MIRA INFORM REPORT

Report Date :

17.10.2007

IDENTIFICATION DETAILS

Name :	ESPRIT MACAO COMMERCIAL OFFSHORE LTD
Registered Office :	Av Xian Xing Hai Ed Zhu Kuan 15 andar Apartamento, L Macau
Country :	Macau
Date of Incorporation :	2003
Legal Form :	Private Limited Company
Line of Business :	Trading of garments.

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

ESPRIT MACAO COMMERCIAL OFFSHORE LTD

office address

Av Xian Xing Hai Ed Zhu Kuan 15 andar Apartamento

L Macau

Country: Macau

Office tel: 28755017

Office fax: 28755023

business type

Trader

industry

Garments & Accessories

ESTABLISHED

2003

OWNERSHIP

Chairman: Mr John Cho-ming Poon

Nationality: Hong Kong

Capital: 3,000,000

Employees: 5

Corporate formation: Private

company MANAGEMENT

Mr John Cho-ming Poon

Nationality: Hong Kong

Mr Peter Mark Hammond

Nationality: Hong Kong

Ms Ka-fung Lee

Nationality: Macau

Ms Lay Kuan Pow

Nationality: Singapore

FINANCIAL DESCRIPTION

*Credit Risk Assessment*

=======================

Risk Index : Medium

Credit Amount : US 60,000

Credit Period : 60 days

*Credit Opinion*

================

Credit of a moderate amount can proceed normally.

*Credit Assessment*

==================

The company is considered an average sized company in its line locally. Based on its history background, established market connectivity and trade connections, credit of a moderate amount can proceed normally.

*Operations Status*

==================

Investigations have included :

1) A site visit was conducted at the company's heading address which revealed that the above company's name was seen on display.

2) The company is engaged in trading of garments and accessories.

3) The company's products are manufactured in the Group's production facilities located at the PRC.

4) The company's products are exported to oversea market such as Asia, Europe and North America.

5) The company currently employs 5 staff in Macau.

*Capital Details*

=================

Authorized capital : MOP 3,000,000

Paid-up capital : MOP 3,000,000

*Financials*

============

As a private limited company, no official financial statement is required to be publicly disclosed.

Upon our current contact, company's staff refused to forward any financial information regarding the company on the grounds that the company is a private venture whose financial information is considered sensitive private business information not subjected to public release or release to non-business related parties.

*Reputation*

============

Reference checking for the purpose of establishing the firm's reputation within the respective industry failed to reveal any negative information.

*Payment Terms*

================

Sales

--------

Export : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

Purchases

----------

Import : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

*Company Registration *

=======================

Company Name in English: Esprit Macao Commercial Offshore Ltd

Company Name in Portugues: Esprit Comercial Offshore de Macau Limitada

License number : 16529 (SO)

Date issued : 20 Feb, 2003

Issuing authority : Conservatoria Dos Registos Comercial E De Bens Moveis

*Change of Company Name*

========================

No record

*Bank*

======

HONGKONG AND SHANGHAI BANKING CORPORATION LTD

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

*Main Products & Services*

==========================

Specializes in trading of garments.

*Detailed Product specifications*

========================

Items available include:

Knitwear

Blouses

Tee

Skirt

Garments

ORGANIZATION STRUCTURE

*Parent company*

================

The company is a subsidiary of Esprit Holdings Ltd (a listed company in Hong Kong)., whose partial information is as follows:

Ticker : 330

Exchange : SEHK

Business address : 43/F., Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong.

Business Line : Esprit Holdings Limited is an investment holding company. The Company is principally engaged in wholesale and retail distribution and licensing of fashion and life-style products designed under its own Esprit brand name, together with Red Earth cosmetics, skin and body care products. The Company operates over 600 directly managed retail stores and over 13,000 controlled-space wholesale point-of-sales internationally occupying over 867,000 square meters of retail space in more than 40 countries. The Company licenses its trademark to third-party licensees that offer licensed products. The Company also provides salon services via Salon Esprit.

No. of employees : 9,600

*Key Personnel*

===============

(1)

John Cho-ming Poon

Marital: Married

Resident status : Chinese nationality

Responsibilities : Currently active in the company's day-to-day operations & is responsible for its management.

Registered address: 43/F., Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong.

