MIRA INFORM REPORT

Report Date :

23.10.2012

IDENTIFICATION DETAILS

Name :	FISCHER DIAMONDS, INC.
Registered Office :	1212 Avenue of the Americas, New York, NY 10036
Country :	United States
Date of Incorporation :	13.12.1974
Legal Form :	Corporation – Profit
Line of Business :	Manufacturer of fine make diamonds in both round and fancy shapes in a wide range of sizes, colors, clarities, and price points.
No. of Employees :	10

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit:	USD 30,000
Status :	Moderate
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)
United States	A1	A1

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

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices increased another 50% between 2006 and 2008. In 2008, soaring oil prices threatened inflation and caused a deterioration in the US merchandise trade deficit, which peaked at $840 billion. In 2009, with the global recession deepening, oil prices dropped 40% and the US trade deficit shrank, as US domestic demand declined, but in 2011 the trade deficit ramped back up to $803 billion, as oil prices climbed once more. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt - through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform bill that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits - including significant budget shortages for state governments - energy shortages, and stagnation of wages for lower-income families.

Source : CIA

Company name and address

Company name: FISCHER DIAMONDS, INC.

Address: 1212 Avenue of the Americas, New York, NY 10036 - USA

Telephone: +1 212-869-1990

Fax: +1 212-354-9775

Website: www.fischerdiamonds.com

Corporate ID#: 357964

State: New York State

Judicial form: Corporation – Profit

Date incorporated: 12-13-1974

Stock: 200 shares common

Value: No par value

Name of manager: Jeffrey H. FISCHER

ACTIVITIES & OPERATIONS

IST

Business:

Fischer Diamonds is a manufacturer of fine make diamonds in both round and fancy shapes in a wide range of sizes, colors, clarities, and price points.

The Company is headquartered in New York City with offices and cutting facilities in Israel, and Moscow.

Its focus of production is 1/4 to 2 carat rounds and fancy shapes, while also yielding larger and smaller sizes as well.

The Company imports mainly from Isreal.

EIN: 13-2796518

Staff: 10

Operations & branches:

At the headquarters, we find the corporate office, on lease.

SHAREHOLDERS & MANAGERS

Shareholders:

Jeffrey FISCHER is a major shareholder

Management:

Jeffrey FISCHER is the President and CEO.

Mr. Fischer also serves as President of the International Diamond Manufacturers Association, Vice Chairman of the World Diamond Council, a board of directors' member for the Jewelers Vigilance Committee, and past president of the Diamond Manufacturers and Importers Association of America, among other activities. He serves as a Member of the Board of Governors at Gemological Institute of America.

Subsidiaries

And partnership:

FISCHER DIAMONDS LTD

Bezelel 54 Diamond Building
Ramat Gan, Israel
Ph: +972-35752590

FINANCIALS

In United States, privately held corporations are not required to publish any financials.

On a direct call, a sales assistant controlled the present report but deferred any financials.

We sent a fax but no answer received.

Outside sources (bank) gave estimate sales for year 2011 in the range of

USD 990,000= verse USD 740,000= in 2010.

The business is profitable.

Banks: Bank Leumi

579 5th Avenue, New York, NY 10017

Ph: 800-892-5430

LEGAL FILINGS

Legal filings & complaints:

State: New York State

Case number: 1:12-cv-05383-RA

Plaintiff: Fischer Diamonds Inc. et al

Defendant: W.M. V. Schmidt Co., Inc et al
Ronnie Abrams, presiding
Date filed: 07/12/2012
Date of last filing: 10/09/2012

Cause: Rackeeting

Demand: USD 4,000,000=

State: New York State

Case number: 1:12-cv-06613-RA

Plaintiff: Fischer Diamonds Inc. et al

Defendant: Melvyn Douglas Weintraub
Ronnie Abrams, presiding
Date filed: 08/29/2012
Date of last filing: 09/24/2012

Secured debts summary (UCC): None

COMPANY CREDIT HISTORY

Trade references:

Date reported: September 2012

High credit: USD 3,000

Now owing: 0

Past due: 0

Last purchase: August 2012

Line of business: Office supply

Paying status: On terms

Date reported: September 2012

High credit: USD 15,000+

Now owing: 0

Past due: 0

Last purchase: August 2012

Line of business: Payroll

Paying status: As agreed

Date reported: September 2012

High credit: USD 400

Now owing: 0

Past due: 0

Last purchase: August 2012

Line of business: Telecommunications

Paying status: On terms

Domestic credit history:

Domestic credit history appears as follow:

Monthly Payment Trends - Recent Activity

Date	Balance	Current	Up to 30 DBT	31-60 DBT	61-90 DBT	>90 DBT
04/12	$4,200	100%	0%	0%	0%	0%
05/12	$3,900	100%	0%	0%	0%	0%
06/12	$3,900	100%	0%	0%	0%	0%
07/12	$4,100	100%	0%	0%	0%	0%
08/12	$4,100	100%	0%	0%	0%	0%
09/12	$3,900	100%	0%	0%	0%	0%

National Credit Bureaus gave a satisfying credit rating.

According to our credit analysts, during the last 6 months, payments were made on due date.

International credit history:

Payments of imports are currently made on terms.

Other comments:

The Company maintains a regular business.

The bank confirmed a regular account.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

Our opinion:

A business connection may be conducted.

Credit requested: Maximum

Credit limit: USD 30,000=

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.53.67
UK Pound	1	Rs.86.05
Euro	1	Rs.70.07

INFORMATION DETAILS

Report Prepared by :

PRL

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.