MIRA INFORM REPORT

Report Date :

29.09.2011

IDENTIFICATION DETAILS

Name :	JAYAM NV
Registered Office :	18, Schupstraat, Antwerpen
Country :	Belgium
Financials (as on) :	31.03.2010
Date of Incorporation :	01.01.1960
Com. Reg. No.:	404965892
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 :	Excellent
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^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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	404965892
Name	JAYAM NV
Address	18, SCHUPSTRAAT, ANTWERPEN
Post Code
Telephone Number	032310935
Fax Number	032329220
Establishment Date	01-01-1960
Company Status	ACTIVE
Company Type	Limited company
Number of Employees	13
Activity Description	Wholesale of diamonds and other precious stones
Activity Code	46761
Liable For Vat	yes
Currency	Euro (€)
Latest Branch Details
Street	--
House Number
City	--
Postal Code
Trade Registered Number
Trade Registered Entry Date	--
Contractor Details
Registration Number	--
Contractor Description	--
Striking Off Date	--
Latest Event
Serial Number	28173
Event Description	Transfer of registered office
Limit
Credit Information
Credit Limit (€)	1,600,000
Purchase Limit (€)	6,900,000
Industry Comparison
Industry Average Credit Limit (€)	158,790
Payment Expectations
Payment Expectations
Payment Expectation Days	53.32
Day Sales Outstanding	207.41
Industry Comparison
Activity Code	4676
Activity Description	Wholesale of other intermediate products
Industry Average Day Sales Outstanding	124.84
Industry Average Payment Expectation Days	136.84
Industry Quartile Analysis
Payment Expectations - Lower	41.36
Payment Expectations - Median	91.12
Payment Expectations - Upper	162.53
Day Sales Outstanding - Lower	31.17
Day Sales Outstanding - Median	75.21
Day Sales Outstanding - Upper	159.31
Company Shareholder Holding
Shareholder Detail
Company Number	17430108
Company Name	JAYAM DIAMONDS INTERNATIONAL PTE LTD
Address	,
Postal Code	0
Country
Share Percentage
Annual Accounts Date	--
Shareholder Detail
Company Number	867740719
Company Name	SACHIN DIAMONDS BELGIUM NV
Address	HOVENIERSSTRAAT 50-52, ANTWERPEN
Postal Code	2018
Country
Share Percentage	1.91
Annual Accounts Date	01-12-2009
Shareholder Detail
Company Number	17430207
Company Name	JAYAM CHINA LTD
Address	ANLURN BOULEVARD 88, SHANGAI
Postal Code	0
Country
Share Percentage	100
Annual Accounts Date	01-03-2010
Shareholder Detail
Company Number	17430306
Company Name	DIAMOND VALLEE
Address	RUE DU FAUBOURG ST HONORE 262, PARIS
Postal Code	75008
Country
Share Percentage	75
Annual Accounts Date	01-03-2010
Shareholder Detail
Company Number	447811485
Company Name	SPORTS CLUB OF INDIA NV
Address	HOVENIERSSTRAAT 53/132, ANTWERPEN
Postal Code	2018
Country
Share Percentage	16.65
Annual Accounts Date	01-03-2010

