MIRA INFORM REPORT

Report Date :

15.04.2014

IDENTIFICATION DETAILS

Name :	APART SP. Z O.O.
Registered Office :	ul. Stara Droga 3 62-002 Suchy Las
Country :	Poland
Financials (as on) :	31.12.2012
Date of Incorporation :	24.11.1987
Legal Form :	Limited liability company
Line of Business :	Manufacture, retail sale and wholesale of jewellery Sale of watches
No. of Employees	1888

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Poland	B1	B1

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

POLAND ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the EU to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average while unemployment continues to exceed the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances and adopting controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2012 and 2013, in part due to the ongoing economic difficulties in the euro zone. Short-term, the key policy challenge will be to consolidate debt and spending without stifling economic growth. Over the longer term, Poland's economic performance could improve if the country addresses some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system

Source : CIA

Company name and address

APART SP. Z O.O.

ul. Stara Droga 3
62-002 Suchy Las

Phone:    61 8927278

Fax:      61 8955679

E-mail:   info@apart.pl

Website:  www.apart.pl

Company summary

Legal form	Limited liability company
Stat.no.	634247310
Tax ID	PL 7772611871

Establishment	24.11.1987 as Partnership
	22.06.2001  as General partnership
	31.07.2001  as Limited liability company
Changes of names and addresses	22.06.2001 Wytwórnia Biżuterii Artystycznej Adama Rączyńskiego i Piotra Rączyńskiego Spółka jawna
	31.07.2001 APART Sp. z o.o.

Registration:

30.10.2001, District Court Poznań VIII Department, KRS 56437 Data concerning previous registrations: 20.10.1989, Communal Office Suchy Las, No. 242/89 22.06.2001, District Court Poznań, XXI Department, KRS 20769

Shareholders	Piotr Rączyński , personal ID no. (PESEL) 52061403951, ul. Powstańców Wielkopolskich 15, 62-002 Suchy Las	PLN	10 000 000,00 49,90%
	Adam Tomasz Rączyński , personal ID no. (PESEL) 53122003514, ul. Powstańców Wielkopolskich 100, 62-002 Suchy Las	PLN	10 000 000,00 49,90%
	POLISH LUXURY GROUP sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las	PLN	40 000,00 0,20%
	list prepared on  06.11.2012

Initial Capital		PLN 20 040 000,00
	Initial capital divided into 1002 shares of PLN 20 000,00 each
	Changes of initial capital
	- since 15.02.2002  until 06.11.2012  the capital estimated	PLN 20 000 000,00
	-  until 15.02.2002  the capital estimated	PLN 2 786 000,00

Management	Piotr Rączyński , personal ID no. (PESEL) 52061403951, ul. Powstańców Wielkopolskich 15, 62-002 Suchy Las  - president Adam Tomasz Rączyński , personal ID no. (PESEL) 53122003514, ul. Powstańców Wielkopolskich 100, 62-002 Suchy Las  - vice president
	Representation: In case of numerous board of dircetors - cooperation of two members of the board of directors jointly or one member with proxy jointly is required to submit statements of will and to sign on behalf of the company. President and vice president of the board may represent the company individually.

Supervisory board

Monika Rączyńska , personal ID no. (PESEL) 76052205069 Bogumiła Zofia Rączyńska , personal ID no. (PESEL) 26041201923 Marian Rączyński , personal ID no. (PESEL) 20070205479 Aleksandra Rączyńska , personal ID no. (PESEL) 51121203362

Main activity	Manufacture, retail sale and wholesale of jewellery Sale of watches
	Branches NACE 2007:
	Other retail	(G.47.77.Z)
	Manufacture of jewellery and related articles	(C.32.1)
	Wholesale of watches, clocks and jewelry	(G.46.48.Z)

Employment

2008:              1376      employees 2009:              1603      employees 2010:              1000 and more employees  2011:              1822      employees 2012:              1888      employees

Turnover	2008	PLN	360 418 186,78
	2009	PLN	386 287 925,73
	2010	PLN	444 340 110,29
	2011	PLN	470 667 455,63
	2012	PLN	472 783 526,40

