MIRA INFORM REPORT

Report Date :

21.02.2012

IDENTIFICATION DETAILS

Name :	MIKISA GEMS BVBA

Registered Office :	Hoveniersstraat 30 Antwerpen, Zip Code 2018

Country :	Belgium

Financials (as on) :	31.12.2010

Date of Incorporation :	07.09.2000

Com. Reg. No.:	472800368

Legal Form :	Private Limited Company

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Unknown
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

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

REGISTERED NAME & COMPANY SUMMARY

MIKISA GEMS BVBA

Business number	472800368	Company name	MIKISA GEMS BVBA
Safe number	BE00446908	Telephone number	032260957
Address	HOVENIERSSTRAAT 30 ANTWERPEN	Fax number	-
Post code	2018	Number of staff	-
Date of establishment	07/09/2000
Business number	472800368	Company name	MIKISA GEMS BVBA
Fax number	-	Date founded	07/09/2000
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2010
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0472.800.368
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	SHILPABEN BIPINKUMAR SASPARA
Position	Principal Manager
Street	47 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	BIPINKUMAR DJANJIBHAI SASPARA
Position	Principal Manager
Street	47 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	NILESH BABUBAL SHAN
Position	Principal Manager
Street	22 ADRIAAN WILLAERTSTRAAT EDEGEM
Post code	2650
Country	Belgium

NEGATIVE INFORMATION

Protested bills

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

NSSO details

Business number	472800368
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

Court data summary

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

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	-

Joint Industrial Committee (JIC)

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average

median

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	-
Day sales outstanding	-

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	189	Industry average day sales outstanding	143.21
Day sales outstanding	-

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

Safe number	Company name		Company Number
-	-		-

Summary

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

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2010		35,225	293,723
31/12/2009		4,654	258,473
31/12/2008		11,971	254,189

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2010	3,164,358		219,000	361,275	0
31/12/2009	3,006,666		219,000	3,664	0
31/12/2008	3,363,998		219,000	18,985	0

Profit & loss

Annual accounts	31-12-2010	%	31-12-2009	%	31-12-2008	Industry average 2010	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	47,017,214	-
Total operating expenses	-	-	-	-	-	46,418,900	-
Operating result	66,504	167	24,849	-57.12	57,944	208,541	-68.11
Total financial income	31	-21.62	39	-75.47	159	154,352	-99
Total financial expenses	31,310	54.74	20,234	-56.14	46,132	304,027	-89.70
Results on ordinary operations before taxation	35,225	656	4,654	-61.12	11,971	42,656	-17.42
Taxation	6,586	1684	369	-57.97	878	15,443	-57.35
Results on ordinary operations after taxation	28,638	568	4,285	-61.37	11,093	32,187	-11.03
Extraordinary items	6,612	-	0	-100	904	9,739	-32.11
Other appropriations	0.00	-	0	-	0	-	-
Net result	35,250	722	4,285	-64.28	11,997	41,923	-15.92
other information
Dividends	-	-	-	-	-	326,298	-
Director remuneration	-	-	-	-	-	113,424	-
Employee costs	-	-	-	-	-	143,868	-
Wages and salary	-	-	-	-	-	126,514	-
Employee pension costs	-	-	-	-	-	7,164	-
Social security contributions	-	-	-	-	-	30,693	-
Other employee costs	0	-	0	-	0	3,189	-100
Amortization and depreciation	4,368	-25.05	5,827	0.47	5,800	20,804	-79.01

Balance Sheet

Annual accounts	31-12-2010	%	31-12-2009	%	31-12-2008	Industry average 2010	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,700	-100
Tangible fixed assets	34,878	913	3,440	-59.46	8,485	194,061	-82.03
Land & building	-	-	-	-	-	361,124	-
Plant & machinery	977	15.02	849	-53.56	1,828	26,295	-96.29
Other tangible assets	33,902	1208	2,591	-61.08	6,657	27,426	23.61
Financial fixed assets	-	-	-	-	-	309,211	-
Total fixed assets	34,878	913	3,440	-59.46	8,485	404,851	-91.38
Inventories	1,309,300	-39.01	2,146,760	12.34	1,910,983	3,035,941	-56.87
Raw materials & consumables	-	-	-	-	-	2,393,499	-
Work in progress	0	-	0	-	0	2,088	-100
Finished goods	0	-	0	-	0	2,002,221	-100
Other stocks	1,309,300	-39.01	2,146,760	12.34	1,910,983	513,417	155
Trade debtors	1,288,458	70.28	756,676	-42.86	1,324,332	3,856,687	-66.59
Cash	361,275	9760	3,664	-80.70	18,985	267,817	34.90
other amounts receivable	166,639	78.07	93,579	-4.02	97,502	335,873	-50.39
Miscellaneous current assets	3,809	49.53	2,547	-31.37	3,711	40,485	-90.59
Total current assets	3,129,480	4.20	3,003,226	-10.50	3,355,513	7,035,740	-55.52
current liabilities
Trade creditors	1,714,976	61.23	1,063,670	-38.98	1,743,126	2,678,241	-35.97
Short term group loans	-	-	-	-	-	-	-
Other short term loans	166,159	-73.98	638,563	126	281,904	1,912,866	-91.31
Miscellaneous current liabilities	965,482	-7.69	1,045,960	-3.58	1,084,779	1051	- -
Total current liabilities	2,846,617	3.58	2,748,193	-11.63	3,109,809	4,390,276	-35.16
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	24,018	-	-	-	-	-98.36	- -
Other long term liabilities	0	-	0	-	0	720,494	-100
Total long term debts	24,018	-	0	-	0	1,307,950	-98.16
shareholders equity
Issued share capital	219,000	0	219,000	0	219,000	966,077	-77.33
Share premium account	-	-	-	-	-	183,372	-
Reserves	74,723	89.30	39,473	12.17	35,189	713,314	-89.52
Revaluation reserve	-	-	-	-	-	715,893	-
Total shareholders equity	293,723	13.64	258,473	1.69	254,189	1,698,297	-82.70
Working capital	282,863	10.91	255,033	3.80	245,704	2,645,464	-89.31
Net worth	293,723	13.64	258,473	1.69	254,189	1,696,597	-82.69

Ratio Analysis

Annual accounts	31-12-2010	change(%)	31-12-2009	change(%)	31-12-2008	Industry average 2010	%
Trading performance
Profit Before Tax	-	-	-	-	-	-1,00	-
Return on capital employed	11.09	516	1.80	-61.78	4.71	18,00	-38.39
Return on total assets employed	1.11	640	0.15	-58.33	0.36	-79,00	1.41
Return on net assets employed	11.99	566	1.80	-61.78	4.71	18,00	-33.39
Sales / net working capital	-	-	-	-	-	36,00	-
Stock turnover ratio	-	-	-	-	-	64,00	-
Debtor days	-	-	-	-	-	164,00	-
Creditor days	-	-	-	-	-	162,00	-
short term stability
Current ratio	1.10	0.92	1.09	0.93	1.08	8,00	-87.78
Liquidity ratio / acid ratio	0.64	106	0.31	-32.61	0.46	5,00	-87.20
Current debt ratio	9.69	-8.84	10.63	-13.08	12.23	9,00	7.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	64.75	-73.79	247.05	122	110.90	150,00	-56.83
Equity in percentage	9.28	7.91	8.60	13.76	7.56	-1.515,00	0.61
Total debt ratio	9.77	-8.09	10.63	-13.08	12.23	9,00	8.56

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.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

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.