MIRA INFORM REPORT

Report Date :

03.10.2013

IDENTIFICATION DETAILS

Name :	DOMINION DIAMOND INTERNATIONAL NV
Registered Office :	Hoveniersstraat 30, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.01.2012
Date of Incorporation :	10.11.1998
Com. Reg. No.:	464577540
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	02

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 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Belgium	A1	A1

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

bELGIUM ECONOMIC OVERVIEW

This modern, open, and private-enterprise-based economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures, making its economy vulnerable to volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2011 Belgian GDP grew by 1.8%, the unemployment rate decreased slightly to 7.2% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. Despite the relative improvement in Belgium's budget deficit, public debt hovers around 100% of GDP, a factor that has contributed to investor perceptions that the country is increasingly vulnerable to spillover from the euro-zone crisis. Belgian banks were severely affected by the international financial crisis in 2008 with three major banks receiving capital injections from the government, and the nationalization of the Belgian retail arm of a Franco-Belgian bank.

Source : CIA

Company name & address

Business number	464577540
Company name	DOMINION DIAMOND INTERNATIONAL NV
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	2
Date of establishment	10/11/1998
Telephone number	032332770
Fax number	032131106

Ultimate holding company

Company name

HARRY WINSTON DIAMOND CORPORATION

Commentary

The business was established over 14 years ago.
The business has 2 employees.
The business is part of a group.
The business has changed its registered name recently.
The business has been at the address for over 4 months.
The business has been at the address for less than 6 months.
The business has changed address 1 times in the last year.
A 47% decline in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 51% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 97% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/01/2012	179,889,178	250,919	2,341,768	2,268,901
31/01/2011	181,642,063	520,785	2,079,064	5,139,646
31/01/2010	115,242,178	158,444	1,734,540	4,738,943

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/01/2012	6,565,345	2	749,160	207,072
31/01/2011	12,481,140	2	720,930	393,707
31/01/2010	8,366,949	2	706,717	94,274

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	0.32
Industry average payment expectation days	162.84	Industry average day sales outstanding	111.50
Day sales outstanding	8.16

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	464577540		Company name	DOMINION DIAMOND INTERNATIONAL NV
Fax number	032131106		Date founded	10/11/1998
Company status	active		Company type	Public Limited Liability Company (BE)
Currency	Euro (€)		Date of latest accounts	31/01/2012
Activity code	46761		liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones		VAT Number	BE.0464.577.540
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Social Balance Sheet Details

Social Balance Sheet		Total
During the reporting year ended 31-01-2012
Full-time Employees		2
Part-time Employees		-
Total Fte Employees		2
Number of hours worked
Full-time Employees		3,595
Part-time Employees		-
Total		3,595
Personnel Charges
Full-time Employees		211,864
Part-time Employees		-
Total		211,864
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		2
Actual working hours		3,511
Personnel Charges		163,781
Benefits In Addition To Wages		-
Type of Contract	Full-Time		Part-Time	Total Fte
Unlimited Duration Contracts	2		-	2
Limited Duration Contracts	-		-	-
Contracts For Specific Work	-		-	-
Contracts Regarding Substitution	-		-	-

Gender and Education Level
Men	Full-Time		Part-Time		Total Fte
Primary education	-		-		-
Secondairy education	-		-		-
Higher education (non university)	-		-		-
Higher education (university)	-		-		-
Women	Full-Time		Part-Time		Total Fte
Primary education	-		-		-
Secondairy education	-		-		-
Higher education (non university)	1		-		1
Higher education (university)	1		-		1
Working Category		Full-Time		Part-Time		Total Fte
Management		-		-		-
White collar worker		2		-		2
Blue collar worker		-		-		-
Other		-		-		-

Temporary personnel			Total
Average number of temporary staff			-
Actual working hours			-
Cost of temporary staff			-
New staff and leavers	Full-Time	Part-Time		Total Fte
New Starters	-	-		-
Leavers	-	-		-

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of less formal and informal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of initial training initiatives at the expense of the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-

Personnel

(NSSO classification)

Code	-
Description	2 EMPLOYEES

Joint Industrial Committee

(JIC)

JIC Code	218
Description	Additional national joint committee for the employees

JIC Code	324
Description	Joint committee for the industry and the trade in diamant

Significant Events

Event Date	13/06/2013
Event Description	re-appointment of director(s)
Event Details	Commentaar 13-06-2013: Herbenoemd als bestuurder tot de algemene vergadering van 2019 : Robert Gannicott.

