MIRA INFORM REPORT

Report Date :

31.12.2012

IDENTIFICATION DETAILS

Name :	CLASSIC DIAM BVBA

Registered Office :	Hoveniersstraat 2 Bus 331 Antwerpen 2018

Country :	Belgium

Financials (as on) :	31.03.2011

Date of Incorporation :	08.01.2002

Com. Reg. No.:	476576242

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	3

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
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

(31.03.2011)

Current Rating

(30.06.2012)

Belgium

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

Company name and address

Top of Form

Risk Tracker Monitoring System

Business number	476576242	Company name	CLASSIC DIAM BVBA
		Telephone number	032897357
Address	HOVENIERSSTRAAT 2 BUS 331 ANTWERPEN	Fax number	032130372
Post code	2018	Number of staff	3
Date of establishment	08/01/2002

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/03/2011	8,456,798	18,668	2,880,818
31/12/2010	22,384,234	110,592	2,862,152
31/12/2009	14,178,440	36,893	2,757,405

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/03/2011	10,488,153	200	2,670,992	351,468	3
31/12/2010	8,403,337	200	2,670,992	517,547	2
31/12/2009	5,074,019	200	2,670,992	210,137	2

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	307.34
Industry average payment expectation days	177.37	Industry average day sales outstanding	110.45
Day sales outstanding	309.70

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	03/10/2011

Business number	476576242	Company name	CLASSIC DIAM BVBA
Fax number	032130372	Date founded	08/01/2002
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/03/2011
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0476.576.242
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

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	26/11/2009
Event Description
Event Details	Verduidelijking van het doel.

Export accounts to CSV file

comparison mode

average

median

Profit & loss

Annual accounts	31-03-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	13		52		52
Currency	EUR		EUR		EUR
Turnover	8,456,798	-62.22	22,384,234	57.88	14,178,440	57,226,257	-85.22
Total operating expenses	8,430,950	-62.05	22,217,408	57.65	14,092,773	56,506,296	-85.08
Operating result	25,848	-84.51	166,826	94.74	85,667	268,938	-90.39
Total financial income	6,896	232	2,077	282	543	170,538	-95.96
Total financial expenses	14,077	-75.86	58,311	18.24	49,316	328,869	-95.72
Results on ordinary operations before taxation	18,668	-83.12	110,592	199	36,893	93,182	-79.97
Taxation	1	-99	5,845	-59.33	14,371	39,042	-99
Results on ordinary operations after taxation	18,667	-82.18	104,747	365	22,523	66,985	-72.13
Extraordinary items	0	-	0	-	0	7,239	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	18,667	-82.18	104,747	365	22,523	74,140	-74.82
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	124,228	-
Employee costs	21,129	-70.63	71,950	-11.52	81,317	155,143	-86.38
Wages and salary	16,366	-72.33	59,158	-9.25	65,189	131,259	-87.53
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	4,763	-60.97	12,204	-22.67	15,782	32,367	-85.28
Other employee costs	0	-100	589	70.39	346	4,362	-100
Amortization and depreciation	4,741	-70.61	16,131	-3.23	16,670	21,200	-77.64

