MIRA INFORM REPORT

Report Date :

17.01.2008

IDENTIFICATION DETAILS

Name :	SANGHAVI FAREAST PTE LTD

Registered Office :	545 Orchard Road, #10-03 Far East Shopping Centre

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^15/05/2005

Com. Reg. No.:	^200506663K

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	^{Importers, Exporters and Retailers of Diamonds and other Precious Stones.}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

^{SANGHAVI FAREAST PTE. LTD.}

Line Of Business

^{IMPORTERS, EXPORTERS AND RETAILERS OF
DIAMONDS AND OTHER PRECIOUS STONES.}

Parent Company

^{SANGHAVI DIAMONDS PVT. LTD}

^{(PERCENTAGE OF SHAREHOLDING: 100%)}

Financial Elements

FY 2006

COMPANY

^{Sales :
S$}^12,559,917

^{Networth :
S$}^223,245

^{Paid-Up Capital :
S$}^100,000

^{Net
result : S$}^34,200

^{Net Margin(%) : 0.27}

^{Return on
Equity(%) : 15.32}

^{Leverage
Ratio : 47.50}

COMPANY IDENTIFICATION

^{Subject Company : SANGHAVI
FAREAST PTE. LTD.}

^{Business Address : 545
ORCHARD ROAD}

^#10-03 ^{FAR EAST SHOPPING CENTRE}

^{Town : SINGAPORE}

^{Postcode : 238882}

^{Country : Singapore}

^{Telephone : 6732 9931}

^{Fax : 6345 7864}

^{ROC Number : 200506663K}

^{Reg. Town:}

SUMMARY

^{All amounts in
this report are in: SGD}

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :
15/05/2005}

^{Summary year :
31/12/2006}

^{Sales :
12,559,917}

^{Networth :
223,245}

^{Capital :}

^{Paid-Up Capital : 100,000}

^{Employees :}

^{Net result :
34,200}

^{Share value :}

AUDITOR :GEETHA A & ASSOCIATES

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :}^15/05/2005

PRINCIPAL(S)

^{UDAY RAMESH JHAVERI S7080428Z Director}

DIRECTOR(S)

^{SANGHAVI KALPESH VASANTLAL F1226574 Director}

^{Appointed on :
15/05/2005}

^{Street :
19, KAILESH NIKETAN SOCIETY 24}

^{L.D. RUPAREL MARG WALKESHWAR}

^{Town :
MUMBAI M.S.}

^{Postcode :
400006}

^{Country :
India}

^{UDAY RAMESH JHAVERI S7080428Z
Director}

^{Appointed on :
15/05/2005}

^{Street :
16 AMBER GARDENS}

^#10-04

^{AMBER PARK}

^{Town : SINGAPORE}

^{Postcode : 439961}

^{Country : Singapore}

^{SHAH UJVAL RAMANLAL Z1632954
Director}

^{Appointed on :
15/05/2005}

^{Street :
27/ 267 PARISHRAM APARTMENT}

^{SATELLITE ROAD AHMEDABAD}

^{Town :
GUJARAT}

^{Postcode :}

^{Country :
India}

^{UDAY RAMESH JHAVERI S7080428Z
Company Secretary}

^{Appointed on :
11/02/2007}

^{Street :
16 AMBER GARDENS}

^#10-04

^{AMBER PARK}

^{Town :
SINGAPORE}

^{Postcode :
439961}

^{Country :
Singapore}

ACTIVITY(IES)

^{DIAMONDS - WHSLE Code:6450}

^{JEWELLERS - RETAIL Code:12270}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF JEWELLERY; DIAMOND
WHOLESALERS}

^{2) RETAIL SALE OF JEWELLERY; PRECIOUS STONES
DEALERS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{SANGHAVI DIAMONDS PVT. LTD. 100,000 Company}

^{Street :4TH
FLOOR, NORTH SIDE, 15,}

^{MATHEWS ROAD, CHARNI ROAD}

^{Town :MUMBAI}

^{Postcode :400004}

^{Country :India}

HOLDING COMPANY

^{SANGHAVI DIAMONDS PVT. LTD. UF40227D % :
100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity :
SUFFICIENT}

