MIRA INFORM REPORT

Report Date :

26.03.2014

IDENTIFICATION DETAILS

Name :	PINACLE STAINLESS STEEL INC
Registered Office :	4665 Rue Cousens, Montreal, Quebec H4S 1X5
Country :	Canada
Date of Incorporation :	16.01.1987
Legal Form :	Corporation – Profit
Line of Business :	· Distributor of stainless steel industrial plumbing and fluid handling products. · Subject offers stainless steel pipes, tubes, fittings, valves, hangers, and fasteners
No. of Employees :	60

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
Canada	A1	A1

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

CANADA - ECONOMIC OVERVIEW

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly becoming an even larger economic driver with Alberta's oil sands significantly boosting Canada's proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA

Company name & address

Company name: ACIER ONOXYDABLE PINACLE INC. (in French)

PINACLE STAINLESS STEEL INC. (in English)

Address: 4665 Rue Cousens, Montreal, Quebec H4S 1X5 - Canada

Telephone: +1 514-745-0360

Fax: +1 514-745-0387

Website: www.pinacle.ca

COMPANY SUMMARY

Corporate ID#: 1144600005

State: Quebec

Judicial form: Corporation – Profit

Date incorporated: 05-10-1995

Date founded: 01-16-1987

Stock: -

Value: -

Name of manager: John GOUGH

ACTIVITIES & OPERATIONS

IST

Business:

Pinacle Stainless Steel Inc. operates as a distributor of stainless steel industrial plumbing and fluid handling products.

It offers stainless steel pipes, tubes, fittings, valves, hangers, and fasteners.

Suppliers include:

ZHEJIANG STELLAR PIPE INDUSTRY CO LTD

INDUSTRIAL PARK, XIAOZHI, QINGTIAN 323900, ZHEJIANG CHINA

Staff: 60

Operations & branches:

At the headquarters, we find the corporate office.

The Company maintains branches located:

7007 54^th Street SE

Calgary, Alberta

455 Ambassador Drive

Mississauga, Ontario

484 Adelard Savoie Bld

Dieppe, New Brunswick

3603 Milar Avenue

Saskatoon, Saskatchewan

SHAREHOLDERS & MANAGERS

Shareholders:

3097-4729 QUEBEC INC.

4665 Rue Cousens, Montreal, Quebec H4S 1X5 – Canada

Incorporated in Quebec on 03-15-1994

ID# 1140175432

Management:

John GOUGH is the President, Director and CEO

As far as we know, he is involved in other corporations, including:

3097-4729 QUEBEC INC.

4665 Rue Cousens, Montreal, Quebec H4S 1X5 – Canada

9255-0813 QUÉBEC INC.

4665 Rue Cousens, Montreal, Quebec H4S 1X5 – Canada

6525717 CANADA INC.

2405-220 - 12th Avenue SE, Calgary, Alberta T2G 0R5 - Canada

and others.

Marc HEBERT is Secretary and Treasurer

FINANCIALS

In Canada, privately held corporations are not required to publish any financials.

On a direct call, a financial assistant controlled the present report but deferred any financials.

We sent a fax but no answer received.

However, sales estimate for year 2012 is in the range of CAD 10,000,000=

The business is said to be profitable.

Banks: Royal Bank of Canada

Scotia Bank

LEGAL FILINGS

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

Secured debts summary: None

COMPANY CREDIT HISTORY

Trade references:

Date reported: October 2013

High credit: CAD 30,000

Now owing: 0

Past due: 0

Last purchase: September 2013

Line of business: Office supply

Paying status: On terms

Date reported: October 2013

High credit: CAD 80,000

Now owing: 0

Past due: 0

Last purchase: September 2013

Line of business: Payroll

Paying status: As agreed

Date reported: October 2013

High credit: CAD 2,000

Now owing: 0

Past due: 0

Last purchase: September 2013

Line of business: Telecommunications

Paying status: On terms

Domestic credit history:

National Credit Bureaus gave a satisfying credit rating.

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

International credit history:

Payments of imports are currently made on terms.

Other comments:

The Company maintains a regular business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 05-16-2013

The risk is low.

Our opinion:

A business connection may be conducted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.49
UK Pound	1	Rs.99.77
Euro	1	Rs.83.67

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%)

MIRA INFORM REPORT

Report Date :

26.03.2014

Tel. No.:	03 234 3464
Fax No.:	03 234 3976

IDENTIFICATION DETAILS

Name :	HORIZON DIAMONDS BVBA
Registered Office :	Schupstraat 1-7, Room 507/510, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	16.06.1977
Com. Reg. No.:	417418813
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones manufacturer of diamonds of various shapes ( i.e. round & princess cuts ) and sizes, especially in shades of brown ( i.e. topshades and C1-C7 shades of brown on the Argyle scale ) Subject is specialize in baguettes, tapers and princess cuts in white and cape.
No. of Employees :	01

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 and address

Business number 417418813

Company name HORIZON DIAMONDS BVBA

Address SCHUPSTRAAT 1-7

Room 507/510

2018 ANTWERPEN

Number of staff 1

Date of establishment 16/06/1977

Telephone number 032343464

Fax number 032343976

Commentary

The business was established over 36 years ago.

