MIRA INFORM REPORT

Report Date :

27.11.2012

IDENTIFICATION DETAILS

Name :	EUROSTAR DIAMOND TRADERS NV

Registered Office :	Hoveniersstraat 53 Bus 79/8ve Antwerpen 2018

Country :	Belgium

Financials (as on) :	31.12.2010

Date of Incorporation :	21.03.1991

Com. Reg. No.:	443117279

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	41

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 :	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

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		443117279	Company name	EUROSTAR DIAMOND TRADERS NV
Telephone number	032253211
Address		HOVENIERSSTRAAT 53 BUS 79/8VE ANTWERPEN	Fax number	032137799
Post code		2018	Number of staff	41
Date of establishment		21/03/1991

Business number	443117279	Company name	EUROSTAR DIAMOND TRADERS NV
Fax number	032137799	Date founded	21/03/1991
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.0443.117.279
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	RAJ PRAVIN KOTHARI
Position	Director
Date of birth	20/05/1966
Street	97 INGENIEUR HAESAERTSLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	KAUSHIK KIRTILAL MEHTA
Position	Managing Director
Street	25 EEKHOORNLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	KAUSHIK KIRTILAL MEHTA
Position	Director
Street	25 EEKHOORNLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHISH PRAVIN KOTHARI
Position	Managing Director
Street	7 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHISH PRAVIN KOTHARI
Position	Director
Street	7 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Chairman of the Board
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Managing Director
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Director
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	KUNAL MEHTA
Position	Director
Street
Post code
Country

NEGATIVE INFORMATION

Court data summary

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

Joint Industrial Committee (JIC)

Significant Events

Event Date	22/12/2011
Event Description
Event Details	Omzetting aandelen aan toonder naar aandelen op naam.

NSSO details

Business number	443117279
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	Fragmentation
Legal event sub type
Event date	10/04/2008	Secondary event date
3rd party name	Dimexon Antwerp	3rd party type	Absorbing Company
3rd party address	Hoveniersstraat, 53 Antwerpen 2018

Legal event type	Fragmentation
Legal event sub type
Event date	10/04/2008	Secondary event date
3rd party name	Eurostar Diamond Traders	3rd party type	Fragmented Company
3rd party address	Hoveniersstraat, 53 Antwerpen 2018

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

Business number	Company name		%	Date of accounts
347532632	EUROSTARS FRANCE		25	31/12/2010

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	16.88
Industry average payment expectation days	190.92	Industry average day sales outstanding	142.94
Day sales outstanding	42.72

Payment expectations

Payment expectation days	16.88
Day sales outstanding	42.72

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	1,554,834,961	-2,650,299	224,131,675
31/12/2009	1,250,879,504	4,132,425	210,212,322
31/12/2008	1,480,479,818	8,698,760	211,612,843

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2010	499,917,569	63,697,219	123,486,000	1,272,395	41
31/12/2009	463,692,604	71,149,993	114,543,000	664,427	41
31/12/2008	513,871,575	58,853,747	118,552,500	12,125,545	46

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	1,554,834,961	24.30	1,250,879,504	-15.51	1,480,479,818	46,617,247	3235
Total operating expenses	1,510,208,972	22.67	1,231,160,071	-15.56	1,457,964,003	46,014,303	3182
Operating result	44,625,989	126	19,719,433	-12.42	22,515,815	210,576	21092
Total financial income	3,611,610	33.42	2,706,976	-56.98	6,292,442	156,852	2202
Total financial expenses	50,887,898	178	18,293,985	-9.03	20,109,497	309,724	16330
Results on ordinary operations before taxation	-2,650,299	-164	4,132,425	-52.49	8,698,760	41,326	-6513
Taxation	6	-99	607,372	-54.78	1,343,033	15,181	-99
Results on ordinary operations after taxation	-2,650,305	-175	3,525,053	-52.08	7,355,727	31,025	-8642
Extraordinary items	114,307	-95.32	2,441,120	-	0	2,678	4168
Other appropriations	0	-	0	-	0	-	-
Net result	-2,535,998	-142	5,966,173	-18.89	7,355,727	33,700	-7625
other information
Dividends	-	-	-	-	-	326,298	-
Director remuneration	-	-	-	-	-	113,424	-
Employee costs	3,036,521	-3.06	3,132,498	-4.26	3,271,918	144,880	1995
Wages and salary	2,089,088	-9.61	2,311,265	-0.15	2,314,754	127,392	1539
Employee pension costs	-	-	-	-	-	7,164	-
Social security contributions	749,957	16.22	645,307	2.21	631,335	30,947	2323
Other employee costs	197,476	12.25	175,925	-46.01	325,828	3,136	6197
Amortization and depreciation	342,234	9.11	313,672	-28.15	436,573	21,827	1467