^{Payments :
REGULAR}

^{Trend :
LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

Audit Qualification: SCOPE LIMITATION SCOPE LIMITATION

Date Account Lodged: 05/08/2007

Balance Sheet Date: 31/12/2006 31/12/2005

Number of weeks: 52 52

Consolidation Code: COMPANY COMPANY

--- ASSETS ---

Investments 94,254 94,254

Total Fixed Assets: 94,254 94,254

Inventories: 2,034,837 2,156,283

Receivables: 8,504,686 1,144,951

Cash,Banks, Securitis: 108,193 13,485

Other current assets: 85,017 1,082,440

Total Current Assets: 10,732,733 4,397,159

TOTAL ASSETS: 10,826,987 4,491,413

--- LIABILITIES ---

Equity capital: 100,000 100,000

Profit & lost Account: 123,245 89,045

Total Equity: 223,245 189,045

Trade Creditors: 10,370,053 4,053,432

Prepay. & Def. charges: 9,500 4,400

Provisions: 12,472 9,339

Other Short term Liab.: 211,717 235,197

Total short term Liab.: 10,603,742 4,302,368

TOTAL LIABILITIES: 10,603,742 4,302,368

PROFIT & LOSS ACCOUNT

Net Sales 12,559,917 2,929,554

Gross Profit: 22,653 77,522

Result of ordinary operations 37,333 98,384

NET RESULT BEFORE TAX: 37,333 98,384

Tax : 3,133 9,339

Net income/loss year: 34,200 89,045

Directors Emoluments: 47,000 132,000

Purchases,Sces & Other Goods: 12,537,264 2,852,032

RATIOS

^{31/12/2006 31/12/2005}

^{Net result / Turnover(%): 0.00 0.03}

^{Stock / Turnover(%): 0.16 0.74}

^{Net Margin(%): 0.27 3.04}

^{Return on Equity(%): 15.32 47.10}

^{Return on Assets(%): 0.32 1.98}

^{Net Working capital: 128991.00 94791.00}

^{Cash Ratio: 0.01 0.00}

^{Quick Ratio: 0.81 0.27}

^{Current ratio: 1.01 1.02}

^{Receivables Turnover: 243.77 140.70}

^{Leverage Ratio: 47.50 22.76}

^{Net Margin :
(100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets/Total short term
liabilities)/1000}

^{Cash Ratio :
Cash Bank securities/Total short term liabilities}

^{Quick Ratio :
(Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term
liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total
liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{AUDITOR'S REPORT:}

^{THE COMPANY HAD INVESTED IN A SUBSIDIARY IN
JAPAN. HOWEVER THE AUDITED} ^{FINANCIAL STATEMENTS OF THE SUBSIDIARY WAS NOT AVAILABLE AS AT} ^{DECEMBER 31 2006, AND NOR WERE WE ABLE TO SASTIFY OURSEVES AS TO THE} ^{CARRYING VALUE OF THE INVESTMENT IN THE SUBSIDIARY BY OTHER AUDITING} ^PROCEDURES.

^{ALSO WE DID NOT OBSERVE THE COUNTING OF THE
PHYSICAL INVENTORIES AS OF} ^{DECEMBER 2006. OWING TO THE NATURE OF THE COMPANY'S, WE WERE} ^{NOT ABLT TO SASTIFY OUTSELVES
AS INVENTORY QUANTITIES BY OTHER AUDIT} ^PROCEDURES.

^{BECAUSE OF THE SIGNIFICANT OF THE MATTERS
DISCUSSED, WE DO NOT EXPRESS} ^{AN OPINION ON THE FINANCIAL STATEMENTS.}

^{THE FINANCIAL CONDITION OF THE COMPANY WAS
SEEN TO BE FAIR IN VIEW OF} ^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY} ^{18.09% FROM S$189,045 IN FY 2005 TO S$223,245 IN FY 2006. THIS} ^{WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$123,245 (2005: S} ^{$89,045);
A RISE OF 38.41% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 97.79% (2005: 94.21%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO S$10,370,053 (2005: S$4,053,432). THE
BREAKDOWN IS} ^{AS FOLLOWS:}