The business has 1 employees.

The business has been at the address for over 26 years.

There has been no significant change in the business's credit rating.

There has been no significant change in the business's credit limit.

The business saw an increase in their Cash Balance of 662% during the latest trading period.

Turnover in the latest trading period decreased 28% on the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	20,722,962	97,793	4,911,682	4,986,026
31/12/2011	29,135,760	103,749	4,945,889	5,025,216
31/12/2010	36,589,729	95,906	4,874,140	5,053,817

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	13,231,794	1	4,600,000	107,413
31/12/2011	12,659,841	0	4,600,000	118,221
31/12/2010	12,430,578	0	4,600,000	97,749

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	93.99
Industry average payment expectation days	158.70	Industry average day sales outstanding	114.97
Day sales outstanding	74.01

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	417418813	Company name	HORIZON DIAMONDS BVBA
Fax number	032343976	Date founded	16/06/1977
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT	yes
		VAT Number	BE.0417.418.813
Activity description	Wholesaler of diamonds and other precious stones manufacturer of diamonds of various shapes ( i.e. round & princess cuts ) and sizes, especially in shades of brown ( i.e. topshades and C1-C7 shades of brown on the Argyle scale ) Subject is specialize in baguettes, tapers and princess cuts in white and cape.
Belgian Bullettin of Acts Publications	moniteur belge

Social Balance Sheet Details

Social Balance Sheet		Total
During the reporting year ended 31-12-2012
Full-time Employees		-
Part-time Employees		1
Total Fte Employees		1
Number of hours worked
Full-time Employees		-
Part-time Employees		1,398
Total		1,398
Personnel Charges
Full-time Employees		-
Part-time Employees		35,011
Total		35,011
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		1
Actual working hours		1,380
Personnel Charges		33,864
Benefits In Addition To Wages		-
Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	-	-	-
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)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	-	1	1
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	-

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	20/09/2010
Event Description	resignation-appointment of director(s)
Event Details	Commentaar 20-09-2010: Bevestiging van het ontslag als statutair zaakvoerder van de heer Mehta Girish.

Company accounts

Comparison Mode

· Average Median Export accounts to CSV File

Profit & loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	20,722,962	-28.87	29,135,760	-20.37	36,589,729	43,472,665	-52.33
Total operating expenses	20,523,357	-28.99	28,901,357	-20.60	36,398,640	43,089,263	-52.37
Operating result	199,605	-14.85	234,404	22.67	191,089	138,401	44.22
Total financial income	-	-	1	-	-	97,353	-
Total financial expenses	101,812	-22.08	130,656	37.27	95,182	197,940	-48.56
Results on ordinary operations before taxation	97,793	-5.74	103,749	8.18	95,906	28,745	240
Taxation	32,000	0	32,000	7.28	29,829	20,054	59.57
Results on ordinary operations after taxation	65,793	-8.30	71,749	8.58	66,077	14,468	354
Extraordinary items	0	-	0	-	0	-4,539	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	65,793	-8.30	71,749	8.58	66,077	9,939	561
other information
Dividends	100,000	-	-	-	-	183,441	-45.49
Director remuneration	130,041	-5.89	138,175	14.01	121,192	119,612	8.72
Employee costs	35,011	3.39	33,864	1.36	33,410	123,116	-71.56
Wages and salary	28,564	9.74	26,029	-3.88	27,080	103,328	-72.36
Employee pension costs	-	-	-	-	-	14,092	-
Social security contributions	5,976	-22.55	7,715	24.23	6,210	25,949	-76.97
Other employee costs	471	294	119	0	119	4,439	-89.38
Amortization and depreciation	41,620	-10.44	46,472	46.73	31,672	16,225	156