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	18,795	-	57,248	-	124,038	1,696	1008
Tangible fixed assets	5,021,684	13.61	4,420,060	-18.03	5,392,189	193,909	2489
Land & building	4,288,659	5.34	4,071,355	-20.77	5,138,443	359,916	1091
Plant & machinery	362,220	67.16	216,690	113	101,452	27,328	1225
Other tangible assets	370,805	180	132,015	-13.32	152,294	27,378	1254
Financial fixed assets	63,697,219	-10.47	71,149,993	20.89	58,853,747	313,719	20203
Total fixed assets	68,737,698	-9.11	75,627,301	17.49	64,369,974	407,080	16785
Inventories	186,061,959	13.86	163,414,797	-3.88	170,013,240	3,151,100	5804
Raw materials & consumables	-	-	-	-	-	2,393,499	-
Work in progress	0	-	0	-	0	2,060	-100
Finished goods	186,061,959	13.86	163,414,797	-3.88	170,013,240	2,081,218	8840
Other stocks	0	-	0	-	0	521,276	-100
Trade debtors	181,977,376	8.06	168,400,840	-14.42	196,766,481	3,850,118	4626
Cash	1,272,395	91.50	664,427	-94.52	12,125,545	265,184	379
other amounts receivable	60,814,393	11.14	54,717,552	-20.93	69,203,980	368,698	16394
Miscellaneous current assets	1,053,748	21.44	867,687	-37.68	1,392,355	42,648	2370
Total current assets	431,179,871	11.11	388,065,303	-13.67	449,501,601	7,148,400	5931
current liabilities
Trade creditors	69,837,352	-1.76	71,088,213	-49.81	141,634,952	2,702,449	2484
Short term group loans	-	-	-	-	-	-	-
Other short term loans	195,736,245	15.86	168,944,664	14.50	147,550,973	1,923,880	10074
Miscellaneous current liabilities	2,706,056	-39.72	4,488,819	29.21	3,474,124	3238	- -
Total current liabilities	268,279,653	9.72	244,521,696	-16.45	292,660,049	4,436,553	5947
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	6,644,747	-18.16	8,119,669	-4.36	8,489,786	322	- -
Other long term liabilities	842,699	7.81	781,669	-20.63	984,859	717,640	17.43
Total long term debts	7,487,446	-15.88	8,901,338	-6.05	9,474,645	1,348,729	455
shareholders equity
Issued share capital	123,486,000	7.81	114,543,000	-3.38	118,552,500	1,026,735	11927
Share premium account	-	-	-	-	-	183,372	-
Reserves	100,664,470	5.16	95,726,570	3.04	92,902,398	681,260	14676
Revaluation reserve	-	-	-	-	281,983	715,893	-
Total shareholders equity	224,150,470	6.60	210,269,570	-0.69	211,736,881	1,725,757	12888
Working capital	162,900,218	13.48	143,543,607	-8.48	156,841,552	2,711,847	5906
Net worth	224,131,675	6.62	210,212,322	-0.66	211,612,843	1,724,061	12900

Ratio Analysis

Annual accounts	31-12-2010	change(%)	31-12-2009	change(%)	31-12-2008	Industry average 2010	%
Trading performance
Profit Before Tax	-0.17	-151	0.33	-44.07	0.59	-2,00	8.50
Return on capital employed	-1.14	-160	1.89	-51.91	3.93	17,00	-106
Return on total assets employed	-0.53	-159	0.89	-47.34	1.69	-78,00	0.68
Return on net assets employed	-1.18	-159	1.97	-52.07	4.11	19,00	-106
Sales / net working capital	9.54	9.53	8.71	-7.73	9.44	35,00	-99
Stock turnover ratio	11.97	-8.35	13.06	13.76	11.48	67,00	-82.13
Debtor days	42.72	-13.06	49.14	1.30	48.51	168,00	-74.57
Creditor days	16.88	-19.92	21.08	-40.55	35.46	174,00	-90.30
short term stability
Current ratio	1.61	1.26	1.59	3.25	1.54	8,00	-79.88
Liquidity ratio / acid ratio	0.91	-1.09	0.92	-3.16	0.95	5,00	-81.80
Current debt ratio	1.20	3.45	1.16	-15.94	1.38	8,00	-85.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	90.29	7.22	84.21	14.26	73.70	122,00	-25.99
Equity in percentage	44.84	-1.12	45.35	10.05	41.21	-1.496,00	3.00
Total debt ratio	1.23	1.65	1.21	-15.38	1.43	9,00	-86.33

FOREIGN EXCHANGE RATES

ADDITIONAL INFORMATION

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones

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	16.88
Lower	133.90
Median	89.16
Upper	46.72

Day sales outstanding
Company result	42.72
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.55.69
UK Pound	1	Rs.89.19
Euro	1	Rs.72.10

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%)

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.