MIRA INFORM REPORT

Report Date :

20.06.2012

IDENTIFICATION DETAILS

Name :	VEEDIAM BVBA
Registered Office :	Hoveniersstraat 30 Bus 194 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2010
Date of Incorporation :	04.06.2004
Com. Reg. No.:	865620278
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	1

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Belgium	A1	A1

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	865620278	Company name	VEEDIAM BVBA
		Telephone number	032270360
Address	HOVENIERSSTRAAT 30 BUS 194 ANTWERPEN	Fax number	032250360
Post code	2018	Number of staff	1
Date of establishment	04/06/2004

DIRECTORS/MANAGEMENT

Current director details

Name	PRAKASH BHAGWANBHAI PATEL
Position	Principal Manager
Street	7 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Business number	865620278	Company name	VEEDIAM BVBA
Fax number	032250360	Date founded	04/06/2004
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.0865.620.278
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number	865620278
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

Na

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	32.27
Industry average payment expectation days	190.37	Industry average day sales outstanding	142.95
Day sales outstanding	88.52

Payment expectations

Payment expectation days	32.27
Day sales outstanding	88.52

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	190.37
Industry average day sales outstanding	142.95

Industry quartile analysis

Payment expectations
Company result	32.27
Lower	134.01
Median	89.39
Upper	46.72
Day sales outstanding
Company result	88.52
Lower	115.33
Median	59.30
Upper	27.27

GROUP STRUCTURE & AFFILIATED COMPANIES

Na

FINANCIAL INFORMATION

Accounts & Ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2010	57,435,657	106,996	2,930,370
31/12/2009	46,515,825	88,231	1,059,975
31/12/2008	41,191,224	86,241	996,890

Accounts & Ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2010	19,116,696	564	2,611,663	1,040,247	1
31/12/2009	17,018,729	523	855,335	155,202	1
31/12/2008	15,452,192	523	855,335	231,780	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	57,435,657	23.48	46,515,825	12.93	41,191,224	46,617,247	23.21
Total operating expenses	57,010,454	23.44	46,183,598	13.65	40,636,183	46,014,303	23.90
Operating result	425,203	27.99	332,227	-40.14	555,041	210,576	101
Total financial income	65,228	17171	378	-86.91	2,886	156,852	-58.41
Total financial expenses	383,435	56.91	244,373	-48.19	471,685	309,724	23.80
Results on ordinary operations before taxation	106,996	21.27	88,231	2.31	86,241	41,326	158
Taxation	10,668	-63.26	29,040	24.59	23,308	15,181	-29.73
Results on ordinary operations after taxation	96,328	62.74	59,191	-5.95	62,933	31,025	210
Extraordinary items	399	-84.91	2,644	-	0	2,678	-85.10
Other appropriations	0	-	0.00	-	0	-	-
Net result	96,727	56.43	61,835	-1.74	62,933	33,700	187
other information
Dividends	-	-	-	-	-	326,298	-
Director remuneration	-	-	-	-	-	113,424	-
Employee costs	27,946	23.10	22,701	10.40	20,563	144,880	-80.71
Wages and salary	23,176	26.63	18,301	-0.01	18,304	127,392	-81.81
Employee pension costs	-	-	-	-	-	7,164	-
Social security contributions	4,468	23.48	3,618	74.38	2,075	30,947	-85.56
Other employee costs	302	-61.35	781	324	184	3,136	-90.37
Amortization and depreciation	19,616	5.66	18,566	-2.20	18,984	21,827	-10.13

