MIRA INFORM REPORT

Report Date :

19.06.2012

IDENTIFICATION DETAILS

Name :	BRILLIANT GEMS NV

Registered Office :	Hoveniersstraat 2 Bus 619 Antwerpen 2018

Country :	Belgium

Financials (as on) :	31.12.2010

Date of Incorporation :	17.07.1981

Com. Reg. No.:	421690771

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	3

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 :	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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

Business number		421690771	Company name	BRILLIANT GEMS NV
Telephone number	032341888
Address		HOVENIERSSTRAAT 2 BUS 619 ANTWERPEN	Fax number	032253118
Post code		2018	Number of staff	3
Date of establishment		17/07/1981

Business number	421690771	Company name	BRILLIANT GEMS NV
Fax number	032253118	Date founded	17/07/1981
Company status	active	Company type	Public Limited Liability Company (BE)
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.0421.690.771
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	MODY, MITESH
Position	Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	MITESH PIYUSH MODY
Position	Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	PIUSCH MODY
Position	Managing Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	PIUSCH MODY
Position	Chairman of the Board
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	PIUSCH MODY
Position	Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	KHUNT, PANKAJ
Position	Director
Street
Post code
Country	Hong Kong

Name	PANKAJKUMAR KHUNT
Position	Director
Street	11 TOWER 12A LAGUNA VERDE
Post code	636741
Country	Hong Kong

Former director details

Name	MAFATLAL MODY PIYUSH
Position	Managing Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	PIYUSH MODY MITESH
Position	Director
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	PIUSCH MODY
Position	Principal Manager
Street	50 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Personnel limit NSSO

Code	-
Description	FROM 5 TO 9 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

NSSO details

Business number

421690771

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	11.59
Industry average payment expectation days	190.92	Industry average day sales outstanding	142.94
Day sales outstanding	67.09

Payment expectations

Payment expectation days	11.59
Day sales outstanding	67.09

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

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	133,381,663	704,178	6,589,477
31/12/2009	71,605,687	539,901	6,346,203
31/12/2008	152,528,468	488,262	6,215,111

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2010	32,090,642		925,000	58,819	3
31/12/2009	24,458,119		925,000	315,854	5
31/12/2008	24,327,149		925,000	58,306	8

Trends

Profitability
Liquidity
Net worth

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	133,381,663	86.27	71,605,687	-53.05	152,528,468	46,617,247	186
Total operating expenses	132,469,206	87.23	70,752,092	-52.72	149,631,907	46,014,303	187
Operating result	912,457	6.90	853,595	-70.53	2,896,561	210,576	333
Total financial income	6,160,680	97.29	3,122,666	-69.46	10,223,956	156,852	3827
Total financial expenses	6,368,959	85.34	3,436,361	-72.80	12,632,255	309,724	1956
Results on ordinary operations before taxation	704,178	30.43	539,901	10.58	488,262	41,326	1603
Taxation	79,092	339	18,000	35.31	13,303	15,181	420
Results on ordinary operations after taxation	625,085	19.77	521,900	9.88	474,959	31,025	1914
Extraordinary items	3,188	54.89	-5,808	23.25	-24,979	2,678	19.06
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	628,274	21.74	516,092	14.69	449,980	33,700	1764
other information
Dividends	-	-	-	-	-	326,298	-
Director remuneration	-	-	-	-	-	113,424	-
Employee costs	139,758	-22.37	180,026	-29.48	255,281	144,880	-3.54
Wages and salary	106,888	-27.62	147,680	-25.44	198,076	127,392	-16.10
Employee pension costs	-	-	-	-	-	7,164	-
Social security contributions	28,455	-25.92	38,410	-23.42	50,158	30,947	-8.05
Other employee costs	4,415	72.81	-6,064	-186	7,046	3,136	40.79
Amortization and depreciation	72,618	6.11	68,439	4.42	65,542	21,827	232

