MIRA INFORM REPORT

Report Date :

19.12.2013

IDENTIFICATION DETAILS

Name :	UNITY DIAMOND DISTRIBUTORS (PTY)LTD

Registered Office :	27 Ridge Road 209, 2nd Floor East Tower, Parktown, Johannesburg

Country :	South Africa

Date of Incorporation :	04.01.1982

Com. Reg. No.:	M1982/000009/07

Legal Form :	Private Company

Line of Business :	Buying and Selling of Jewellery

No. of Employees :	10

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 – September 30th, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

South Africa

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

South Africa ECONOMIC OVERVIEW

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. State power supplier Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

Source : CIA

Subject Name	UNITY DIAMOND DISTRIBUTORS (PTY)LTD
Country	South Africa
Subject Contact Person	HAZEL GOLDSTEIN - Accountant
Assessment	This is a well-established business. On investigation we made contact with HAZEL GOLDSTEIN the accountant who assisted with most of the required information however declined financials. The subject is meeting commitments timeously with suppliers. Please see the available information on the subject below.

Auditors information

Company Registered Name	BG ASSOCIATES CC
Trading Name	BG ASSOCIATES
Registration Number	B2009/112872/23
Physical Address	FISRT FLOOR, 7 QUEENS SQAURE, COMER CROSS ROADS, GLENHAZEL, 2192
Postal Address	P O BOX 1900, HIGHLANDS NORTH, 2037
Contact Person	BRIAN
Contact Number	0114403382
Email	brian@bgz.co.za
Principals	1
Judgements Against Subject	No record found on file
Judgements Against Principals	No record found on file
Subject Verified as Client	Yes
Practice Number	20044440
VAT Number	Unavailable
Tax Number	9071070198
BEE Status	Unavailable
Financial Year End	February
No of years in Business	3 Years
Website	None

Previous Auditors

Company Name	Phone Number	Time with previous auditors	Comment
GRUZD ZETS AND CO		31

Tax information

Vat Number	4550121067
Status	ACTIVE
Vat Liable Date	1991/09/30
Tax Number	9629145849
Tax Clearance Expire Date
Financial Year End	February

Black Economic Empowerment Information - No Information on Record

ISO Information - No Information on Record

Work Mans Information - No Information on Record

Company Structure

Subsidiaries Information - No Information on Record

Employees

Number of Employees	10
1. Salaried employees	10
2. Waged employees	---
3. Permanent employees	10

Company Fleet Information - No Information on Record

Offices

Offices	Offices
Head Office Owned/ Rented	Leased
Type of Premises	Offices
Comment	The subject has leased the premises for a period of 20 years.

Branch Information - No Information on Record

Management Overview

Organisation Chart

Holding	Company	Sub	Comment
90%	BERNARD SHER
10%	MARTIN GERSCHLOWITZ

Company Structure (Ownership)

Note: One level up and all levels down

Level	Position	Name	Comment

1	Director	BERNARD SHER

2	Director	MARTIN GERSCHLOWITZ

Key Deals - No Information on Record

Trade References

Trade Reference nr	Supplier	Contact	Surety Value	Notarial Bonds	Comment
1	DAWN WOLF DAIMONDS	0114843548
2	ERNEST BLOM DIAMONDS	0113343091
3	GUESS DIAMONDS	0113347220

Trade References Detail

Nr	Age of Acc	Credit Limit	Max Credit	Terms	Average Purchases	Terms Taken	Comment
1	25 Years		R 400000	15 Days	R 20000	15 Days	Excellent
2	16 Years		R180000	C.O.D	R150000	C.O.D	Very Good
3	20 Years		R 500000	30 Days	R 300000	30 Days	Very Good

Adverse Information on Subject

Judgements - No information on record

Business Rescue - No Information on Record

Default Listing - No information on record

Notarial Bonds - No information on record

Bank information

Bank	STANDARD BANK
Branch	SMALL STREET
Brach Code	051001
Bank Account Number	001367331
Type of Account	Current
Account Name	UNITY DIAMONDS DISTRIBUTORS(PTY)LTD
Overdraft Facilities	None
Bank Code	C For R 400 000
Bank Comment	The subject's bankers consider them good for all business normal engagements

Bank Code History - No Information on Record

Previous Bank Account Information - No Information on Record

Deeds Information - No information on record

Principals

Number of Principals	2
Average Age of Active Principals	50

Active Principals Principal - 1 of 2 MARTIN GERSCHLOWITZ

Surname	GERSCHLOWITZ
First Name	MARTIN
Other Names	None
Marital Status	Married
ID Number	7208175204082
Verified ID Number	Yes
Current Age	40
Designation	SALESMAN
Status	Active
Appointment Date	2001/12/13
Physical Address (at time of Appointment)	11 BRUCE STREET, WAVERLY, 2090
Postal Address	P O BOX 2940, PARKLANDS, 2121
Current Tel Number	0114405522
Cell number	0824126345
Shareholding/Membership	10%

