MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	ATISH DIAMOND BVBA
Registered Office :	HOVENIERSSTRAAT 2 BUS 444 ANTWERPEN2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	21.12.1983
Com. Reg. No.:	425026581
Legal Form :	Private Limited Company (BL/LX)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	Not Available

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Belgium	A1	A1

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	425026581	Company name	ATISH DIAMOND BVBA
		Telephone number	0472747888
Address	HOVENIERSSTRAAT 2 BUS 444 ANTWERPEN	Fax number	032252530
Post code	2018	Number of staff	0
Date of establishment	21/12/1983

DIRECTORS/MANAGEMENT

Current director details

Name	HARESH MEHTA
Position	Principal Manager
Street	24 GOUDENREGENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	HARESH MEHTA
Position	Director
Street	24 GOUDENREGENLAAN ANTWERPEN
Post code	2610
Country	Belgium

NEGATIVE INFORMATION

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	28/02/2005

Business number	425026581	Company name	ATISH DIAMOND BVBA
Fax number	032252530	Date founded	21/12/1983
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2011
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0425.026.581
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	30/09/2008
Event Description
Event Details	Uitbreiding doel

NSSO details

Business number	425026581
Name of defendant	ATISH DIAMONDS
Legal form of defendant	Private limited liability company
Date of summons	28/02/2005
Labour court	ANTWERPEN

Bankruptcy details

There is no bankruptcy data against this company

Legal events

Legal event type	Social Security Summons
Legal event sub type
Event date	28/02/2005	Secondary event date
Court number		Registry body identfier
Court type		Court name	ANTWERPEN

SHARE & SHARE CAPITAL INFORMATION

No minority shareholders found

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	74.01
Industry average payment expectation days	181.66	Industry average day sales outstanding	120.19
Day sales outstanding	95.70

Industry comparison

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

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	74.01
Day sales outstanding	95.70

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	181.66
Industry average day sales outstanding	120.19

Industry quartile analysis

Payment expectations
Company result	74.01
Lower	131.84
Median	77.27
Upper	42.51
Day sales outstanding
Company result	95.70
Lower	109.67
Median	57.26
Upper	24.18

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GROUP STRUCTURE & AFFILIATED COMPANIES

No group structure for this company.

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	22,660,754	36,366	2,614,296
31/12/2010	11,779,360	19,946	2,580,939
31/12/2009	12,078,461	12,334	2,563,678

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	11,515,933	1,166	2,268,755	78,671	0
31/12/2010	8,027,534	1,166	2,268,755	1,342,913	0
31/12/2009	7,856,088	1,166	2,268,755	47,986	0

Profit & loss
Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	22660754	92.38	11779360	-2.48	12078461	61306236	-63.04
Total operating expenses	22438709	92.81	11637591	-2.09	11886480	60444769	-62.88
Operating result	222045	56.63	141768	-26.16	191981	314919	-29.49
Total financial income	27	-96.62	804	14.25	704	190895	-99
Total financial expenses	185707	51.44	122627	-32.01	180351	363111	-48.86
Results on ordinary operations before taxation	36366	82.32	19946	61.72	12334	122627	-70.34
Taxation	5120	17.80	4347	28.03	3395	41299	-87.60
Results on ordinary operations after taxation	31245	100	15600	74.51	8939	94646	-66.99
Extraordinary items	1026	122	462	-	0	8393	-87.78
Other appropriations	0	-	0	-	0	-	-
Net result	32271	100	16061	79.68	8939	102931	-68.65
other information
Dividends	-	-	-	-	-	137001	-
Director remuneration	-	-	-	-	-	135024	-
Employee costs	85	179	-47	-100	29566	171474	-99
Wages and salary	-	-	-	-	22689	144195	-
Employee pension costs	-	-	-	-	-	8542	-
Social security contributions	-	-	13	-99	5578	35748	-
Other employee costs	85	141	-60	-104	1300	4875	-98.26
Amortization and depreciation	32053	-5.15	33794	-2.31	34593	21883	46.47