Financial statements

Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
Personal balance sheet as at	31.12.2012 (PLN)	31.12.2011 (PLN)	31.12.2010 (PLN)	31.12.2009 (PLN)
-A. Fixed assets......................	80 263 980,86	80 421 840,56	79 907 297,52	60 830 209,54
-  I.   Intangible assets.............	792 229,07	863 338,42	489 160,07	295 470,32
-    3. Other intangible assets.......	792 229,07	863 338,42	489 160,07	295 470,32
-  II.  Tangible assets...............	59 383 283,11	58 829 219,69	59 474 152,33	59 976 383,88
-    1. Fixed goods...................	58 325 726,86	56 271 510,41	57 410 383,39	57 312 617,76
-      a) land........................	2 689 345,80	2 210 584,96	2 345 342,87	2 781 167,27
-      b) buildings, premises, facilities............................	40 276 203,53	38 601 504,54	41 410 294,82	40 913 778,11
-      c) machinery and equipment.....	10 854 808,17	11 173 073,62	10 520 362,67	10 361 114,58
-      d) fleet of motor vehicles.....	1 942 493,99	2 016 182,57	1 518 989,33	1 272 463,00
-      e) other fixed goods...........	2 562 875,37	2 270 164,72	1 615 393,70	1 984 094,80
-    2. Fixed goods under construction..........................	1 057 556,25	2 557 709,28	2 063 768,94	2 663 766,12
-  IV.  Long term investments.........	19 239 080,59	19 239 080,59	19 239 080,59
-    3. Long term financial assets....	19 239 080,59	19 239 080,59	19 239 080,59
-      a) in affiliated companies.....	19 239 080,59	19 239 080,59	19 239 080,59
-        - participations or shares...	19 239 080,59	19 239 080,59	19 239 080,59
-V. Long-term prepayments and accrued income........................	849 388,09	1 490 201,86	704 904,53	558 355,34
-  1. Deferred tax assets.............	814 686,77	1 442 471,23	657 039,18	557 867,00
-  2. Other prepayments...............	34 701,32	47 730,63	47 865,35	488,34
-B. Current assets....................	409 959 094,65	434 015 350,97	381 917 540,53	353 240 287,54
-  I.   Stock.........................	363 573 343,47	344 324 455,59	347 301 316,01	333 874 444,00
-    1. Raw materials.................	1 158 870,59	784 796,40	642 742,58	348 604,03
-    2. Semi-finished products and work-in-progress......................				4 112 712,76
-    3. Finished products.............	1 121 836,59	12 571 857,53	15 950 068,85	13 541 917,25
-    4. Goods for re-sale.............	356 871 042,12	327 145 626,12	330 708 504,58	315 871 209,96
-    5. Advance payments .............	4 421 594,17	3 822 175,54
-  II. Short-term receivables.........	4 547 663,64	5 407 342,54	13 003 908,34	8 242 982,50
-    1. Receivables from affiliated companies.............................	4 057,08		3 410 058,51
-      a) Due to deliveries and services with payment period:.........	4 057,08		3 410 058,51
-        - up to 12 months............	4 057,08		3 410 058,51
-    2. Other receivables ............	4 543 606,56	5 407 342,54	9 593 849,83	8 242 982,50
-      a) Due to deliveries and services with payment period:.........	2 639 453,13	1 625 734,28	1 456 665,63	3 068 177,80
-        - up to 12 months............	2 639 453,13	1 625 734,28	1 456 665,63	3 068 177,80
-      b) Due to taxes, subsidies, insurances, duties, etc...............	678 305,21	3 006 989,15	2 861 564,74	1 216 595,06
-      c) Other.......................	1 225 404,00	774 619,11	5 275 619,46	3 958 209,64
-      d) Received through judicial proceedings...........................	444,22
-  III. Short term investments........	39 426 734,07	81 907 454,48	19 819 341,75	8 829 000,97
