MIRA INFORM REPORT

Report Date :

14.12.2012

IDENTIFICATION DETAILS

Name :	HARRY WINSTON DIAMOND INTERNATIONAL NV
Registered Office :	Pelikaanstraat 62 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.01.2012
Date of Incorporation :	10.11.1998
Reg. No.:	464577540
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Belgium	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Belgium - ECONOMIC OVERVIEW

This modern, open, and private-enterprise-based economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures, making its economy vulnerable to volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2011 Belgian GDP grew by 2.0%, the unemployment rate decreased slightly to 7.7% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 100% of GDP, a factor that has contributed to investor perceptions that the country is increasingly vulnerable to spillover from the euro-zone crisis. Belgian banks were severely affected by the international financial crisis in 2008 with three major banks receiving capital injections from the government, and the nationalization of the Belgian arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

HARRY WINSTON DIAMOND INTERNATIONAL NV

Business number	464577540	Company name	HARRY WINSTON DIAMOND INTERNATIONAL NV
Telephone number	032271210
Address	PELIKAANSTRAAT 62 ANTWERPEN	Fax number	032332165
Post code	2018	Number of staff	2
Date of establishment	10/11/1998

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/01/2012	179,889,178	250,919	2,341,768
31/01/2011	181,642,063	520,785	2,079,064
31/01/2010	115,242,178	158,444	1,734,540

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/01/2012	6,565,345	5,157	749,160	260,294	2
31/01/2011	12,481,140	4,962	720,930	11,428,003	2
31/01/2010	8,366,949	4,865	706,717	7,091,543	2

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	0.32
Industry average payment expectation days	177.37	Industry average day sales outstanding	110.40
Day sales outstanding	8.16

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Business number	464577540	Company name	HARRY WINSTON DIAMOND INTERNATIONAL NV
Fax number	032332165	Date founded	10/11/1998
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/01/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0464.577.540
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	-

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	29/08/2011
Event Description	resignation-appointment of director(s)
Event Details	Commentaar 29-08-2011: Bevestiging van de benoeming van Wendy Kei met ingang van 1 mei 2011 en Cyrille Baudet met ingang van 9 mei 2011 als bestuurders.

Export accounts to CSV file

comparison mode

average

median

Profit & loss

	Annual accounts	31-01-2012	%	31-01-2011	%	31-01-2010	Industry average 2012	%
	Weeks	52		52		52
	Currency	EUR		EUR		EUR
	Turnover	179,889,178	-0.97	181,642,063	57.62	115,242,178	89,979,942	99
	Total operating expenses	178,905,523	-0.91	180,541,967	57.49	114,634,443	88,951,357	101
	Operating result	983,655	-10.58	1,100,096	81.02	607,735	519,639	89.30
	Total financial income	524	-80.29	2,658	-75.24	10,736	140,733	-99
	Total financial expenses	733,261	26.00	581,969	26.51	460,027	434,013	68.95
	Results on ordinary operations before taxation	250,919	-51.82	520,785	228	158,444	218,317	14.93
	Taxation	69,624	-52.03	145,143	50.73	96,294	77,125	-9.73
	Results on ordinary operations after taxation	181,295	-51.74	375,642	504	62,150	156,617	15.76
	Extraordinary items	0	-	0	-	0	-5,964	0
	Other appropriations	0	-100	1	-	0	-	-
	Net result	181,295	-51.74	375,643	504	62,150	150,653	20.34
	other information
	Dividends	-	-	-	-	-	-	-
	Director remuneration	-	-	-	-	-	90,634	-
	Employee costs	211,864	34.42	157,609	-2.94	162,388	330,035	-35.81
	Wages and salary	167,550	40.10	119,593	-5.97	127,185	286,957	-41.61
	Employee pension costs	-	-	-	-	-	-	-
	Social security contributions	39,974	26.73	31,543	-2.50	32,352	59,153	-32.42
	Other employee costs	4,340	-32.96	6,474	126	2,852	15,173	-71.40
	Amortization and depreciation	25,777	42.70	18,064	-43.77	32,124	44,765	-42.42