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	1,745	-	2,869	-	4,119	1,696	2.89
Tangible fixed assets	221,983	0.22	221,504	-7.11	238,456	193,909	14.48
Land & building	183,945	4.51	176,007	-2.97	181,402	359,916	-48.89
Plant & machinery	37,055	-3.76	38,504	-12.48	43,995	27,328	35.59
Other tangible assets	983	-85.94	6,993	-46.45	13,059	27,378	-96.41
Financial fixed assets	564	7.84	523	0	523	313,719	-99
Total fixed assets	224,292	-0.27	224,895	-7.49	243,098	407,080	-44.90
Inventories	3,862,464	197	1,299,380	-52.09	2,712,056	3,151,100	22.58
Raw materials & consumables	-	-	-	-	-	2,393,499	-
Work in progress	0	-	0	-	0	2,060	-100
Finished goods	3,862,464	197	1,299,380	-52.09	2,712,056	2,081,218	85.59
Other stocks	0	-	0	-	0	521,276	-100
Trade debtors	13,929,126	-9.15	15,332,194	25.14	12,251,712	3,850,118	261
Cash	1,040,247	570	155,202	-33.04	231,780	265,184	292
other amounts receivable	54,894	1955	2,670	-70.53	9,060	368,698	-85.11
Miscellaneous current assets	5,673	29.26	4,389	-2.16	4,486	42,648	-86.70
Total current assets	18,892,404	12.50	16,793,834	10.42	15,209,094	7,148,400	164
current liabilities
Trade creditors	5,040,815	-22.31	6,488,258	42.46	4,554,338	2,702,449	86.53
Short term group loans	-	-	-	-	-	-	-
Other short term loans	7,102,705	30.62	5,437,687	-23.63	7,120,442	1,923,880	269
Miscellaneous current liabilities	105,569	116	48,700	-97.73	2,145,420	126	- -
Total current liabilities	12,249,089	2.29	11,974,645	-13.35	13,820,200	4,436,553	176
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	3,625,807	98.79	1,823,948	1271	133,031	130	- -
Other long term liabilities	309,685	-85.64	2,157,293	333	497,952	717,640	-56.85
Total long term debts	3,935,492	-1.15	3,981,241	530	630,983	1,348,729	191
shareholders equity
Issued share capital	2,611,663	205	855,335	0.00	855,335	1,026,735	154
Share premium account	-	-	-	-	-	183,372	-
Reserves	320,452	54.43	207,509	42.45	145,674	681,260	-52.96
Revaluation reserve	-	-	-	-	-	715,893	-
Total shareholders equity	2,932,115	175	1,062,844	6.18	1,001,009	1,725,757	69.90
Working capital	6,643,315	37.85	4,819,189	246	1,388,894	2,711,847	144
Net worth	2,930,370	176	1,059,975	6.33	996,890	1,724,061	69.97

Ratio Analysis

Annual accounts	31-12-2010	change(%)	31-12-2009	change(%)	31-12-2008	Industry average 2010	%
Trading performance
Profit Before Tax	0.19	0	0.19	-9.52	0.21	-2,00	9.50
Return on capital employed	1.56	-10.86	1.75	-66.86	5.28	17,00	-90.82
Return on total assets employed	0.56	7.69	0.52	-7.14	0.56	-78,00	0.72
Return on net assets employed	3.65	-56.02	8.30	-3.71	8.62	19,00	-80.79
Sales / net working capital	8.65	-10.36	9.65	-67.46	29.66	35,00	-99
Stock turnover ratio	6.72	140	2.79	-57.60	6.58	67,00	-89.97
Debtor days	88.52	-26.42	120.31	10.82	108.56	168,00	-47.31
Creditor days	32.27	-37.07	51.28	25.35	40.91	174,00	-81.45
short term stability
Current ratio	1.54	10.0	1.40	27.27	1.10	8,00	-80.75
Liquidity ratio / acid ratio	1.23	-4.65	1.29	43.33	0.90	5,00	-75.40
Current debt ratio	4.18	-62.91	11.27	-18.39	13.81	8,00	-47.75
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	365.90	-46.45	683.23	-5.71	724.62	122,00	199
Equity in percentage	15.34	145	6.25	-3.55	6.48	-1.496,00	1.03
Total debt ratio	5.52	-63.22	15.01	3.95	14.44	9,00	-38.67

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

Personnel limit NSSO

Code	-
Description	-

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	08/12/2005
Event Description	proposal to change address filed
Event Details	Commentaar 08-12-2005: Overbrenging maatschappelijke zetel naar Hoveniersstraat 30 bus 194 te 2018 Antwerpen vanaf 01/01/2006.

Event Date	05/05/2008
Event Details	Verbeterde akte: Het maatschappelijk kapitaal is verhoogd tot 855335 door opname uit de reserves.

NOTES & COMMENTS

Na

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.56.01
UK Pound	1	Rs.87.85
Euro	1	Rs.70.54

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.