-    1. Short-term financial assets...	39 426 734,07	81 907 454,48	19 819 341,75	8 829 000,97
-      b) Other.......................				500 000,00
-        - granted loans..............				500 000,00
-      c) cash and other liquid assets................................	39 426 734,07	81 907 454,48	19 819 341,75	8 329 000,97
-        - cash in hand and on bank account...............................	32 649 619,99	75 399 303,12	19 819 341,75	8 329 000,97
-        - other liquid assets........	6 777 114,08	6 508 151,36
-IV. Short-term prepayments and accrued income........................	2 411 353,47	2 376 098,36	1 792 974,43	2 293 860,07
-D. Total assets......................	490 223 075,51	514 437 191,53	461 824 838,05	414 070 497,08
-A. Shareholders' equity..............	386 438 888,89	333 154 830,36	307 133 306,56	262 765 412,18
-  I.   Basic share capital...........	20 040 000,00	20 000 000,00	20 000 000,00	20 000 000,00
-  IV.  Statutory reserve capital.....	314 417 928,16	287 133 306,56	242 765 412,18	182 868 154,86
-  V. Revaluation reserve.............				51 609,49
-  VIII. Net profit (loss)............	51 980 960,73	26 021 523,80	44 367 894,38	59 845 647,83
-B. Liabilities and reserves for liabilities...........................	103 784 186,62	181 282 361,17	154 691 531,49	151 305 084,90
-  I.   Reserves for liabilities......	325 804,01	524 947,01	246 368,39	335 856,47
-    1. Deferred income tax reserves..	89 426,36	258 561,20	34 770,87	48 832,00
-    2. Reserves for pensions and similar social payments...............	236 377,65	266 385,81	211 597,52	287 024,47
-      - long-term....................	236 377,65	266 385,81	211 597,52	287 024,47
-II.  Long-term liabilities...........	17 365 613,86	344 187,15	30 644 546,07	42 412 395,23
-  2. Other liabilities...............	17 365 613,86	344 187,15	30 644 546,07	42 412 395,23
-    a) Loans.........................	17 038 292,00		30 644 546,07	42 412 395,23
-    c) Other financial liabilities...	327 321,86	344 187,15
-III. Short-term liabilities..........	85 155 322,11	179 356 002,72	123 726 487,03	108 434 703,20
-  1. Due to affiliated companies.....	13 221 210,45	21 648 317,30	16 373 028,50	13 650 000,00
-    a) Due to deliveries and services with payment period:.........	871 210,45	15 548 317,30	6 023 028,50
-      - up to 12 months..............	871 210,45	15 548 317,30	6 023 028,50
-    b) Other.........................	12 350 000,00	6 100 000,00	10 350 000,00	13 650 000,00
-  2. Other liabilities...............	70 867 072,04	156 566 167,80	106 129 092,41	93 462 250,83
-    a) Loans.........................	3 695 446,94	82 050 438,26	41 000 000,00	32 740 151,69
-    d)Due to deliveries and services with payment period:.........	19 640 860,91	29 217 515,77	24 525 779,85	31 738 781,39
-      - up to 12 months..............	19 640 860,91	29 217 515,77	24 525 779,85	31 738 781,39
-    e) Advances received.............	4 394 326,83
-    g) Due to taxes, subsidies, insurances, duties, etc...............	33 738 086,42	32 725 324,03	30 627 053,86	21 693 101,41
-    h) Due to salaries...............	9 340 347,99	9 555 960,16	8 508 039,65	6 476 787,03
-    i) Other.........................	58 002,95	3 016 929,58	1 468 219,05	813 429,31
-  3. Special funds...................	1 067 039,62	1 141 517,62	1 224 366,12	1 322 452,37
-IV.  Accruals and deferred income....	937 446,64	1 057 224,29	74 130,00	122 130,00
-  2. Other accruals..................	937 446,64	1 057 224,29	74 130,00	122 130,00
