MIRA INFORM REPORT

Report Date :

28.02.2014

IDENTIFICATION DETAILS

Name :	DIAROUGH SOURCING SA

Registered Office :	12f, Rue Guillaume Kroll, 1882

Country :	Luxembourg

Financials (as on) :	31.12.2011

Date of Incorporation :	18.11.2004

Com. Reg. No.:	B 104.283

Legal Form :	Limited company by shares

Line of Business :	dealer of diamond

No. of Employees	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – december 01, 2013

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Luxembourg

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

Luxembourg ECONOMIC OVERVIEW

This small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 27% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings, but Luxembourg has lost some of its advantages as a favorable tax location because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 40% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 3.6% in 2009, but rebounded in 2010-11 before slowing again in 2012. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world, and is the highest in the euro zone. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009. Nevertheless, the deficit was cut to 1.1% in 2011 and 0.9% in 2012. Even during the financial crisis and recovery, Luxembourg retained the highest current account surplus as a share of GDP in the euro zone, owing largely to their strength in financial services. Public debt remains among the lowest of the region although it has more than doubled since 2007 as percentage of GDP. Luxembourg's economy, while stabile, grew slowly in 2012 due to ongoing weak growth in the euro area. Authorities have strengthened supervision of domestic banks because of their exposure to the activities of foreign banks.

Source : CIA

company Summary

Company name	DIAROUGH SOURCING SA
Operative address	12F, RUE GUILLAUME KROLL 1882 LUXEMBOURG Luxembourg
Status	Active

Legal form	Limited company by shares
Registration number	Trade register number: B 104.283 (Luxembourg) Trade register number: B 104.283 (Luxembourg)

VAT-number

LU21452838

Year	2011	Mutation	2010	Mutation	2009
Fixed assets	43.664.813	10,55	39.497.871	-6,19	42.103.221
Total equity	319.317	54,31	206.933	133,38	88.666
Short term liabilities	69.016.595	35,81	50.818.252	0,47	50.582.690

Net result				-100,00	16.473

Working capital	-4.130.301	-170,85	-1.524.961	-119,11	7.979.557
Quick ratio	0,94	-3,09	0,97	-16,38	1,16

Contact information

Company name	DIAROUGH SOURCING SA
Operative address	12F, RUE GUILLAUME KROLL 1882 LUXEMBOURG Luxembourg

Correspondence address

ULTIMATE GLOBAL SHAREHOLDER
Name: EGON DIAMOND SARL
National id number: B 55.785 (Luxembourg)
Address: 20, Rue Eugene Ruppert
Zipcode: 2453
City: LUXEMBOURG

Registration

Registration number	Trade register number: B 104.283 (Luxembourg) Trade register number: B 104.283 (Luxembourg)
VAT-number	LU21452838
Status	Active
Establishment date	2004-11-18

Legal form	Limited company by shares
Subscribed share capital	EUR 77.179

Activities

dealer of diamond

Relations

Shareholders

ULTIMATE GLOBAL SHAREHOLDER
Name: EGON DIAMOND SARL
National id number: B 55.785 (Luxembourg)
Address: 20, Rue Eugene Ruppert
Zipcode: 2453
City: LUXEMBOURG
Country: LU
Type: Industrial company
Share direct: 99.00%
TOTAL assets: 45.61 mil. USD
Shareholders funds: 12.74657 mil. USD

SHAREHOLDERS
Name: EGON DIAMOND SARL
National id number: B 55.785 (Luxembourg)
Address: 20, Rue Eugene Ruppert
Zipcode: 2453
City: LUXEMBOURG
Country: LU
Type: Industrial company
Share direct: 99.00%
TOTAL assets: 45.61 mil. USD
Shareholders funds: 12.74657 mil. USD
Number of employees: 0

Name: EGON FINANCE SA
National id number: B 55.468 (Luxembourg)
Address: 20, Rue Eugene Ruppert
Zipcode: 2453
City: LUXEMBOURG
Country: LU
Phone: +352 26270421
FAX: +352 26270637
Type: Financial company
Share direct: 1.00%
TOTAL assets: 41.74 mil. USD
Shareholders funds: 6.47765 mil. USD
Number of employees: 0

Management

Management

Fullname: Mr Nishit Mahendra Kuma Parikh
Type: Individual
Gender: Male
date of birth: 1965/04/22
Age: 48
Country of nationality: Belgium
Address: 2020, Antwerpen, Belgium
Country: Belgium
Number of involvements: 8
Function: Administrative Board (AG)
Level of responsibility: Member

Fullname: Mr Saurin Sonu Parikh
Type: Individual
Gender: Male
date of birth: 1970/06/18
Age: 43
Country of nationality: Belgium
Address: 340560, Dubai, United Arab Emirates
Country: Belgium
Number of involvements: 3
Function: Administrative Board (AG)
Level of responsibility: Member

