MIRA INFORM REPORT

Report Date :

26.05.2008

IDENTIFICATION DETAILS

Name :	KOTHARI TRADING (HK) LTD

Registered Office :	6 Fl Hang Shun Bldg 10-12 Wyndham St, Central

Country :	Hong Kong

Date of Incorporation :	16.12.2002

Com. Reg. No.:	0825973

Legal Form :	Private Limited Company

Line of Business :	Import of wide range of Gems, Diamonds and Jewelry. Sales and Distribution to local market

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

COMPANY NAME & ADDRESS

KOTHARI TRADING (HK) LTD

6FL HANG SHUN BLDG 10-12 WYNDHAM ST, CENTRAL HONG KONG.

TEL:852-25255003

FAX:852-25255013

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 16, 2002

REGISTRATION NO. : 0825973

LEGAL FORM : PRIVATE LIMITED COMPANY

CHIEF EXECUTIVE : MR. MANAK CHAND RAJENDRA KUMAR KOTHARI (CHAIRMAN)

STAFF STRENGTH : 5

CAPITAL : US$ 383,632

BUSINESS LINE : TRADER

TURNOVER : N/A (AS OF DEC. 31, 2006)

EQUITIES : N/A (AS OF DEC. 31, 2006)

PAYMENT : AVERAGE

MARKET CONDITION : AVERAGE

FINANCIAL CONDITION : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : HKD7.82333 = US$1

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

*Company Registration*

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

License number : 0825973

Date issued : 16 December, 2002

Issuing authority : Companies Registry

Type of license : Corporate

License number : 33218272-000

Date issued : N/A

Issuing authority : Inland Revenue Dept.

Type of license : Business

*Corporate & Organization Structure*

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

A small sized company operated and managed by an experienced team of professionals.

*Capital Details*

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

Authorized capital : HKD 3,000,000.00 divided into 3,000,000 ordinary shares at HKD 1.00/-each , fully paid

*Reputation*

==========

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

*Approved Signatures*

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

Mr. Manak Chand Rajendra Kumar Kothari can sign on behalf of the company with seal affixed.

E-mail: kothari@biznetvigator.com

For the past two years there is no record of litigation.

*Major Shareholders*

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

Total number of shareholders : 2

Total number of ordinary shares : 3,000,000

Shareholders' Name No. of ordinary shares Amount of shares (HKD) % of Shares

Mr. Manak Chand Rajendra Kumar Kothari 2,000,001 2,000,001.00 66.67

KOTHARI TRADING CO LTD 999,999 999,999.00 33.33

*Director's Details*

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

Manak Chand Surendar Kumar Kothari

India Passport no. : Z-1191162

Address : 3B Sunrise Bldg 5-16-8 Ueno Taito-ku Tokyo 1100005 Japan

*Company Secretary*

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

VERCOS LTD

C. R. no. : 110986

Address : Rm 206, 2Fl Alliances Bldg 130-136 Connaught Rd Central Hong Kong

Management : Mr. Manak Chand Rajendra Kumar Kothari, General Manager

Name Nationality Job Description

Mr. Manak Chand Rajendra Kumar Kothari Indian General Manager

*Key Personnel*

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

Manak Chand Rajendra Kumar Kothari

National ID no. : R321604(6)

Address : 6Fl Hang Shun Bldg 10-12 Wyndham St, Central, Hong Kong, Hong Kong

Founder : Co-Founder

Work experience : More than 5 years.

Responsibilities : Handles the daily operation of the firm including all financials and legal matters.

*Main Products & Services*

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

Specializes in the following areas of work :

1. Import of wide range of gems, diamonds and jewelry.

2. Sales and distribution to local market.

Products:

Diamonds

Emeralds

Gems

Jewelry

Sapphires

*Payment Terms*

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

Sales

------

Local : Cash or Credit

Export : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

Purchases

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

Import : Letter of Credit (L/C)

Telegraphic Transfer (T/T)

*Exhibition Participation*

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

Exhibition fair : Japan Jewellery Fair 2007

Year attended : 2007

Location : Hong Kong Pavilion

*Local Distribution Network*

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

10% of the annual turnover is attributed to local sales.

*Export Markets*

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

90% of the annual turnover is attributed to export.

SC is not known to have any subsidiary at present.

PAYMENT RATING : 3 OBTAINED SCORES : 56

Rating Key	Implication	Implications
1	Scores 85–100	Excellent
2	Scores 75 – 84	Above Average
3	Scores 50 – 74	Average
4	Scores 35 – 49	Fair
5	Scores 15 – 34	Below Average
6	Scores 01 – 14	Poor
NR	No Data	No Data

The rating indicates the payment pattern of SC based upon our Payment Database, comments from suppliers of SC, information from banks (if available), as well as industrial sources.

Dealings on open terms may be possible for SMALL amounts depending on individual judgement experience.

As a private limited company there is no legal requirement according to local corporate law for public disclosure of detailed financials.

SC is considered a normally advancing concern with steady customers and good base to meet its trade engagements.

Attached: trade references

SIC PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Trading 3911 Jewelry, of precious metal

Trading 3915 Jeweler's findings and materials, and lapidary work

Trading 3961 Jewelry of materials other than solid gold, platinum & silver

Trading 5094 Jewelry/Watches/Precious Mtl

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Activity Code Product/Service Description

Trading 7102 Diamonds, worked or not, not mounted or set

Trading 7103910000 Rubies, sapphires and emeralds, otherwise worked

Trading 7103991000 Gemstones, cut but not set suitable for use in jewelry

Trading 7104200000 Synthetic or reconstructed gemstones unworked or simply sawn or roughly shaped

Trading 7113205000 Jewelry of base metal clad with precious metal

Trading 7116201000 Jewelry of precious or semiprecious stones

INTERNATIONAL TRADE: ACTIVITY & MARKETS

Exporting to Asia

Exporting to Europe

Exporting to North America

Exporting to USA

Importing from Asia

Importing from India

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%)

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