-    - short-term.....................	937 446,64	1 057 224,29	74 130,00	122 130,00
-D. Total liabilities.................	490 223 075,51	514 437 191,53	461 824 838,05	414 070 497,08
Source of financial data	Court	Court	Court	Court
	annual	annual	annual	annual
individual PROFIT AND LOSS ACCOUNT	01.01.2012- 31.12.2012 (PLN)	01.01.2011- 31.12.2011 (PLN)	01.01.2010- 31.12.2010 (PLN)	01.01.2009- 31.12.2009 (PLN)
-A. Income from sales and similar.....	472 783 526,40	470 667 455,63	444 340 110,29	386 287 925,73
-  - including related companies......		5 427 644,17
-  I.   Net income on sales...........	2 284 141,82	10 283 350,80	5 839 156,24	4 062 346,18
-  II.  Change in value of stock ( +, -).................................	-11 427 795,14	-2 795 222,11	-2 158 069,79	-5 219 003,79
-  III. Sales of goods for own use....	8 800 587,56	-5 670 337,18	46 564 482,33	36 357 679,75
-  IV.  Income from sales of goods and materials.........................	473 126 592,16	468 849 664,12	394 094 541,51	351 086 903,59
-B. Operational costs.................	440 135 807,10	428 406 961,00	383 523 030,13	307 922 106,77
-  I.   Depreciation..................	7 970 930,32	7 189 333,19	6 750 663,56	6 089 870,22
-  II.  Materials and energy..........	21 550 130,27	19 430 502,97	40 977 791,54	34 909 744,17
-  III. Third party services..........	61 786 215,46	54 887 941,51	47 987 912,86	45 747 035,90
-  IV.  Taxes and duties..............	2 144 171,42	1 990 201,68	1 864 626,76	1 642 779,33
-  V.   Salaries and wages............	83 546 876,86	81 061 589,36	75 466 696,00	66 121 485,22
-  VI.  Social security...............	15 657 883,95	13 840 370,32	13 170 229,29	11 669 566,92
-  VII. Other.........................	42 235 592,56	46 536 993,32	21 909 029,31	16 382 842,54
-  VIII.Costs of goods and materials sold..................................	205 244 006,26	203 470 028,65	175 396 080,81	125 358 782,47
-C. Profit on sale....................	32 647 719,30	42 260 494,63	60 817 080,16	78 365 818,96
-D. Other operating incomes...........	830 809,18	920 012,91	958 512,31	277 467,10
-  I.   Incomes from disposal non-financial assets..................	98 441,28	693 802,53	144 124,54	20 654,52
-  III. Other operating incomes.......	732 367,90	226 210,38	814 387,77	256 812,58
-E. Other operating costs.............	1 145 365,01	744 654,32	1 662 616,35	1 456 251,30
-  III. Other operating costs.........	1 145 365,01	744 654,32	1 662 616,35	1 456 251,30
-F. Profit on operating activities....	32 333 163,47	42 435 853,22	60 112 976,12	77 187 034,76
-G. Financial incomes.................	29 620 406,65	187 667,47	813 183,01	2 381 965,04
-  II.  Interest received.............	531 710,46	93 090,79	39 166,30	10 873,31
-  V.   Other.........................	29 088 696,19	94 576,68	774 016,71	2 371 091,73
-H. Financial costs...................	2 473 615,77	9 898 347,61	5 539 818,06	5 108 074,51
-  I.   Interest......................	2 473 615,77	4 099 523,26	5 229 768,26	4 867 629,97
-    - related companies..............		501 875,07
-  IV.  Other.........................		5 798 824,35	310 049,80	240 444,54
-I. Profit on economic activity.......	59 479 954,35	32 725 173,08	55 386 341,07	74 460 925,29
-K. Gross profit......................	59 479 954,35	32 725 173,08	55 386 341,07	74 460 925,29
-L. Corporation tax...................	7 498 993,62	6 703 649,28	11 018 446,69	14 615 277,46
-N. Net profit........................	51 980 960,73	26 021 523,80	44 367 894,38	59 845 647,83