comparison mode

average

median

Export accounts to CSV file

Profit & loss

Annual accounts	31-01-2012	%	31-01-2011	%	31-01-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	179,889,178	-0.97	181,642,063	57.62	115,242,178	35,200,030	411
Total operating expenses	178,905,523	-0.91	180,541,967	57.49	114,634,443	34,874,324	413
Operating result	983,655	-10.58	1,100,096	81.02	607,735	128,501	665
Total financial income	524	-80.29	2,658	-75.24	10,736	92,373	-99
Total financial expenses	733,261	26.00	581,969	26.51	460,027	163,539	348
Results on ordinary operations before taxation	250,919	-51.82	520,785	228	158,444	48,233	420
Taxation	69,624	-52.03	145,143	50.73	96,294	21,444	224
Results on ordinary operations after taxation	181,295	-51.74	375,642	504	62,150	32,818	452
Extraordinary items	0	-	0	-	0	-4,332	0
Other appropriations	0	-100	1	-	0	-	-
Net result	181,295	-51.74	375,643	504	62,150	28,497	536
other information
Dividends	-	-	-	-	-	124,629	-
Director remuneration	-	-	-	-	-	116,635	-
Employee costs	211,864	34.42	157,609	-2.94	162,388	112,023	89.13
Wages and salary	167,550	40.10	119,593	-5.97	127,185	97,080	72.59
Employee pension costs	-	-	-	-	-	1,353	-
Social security contributions	39,974	26.73	31,543	-2.50	32,352	23,628	69.18
Other employee costs	4,340	-32.96	6,474	126	2,852	3,241	33.91
Amortization and depreciation	25,777	42.70	18,064	-43.77	32,124	15,557	65.69

balance sheet

Annual accounts	31-01-2012	%	31-01-2011	%	31-01-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,400	-100
Tangible fixed assets	67,710	75.16	38,656	14.60	33,731	165,468	-59.08
Land & building	-	-	-	-	-	340,366	-
Plant & machinery	60,570	111	28,624	3.83	27,567	20,355	197
Furniture & Vehicles	7,141	-28.82	10,032	62.73	6,165	15,644 5,035	-54.35
Leasing & Other Similar Rights	-	-	-	-	-	74,592 25,719	-
Other tangible assets	-1	-	0	0	-1	8,655	-100
Financial fixed assets	5,157	3.93	4,962	1.99	4,865	55,163	-90.65
Total fixed assets	72,867	67.06	43,618	13.01	38,597	194,121	-62.46
Inventories	2,145,318	173	784,674	-30.70	1,132,282	2,243,870	-4.39
Raw materials & consumables	-	-	-	-	-	6,681,978	-
Work in progress	0	-	0	-	0	3,021	-100
Finished goods	2,145,318	173	784,674	-30.70	1,132,282	1,354,948	58.33
Other stocks	0	-	0	-	0	492,317	-100
Trade debtors	4,022,700	2173	176,957	-	0	3,382,185	18.94
Cash	260,294	-97.72	11,428,003	61.15	7,091,543	188,765	37.89
other amounts receivable	49,451	37.69	35,914	-54.23	78,471	113,222	-56.32
Miscellaneous current assets	14,715	22.89	11,974	-54.05	26,056	15,247	-3.49
Total current assets	6,492,478	-47.80	12,437,522	49.34	8,328,352	5,598,070	15.98
Total Assets	6,565,345	-47.40	12,481,140	49.17	8,366,949	5,776,5721,251,869	13.65
current liabilities
Trade creditors	155,570	-97.42	6,029,510	128	2,636,418	2,440,773	-93.63
Short term group loans	-	-	-	-	-	-	-
Financial debts	48,083	-	-	-	-	3,240,939150,792	-98.52
Current portion of long term debt	3,225,750	-	-	-	-	97,648 13,958	3203
Amounts Payable for Taxes, Remuneration & Social Security	190,756	-1.96	194,575	610	27,368	8,500 -	521
Miscellaneous current liabilities	603,418	-43.80	1,073,791	16.01	925,623	112	- -
Total current liabilities	4,223,577	-42.13	7,297,876	103	3,589,409	4,182,501	0.98
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	3,104,200	2.01	3,043,000	-	- -
Deffered taxes	-	-	-	-	-	31,662 13,634	-
Provisions for Liabilities & Charges	0	-	0	-	0	1,690 0	-100
Other long term liabilities	0	-	0	-	0	115,791	-100
Total long term debts	0	-100	3,104,200	2.01	3,043,000	472,145	-100
shareholders equity
Issued share capital	749,160	3.92	720,930	2.01	706,717	654,901	14.39
Share premium account	-	-	-	-	-	120,825	-
Reserves	1,592,608	17.26	1,358,134	32.14	1,027,823	432,111	268
Revaluation reserve	-	-	-	-	-	847,347	-
Total shareholders equity	2,341,768	12.64	2,079,064	19.86	1,734,540	1,115,996	109
Working capital	2,268,901	-55.85	5,139,646	8.46	4,738,943	1,415,569	60.28
Cashflow	207,072	-47.40	393,707	317	94,274	41,362	400
Net worth	2,341,768	12.64	2,079,064	19.86	1,734,540	1,113,177	110