balance sheet

	Annual accounts	31-01-2012	%	31-01-2011	%	31-01-2010	Industry average 2012	%
	Weeks	52		52		52
	Currency	EUR		EUR		EUR
	Intangible fixed assets	0	-	0	-	0	2,023	-100
	Tangible fixed assets	67,710	75.16	38,656	14.60	33,731	594,496	-88.61
	Land & building	-	-	-	-	-	1,512,252	-
	Plant & machinery	60,570	111	28,624	3.83	27,567	72,611	-16.58
	Other tangible assets	7,140	-28.83	10,032	62.75	6,164	47,315	-84.91
	Financial fixed assets	5,157	3.93	4,962	1.99	4,865	5,439	-5.18
	Total fixed assets	72,867	67.06	43,618	13.01	38,597	543,284	-86.59
	Inventories	2,145,318	173	784,674	-30.70	1,132,282	4,469,229	-52.00
	Raw materials & consumables	-	-	-	-	-	-	-
	Work in progress	0	-	0	-	0	0	-
	Finished goods	2,145,318	173	784,674	-30.70	1,132,282	3,438,491	-37.61
	Other stocks	0	-	0	-	0	392,276	-100
	Trade debtors	4,022,700	2173	176,957	-	0	12,030,629	-66.56
	Cash	260,294	-97.72	11,428,003	61.15	7,091,543	730,433	-64.36
	other amounts receivable	49,451	37.69	35,914	-54.23	78,471	214,220	-76.92
	Miscellaneous current assets	14,715	22.89	11,974	-54.05	26,056	9,160	60.64
	Total current assets	6,492,478	-47.80	12,437,522	49.34	8,328,352	16,815,210	-61.39
	current liabilities
	Trade creditors	155,570	-97.42	6,029,510	128	2,636,418	6,105,680	-97.45
	Short term group loans	-	-	-	-	-	-	-
	Other short term loans	3,273,833	-	0	-	0	6,321,733	-48.21
	Miscellaneous current liabilities	794,174	-37.39	1,268,366	33.09	952,991	66.90	- -
	Total current liabilities	4,223,577	-42.13	7,297,876	103	3,589,409	12,554,369	-66.36
	Long term debts
	Long term group loans	-	-	-	-	-	-	- -
	Other long term loans	-	-	3,104,200	2.01	3,043,000	-	- -
	Other long term liabilities	0	-	0	-	0	82,734	-100
	Total long term debts	0	-100	3,104,200	2.01	3,043,000	1,355,978	-100
	shareholders equity
	Issued share capital	749,160	3.92	720,930	2.01	706,717	2,803,255	-73.28
	Share premium account	-	-	-	-	-	-	-
	Reserves	1,592,608	17.26	1,358,134	32.14	1,027,823	459,832	246
	Revaluation reserve	-	-	-	-	-	2,151,989	-
	Total shareholders equity	2,341,768	12.64	2,079,064	19.86	1,734,540	3,386,057	-30.84
	Working capital	2,268,901	-55.85	5,139,646	8.46	4,738,943	4,260,841	-46.75
	Net worth	2,341,768	12.64	2,079,064	19.86	1,734,540	3,384,034	-30.80
	back to top