balance sheet
Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	1085	-	2285	2178	-100
Tangible fixed assets	329035	-6.96	353633	-8.44	386226	210450	56.35
Land & building	242735	-1.44	246289	-1.42	249843	380260	-36.17
Plant & machinery	79146	-14.07	92109	-18.05	112390	28666	176
Other tangible assets	7155	-53.04	15235	-36.50	23993	31905	-77.58
Financial fixed assets	1166	0	1166	-0.04	1166	330617	-99
Total fixed assets	330201	-7.22	355883	-8.67	389677	440448	-25.03
Inventories	5160034	-2.68	5302369	46.38	3622427	3541137	45.72
Raw materials & consumables	-	-	-	-	-	3184382	-
Work in progress	0	-	0	-	0	2730	-100
Finished goods	5160034	-2.68	5302369	46.38	3622427	2444947	111
Other stocks	0	-	0	-	0	477920	-100
Trade debtors	5941397	481	1020946	-72.98	3777879	4458659	33.26
Cash	78671	-94.14	1342913	2698	47986	324942	-75.79
other amounts receivable	4036	-13.20	4650	-73.36	17452	441187	-99
Miscellaneous current assets	1594	106	774	15.97	667	44128	-96.39
Total current assets	11185732	45.81	7671651	2.75	7466411	8219985	36.08
current liabilities
Trade creditors	4549736	34.62	3379730	126	1494177	2928933	55.34
Short term group loans	-	-	-	-	-	-	-
Other short term loans	3296687	224	1015445	-58.68	2457395	2519041	30.87
Miscellaneous current liabilities	111507	10.92	100525	1.20	99337	-70.95	- -
Total current liabilities	7957930	77.01	4495700	10.98	4050909	5704619	39.50
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	252000	-10.0	280000	-9.40	309048	-83.77	- -
Other long term liabilities	691707	3.27	669810	-27.99	930168	311155	122
Total long term debts	943707	-0.64	949810	-23.35	1239216	960267	-1.72
shareholders equity
Issued share capital	2268755	0	2268755	0.00	2268755	1093789	107
Share premium account	-	-	-	-	-	173859	-
Reserves	345540	10.30	313269	5.40	297208	824959	-58.11
Revaluation reserve	-	-	-	-	-	759379	-
Total shareholders equity	2614296	1.25	2582024	0.63	2565963	1944855	34.42
Working capital	3227802	1.63	3175951	-7.01	3415502	2515366	28.32
Net worth	2614296	1.29	2580939	0.67	2563678	1942677	34.57
ratio analysis
Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.16	-5.88	0.17	70.0	0.1	1,00	-84.00
Return on capital employed	1.02	82.14	0.56	75.00	0.32	-24,00	4.25
Return on total assets employed	0.32	28.00	0.25	56.25	0.16	-37,00	0.86
Return on net assets employed	1.39	80.52	0.77	60.42	0.48	-34,00	4.09
Sales / net working capital	7.02	89.22	3.71	4.80	3.54	62,00	-99
Stock turnover ratio	22.77	-49.41	45.01	50.08	29.99	42,00	-45.79
Debtor days	95.7	202	31.64	-72.28	114.16	116,00	-17.50
Creditor days	74.01	-30.18	106	131	45.88	120,00	-38.32
short term stability
Current ratio	1.41	-17.54	1.71	-7.07	1.84	4,00	-92.58
Liquidity ratio / acid ratio	0.76	43.40	0.53	-44.21	0.95	3,00	-74.67
Current debt ratio	3.04	74.71	1.74	10.13	1.58	19,00	-84.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	135.74	170	50.17	-53.46	107.81	307,00	-55.79
Equity in percentage	22.7	-29.44	32.17	-1.53	32.67	-1.190,00	1.91
Total debt ratio	3.4	61.14	2.11	2.43	2.06	20,00	-83.00

FOREIGN EXCHANGE RATES

N/a

NOTES & COMMENTS

N/a

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.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.78

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%)

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