Company Accounts

Period
Accounts End Date	31-03-2010	31-03-2009	31-03-2008
Currency	EUR	EUR	EUR
Weeks	52	52	52
Profit & Loss
Turnover	27,418,148	34,171,600	51,886,826
Total Operating Expenses	26,138,518	44,651,790	49,445,888
Operating Result	1,279,630	-10,480,190	2,440,938
Total Financial Income	33,969	103,209	138,024
Total Financial Expenses	1,165,905	1,334,886	2,090,580
Results on Ordinary Operations Before Tax	147,694	-11,711,867	488,382
Taxation	4,667	-6,435	25,534
Results on Ordinary Operations After Tax	143,027	-11,705,432	462,848
Extraordinary Items	81,339	-5,022	-289,241
Net Result	224,366	-11,710,454	173,607
Other Information
Dividends	-	-	-
Director Remuneration	-	-	-
Employee Costs	644,961	715,670	652,741
- Wages & Salaries	501,558	559,168	519,907
- Employee Pension Costs	-	-	-
- Social Security Contributions	135,887	148,731	123,704
- Other Employee Costs	7,516	7,771	9,130
Amortization & Depreciation	48,124	54,025	50,975
Balance Sheet
Intangible Fixed Assets	0	0	0
Tangible Fixed Assets	283,154	306,069	297,733
- Land And Buildings	0	0	0
- Plant And Machinery	31,503	26,678	29,168
- Other Tangible Assets	251,651	279,391	268,565
Financial Fixed Assets	328,445	338,196	288,863
Total Fixed Assets	611,599	644,265	586,596
Inventories	29,708,832	35,407,984	42,080,613
- Raw Materials & Consumables	0	0	0
- Work in Progress	0	0	0
- Finished Goods	0	0	0
- Other Stocks	29,708,832	35,407,984	42,080,613
Trade Debtors	15,580,142	9,542,557	17,164,495
Cash	430,550	3,166,365	39,222
- Miscellaneous Current Assets	18,196	86,681	71,602
Total Current Assets	45,873,902	48,255,084	59,406,812
Current Liabilities
- Trade Creditors	3,818,497	4,905,123	5,492,018
- Short Term Group Loans	16,794,353	32,279,506	33,669,335
- Other Short Term Loans	16,414,552	17,295,449	15,694,805
- Miscellaneous Current Liabilities	-16,506,149	-31,911,966	-33,422,436
Total Current Liabilities	20,521,253	22,568,112	21,433,722
Long Term Debts
- Long Term Group Loans	16,794,353	32,279,506	33,669,335
- Other Long Term Loans	16,794,353	32,279,506	33,669,336
- Other Long Term Liabilities	-16,780,745	-32,246,069	-33,600,466
Total Long Term Debts	16,807,961	32,312,943	33,738,205
Shareholders Equity
- Issued Share Capital	17,515,832	2,712,121	2,282,600
- Share Premium Account	0	0	0
- Reserves	-8,359,545	-8,693,828	2,538,880
- Revaluation Reserve	0	0	0
Total Shareholders Equity	9,156,287	-5,981,707	4,821,480
Working Capital	25,352,649	25,686,972	37,973,090
Net Worth	9,156,287	-5,981,707	4,821,480
Ratio Analysis
Trading Performance
Results on Ordinary Operations Before Taxation Margin	0.54	-34.27	0.94
Return On Capital Employed	0.57	-44.48	1.27
Return On Total Assets Employed	0.32	-23.95	0.81
Return On Net Assets Employed	0.58	-45.59	1.29
Sales / Net Working Capital	1.08	1.33	1.37
Operating Efficiency
Stock Turnover Ratio	108.35	103.62	81.10
Debtor Days	207.41	101.93	120.74
Creditor Days	53.32	40.10	40.54
Short Term Stability
Current Ratio	2.24	2.14	2.77
Liquidity Ratio / Acid Ratio	0.79	0.57	0.81
Current Debt Ratio	2.24	-3.77	4.45
Long Term Stability
Gearing	729.53	-1908.05	2420.48
Equity In Percentage	0.20	-0.12	0.08
Total Debt Ratio	7.30	-19.08	24.20

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	SACHIN J MEHTA
Birth Date
Position Description	Director
Address	17 SUKHUMVIT ROAD 10110 BANGKOK
Country	Thailand
Postal Code	0
Birth Date	2014-01-01
Company Director
Full Name	MIHIR MAHENDRA MEHTA
Birth Date	1971-01-27
Position Description	Managing director
Address	55 DELLA FAILLELAAN ANTWERPEN
Country	--
Postal Code	2020
Birth Date	2014-01-01

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.48.91
UK Pound	1	Rs.76.53
Euro	1	Rs.66.43

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.