Your responses to the questions in the Sightholder Profile must reflect the activities of your entire Sightholder Group.

Any and all company/companies which the Sightholder controls and is/are involved in diamond manufacturing and/or distribution must be included in their Sightholder Group.

Any company or entity included in a Sightholders Appendix 1 submission shall be deemed to be a member of that Sightholder's Group.

A company can only feature in one Sightholder Group at any one time.

"Group" means any and every company, its holding company from time to time and any and every subsidiary from time to time of such company or holding company, in each case to the extent such company's businesses relate to diamond manufacturing and/or distribution.

Sightholder Group: In this context, a ‘Sightholder Group' could comprise:
The applicant entity ("the applicant")
The applicant's holding company or entity ("holding company"), if it has one; and/or
Any subsidiaries (if there are any) over which the applicant can demonstrate control.
Holding Companies: A company or other entity is a "holding company" if it exercises control over the applicant.

‘Control' in this context can be exercised by:

either the holding company having ownership of a majority of the voting rights (including partnership voting rights) in the applicant,
and/or the holding company being a member of the applicant and having the right to appoint and remove a majority of the board of directors,
and/or the holding company being a member of the applicant and controlling alone, pursuant to an agreement with other shareholders or members, a majority of voting rights in the applicant.

In the exercise of de facto control, there is no requirement for the "holding company" to be a member of the applicant - that is, to hold shares or partnership equity in the applicant.

Subsidiaries: A subsidiary is a member of the applicant's Sightholder Group if the applicant can exercise control over it.

‘Control' in this context can be exercised by

either the applicant having ownership of a majority of the voting rights (including partnership voting rights) in the subsidiary,

and/or the applicant being a member of the subsidiary and having the right to appoint and remove a majority of the subsidiary's board of directors,

and/or the applicant being a member of the applicant and controlling alone, pursuant to an agreement with other shareholders or members, the majority of voting rights in the subsidiary.
In the exercise of de facto control, there is no requirement for the applicant to be a member of the subsidiary - that is, to hold shares or partnership equity in the subsidiary.

The following entities may also legitimately be included in a Sightholder Group if a chain of control linking them back to the applicant can be established:

• Subsidiaries of subsidiaries
• Holding companies of holding companies
• Subsidiaries of holding companies.
  
  The definitions of "group", subsidiary and holding company and "control" above are specifically in a corporate context. However, in light of differing Sightholder organisational arrangements, the same principles as are reflected in those definitions will apply by analogy to other organisational arrangements. Consequently, a Sightholder's Group will include individuals, families, or entities other than companies (for example, partnerships, unincorporated associations, co-operatives) where those individuals, families or entities satisfy the definitions as referred to above when applied by analogy.

For example, in a corporate context, a Sightholder's Group includes all parent, subsidiary and sister companies of the Sightholder to the extent that such company's businesses relate to diamond manufacturing and /or distribution.

Financial Accountability
Financial Reporting
Please provide in .pdf format a single audited financial statement covering the activities of your entire Group, comprising:

• ♦ 2006 Balance Sheet (showing a breakdown of working capital);
• ♦ 2006 Profit and Loss Account;
• ♦ 2006 Cashflow Statement
• ♦ Comparisons with 2005.
  
  We will accept this statement in any of the following formats (the format you choose will have no influence over your assessment):
• ♦ An audited, consolidated financial statement for the entire Sightholder Group
• ♦ A consolidated financial statement for the entire Sightholder Group, supported by the auditor's reports on all the consolidated components
• ♦ A combined financial statement for the entire Sightholder Group, supported by the auditor's reports on all the consolidated components
  
  If you are unable to provide a single financial statement for your entire Sightholder Group as specified above you will not qualify for supply in the next contract period.

Your financial statement may either reference the calendar year 2006 or your most recently completed fiscal/financial year, but your financial statement must provide a comparison with the equivalent twelve-month period from the previous year.

If you intend to provide a financial statement based on your fiscal/financial year, please provide the most recent financial statements your auditor has completed.

There is no requirement for financial statements to be audited to IFRS standards. Financial statements may be audited either to national GAAP or to IFRS, but whichever option you take will have no influence on the way in which the DTC conducts its assessment.

For your convenience, and in order to ensure consistency for all applicant profiles, the online Sightholder Profile Questionnaire (SPQ) provides a simplified template on which you can summarise your 2006 Balance Sheet and Profit and Loss Account. Please complete this template along with your Sightholder Profile. You are requested to complete the template in US Dollars. For your convenience, the online template will quote the appropriate exchange rates to be used for conversion from local currencies into US Dollars.

Please note that any financial assets not included in your consolidated balance sheet will not be taken into account in your assessment.

BKR Yarel+Partners provides accounting services according to the Sightholder Group Definition. Contact us if you wish to receive a quote.