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	1,696	-100
Tangible fixed assets	696,985	-3.57	722,807	-3.37	747,988	193,909	259
Land & building	607,991	-8.84	666,967	-5.85	708,400	359,916	68.93
Plant & machinery	51,988	50.73	34,490	-4.80	36,230	27,328	90.24
Other tangible assets	37,006	73.34	21,349	535	3,358	27,378	35.17
Financial fixed assets	-	-	-	-	-	313,719	-
Total fixed assets	696,985	-3.57	722,807	-3.37	747,988	407,080	71.22
Inventories	6,801,078	6.60	6,379,834	-41.04	10,821,016	3,151,100	115
Raw materials & consumables	-	-	-	-	-	2,393,499	-
Work in progress	0	-	0	-	0	2,060	-100
Finished goods	6,801,078	6.60	6,379,834	-41.04	10,821,016	2,081,218	226
Other stocks	0	-	0	-	0	521,276	-100
Trade debtors	24,515,861	44.08	17,015,288	34.09	12,689,911	3,850,118	536
Cash	58,819	-81.38	315,854	441	58,306	265,184	-77.82
other amounts receivable	12,996	34.45	9,666	66.86	5,793	368,698	-96.48
Miscellaneous current assets	4,904	-66.57	14,670	254	4,135	42,648	-88.50
Total current assets	31,393,657	32.27	23,735,312	0.66	23,579,161	7,148,400	339
current liabilities
Trade creditors	4,205,278	4.15	4,037,872	-65.69	11,768,698	2,702,449	55.61
Short term group loans	-	-	-	-	-	-	-
Other short term loans	18,018,817	62.07	11,118,213	235	3,315,432	1,923,880	836
Miscellaneous current liabilities	604,897	-30.74	873,365	8.37	805,940	723	- -
Total current liabilities	22,828,992	42.42	16,029,450	0.88	15,890,070	4,436,553	414
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	427,000	-	-	-	66,796	-72.88	- -
Other long term liabilities	2,245,173	7.81	2,082,466	-3.37	2,155,172	717,640	212
Total long term debts	2,672,173	28.32	2,082,466	-6.28	2,221,968	1,348,729	98.13
shareholders equity
Issued share capital	925,000	0	925,000	0	925,000	1,026,735	-9.91
Share premium account	-	-	-	-	-	183,372	-
Reserves	5,664,477	4.49	5,421,203	2.48	5,290,111	681,260	731
Revaluation reserve	-	-	-	-	-	715,893	-
Total shareholders equity	6,589,477	3.83	6,346,203	2.11	6,215,111	1,725,757	281
Working capital	8,564,665	11.14	7,705,862	0.22	7,689,091	2,711,847	215
Net worth	6,589,477	3.83	6,346,203	2.11	6,215,111	1,724,061	282

Ratio Analysis

Annual accounts	31-12-2010	change(%)	31-12-2009	change(%)	31-12-2008	Industry average 2010	%
Trading performance
Profit Before Tax	0.53	-29.33	0.75	134	0.32	-2,00	26.50
Return on capital employed	7.60	18.56	6.41	10.71	5.79	17,00	-55.29
Return on total assets employed	2.19	-0.90	2.21	9.95	2.01	-78,00	2.81
Return on net assets employed	10.69	25.62	8.51	8.27	7.86	19,00	-43.74
Sales / net working capital	15.57	67.60	9.29	-53.18	19.84	35,00	-99
Stock turnover ratio	5.10	-42.76	8.91	25.67	7.09	67,00	-92.39
Debtor days	67.09	-22.64	86.73	185	30.37	168,00	-60.07
Creditor days	11.59	-44.36	20.83	-27.45	28.71	174,00	-93.34
short term stability
Current ratio	1.38	-6.76	1.48	0	1.48	8,00	-82.75
Liquidity ratio / acid ratio	1.08	0	1.08	35.00	0.80	5,00	-78.40
Current debt ratio	3.46	36.76	2.53	-1.17	2.56	8,00	-56.75
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	279.93	59.79	175.19	221	54.42	122,00	129
Equity in percentage	20.53	-20.89	25.95	1.57	25.55	-1.496,00	1.37
Total debt ratio	3.87	35.79	2.85	-2.06	2.91	9,00	-57.00

FOREIGN EXCHANGE RATES

ADDITIONAL INFORMATION

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	190.92
Industry average day sales outstanding	142.94

Industry quartile analysis

Payment expectations
Company result	11.59
Lower	133.90
Median	89.16
Upper	46.72

Day sales outstanding
Company result	67.09
Lower	115.33
Median	59.30
Upper	27.27

NOTES & COMMENTS

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.55.59
UK Pound	1	Rs.87.34
Euro	1	Rs.70.66

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.