MIRA INFORM REPORT

Report Date :

04.11.2011

IDENTIFICATION DETAILS

Correct Name :	EUROSTAR DIAMOND TRADERS NV
Registered Office :	53, Hoveniersstraat, Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2009
Date of Incorporation :	22.02.1991
Com. Reg. No.:	443117279
Legal Form :	Limited Company
Line of Business :	Wholesale of diamonds and other precious stones

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Belgium	a1	a1

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

Company Summary

company details
Company Number	443117279
Name	EUROSTAR DIAMOND TRADERS NV
Address	53, HOVENIERSSTRAAT, ANTWERPEN
Post Code	2018
Telephone Number	032137777
Fax Number	032137799
Establishment Date	22-02-1991
Company Status	ACTIVE
Company Type	Limited company
Number of Employees	45
Activity Description	Wholesale of diamonds and other precious stones
Activity Code	46761
Liable For Vat	yes
Currency	Euro (€)
Latest Branch Details
Street	SCHUPSTRAAT
House Number	9
City	ANTWERPEN
Postal Code	2018
Trade Registered Number	282125
Trade Registered Entry Date	01-04-1991
Contractor Details
Registration Number	--
Contractor Description	--
Striking Off Date	--
Latest Event
Serial Number	118004
Event Description	Appointment commissioner
Limit
Credit Information
Purchase Limit (€)	313,000,000
Industry Comparison
Industry Average Credit Limit (€)	158,758
Payment Expectations
Payment Expectations
Payment Expectation Days	21.08
Day Sales Outstanding	48.13
Industry Comparison
Activity Code	4676
Activity Description	Wholesale of other intermediate products
Industry Average Day Sales Outstanding	125.05
Industry Average Payment Expectation Days	136.84
Industry Quartile Analysis
Payment Expectations - Lower	41.37
Payment Expectations - Median	91.12
Payment Expectations - Upper	163.40
Day Sales Outstanding - Lower	31.17
Day Sales Outstanding - Median	75.05
Day Sales Outstanding - Upper	159.82
Company Shareholder Holding
Shareholder Detail
Company Number	15262652
Company Name	EUROSTARS DIAMONDS INTERNATIONAL SA
Address	BOULEVARD PRINCE HENRI 9B, 1724 LUXEMBOURG
Postal Code	0
Country
Share Percentage
Annual Accounts Date	--
Shareholder Detail
Company Number	0
Company Name
Address	,
Postal Code	0
Country
Share Percentage
Annual Accounts Date	--