AUDITOR

Balance sheet as at 31.12.2012
EUREKA-AUDITING Sp. z o.o., al. Marcinkowskiego 22, 61-827 Poznań	No. 137

Expert auditor  Andrzej Furmanowski

No. 8669/4315

Balance sheet as at 31.12.2011
DELOITTE POLSKA Sp. z o.o. sp. k., ul. Jana Pawła II 19, 00-854 Warszawa	No. 73

Expert auditor  Jacek Mateja

No. 9736

Ratios	01.01.2012- 31.12.2012	01.01.2011- 31.12.2011	01.01.2010- 31.12.2010	01.01.2009- 31.12.2009
Current ratio	4,81	2,42	3,09	3,26
Quick ratio	0,52	0,49	0,27	0,16
Immediate ratio	0,46	0,46	0,16	0,08
Return on sale	10,93	5,43	11,09	16,85
Return on assets	10,60	5,06	9,61	14,45
Return on equity	13,45	7,81	14,45	22,78
Average trade debtors' days	3,50	4,12	11,87	8,47
Average stock turnover's days	279,90	262,30	316,96	343,14
average payables payment period	65,56	136,63	112,92	111,44
Total indebtedness ratio	21,17	35,24	33,50	36,54

While rating the company, it is advisable to take into consideration information about the branch  , the company is acting in
(G.47.77.Z - NACE 2007), as at :	31.12.2013	31.12.2012	31.12.2011	31.12.2008	31.12.2007
Current ratio............................	2,67	2,99	2,84	3,50	2,16
Quick ratio..............................	0,97	0,82	0,89	0,41	0,32
Immediate ratio..........................	0,58	0,32	0,42	0,13	0,14
Return on sale...........................	10,88	6,54	5,97	18,52	14,02
Return on assets.........................	9,88	5,46	6,09	18,05	13,76
Return on equity.........................	15,81	9,33	10,50	27,75	24,16
Average trade debtors' days..............	37,78	38,11	39,60	9,46	11,45
Average stock turnover's days............	166,56	194,37	205,90	263,13	242,85
average payables payment period..........	98,30	90,45	105,96	85,86	133,46
Total indebtedness ratio.................	37,47	41,51	42,04	34,94	43,04
Percent share in the examinated group of companies with net profit.............	70,00	77,80	90,00	100,00	100,00
Sales/revenue per employee in th. PLN....	336,50	297,11	325,23	225,75	223,57
Average sales/revenue per company in th. PLN..................................	148 161,20	136 308,44	87 128,80	109 129,20	109 998,50
according to the Central Statistical Office

Locations:

seat: ul. Stara Droga 3, 62-002 Suchy Las Phone:                   61 8927278 Fax:                     61 8955679 E-mail:                  ewa.slebioda@apart.pl                          info@apart.pl Website:                 www.apart.pl

Real Estate	ul. Stara Droga 3, 62-002 Suchy Las ownership,  building of area 5 500 sq m,  ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las ownership, built-up land of area 600 sq.m.  buildings of area 380 sq m,
	Book value of buildings as at 31.12.2012	PLN	40 276 203,53
	Book value of lands as at 31.12.2012	PLN	2 689 345,80
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Shares in other companies	INWEST AP SPÓŁKA Z O.O. NIP 7772669089, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las PLN 272 000 000,00 (99,56%)
	Data concerning shares in other companies are valid as at: 19.03.2014.

Connections:

Adam Tomasz Rączyński , personal ID no. (PESEL) 53122003514 -  E-SKLEP R2 sp. z o.o., ul. Stara Droga 3, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  E-SKLEP BIŻUTERIA I ZEGARKI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  R2 TRADE sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  POLISH LUXURY GROUP sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  INWEST AP SPÓŁKA Z O.O. NIP 7772669089, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · president -  R2 E-COMMERCE sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president -  R2 INVESTMENT sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · member of board of directors -  MATI INVESTMENT RĄCZYŃSKA SPÓŁKA JAWNA NIP 7773176897, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder   · member of representation unit -  R2 NIERUCHOMOŚCI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president -  GOSPODARSTWO ROLNE MATI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president Aleksandra Rączyńska , personal ID no. (PESEL) 51121203362 -  ALEX INVESTMENT RĄCZYŃSKA SPÓŁKA JAWNA, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder   · member of representation unit Monika Rączyńska , personal ID no. (PESEL) 76052205069 -  MATI INVESTMENT RĄCZYŃSKA SPÓŁKA JAWNA NIP 7773176897, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder   · member of representation unit -  GOSPODARSTWO ROLNE MATI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president Piotr Rączyński , personal ID no. (PESEL) 52061403951 -  R2 NIERUCHOMOŚCI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  E-SKLEP BIŻUTERIA I ZEGARKI sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president -  E-SKLEP R2 sp. z o.o., ul. Stara Droga 3, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president -  INWEST AP SPÓŁKA Z O.O. NIP 7772669089, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · vice president -  ALEX INVESTMENT RĄCZYŃSKA SPÓŁKA JAWNA, ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder   · member of representation unit -  R2 TRADE sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president -  R2 E-COMMERCE sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · president -  R2 INVESTMENT sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · member of board of directors -  POLISH LUXURY GROUP sp. z o.o., ul. Powstańców Wielkopolskich 91, 62-002 Suchy Las   · shareholder: PLN 2 500,00 (50,00%)   · vice president

Data concerning connections are valid as at: 19.03.2014.

General information

On October 29, 2012, the President of the Office for Competition and Consumer Protection concluded that the company violated collective interests of consumers and imposed on the company a fine amounting 975 637 PLN. The decision is not final, the company may appeal to the court.

Banks

Bank Handlowy w Warszawie SA ul. Senatorska 16, 00-923 Warszawa

Payment Manner	Pays to terms
Credit capability	Business connections are permissible.
	Explanation: Credit in amount PLN 3.000.000 can be granted. Determination of higher amount of credit is impossible due to the size of the company

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.60.27
UK Pound	1	Rs.101.10
Euro	1	Rs.83.74

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIS

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.