MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	GEM DIAMONDS MARKETING SERVICES BVBA
Registered Office :	Lange Herentalsestraat 62 Bus 70 Antwerpen 2018
Country :	Belgium
Date of Incorporation :	09.01.2006
Com. Reg. No.:	878452091
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	2

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 2.0%, the unemployment rate decreased slightly to 7.7% 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. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Business number	878452091	Company name	GEM DIAMONDS MARKETING SERVICES BVBA
		Telephone number	03203 40 80
Address	LANGE HERENTALSESTRAAT 62 BUS 70 ANTWERPEN	Fax number	03203 40 81
Post code	2018	Number of staff	2
Date of establishment	09/01/2006

DIRECTORS/MANAGEMENT

Current director details

Name	NICOLAOS YIANNOPOULOS
Position	Principal Manager
Start Date	29/12/2005
Street	275 ONSLOW ROAD SHENTON PARK
Post code	6008
Country	Australia

Name	ALISTAIR CROLL
Position	Principal Manager
Start Date	12/05/2008
Street	1 GODIN COURT CHURCHLANDS
Post code	6018
Country	Australia

Name	BRANDON MICHAEL DE BRUIN
Position	Principal Manager
Start Date	04/10/2010
Street
Post code
Country	South Africa

Name	STEPHEN LEE WETHERALL
Position	Principal Manager
Start Date	04/10/2010
Street
Post code
Country	South Africa

Former director details

Name	KARL MATHHEW SIMICH
Position	Principal Manager
Start Date	29/12/2005
End Date	12/05/2008
Street
Post code
Country	Australia

NEGATIVE INFORMATION

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Business number	878452091	Company name	GEM DIAMONDS MARKETING SERVICES BVBA
Fax number	03203 40 81	Date founded	09/01/2006
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2011
Activity code	46761	liable for VAT
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0878.452.091
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Protested bills

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

NSSO details

Business number	878452091
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

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	0.08
Industry average payment expectation days	177.49	Industry average day sales outstanding	110.45
Day sales outstanding	-

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	0.08
Day sales outstanding	-

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	177.49
Industry average day sales outstanding	110.45

Industry quartile analysis

Payment expectations
Company result	0.08
Lower	127.34
Median	73.81
Upper	41.66

Day sales outstanding
Company result	-
Lower	112.47
Median	57.26
Upper	24.94

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

Company name	Company Number
KIMBERLY DIAMOND COMPANY NL	-	No linked companies have been found.

Summary

Group - Number of Companies	2
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Latest financials
- KIMBERLY DIAMOND COMPANY NL
- - GEM DIAMONDS MARKETING SERVICES BVBA	878452091	31-12-2011

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	294,490,428	1,292,723	1,269,719
30/06/2010		164,241	413,003
30/06/2009		240,311	304,177

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	3,065,615	9,471	306,857	1,801,804	2
30/06/2010	676,382	9,400	300,000	638,453	1
30/06/2009	327,643	9,350	300,000	222,599	1

Profit & loss

Annual accounts	31-12-2011	%	30-06-2010	%	30-06-2009	Industry average 2011	%
Weeks	78		52		52
Currency	EUR		EUR		EUR
Turnover	294,490,428	-	-	-	-	57,477,666	412
Total operating expenses	293,094,050	-	-	-	-	56,751,982	416
Operating result	1,396,378	1941	68,387	-74.13	264,333	270,916	415
Total financial income	67,065	-35.15	103,419	729	12,461	171,742	-60.95
Total financial expenses	170,720	2156	7,566	-79.26	36,483	331,737	-48.54
Results on ordinary operations before taxation	1,292,723	687	164,241	-31.66	240,311	93,361	1284
Taxation	451,266	695	56,723	927	5,522	38,834	1062
Results on ordinary operations after taxation	841,457	682	107,518	-54.21	234,789	67,254	1151
Extraordinary items	0	-	0	-	0	7,449	-100
Other appropriations	0	-	0.00	-	0.00	-	-
Net result	841,457	682	107,518	-54.21	234,789	74,613	1027
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	124,228	-
Employee costs	232,961	475	40,476	-13.85	46,983	156,576	48.78
Wages and salary	164,732	404	32,682	-11.06	36,747	132,632	24.20
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	42,784	497	7,155	-11.84	8,115	32,757	30.61
Other employee costs	25,445	3876	640	-69.82	2,120	4,398	478
Amortization and depreciation	277,201	1113	22,849	0	22,849	21,266	1203

