MIRA INFORM REPORT

Report Date :

25.07.2012

IDENTIFICATION DETAILS

Name :	BRILLIANT DIAMOND LLC

Registered Office :	Gold Centre Building, 3^rd Floor, Zone 2, Suite No. 64, Al Khor Street, Al Ras, Deira, P O Box 42475, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2011

Date of Incorporation :	08.08.1998

Com. Reg. No.:	51549, Dubai

Legal Form :	Limited Liability Company

Line of Business :	Wholesalers and retailers of jewellery items, loose diamonds, precious stones, gold and silver jewellery pieces

No. of Employees :	16

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 :	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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

United Arab Emirates

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

SUMMARY

Company Name : BRILLIANT DIAMOND LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 8^th August 1998

Commercial Registration Number : 51549, Dubai

Trade Licence Number : 507047

Chamber Membership Number : 50689

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Total Workforce : 16

Activities : Wholesalers and retailers of jewellery items, loose diamonds, precious

stones, gold and silver jewellery pieces.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Santosh Kumar Gobi, Finance Manager

COMPANY NAME

BRILLIANT DIAMOND LLC

company ADDRESS

Registered & Physical Address

Building : Gold Centre Building, 3^rd Floor, Zone 2, Suite No. 64

Street : Al Khor Street

Area : Al Ras, Deira

PO Box : 42475

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2262690

Facsimile : (971-4) 2251313

Email : brildiam@emirates.net.ae

Premises

Subject operates from a small suite of offices and a showroom that are rented and located in the Central Business Area of Dubai.

KEY PRINCIPALS

Name Nationality Position

· Shah Paresh Trikamilal Indian Managing Director

· Jassim Mohamed Ibrahim Abdullah Al Hasawi Emirati Director

· Sanjay Kumar Lal Jain - Sales Manager

· Santosh Kumar Gobi - Finance Manager

· Mr Powen - Accounts Manager

LEGAL FORM & OWNERS

Date of Establishment : 8^th August 1998

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 51549, Dubai

Trade Licence No. : 507047

Chamber Member No. : 50689

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Name of Shareholder (s) Percentage

· Jassim Mohamed Ibrahim Abdullah Al Hasawi 51%

· Shah Paresh Trikamilal 49%

AFFILIATED COMPANIES

· La Marquise Diamond & Watches DMCC

Dubai

· La Marquise Diamond & Watches LLC

Dubai

Tel: (971-4) 2953433

OPERATIONS

Activities: Engaged in the wholesale and retail of jewellery items and loose diamonds, precious stones, gold and

silver jewellery pieces.

Import Countries: Europe, South Korea and South Africa.

Export Countries: Russia

Operating Trend: Steady

Subject has a workforce of 16 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/10: Year Ending 31/12/11:

Total Sales UAE Dh 321,900,000 UAE Dh 347,607,000

Local sources consider subject’s financial condition to be Good.

The above figures were provided by Mr Santosh Kumar Gobi, Finance Manager

BANKERS

· Abu Dhabi Commercial Bank

Al Rigga Road

PO Box: 5550

Dubai

Tel: (971-4) 2958888 / 3228141

Fax: (971-4) 2959310 / 3279632

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction April 2008

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Established in 1998, subject is owned and managed by Mr Shah Paresh Trikamilal, an Indian national who operates in Dubai under the local sponsorship of Mr Jassim Mohamed Ibrahim Abdullah Al Hasawi.

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

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.56.02
UK Pound	1	Rs.86.89
Euro	1	Rs.67.84

INFORMATION DETAILS

Report Prepared by :

MNL

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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