MIRA INFORM REPORT

Report Date :

30.01.2013

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 employees

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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; a stock exchange that is the 18th largest in the world; and modern infrastructure supporting a relatively efficient distribution of goods to major urban centers throughout the region. Growth was robust from 2004 to 2007 as South Africa reaped the benefits of macroeconomic stability and a global commodities boom but began to slow in the second half of 2007 due to an electricity crisis and the subsequent global financial crisis' impact on commodity prices and demand. GDP fell nearly 2% in 2009 but recovered in 2010-11. Unemployment remains high and outdated infrastructure has constrained growth. 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. Daunting economic problems remain from the apartheid era - especially poverty, lack of economic empowerment among the disadvantaged groups, and a shortage of public transportation. South Africa''s economic policy is fiscally conservative focusing on controlling inflation and attaining a budget surplus. The current government largely follows these prudent policies but must contend with the impact of the global crisis and is facing 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	MRS. HAZEL GOLDSTEIN - Accountant
Assessment	This is a well-established business. On investigation we made contact with the subject and we were referred to the accountant MRS. HAZEL GOLDSTEIN who assisted with most of the information on the subject. However MRS. GOLDSTEIN declined to assist with the financial information for the subject. The subject is meeting commitments timeously with their suppliers. We are awaiting a bank code for R 500 000 over a period of 30 Days. Please see the available information for the subject below.

Auditor 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 0 BOX 1900, HIGHLANDS NORTH, 2037
Contact Person	BRIAN
Contact Number	0114403382
Email	brian@bgz.co.za
Principals	1
Subject Verified as Client	Yes
Practice Number	20044440
Tax Number	9071070198
Financial Year End	February
No of years in Business	3 Years

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
Financial Year End	February

Black Economic Empowerment Information - No Information on Record

ISO Information - No Information on Record

Workman's compensation

Registered	Yes
Compliance Certified	Yes

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

Organisational Chart – no information on

Company Structure (Ownership)

Note: One level up and all levels down

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

Key Deals - No Information on Record

Trade Reference

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 Reference Details

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	SAAAL STREET
Bank Account Number	001367331
Type of Account	Current
Account Name	UNITY DIAMONDS DISTRIBUTORS(PTY)LTD
Overdraft Facilities	None

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 - 1of 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 0 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	0	No

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 - 2of 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

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.53.70
UK Pound	1	Rs.84.35
Euro	1	Rs.72.21

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%)

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
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 subject was established as a new business in 1982.
History of Principals	There are two active directors within the company.
Shareholders/Members/Partners of subject and % holding	90 % - BERNARD SHER, 10 % - MARTIN GERSCHLOWITZ
Authorised Share Capital	R0.00
Issued Share Capital/Members Contribution	R0.00
Status	In Business
Operations Assessment	Buying and Selling of Jewellery
Industry/ Customers	ALL MAJOR JEWELLERS
Export	Yes
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
Current Fax Number	011 4843219
Current Email Address	hazel@unitydiamonds.co.za