^{-AMOUNT DUE TO AFFLIATED COMPANY- 2006:
S$9,255,442 (2005: S} ^$3,310,140)

^{-TRADE CREDITORS- 2006: S$1,114,611 (2005:
S$743,292)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 22.76 TIMES
TO 47.50 TIMES AS A} ^{RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM}

^{THE NET WORKING CAPITAL AND LIQUIDITY RATIOS.
CURRENT FELL TO 1.01}

^{TIMES, FROM 1.02 TIMES AND QUICK RATIO IMPROVED
TO 0.81 TIMES FROM}

^{0.27 TIMES IN FY 2005.}

^{NET WORKING CAPITAL IMPROVED BY 12.62% FROM
S$94,791 IN FY 2005 TO} ^S$128,991.

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 3.28 TIMES FROM
S$2,929,554 IN FY 2005} ^{TO S$12,559,917 BUT NET PROFIT DROPPED BY 61.59% TO S$34,200
(2005: S} ^{$89,045). THIS COULD BE DUE TO LOWER GROSS MARGIN OF 0.18%
IN FY} ^{2006 (2005: 2.65%). HENCE, NET MARGIN FELL TO 0.27% (2005:
3.04%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED
IF REVENUE AND EARNINGS} ^{CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN} ^{ADDITION, SUBJECT DID NOT INCUR ANY INTEREST EXPENSE FOR THE FINANCIAL} ^{YEARS UNDER REVIEW.}

BACKGROUND/OPERATION

^{THE SUBJECT WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON} ^{15/05/2005
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{ITS PRESENT
NAMESTYLE AS "SANGHAVI FAREAST PTE. LTD.".}

^{SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{100,000 SHARES OF A VALUE OF S$100,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND
CORPORATE REGULATORY AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS
OF:}

^{1) WHOLESALE OF JEWELLERY; DIAMOND
WHOLESALERS}

^{2) RETAIL SALE OF JEWELLERY; PRECIOUS STONES
DEALERS}

^{`DURING THE FINANCIAL YEAR(S), UNDER REVIEW,
SUBJECT'S PRINCIPAL} ^{ACTIVITIES ARE TO CARRY ON THE BUSINESS OF IMPORTERS, EXPORTERS
AND} ^{RETAILERS OF DIAMONDS AND OTHER PRECIOUS STONES.}

^{FROM THE RESEARCH CONDUCTED, THE FOLLOWING
INFORMATION WAS GATHERED:}

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL
DIRECTORY UNDER THE} ^{CLASSIFICATION OF: DIAMONDS - WHOLESALE.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS
TELE-INTERVIEW WAS NOT} ^{GRANTED BY SUBJECT'S PERSONNEL}

^{FROM THE PRIOR TELE-INTERVIEW CONDUCTED THE
FOLLOWING} ^{INFORMATION
WAS GATHERED:}

^PRODUCTS:

^{* DIAMONDS}

^{IMPORT COUNTRIES:}

^{* MALAYSIA}

^{* INDONESIA}

^{* HONG KONG}

^{MARKET SERVED:}

^{* SINGAPORE}

^{* MALAYSIA}

^{* INDONESIA}

^{* HONG KONG}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
DURING THE PRIOR} ^{TELE-INTERVIEW.}

^{SUBJECT'S HOLDING COMPANY IS SANGHAVI
DIAMONDS PVT. LTD, A COMPANY} ^{INCORPORATED IN INDIA.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{545 ORCHARD ROAD}

^#10-03

^{FAR EAST SHOPPING CENTRE}

^{DATE OF CHANGE OF ADDRESS: 15/10/2006}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: DIASQUA S'PORE PTE. LTD.}

^{WEBSITE: -}

^{EMAIL: uday1970@hotmail.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) SANGHAVI KALPESH VASANTLAL, AN INDIAN}

^{-
BASED IN INDIA}

^{2) UDAY RAMESH JHAVERI, A SINGAPORE PERMANENT
RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN
OUR DATABASE.}

^{3) SHAH UJVAL RAMANLAL, AN INDIAN}

^{- BASED IN INDIA}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
HIGH QUALITY COMPETITIVENESS IN ASIA
EXCELLENT BUSINESS CLIMATE
POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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