Balance sheet

Annual accounts	31-12-2011	%	30-06-2010	%	30-06-2009	Industry average 2011	%
Weeks	78		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	654	-	1,963	1,834	-100
Tangible fixed assets	215,668	946	20,599	-51.12	42,139	205,899	4.74
Land & building	-	-	-	-	-	377,722	-
Plant & machinery	215,668	1607	12,629	-38.03	20,378	27,586	681
Other tangible assets	0	-100	7,970	-63.37	21,762	30,980	-100
Financial fixed assets	9,471	0.76	9,400	0.53	9,350	305,339	-96.90
Total fixed assets	225,140	634	30,653	-42.65	53,452	413,180	-45.51
Inventories	967,611	-	-	-	-	3,379,054	-71.36
Raw materials & consumables	-	-	-	-	-	3,184,382	-
Work in progress	0	-	0	-	0	2,348	-100
Finished goods	967,611	-	0	-	0	2,327,784	-58.43
Other stocks	0	-	0	-	0	466,875	-100
Trade debtors	0	-100	4,424	-	0	4,272,495	-100
Cash	1,801,804	182	638,453	186	222,599	310,906	479
other amounts receivable	64,975	2718	2,306	-95.47	50,950	401,314	-83.81
Miscellaneous current assets	6,085	1014	546	-14.91	642	39,406	-84.56
Total current assets	2,840,475	339	645,729	135	274,191	7,842,372	-63.78
current liabilities
Trade creditors	67,845	1127	5,525	-32.77	8,218	2,852,552	-97.62
Short term group loans	-	-	-	-	-	-	-
Other short term loans	86	-83.12	510	-55.04	1,133	2,371,221	-99
Miscellaneous current liabilities	1,727,966	573	256,689	2123	11,543	346	- -
Total current liabilities	1,795,897	583	262,724	1157	20,895	5,493,444	-67.31
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	609	-	- -
Other long term liabilities	-1	-	0	-	0	279,878	-100
Total long term debts	-1	-	0	-100	609	883,580	-100
shareholders equity
Issued share capital	306,857	2.29	300,000	0	300,000	1,023,377	-70.02
Share premium account	-	-	-	-	-	173,859	-
Reserves	962,862	747	113,657	1751	6,140	782,771	23.01
Revaluation reserve	-	-	-	-	-	797,191	-
Total shareholders equity	1,269,719	206	413,657	35.12	306,140	1,831,076	-30.66
Working capital	1,044,578	172	383,005	51.21	253,296	2,348,929	-55.53
Net worth	1,269,719	207	413,003	35.78	304,177	1,829,242	-30.59

Ratio analysis

Annual accounts	31-12-2011	change(%)	30-06-2010	change(%)	30-06-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.44	-	-	-	-	-693,00	0.06
Return on capital employed	101.81	156	39.70	-49.32	78.34	-13,00	783
Return on total assets employed	42.17	73.68	24.28	-66.90	73.35	-32,00	131
Return on net assets employed	101.81	156	39.70	-49.43	78.50	-20,00	509
Sales / net working capital	281.92	-	-	-	-	63,00	-99
Stock turnover ratio	0.33	-	-	-	-	41,00	-99
Debtor days	-	-	-	-	-	55.054,00	-
Creditor days	0.08	-	-	-	-	245,00	-99
short term stability
Current ratio	1.58	-35.77	2.46	-81.25	13.12	4,00	-90.71
Liquidity ratio / acid ratio	1.04	-57.72	2.46	-81.25	13.12	3,00	-65.33
Current debt ratio	1.41	120	0.64	814	0.07	17,00	-91.71
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	0.01	-91.67	0.12	-78.95	0.57	267,00	-99
Equity in percentage	41.42	-32.34	61.22	-34.87	94	-1.026,00	4.04
Total debt ratio	1.41	120	0.64	814	0.07	18,00	-92.17

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Number of staff	2
Date of establishment	09/01/2006

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

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.55.08
UK Pound	1	Rs.89.53
Euro	1	Rs.72.77

INFORMATION DETAILS

Report Prepared by :

SDA

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%)

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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.