Company Accounts

Period
Accounts End Date	31-12-2009	31-12-2008	31-12-2007
Currency	EUR	EUR	EUR
Weeks	52	52	52
Profit & Loss
Turnover	1,250,879,504	1,480,479,818	985,708,575
Total Operating Expenses	1,231,160,071	1,457,964,003	960,247,831
Operating Result	19,719,433	22,515,815	25,460,744
Total Financial Income	3,946,571	7,495,051	5,654,405
Total Financial Expenses	18,293,985	20,109,497	23,106,854
Results on Ordinary Operations Before Tax	4,132,425	8,698,760	6,969,644
Taxation	607,372	1,343,033	62,120
Results on Ordinary Operations After Tax	3,525,053	7,355,727	6,907,524
Extraordinary Items	2,441,120	0	12,715
Net Result	5,966,173	7,355,727	6,920,239
Other Information
Dividends	-	-	-
Director Remuneration	-	-	-
Employee Costs	3,133,493	3,288,678	3,278,423
- Wages & Salaries	2,312,261	2,331,515	2,190,410
- Employee Pension Costs	-	-	-
- Social Security Contributions	645,307	631,335	621,335
- Other Employee Costs	175,925	325,828	466,678
Amortization & Depreciation	313,672	436,573	387,480
Balance Sheet
Intangible Fixed Assets	57,248	124,038	105,154
Tangible Fixed Assets	4,420,060	5,392,189	5,250,508
- Land And Buildings	4,071,355	5,138,443	4,975,695
- Plant And Machinery	258,884	187,076	192,278
- Other Tangible Assets	89,821	66,670	82,535
Financial Fixed Assets	74,614,797	82,514,434	39,820,319
Total Fixed Assets	79,092,105	88,030,661	45,175,981
Inventories	163,414,797	170,013,240	172,545,456
- Raw Materials & Consumables	0	0	0
- Work in Progress	0	0	0
- Finished Goods	0	0	0
- Other Stocks	163,414,797	170,013,240	172,545,456
Trade Debtors	164,936,036	173,105,794	214,765,596
Cash	664,427	12,125,545	5,907,405
- Miscellaneous Current Assets	4,332,490	25,053,042	12,581,908
Total Current Assets	384,600,499	425,840,914	458,518,653
Current Liabilities
- Trade Creditors	71,088,213	141,634,952	130,289,449
- Short Term Group Loans	28,226,360	32,103,566	2,931,067
- Other Short Term Loans	169,182,558	147,791,895	142,048,213
- Miscellaneous Current Liabilities	-24,419,482	-30,687,970	-1,223,820
Total Current Liabilities	244,077,649	290,842,443	274,044,909
Long Term Debts
- Long Term Group Loans	0	0	0
- Other Long Term Loans	8,119,669	8,489,786	10,656,623
- Other Long Term Liabilities	1,225,716	2,802,465	3,006,905
Total Long Term Debts	9,345,385	11,292,251	13,663,528
Shareholders Equity
- Issued Share Capital	114,543,000	118,552,500	132,730,465
- Share Premium Account	0	0	0
- Reserves	95,726,570	92,902,398	82,989,133
- Revaluation Reserve	0	281,983	266,598
Total Shareholders Equity	210,269,570	211,736,881	215,986,196
Working Capital	140,522,850	134,998,471	184,473,744
Net Worth	210,212,322	211,612,843	215,881,042
Ratio Analysis
Trading Performance
Results on Ordinary Operations Before Taxation Margin	0.33	0.59	0.71
Return On Capital Employed	1.88	3.90	3.03
Return On Total Assets Employed	0.89	1.69	1.38
Return On Net Assets Employed	2.94	6.44	3.78
Sales / Net Working Capital	8.90	10.97	5.34
Operating Efficiency
Stock Turnover Ratio	13.06	11.48	17.50
Debtor Days	48.13	42.68	79.53
Creditor Days	21.08	35.46	49.52
Short Term Stability
Current Ratio	1.58	1.46	1.67
Liquidity Ratio / Acid Ratio	0.91	0.88	1.04
Current Debt Ratio	1.16	1.37	1.27
Long Term Stability
Gearing	97.75	88.97	72.06
Equity In Percentage	0.45	0.41	0.43
Total Debt Ratio	0.98	0.89	0.72

Company Court Data

Protested Bills
Drawee Name	--
Drawee Address	--
Bill Amount
Bill Currency	--
Maturity of Bill (month)
Name of Drawer	--
City of Drawer	--
NSSO Details
Name of Defendant	--
Legal Form of Defendant	--
Date of Summons
Labour Court	--
Directors
Company Director
Full Name	KAUSHIK KIRTILAL MEHTA
Birth Date	1949-06-29
Position Description	Managing director
Address	25 EEKHOORNLAAN WILRIJK (ANTW.)
Country	--
Postal Code	2610
Birth Date	2016-06-01
Company Director
Full Name	SACHIN DINUKUMAR MEHTA
Birth Date	1964-01-09
Position Description	Chairman of the board
Address	39 FAZANTENLAAN WILRIJK (ANTW.)
Country	--
Postal Code	2610
Birth Date	2016-06-01
Company Director
Full Name	ASHISH PRAVIN KOTHARI
Birth Date
Position Description	Managing director
Address	7 FAZANTENLAAN WILRIJK (ANTW.)
Country	--
Postal Code	2610
Birth Date	2016-06-01
Company Director
Full Name	KUNAL MEHTA
Birth Date
Position Description	Director
Address	25 EEKHOORNLAAN WILRIJK (ANTW.)
Country	--
Postal Code	2610
Birth Date	2016-06-01

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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.37
UK Pound	1	Rs.78.50
Euro	1	Rs.67.59

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

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.