MIRA INFORM REPORT

Report Date :

19.04.2014

IDENTIFICATION DETAILS

Name :	DOMINION DIAMOND INTERNATIONAL NV

Registered Office :	Hoveniersstraat 30, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.01.2013

Date of Incorporation :	10.11.1998

Com. Reg. No.:	464577540

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	2

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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Belgium

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 2013 Belgian GDP grew by 0.1%, the unemployment rate increased to 8.8% from 7.6% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 3.2%. 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 summary

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

Commentary

The business was established over 15 years ago.

The business has 1 employees.

The business is part of a group.

The business has been at the address for over 11 months.

The business has changed address 1 times in the last year.

A 21% growth in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 807% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/01/2013	189,927,329	263,228	2,469,147	5,524,558
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

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/01/2013	7,991,884	2	728,432	211,454
31/01/2012	6,565,345	2	749,160	207,072
31/01/2011	12,481,140	2	720,930	393,707

Payment expectations
Past payments		Payment expectation days	2.66
Industry average payment	164.01	Industry average day sales	119.76
expectation days		outstanding
Day sales outstanding	0.27
Court data summary
BANKRUPTCY DETAILS
Court action type	no

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-01-2013
Full-time Employees	2
Part-time Employees	-
Total Fte Employees	2

Number of hours worked
Full-time Employees	2,964
Part-time Employees	-
Total	2,964

Personnel Charges
Full-time Employees	187,428
Part-time Employees	-
Total	187,428
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	2
Actual working hours	3,595
Personnel Charges	206,002
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		0
Actual working hours		415
Cost of temporary staff		15,077

New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	-	-	-
Leavers	-	-	-

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 EMPLOYEES
Joint Industrial Committee (JIC)
JIC Code	218
Description	Additional national joint committee for the employees
category

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

Profit & loss

Annual accounts	31-01-2013	%	31-01-2012	%	31-01-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	189,927,329	5.58	179,889,178	-0.97	181,642,063	64,295,029	195
Total operating expenses	188,896,680	5.58	178,905,523	-0.91	180,541,967	63,538,051	197
Operating result	1,030,649	4.78	983,655	10.58	1,100,096	446,461	130
Total financial income	31,713	5952	524	80.29	2,658	205,066	84.54
Total financial expenses	799,134	8.98	733,261	26.00	581,969	516,607	54.69
Results on ordinary operations before taxation	263,228	4.91	250,919	51.82	520,785	105,625	149
Taxation	71,057	2.06	69,624	52.03	145,143	23,407	203
Results on ordinary operations after taxation	192,171	6.00	181,295	51.74	375,642	86,955	121
Extraordinary items	0	-	0	-	0	2,856	-100
Other appropriations	1	-	0	-100	1	-	-
Net result	192,172	6.00	181,295	51.74	375,643	89,811	113
OTHER INFORMATION
Dividends	-	-	-	-	-	25,000	-
Director remuneration	-	-	-	-	-	136,227	-
Employee costs	187,428	11.53	211,864	34.42	157,609	158,805	18.02
Wages and salary	144,156	13.96	167,550	40.10	119,593	137,207	5.06
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	37,365	-6.53	39,974	26.73	31,543	32,987	13.27
Other employee costs	5,908	36.13	4,340	32.96	6,474	3,758	57.21
Amortization and depreciation	19,282	25.20	25,777	42.70	18,064	28,798	33.04