Balance Sheet

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,526	-100
Tangible fixed assets	305,426	-11.62	345,585	32.03	261,745	171,106	78.50
Land & building	274,633	-6.64	294,171	41.64	207,693	346,148	-20.66
Plant & machinery	-	-	-	-	-	21,689	-
Furniture & Vehicles	30,792	-40.11	51,415	-4.88	54,052	16,279 5,083	89.15
Leasing & Other Similar Rights	-	-	-	-	-	68,695 30,812	-
Other tangible assets	0	-	0	-	0	8,171	-100
Financial fixed assets	4,849	0	4,849	0	4,849	207,252	-97.66
Total fixed assets	310,275	-11.46	350,435	31.45	266,594	309,276	0.32
Inventories	8,443,740	13.85	7,416,864	49.18	4,971,707	2,835,960	197
Raw materials & consumables	-	-	-	-	-	7,494,338	-
Work in progress	0	-	0	-	0	2,621	-100
Finished goods	8,443,740	13.85	7,416,864	49.18	4,971,707	1,752,244	381
Other stocks	0	-	0	-	0	584,965	-100
Trade debtors	4,202,192	-13.52	4,859,359	-28.64	6,809,626	3,774,685	11.33
Cash	199,853	662	26,205	-93.04	376,477	212,418	-5.92
other amounts receivable	75,397	1035	6,642	13.78	5,837	175,481	-57.03
Miscellaneous current assets	337	0	337	0	337	15,090	-97.77
Total current assets	12,921,519	4.97	12,309,406	1.20	12,163,984	6,571,655	96.63
Total Assets	13,231,794	4.52	12,659,841	1.84	12,430,578	6,850,601 1,351,303	93.15
current liabilities
Trade creditors	5,285,141	3.82	5,090,663	-0.97	5,140,573	2,854,960	85.12
Short term group loans	-	-	-	-	-	-	-
Financial debts	2,315,152	16.69	1,983,959	6.03	1,871,075	3,871,982 167,791	-40.21
Current portion of long term debt	31,845	10.80	28,742	-1.11	29,065	110,218 14,379	-71.11
Amounts Payable for Taxes, Remuneration & Social Security	8,657	-1.89	8,823	13.72	7,759	8,714 -	-73.81
Miscellaneous current liabilities	294,698	71.33	172,003	178	61,696	-1.71	- -
Total current liabilities	7,935,493	8.94	7,284,190	2.45	7,110,167	4,903,950	61.82
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	384,620	-10.50	429,762	-3.70	446,271	-61.34	- -
Deffered taxes	-	-	-	-	-	32,238 15,445	-
Provisions for Liabilities & Charges	0	-	0	-	0	2,408 0	-100
Other long term liabilities	0	-	0	-	0	124,749	-100
Total long term debts	384,620	-10.50	429,762	-3.70	446,271	505,290	-23.88
shareholders equity
Issued share capital	4,600,000	0	4,600,000	0	4,600,000	816,719	463
Share premium account	-	-	-	-	-	117,681	-
Reserves	311,682	-9.89	345,889	26.17	274,140	593,076	-47.45
Revaluation reserve	-	-	-	-	-	847,347	-
Total shareholders equity	4,911,682	-0.69	4,945,889	1.47	4,874,140	1,435,384	242
Working capital	4,986,026	-0.78	5,025,216	-0.57	5,053,817	1,667,705	198
Cashflow	107,413	-9.14	118,221	20.94	97,749	23,281	361
Net worth	4,911,682	-0.69	4,945,889	1.47	4,874,140	1,432,274	242

Ratio Analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.47	30.56	0.36	38.46	0.26	-24,00	1.96
Return on capital employed	1.85	-4.15	1.93	7.22	1.80	32,00	-94.22
Return on total assets employed	0.74	-9.76	0.82	6.49	0.77	-224,00	0.33
Return on net assets employed	1.99	-5.24	2.10	6.60	1.97	22,00	-90.95
Sales / net working capital	4.16	-28.28	5.80	-19.89	7.24	46,00	-99
Stock turnover ratio	40.75	60.05	25.46	87.34	13.59	117,00	-65.17
Debtor days	74.01	21.57	60.88	-10.38	67.93	138,00	-46.37
Creditor days	93.99	46.20	64.29	24.71	51.55	115,00	-18.27
short term stability
Current ratio	1.63	-3.55	1.69	-1.17	1.71	7,00	-79.62
Liquidity ratio / acid ratio	0.56	-16.42	0.67	-33.66	1.01	4,00	-86.00
Current debt ratio	1.62	10.20	1.47	0.68	1.46	8,00	-79.75
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	55.61	12.62	49.38	2.58	48.14	382,00	-85.44
Equity in percentage	37.12	-4.99	39.07	-0.36	39.21	-3.506,00	1.06
Total debt ratio	1.69	8.33	1.56	0.65	1.55	10,00	-83.10

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones manufacturer of diamonds of various shapes ( i.e. round & princess cuts ) and sizes, especially in shades of brown ( i.e. topshades and C1-C7 shades of brown on the Argyle scale ) Subject is specialize in baguettes, tapers and princess cuts in white and cape.

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	93.99
Day sales outstanding	74.01

Industry comparison

Activity code	46761
Activity description
Industry average payment expectation days	158.70
Industry average day sales outstanding	114.97

Industry quartile analysis

Payment expectations
Company result	93.99
Lower	132.13
Median	82.62
Upper	44.36
Day sales outstanding
Company result	74.01
Lower	112.04
Median	57.84
Upper	28.11

Summary

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

Protested bills

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

NSSO details

Business number	417418813
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	SHAH KSHITIJ
Position	Principal Manager
Start Date	01/03/1999
Street	35 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	JITENDRA JAYANTILAL SHAH
Position	Non Statutory Partner
Start Date	20/09/2010
Street	6 ANGELUS RONCALLILAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	JITENDRA JAYANTILAL SHAH
Position	Principal Manager
Start Date	09/09/2010
Street	6 ANGELUS RONCALLILAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	KERUL BHARATKUMAR SHAH
Position	Principal Manager
Start Date	09/09/2010
End Date	-
Street	67 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

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.60.49
UK Pound	1	Rs.99.77
Euro	1	Rs.83.67

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%)