Fullname: Mr Jeffrey A. Sacks
Type: Individual
Gender: Male
Address: 60091, Wilmette, IL, United States
Number of involvements: 5
Function: Administrative Board (AG)
Level of responsibility: Member

Fullname: RSM Audit Luxembourg Sarl
Type: Company
Address: Rue Adolphe 6-5, 1116, Luxembourg, Luxembourg
Number of involvements: 14
Function: Member, Supervisory Board (AG)
Level of responsibility: Member

Financial analysis

Trend	Fluctuating
Profitability	Positive
Solvability	Limited
Liquidity	Negative
Show amount in	Euro

Key figures

Year	2011	2010	2009
Quick ratio	0,94	0,97	1,16
Current ratio	0,94	0,97	1,16

Working capital/ balance total	-0,04	-0,02	0,08
Equity / Fixed assets	0,01	0,01
Working capital	-4.130.301	-1.524.961	7.979.557
Equity	319.317	206.933	88.666
Mutation equity	54,31	133,38
Mutation short term liabilities	35,81	0,47

Return on total assets (ROA)			0,02
Return on equity (ROE)			26,04
Gross profit margin			17,04
Net profit margin			1,12

Average collection ratio			0,03
Equity turnover ratio			16,62
Total assets turnover ratio			0,01
Fixed assets turnover ratio			0,03
Inventory conversion ratio			47,11

Turnover			1.473.457
Operating result			251.120
Net result after taxes			16.473

Summary

The 2011 financial result structure is a negative working capital of -4.130.301 euro, which is in agreement with -4 % of the total assets of the company.

The working capital has diminished with -170.85 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined.

The deterioration between 2010 and 2011 has mainly been caused by an increase of the current liabilities.

The current ratio of the company in 2011 was 0.94. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations.

The quick ratio in 2011 of the company was 0.94. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

The 2010 financial result structure is a negative working captial of -1.524.961 euro, which is in agreement with -2 % of the total assets of the company.

The working capital has diminished with -119.11 % compared to previous year. The ratio, with respect to the total assets of the company has however, declined.

The deterioration between 2009 and 2010 has mainly been caused by an increase of the current liabilities.

The current ratio of the company in 2010 was 0.97. When the current ratio is below 1.5, the company may have problems meeting its short-term obligations.

The quick ratio in 2010 of the company was 0.97. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities.

Financial statement

Last annual account	2011
Remark annual account	The company is obliged to file its financial statements.
Type of annual account	Corporate
Annual account	DIAROUGH SOURCING SA 12F, RUE GUILLAUME KROLL 1882 LUXEMBOURG Luxembourg

Balance sheet

Year	2011	2010	2009
End date	2011-12-31	2010-12-31	2009-12-31
Other fixed assets	43.664.813	39.497.871	42.103.221
Fixed assets	43.664.813	39.497.871	42.103.221

Inventories			31.276
Liquid funds	1.775.961	6.653.786	4.877.790
Other current assets	63.110.333	42.639.505	53.653.181
Current assets	64.886.294	49.293.291	58.562.247
Total assets	108.551.107	88.791.162	100.665.468

Total equity	319.317	206.933	88.666
Provisions	111.141	71.581	24.817
Long term liabilities	39.104.054	37.694.396	49.969.295
Accounts payable	58.626.802	41.413.993	40.217.624
Liabilities towards credit institutes			1.152
Other short term liabilities	10.389.793	9.404.259	10.363.914
Short term liabilities	69.016.595	50.818.252	50.582.690
Total liabilities	108.551.107	88.791.162	100.665.468

Summary

The total assets of the company increased with 22.25 % between 2010 and 2011.

The fixed asset growth of 10.55 % is lower than the total asset growth.

In 2011 the assets of the company were 40.23 % composed of fixed assets and 59.77 % by current assets. The assets are being financed by an equity of 0.29 %, and total debt of 99.71 %.

The total assets of the company decreased with -11.8 % between 2009 and 2010.

This total assets decrease has been reflected in a reduction of non current assets of -6.19 %.

In 2010 the assets of the company were 44.48 % composed of fixed assets and 55.52 % by current assets. The assets are being financed by an equity of 0.23 %, and total debt of 99.77 %.

Profit and loss

Year			2009
Revenues			454.269.903
Net turnover			1.473.457

Operating result			251.120

Financial income			3.371.096
Financial expenses			3.599.129
Financial result			-228.033
Result on ordinary operations before taxes			23.088

Taxation on the result of ordinary activities			6.615
Result of ordinary activities after taxes			16.473

Net result			16.473

Publications

Remarks

Status: Active
Category: Large company
Last year: 2011
TOTAL assets last year: 108.551.107 EUR
Number of shareholders: 2
Number of subsidiaries: 0
Number of branches: 0

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.61.94
UK Pound	1	Rs.103.31
Euro	1	Rs.85.11

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.