balance sheet

Annual accounts	31-012013	%	31-012012	%	31-01-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,205	-100
Tangible fixed assets	76,075	12.35	67,710	75.16	38,656	314,853	75.84
Land & building	-	-	-	-	-	700,498	-
Plant & machinery	72,326	19.41	60,570	111	28,624	39,122	84.87
Furniture & Vehicles	3,749	47.50	7,141	28.82	10,032	18,767 6,882	80.02
Leasing & Other Similar Rights	-	-	-	-	-	153,494 20,215	-
Other tangible assets	0	0	-1	-	0	6,873	-100
Financial fixed assets	5,014	-2.77	5,157	3.93	4,962	47,636	89.47
Total fixed assets	81,089	11.28	72,867	67.06	43,618	322,912	74.89
Inventories	5,346,175	149	2,145,318	173	784,674	7,064,781	24.33
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	12,553	-100
Finished goods	5,346,175	149	2,145,318	173	784,674	5,428,615	-1.52
Other stocks	0	-	0	-	0	530,254	-100
Trade debtors	141,143	96.49	4,022,700	2173	176,957	13,479,367	98.95
Cash	2,361,816	807	260,294	97.72	11,428,003	644,798	266
other amounts receivable	46,957	-5.04	49,451	37.69	35,914	353,394	86.71
Miscellaneous current assets	14,704	-0.07	14,715	22.89	11,974	38,444	61.75
Total current assets	7,910,795	21.85	6,492,478	47.80	12,437,522	20,479,749	61.37
Total Assets	7,991,884	21.73	6,565,345	47.40	12,481,140	20,771,907 3,350,014	61.53
CURRENT LIABILITIES
Trade creditors	1,377,538	785	155,570	97.42	6,029,510	7,798,687	82.34
Short term group loans	-	-	-	-	-	-	-
Financial debts	-	-	48,083	-	-	12,002,645 373,408	-
Current portion of long term debt	-	-	3,225,750	-	-	66,356 10,511	-
Amounts Payable for Taxes, Remuneration & Social Security	194,086	1.75	190,756	-1.96	194,575	13,587 -	376
Miscellaneous current liabilities	814,613	35.00	603,418	43.80	1,073,791	9.60	- -
Total current liabilities	2,386,237	43.50	4,223,577	42.13	7,297,876	15,046,162	84.14
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	3,136,500	-	-	-	3,104,200	28.42	- -
Deffered taxes	-	-	-	-	-	0 0	-
Provisions for Liabilities & Charges	0	-	0	-	0	2,155 0	-100
Other long term liabilities	0	-	0	-	0	193,784	-100
Total long term debts	3,136,500	-	0	-100	3,104,200	1,504,311	108
SHAREHOLDERS EQUITY
Issued share capital	728,432	-2.77	749,160	3.92	720,930	3,134,406	76.76
Share premium account	-	-	-	-	-	273,462	-
Reserves	1,740,715	9.30	1,592,608	17.26	1,358,134	955,231	82.23
Revaluation reserve	-	-	-	-	-	1,662,858	-
Total shareholders equity	2,469,147	5.44	2,341,768	12.64	2,079,064	4,221,434	41.51
Working capital	5,524,558	143	2,268,901	55.85	5,139,646	5,433,587	1.67
Cashflow	211,454	2.12	207,072	47.40	393,707	113,810	85.80
Net worth	2,469,147	5.44	2,341,768	12.64	2,079,064	4,220,229	41.49

ratio analysis

Annual accounts	31-01-2013	Change (%)	31-01-2012	Change (%)	31-01-2011	Industry average 2013
TRADING PERFORMANCE
Profit Before Tax	0.14	0	0.14	-51.72	0.29	14,00	-99.00
Return on capital employed	4.70	-56.12	10.71	6.57	10.05	-2,00	235
Return on total assets employed	3.29	-13.87	3.82	-8.39	4.17	-1,00	329
Return on net assets employed	10.66	-0.47	10.71	-57.25	25.05	6,00	77.67
Sales / net working capital	34.38	-56.63	79.28	124	35.34	37,00	-99
Stock turnover ratio	2.81	136	1.19	176	0.43	21,00	-86.62
Debtor days	0.27	-96.69	8.16	2166	0.36	176,00	-99
Creditor days	2.66	731	0.32	-97.37	12.19	91,00	-97.08
SHORT TERM STABILITY
Current ratio	3.32	115	1.54	-9.41	1.70	6,00	-84.19
Liquidity ratio / acid ratio	1.07	3.88	1.03	-35.62	1.60	5,00	-78.60
Current debt ratio	0.97	-46.11	1.80	-48.72	3.51	21,00	-95.38
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	127.03	-9.13	139.80	-6.37	149.31	166,00	-23.48
Equity in percentage	30.90	-13.37	35.67	114	16.66	21,00	47.14
Total debt ratio	2.24	24.44	1.80	-64.00	5	21,00	-89.33

Payment expectations
Payment expectation days	2.66
Day sales outstanding	0.27
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	164.01
Industry average day sales outstanding	119.76
Industry quartile analysis
Payment expectations
Company result	2.66
Lower	134.34
Median	84.60
Upper	45.33

Day sales outstanding
Company result	0.27
Lower	112.48
Median	58.56
Upper	28.09

Group Structure

Company name	Number	Latest financials
- HARRY WINSTON DIAMOND CORPORATION
- - DOMINION DIAMOND INTERNATIONAL NV	464577540	31-01-2013

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

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

Bankruptcy Data

court data

there is no data for this company

Director details

Current director details

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

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

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

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

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

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

Name	HARSH B. DALAL
Position	Director
Start Date	21/02/2006

Name	HARSH B. DALAL
Position	Vice Chairperson
Start Date	26/06/2013

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.60.38
UK Pound	1	Rs.101.63
Euro	1	Rs.83.57

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NNA

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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