balance sheet

Annual accounts	31-03-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	13		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,824	-100
Tangible fixed assets	545,720	-0.86	550,461	-2.44	564,227	204,619	166
Land & building	528,840	-0.54	531,711	-2.11	543,198	374,278	41.30
Plant & machinery	12,595	-4.79	13,228	-20.81	16,704	27,404	-54.04
Other tangible assets	4,286	-22.38	5,522	27.67	4,325	30,990	-86.17
Financial fixed assets	200	0	200	0	200	303,187	-99
Total fixed assets	545,920	-0.86	550,661	-2.44	564,427	410,117	33.11
Inventories	2,305,284	59.53	1,445,049	13.74	1,270,489	3,360,658	-31.40
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,324	-100
Finished goods	2,305,284	59.53	1,445,049	13.74	1,270,489	2,308,799	-0.15
Other stocks	0	-	0	-	0	464,502	-100
Trade debtors	7,175,530	23.79	5,796,620	95.12	2,970,840	4,234,718	69.45
Cash	351,468	-32.09	517,547	146	210,137	309,075	13.72
other amounts receivable	107,068	17.70	90,964	62.01	56,146	397,807	-73.09
Miscellaneous current assets	2,882	15.45	2,496	26.11	1,980	39,019	-92.61
Total current assets	9,942,232	26.61	7,852,676	74.13	4,509,591	7,786,094	27.69
current liabilities
Trade creditors	7,099,188	41.09	5,031,568	179	1,799,155	2,833,987	150
Short term group loans	-	-	-	-	-	-	-
Other short term loans	49,455	75.01	28,258	-5.41	29,875	2,351,179	-97.90
Miscellaneous current liabilities	47,070	-25.04	62,793	48.43	42,304	-87.80	- -
Total current liabilities	7,195,713	40.47	5,122,618	173	1,871,334	5,455,678	31.89
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	411,621	-1.66	418,567	-6.00	445,279	-72.10	- -
Other long term liabilities	0	-	0	-	0	277,461	-100
Total long term debts	411,621	-1.66	418,567	-6.00	445,279	875,974	-53.01
shareholders equity
Issued share capital	2,670,992	0	2,670,992	0	2,670,992	1,016,715	162
Share premium account	-	-	-	-	-	173,859	-
Reserves	209,826	9.77	191,159	121	86,413	775,790	-72.95
Revaluation reserve	-	-	-	-	-	797,191	-
Total shareholders equity	2,880,818	0.65	2,862,152	3.80	2,757,405	1,817,179	58.53
Working capital	2,746,519	0.60	2,730,058	3.48	2,638,257	2,330,415	17.86
Net worth	2,880,818	0.65	2,862,152	3.80	2,757,405	1,815,355	58.69

ratio analysis

Annual accounts	31-03-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.22	-55.10	0.49	88.46	0.26	-686,00	0.03
Return on capital employed	0.57	-83.09	3.37	193	1.15	-13,00	4.38
Return on total assets employed	0.18	-86.36	1.32	80.82	0.73	-31,00	0.58
Return on net assets employed	0.65	-83.16	3.86	188	1.34	-20,00	3.25
Sales / net working capital	3.08	-62.44	8.20	52.70	5.37	63,00	-99
Stock turnover ratio	27.26	321	6.46	-27.90	8.96	41,00	-33.51
Debtor days	309.70	227	94.52	23.59	76.48	54.449,00	-99
Creditor days	307.34	271	82.66	77.38	46.60	243,00	26.48
short term stability
Current ratio	1.38	-9.80	1.53	-36.51	2.41	4,00	-91.88
Liquidity ratio / acid ratio	1.06	-15.20	1.25	-27.75	1.73	3,00	-64.67
Current debt ratio	2.50	39.66	1.79	163	0.68	17,00	-85.29
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	16.01	2.56	15.61	-9.40	17.23	266,00	-93.98
Equity in percentage	27.47	-19.35	34.06	-37.32	54.34	-1.018,00	2.70
Total debt ratio	2.64	36.08	1.94	130	0.84	18,00	-85.33

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Payment expectations

Payment expectation days	307.34
Day sales outstanding	309.70

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	177.37
Industry average day sales outstanding	110.45

Industry quartile analysis

Payment expectations
Company result	307.34
Lower	126.91
Median	74.09
Upper	41.66


Day sales outstanding
Company result	309.70
Lower	111.91
Median	57.26
Upper	24.94


Company result	307.34
Lower	126.91
Median	74.09
Upper	41.66

Summary

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

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number	476576242
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details


There is no bankruptcy data against this company

Legal events

Legal event type	Social Security Summons
Legal event sub type
Event date	03/10/2011	Secondary event date
Court number		Registry body identfier
Court type	Employment Court	Court name	Antwerpen
3rd party name	Rijksdienst voor Sociale Zekerheid	3rd party type	Summoning Party
3rd party address

Current director details

Former director details

Name	GORABH VINODKUMAR JAIN
Position	Principal Manager
Start Date	29/12/2009
End Date	31/03/2011
Street	122 LANGE HERENTALSESTRAAT 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.

- 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.54.85
UK Pound	1	Rs.88.39
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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