ratio analysis

	Annual accounts	31-01-2012	change(%)	31-01-2011	change(%)	31-01-2010	Industry average 2012	%
	Trading performance
	Profit Before Tax	0.14	-51.72	0.29	107	0.14	3,00	-95.33
	Return on capital employed	10.71	6.57	10.05	202	3.32	15,00	-28.60
	Return on total assets employed	3.82	-8.39	4.17	120	1.89	-7,00	54.57
	Return on net assets employed	10.71	-57.25	25.05	174	9.13	16,00	-33.06
	Sales / net working capital	79.28	124	35.34	45.31	24.32	-25,00	-99
	Stock turnover ratio	1.19	176	0.43	-56.12	0.98	19,00	-93.74
	Debtor days	8.16	2166	0.36	-	-	100,00	-91.84
	Creditor days	0.32	-97.37	12.19	45.29	8.39	90,00	-99
	short term stability
	Current ratio	1.54	-9.41	1.70	-26.72	2.32	9,00	-87.17
	Liquidity ratio / acid ratio	1.03	-35.62	1.60	-20.00	2	7,00	-85.29
	Current debt ratio	1.80	-48.72	3.51	69.57	2.07	12,00	-85.00
	Liquidity ratio reprocessed	-	-	-	-	-	-	-
	long term stability
	Gearing	139.80	-6.37	149.31	-14.89	175.44	211,00	-33.74
	Equity in percentage	35.67	114	16.66	-19.63	20.73	-7,00	509
	Total debt ratio	1.80	-64.00	5	30.89	3.82	13,00	-86.15

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	0.32
Day sales outstanding	8.16

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	177.37
Industry average day sales outstanding	110.40

Industry quartile analysis

Payment expectations
Company result	0.32
Lower	129.09
Median	74.41
Upper	41.71
Day sales outstanding
Company result	8.16
Lower	112.47
Median	57.26
Upper	24.94

Summary

Group - Number of Companies	2
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Safe number	Latest financials	Rating
- HARRY WINSTON DIAMOND CORPORATION
- - HARRY WINSTON DIAMOND INTERNATIONAL NV	464577540	BE00402017	31-01-2012	75

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	464577540
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details

Name	HARSH B. DALA
Position	Managing Director
Start Date	13/03/2008
Street	23 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	HARSH B. DALA
Position	Director
Start Date	21/02/2006
Street	23 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	ROBERT GANNICOTT
Position	Director
Start Date	21/01/2002
Street	71 SIMCOE STREET TORONTO
Post code	2601
Country	Canada
Name	JAMES POUNDS
Position	Director
Start Date	03/11/2011
Street
Post code
Country	United Kingdom
Name	JAMES POUNDS
Position	Managing Director
Start Date	08/05/2003
Street
Post code
Country	United Kingdom
Name	HARSH DALAL
Position	Director
Start Date	21/02/2006
Street
Post code
Country

Former director details

Name			FRANCOIS (FRANK) RAMPELBERG
Position			Director
Start Date			19/07/2004
End Date			31/03/2008
Street			3 KAPITTELSTRAAT ANTWERPEN
Post code			2610
Country			Belgium
Name			ALICE MURPHY
Position			Director
Start Date			19/07/2004
End Date			-
Street			384 OLD YONGE STREET TORONTO
Post code
Country			Canada
Name		ALAN MAYNE
Position		Director
Start Date		21/01/2008
End Date		30/04/2011
Street
Post code
Country		Canada
Name		WENDY W. T. KEI
Position		Director
Start Date		01/05/2011
End Date		-
Street
Post code
Country		Canada
Name				THOMAS J. O'NEILL
Position				Director
Start Date				05/07/2005
End Date				-
Street
Post code
Country				France
Name						HAMDI ES-SADAOUI-CHATTI
Position						Director
Start Date						12/07/2006
End Date						12/03/2008
Street
Post code
Country						Switzerland
Name					CYRILLE A. M. BAUDET
Position					Director
Start Date					09/05/2011
End Date					-
Street
Post code
Country					Switzerland
Name							ROGER B. PHILLIMORE
Position							Director
Start Date							21/01/2002
End Date							27/08/2012
Street							LITTLE BENTLEY FARM HAMPSHIRE
Post code
Country							United Kingdom
Name	RAYMOND NEIL SIMPSON
Position	Director
Start Date	20/07/2007
End Date	27/08/2012
Street
Post code
Country	United States

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.23
UK Pound	1	Rs.87.53
Euro	1	Rs.70.94

INFORMATION DETAILS

Report Prepared by :

SDA

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	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
--	NB	New Business	--

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.