MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	LES BIJOUTIERS DOUCET 1993 INC
Registered Office :	9250 Meilleur, Suite #201, Montreal, QC H2N 2A5
Country :	Canada
Year of Establishment :	1946
Legal Form :	Corporation for Profit
Line of Business :	Jewelry Stores.
No. of Employees :	250

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 :	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)
Canada	A1	A1

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

GEOPOLITICS

POLITICAL DATA		ECONOMIC DATA
Form of Government GOVERNMENT	Federal	Currency	100.00 CAD = 101.268 USD
Economic Risk	Nil	Branch Situation

IDENTIFICATION

Legal Name:

LES BIJOUTIERS DOUCET 1993 INC

Trade Name:

Doucet Latendresse

Legal Address:

9250 Meilleur, Suite #201, Montreal, QC H2N 2A5, Canada.
Operative Address:	9250 Meilleur, Suite #201, Montreal, QC H2N 2A5, Canada.

Telephone:

+1 (514) 381-8714 / +1 (866) 869-0984

NEQ:

1165051617

Fax:

N.A.

Legal Form:

Corporation for Profit

Email:

N.A.

Registered In:

Qubec

Website:

www.doucetlatendresse.com

Date Created:

1946

Manager:

Jacques Mamane, President.

Date Incorporated

March 26th. 2008

Staff:

250

Stock:

N.A.

Value:

N.A.

Activity:

Jewelry Stores.

BANKS

Name of the Bank

Scotia Bank

BUSINESS

HISTORY:
	Jean-Paul & Madeleine Latendresse open their first jewellery store in Verdun, QC in 1946. Jean-Paul Doucet follows in 1960 with the opening, in Place Laurier in Qubec City, of the first jewellery store bearing his name. Doucet & Latendresse merge in 1992. 2011: Doucet Latendresse inaugurate their new web portal with it's new ONLINE Store, now serving all of the North-Amercan Market.
PRINCIPAL ACTIVITY:
	The company evolves as a jewellery retailer.
Products/Services description:
	The main products offered by the company are: Bracelets. Necklaces. Earrings. Pendants. Rings. Watches. Body Jewellery.
Sales are:
	Retail
Clients:
	General Clientele.
Operations area:
	National, International, Local
The company imports from Worldwide, depending on demand. (not verified).
The company exports to USA..
Trade References :
	The person contacted refused to provide the names of their suppliers for us to check the trade references.
Competitors:
	Birks & Mayors Inc. Tadros & Tadros Limited.
The subject employs 250 employee(s)
Comments on staff:
	This information was not verified by the person contacted.
Payments :
	regular
LOCATION :
Headquarters:
	9250 Meilleur, Suite #201, Montreal, QC H2N 2A5, Canada.
Branches:
	There are 36 regional boutiques in Canada.
Business Overview:
	Jewelry sales depend partly on consumer income. Small jewelers can effectively compete with large chains because price isn't the main factor determining sales. Profitability depends on merchandising and effective marketing. Jewelry is sold not only by specialized jewelry retailers, but also by department stores and mass merchants. Because regular gross margins are very high, often 50 percent, mass merchants have been able to cut prices and take market share.

Shareholders - Manager - Related Companies

Listed at the stock exchange:
	NO
Shareholders Parent Company(ies):
	MAMANE, JACQUES and FIDUCIE JM are the main shareholders. This information was not verified by the person contacted but it was taken from official sources.
Management:
	MAMANE, JACQUES - President. This information was not verified by the person contacted but it was taken from official sources.

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

We have contacted a female operator who refused to provide us any financial data on grounds of confidentiality.

Comments on the financial data : The annual revenues of the subject would remain in the range of USD 150,000,000.- and 200,000,000.-

These figures have not been disclosed by the company.

They were conciliated with our private sources and from a particular market approach regarding the subjects scope of business.

legal fillings

The sources consulted record no detrimental legal or labor court information.

Rating

Local credit bureau gave a Correct credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

FINAL OPINION:

This medium sized company has been doing business for 65 years.

It is managed by very experienced people.

The company has been growing since its birth.

It seems to adjust to regular payment terms.

No legal filings were found against it.

This time we could not verify the information on this report with the subject.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	N.A.	Public	NO
Indebtedness	N.A.	Payments	REGULAR
Cash	N.A.

APPENDIX

Comments:
	We spoke to a female representative who refused to provide us with any kind of information on her company on grounds of confidentiality. She transferred us to Carlos Benezra voice mail as he was not at his desk. We left a message asking to be contacted back and received no response.

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.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

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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