ratio analysis

Annual accounts	31-01-2012	change(%)	31-01-2011	change(%)	31-01-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.14	-51.72	0.29	107	0.14	-28,00	0.50
Return on capital employed	10.71	6.57	10.05	202	3.32	36,00	-70.25
Return on total assets employed	3.82	-8.39	4.17	120	1.89	-256,00	1.49
Return on net assets employed	10.71	-57.25	25.05	174	9.13	18,00	-40.50
Sales / net working capital	79.28	124	35.34	45.31	24.32	49,00	-99
Stock turnover ratio	1.19	176	0.43	-56.12	0.98	132,00	-99
Debtor days	8.16	2166	0.36	-	-	138,00	-94.09
Creditor days	0.32	-97.37	12.19	45.29	8.39	116,00	-99
short term stability
Current ratio	1.54	-9.41	1.70	-26.72	2.32	7,00	-80.75
Liquidity ratio / acid ratio	1.03	-35.62	1.60	-20.00	2	4,00	-74.25
Current debt ratio	1.80	-48.72	3.51	69.57	2.07	8,00	-77.50
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	139.80	-6.37	149.31	-14.89	175.44	239,00	-41.51
Equity in percentage	35.67	114	16.66	-19.63	20.73	-3.982,00	0.90
Total debt ratio	1.80	-64.00	5	30.89	3.82	9,00	-80.00

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones

Suspension of payments

/ moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	0.32
Day sales outstanding	8.16

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	162.84
Industry average day sales outstanding	111.50

Industry quartile analysis

Payment expectations
Company result	0.32
Lower	127.62
Median	79.76
Upper	44.10
Day sales outstanding
Company result	8.16
Lower	111.41
Median	58.70
Upper	27.59

Summary

Group - Number of Companies	2
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Latest financials
- HARRY WINSTON DIAMOND CORPORATION
- - DOMINION DIAMOND INTERNATIONAL NV	464577540	31-01-2012

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	464577540
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details

Name	HARSH B. DALA
Position	Managing Director
Start Date	13/03/2008
Street	23 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HARSH B. DALA
Position	Director
Start Date	21/02/2006
Street	23 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	ROBERT GANNICOTT
Position	Director
Start Date	21/01/2002
Street
Post code
Country	Canada

Name	JAMES R. W. POUNDS
Position	Vice Chairperson
Start Date	26/06/2013
Street
Post code
Country	United Kingdom

Name	JAMES R. W. POUNDS
Position	Director
Start Date	13/03/2008
Street
Post code
Country	United Kingdom

Name	JAMES R. W. POUNDS
Position	Managing Director
Start Date	08/05/2003
Street
Post code
Country	United Kingdom

Name	HARSH B. DALAL
Position	Vice Chairperson
Start Date	26/06/2013
Street
Post code
Country

Name	HARSH B. DALAL
Position	Director
Start Date	21/02/2006
Street
Post code
Country

Former director details

Name	DAVE LAPA
Position	Director
Start Date	21/01/2002
End Date	07/05/2003
Street	12 PALMENLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	DAVE LAPA
Position	Principal Manager
Start Date	30/03/2001
End Date	-
Street	12 PALMENLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	ALICE MURPHY
Position	Director
Start Date	19/07/2004
End Date	-
Street	384 OLD YONGE STREET TORONTO
Post code
Country	Canada

Name	ALAN MAYNE
Position	Director
Start Date	21/01/2008
End Date	30/04/2011
Street
Post code
Country	Canada

Name	WENDY W. T. KEI
Position	Director
Start Date	01/05/2011
End Date	-
Street
Post code
Country	Canada

Name	THOMAS J. O'NEILL
Position	Director
Start Date	05/07/2005
End Date	-
Street
Post code
Country	France

Name	CYRILLE A. M. BAUDET
Position	Director
Start Date	09/05/2011
End Date	-
Street
Post code
Country	Switzerland

Name	ROGER B. PHILLIMORE
Position	Director
Start Date	21/01/2002
End Date	27/08/2012
Street	LITTLE BENTLEY FARM HAMPSHIRE
Post code
Country	United Kingdom

Name	RAYMOND NEIL SIMPSON
Position	Director
Start Date	20/07/2007
End Date	-
Street
Post code
Country	United States

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.62.35
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

INFORMATION DETAILS

Report Prepared by :

SHG

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.