu Arvind / Z-1115055

Shah Jatin Pravinchandra / P806797(3)

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:

Partial change in SC's directorship as follows:

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

Mehta Rajul Nimesh 11-8-2006

Shah Manisha Kamlesh 11-8-2006

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

Shah Himanshu Arvind 11-8-2006

Shah Jatin Pravinchandra 11-8-2006

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 : 30-3-2005

Charger(s) : SC

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

Secured amount : ANS

Charge particulars : Mortgage (property at the heading business address)

Mortgage Index:

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

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

Shah Kamlesh Vinaykant, director:

- He is by Indian nationality

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

- Also currently director of Gemasia (Hong Kong) Ltd.

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

Registered residential address: Flat B-2, 19/F, Greenfield Terrace, 26 Ho Man Tin Hill Road, Kowloon, Hong Kong.

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

- Owner(s) : Cheong Shiu Ho Raymond & Lo Wai Kuen

- Date of purchase & consideration : 27-6-1997 / HKD9.7M

- Date of mortgage & secured amount : 27-6-1997 / 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

Shah Jatin Pravinchandra, director:

- He is by Indian nationality

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

- Also currently director of DHJ Diamonds Ltd.

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

Registered residential address: Flat B, 6/F, Carson Mansion, 61-63 Kimberly Road, Tsimshatsui, Kowloon, 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

Ownership background appraisal:

Rating : 3 Obtained scores : 57 (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 & export of fine jewellery.

Items available include loose diamond, precious & semi-precious stones, ruby, colour stones, jade & pearl.

Principal purchases :

Major types of sourcing : Diamond & other related products

Local--type of suppliers : Nil

Buying terms : Nil

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

Buying terms : L/C & T/T

Principal market :

Local--type of customers : Nil

Selling terms : Nil

Overseas--buying countries : USA, Japan, S. Korea, SE Asia, Taiwan & Australia

Selling terms : L/C & T/T

Total number of employees : 15.

Location : Maintaining its office at the heading business address which occupies a gross area of 2,300 square feet at an industrial building in an industrial 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:

- Owner(s) : SC

- Date of purchase & consideration : 28-2-2005 / HKD4.01M

- Date of mortgage & secured amount : 30-3-2005 / ANS

- Mortgagee : DBS Bank (HK) Ltd.

Jointly occupying the premises with the below mentioned affiliate.

Affiliate(s):

Company name : Gemasia (Hong Kong) Ltd.

Year established : 1998

Business nature : Similiar to SC

Address : Same as heading business address

Turnover : NA

Civil litigation & winding-up petition records: See below

A check of our database indicated that the said co. was sued in the following civil claim(s):

Date : 16-7-2002

Defendant(s) : SC

Plaintiff(s) : Commissioner of Inland Revenue

Cause of claim : Tax

Claimed amount : HKD100,800

Date : 21-1-2004

Defendant(s) : SC

Plaintiff(s) : Hong Kong Broadband Network Ltd.

Cause of claim : Service charge

Claimed amount : ANS

Date : 29-6-2006 / 19-7-2006

Defendant(s) : SC & Shah Manisha Kamlesh

Plaintiff(s) : Lau Ka Po

Cause of claim : Motor claims

Claimed amount : ANS

SC's overseas associated cos.:

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

- Gemasia B.V.B.A. (in Beglium)

- Asian Star Co., Ltd. (in India)

- Star Asia (Thailand) Ltd. (in Thailand)

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: 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 17-4-2006 was nil.

SC is considered a normally advancing concern with steady customers and good base to meet its trade engagements. Credit in the range of moderate amount can be considered.

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