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

Company name: ESPRIT EUROPE SERVICES GMBH

Country: Germany

Status: Affiliate

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

Company name: ESPRIT GB LTD

Country: United Kingdom

Status: Affiliate

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

Company name: ESPRIT GLOBAL IMAGE GMBH

Country: Germany

Status: Affiliate

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

Company name: ESPRIT HANDELSGESELLSCHAFT M B H

Country: Austria

Status: Affiliate

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

Company name: ESPRIT INTERNATIONAL (LIMITED PARTNERSHIP)

Country: USA

Status: Affiliate

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

Company name: ESPRIT INTERNATIONAL (GP) INC

Country: USA

Status: Affiliate

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

Company name: ESPRIT IP LTD

Country: Virgin Island (British)

Status: Affiliate

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

Company name: ESPRIT ITALY DISTRIBUTION S R L

Country: Italy

Status: Affiliate

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

Company name: ESPRIT LUXEMBOURG S A R L

Country: Luxembourg

Status: Affiliate

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

Company name: ESPRIT PROPERTY LTD

Country: Hong Kong

Status: Affiliate

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

Company name: ESPRIT REGIONAL SERVICES LTD

Country: Virgin Island (British)

Status: Affiliate

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

Company name: ESPRIT RETAIL B V & CO KG

Country: Germany

Status: Affiliate

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

Company name: ESPRIT RETAIL (HONG KONG) LTD

Country: Hong Kong

Status: Affiliate

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

Company name: ESPRIT (RETAIL) PROPRIETARY LTD

Country: Australia

Status: Affiliate

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

Company name: ESPRIT RETAIL PTE LTD

Country: Singapore

Status: Affiliate

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Company name: ESPRIT RETAIL (TAIWAN) LTD

Country: Taiwan

Status: Affiliate

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

Company name: ESPRIT SWEDEN AB

Country: Sweden

Status: Affiliate

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Company name: ESPRIT US ONLINE SHOP LTD

Country: USA

Status: Affiliate

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Company name: ESPRIT US WHOLESALE LTD

Country: USA

Status: Affiliate

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

Company name: ESPRIT SWISS TREASURY LTD

Country: Virgin Island (British)

Status: Affiliate

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

Company name: ESPRIT SWITZERLAND DISTRIBUTION AG

Country: Switzerland

Status: Affiliate

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

Company name: ESPRIT SWITZERLAND RETAIL AG

Country: Switzerland

Status: Affiliate

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

Company name: ESPRIT US DISTRIBUTION LTD

Country: USA

Status: Affiliate

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

Company name: ESPRIT US RETAIL LTD

Country: USA

Status: Affiliate

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

Company name: ESPRIT WHOLESALE GMBH

Country: Germany

Status: Affiliate

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

Company name: GARMENT ACCESSORIES AND COSMETICS ESPRIT RETAIL (MACAU) LTD

Country: Macau

Status: Affiliate

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

Company name: RED EARTH DISTRIBUTION CORPORATION INC

Country: Canada

Status: Affiliate

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Company name: RED EARTH (HONG KONG) LTD

Country: Hong Kong

Status: Affiliate

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

Company name: RED EARTH INTERNATIONAL HOLDINGS LTD

Country: Virgin Island (British)

Status: Affiliate

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

Company name: RED EARTH LICENSING LTD

Country: Virgin Island (British)

Status: Affiliate

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

Company name: RED EARTH PRODUCTION LTD

Country: Hong Kong

Status: Affiliate

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

Company name: RED EARTH (TAIWAN) LTD

Country: Taiwan

Status: Affiliate

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

Company name: SIJUN FASHION DESIGN (SHENZHEN) CO LTD

Country: China

Status: Affiliate

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

related parties description

*Major Shareholders*

====================

Shareholder Name No of Shares

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

Esprit IP Ltd 3,000,000

*Shareholders' Details*

=======================

Esprit IP Ltd

Address: P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

*Administrator's Details*

==================

(1)

John Cho-ming Poon

(2)

Peter Mark Hammond

Marital: Married

Resident status : Hong Kong resident

Responsibilities : Currently active in the company's day-to-day operations & is responsible for its management.

Registered address: D4, Clearwater Bay Apartments, 8 Ka Shue Road,

Clearwater Bay, Hong Kong.

(3)

Ka-fung Lee

Marital: Single

Resident status : Chinese nationality

Responsibilities : Currently active in the company's day-to-day operations & is responsible for its management.

Registered address: Avenida Xian Xing Hai, Ed Zhu Kuan, 15 andar, Apartamento L, Macau.

(4)

Lay Kuan Pow

Marital: Married

Resident status : Singapore nationality

Responsibilities : Currently active in the company's day-to-day operations & is responsible for its management.

Registered address: 70 Bendemeer Road, #05-01 Hiap Huat House, Singapore.

local distribution & warehousing

*Imports*

========

Majority of the company's products are imported from the PRC.

international trade activity description

*Export Markets*

===============

Majority of the annual turnover is attributed to export to the following countries:

- Asia, Europe and North America.

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.	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