Principal's Adverse - No information on record

Business Information for MARTIN GERSCHLOWITZ

Principal Current Business Interests

Company Name

Registration No

Status

Age of Business

Judgements

Liquidation

Comment

UNITY DIAMOND

DISTRIBUTORS

(PTY)LTD

M1982/000009/07

In Business

30 Years 6 Months

Principal Previous Business Interests

Average Age of Previous Business 8 Years

Company Name	Registration No	Status	Age of Business	Judgements	Liquidation	Comment
UNIT D14 BURNSIDE MEWS CC	B1997/032435/23	Deregistration Final	15 Years 3 Months	0	No
VOYAGER DIAMONDS (PTY)LTD	M2006/037326/07	Deregistration Final	6 Years 6 Months	0	No
LITTLE STARS EARLY INTERVENTION CENTRE	M2007/021599/08	In Business	5 Years 5 Months	0	No

Principal's Deeds Information - No information on record

Principal - 2 of 2 BERNARD BRIAN SHER

Surname	SHER
First Name	BERNARD BRIAN
Other Names	None
Marital Status	Married
ID Number	5110235032002
Verified ID Number	Yes
Current Age	61
Designation	Director
Status	Active
Appointment Date	1982/04/01
Physical Address (at time of Appointment)	3 CORBEL CRESCENT, GLENHAZEL, JOHANNESBURG, 2192
Postal Address	5044 DIAMANT CENTRUM 2, 21 QUARTZ STREET, 21 QUARTZ STREET, JOHANNESBURG, 2001
Current Tel Number	011 4842594
Shareholding/Membership	90%

Principal's Adverse - No information on record

Business Information for BERNARD BRIAN SHER

Principal Current Business Interests

Company Name	Registration No	Status	Age of Business	Judgements	Liquidation	Comment
LEESHER CC	2004/059380/23	In Business	8 Years 8 Months	0	No
UNITY DIAMOND DISTRIBUTORS (PTY)LTD	M1982/000009/07	In Business	30 Years 6 Months	0	No
CENTURY-ONE INVESTMENT HOLDING (PTY)LTD	M2003/022177/07	In Business	9 Years 9 Months	0	No
LEESHER CRESCENT (PTY)LTD	M2005/020933/07	In Business	7 Years 7 Months	0	No
LEESHER AVENUE (PTY)LTD	M2005/022566/07	In Business	7 Years 7 Months	0	No

Principal Previous Business Interests

Average Age of Previous Business 12 Years

Company Name	Registration No	Status	Age of Business	Judgements	Liquidation	Comment
MUTUAL RISK SOLUTIONS (PTY)LTD	2006/023092/07	Deregistration Final	6 Years 6 Months	0	No
ROBEDA MANUFACTURING JEWELLERS CC	B1990/004252/23	Deregistration Final	22 Years 10 Months	0	No
SOUNDPROPS 1286 CC	B1993/007290/23	Deregistration Final	19 Years 7 Months	0	No
SOUNDPROPS 1287 CC	B1993/007291/23	Deregistration Final	19 Years 7 Months	0	No
BRUMA CLUSTERS (PTY)LTD	M1993/001650/07	Deregistration Final	19 Years 7 Months	0	No
PROSPERITY GROUP (PTY)LTD	M2001/020633/07	In Business	11 Years 11 Months	0	No
BRENTWOOD CONSULTING (PTY)LTD	M2002/003147/07	In Business	10 Years 10 Months	0	No
CLAIMS CUBED (PTY)LTD	M2003/010293/07	Deregistration Final	9 Years 9 Months	0	No
DEBT CLINIC (PTY)LTD	M2005/044378/07	In Business	7 Years 7 Months	0	No
VOYAGER DIAMONDS (PTY)LTD	M2006/037326/07	Deregistration Final	6 Years 6 Months	0	No

Principal's Deeds Information - No information on record

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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.100.83
Euro	1	Rs.85.27

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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

Registered Name	UNITY DIAMOND DISTRIBUTORS (PTY)LTD
Trading as/ Division Name	UNITY DIAMOND DISTRIBUTORS
Previous Name	None
Date of Name Change	None
Registration Number	M1982/000009/07
Registration Date	1982/01/04
Date Commenced Trading	1982-01-04
Age of Business	30 Years 9 Months
History of Business	The Business was established in 1982.
History of Principals	There are 2 active directors within the company.
Shareholders/Members/Partners of subject and % holding	90%-BERNARD SHER, 10%-MARTIN GERSCHLOWITZ
Authorised Share Capital	R 0.00
Issued Share Capital/Members Contribution	R 0.00
Status	In Business
Operations Assessment	Buying and Selling of Jewellery
Industry/ Customers	ALL MAJOR JEWELLERS
Export	Yes
Import	None
Major Industry Code / SICC	61393
Head Office Physical Address	27 Ridge Road 209, 2nd Floor East Tower, PARKTOWN, JOHANNESBURG
Head Office Postal Address	P O BOX 2940, PARKLANDS, 2121
Current Tel Number	011 4842594
Cell Number	None
Current Fax Number	011 4843219
Current Email Address	hazel@unitydiamonds.co.za
Web Site Address	None