MIRA INFORM REPORT

Report Date :

09.10.2012

IDENTIFICATION DETAILS

Name :	DIVINE GEMS BVBA

Registered Office :	Hoveniersstraat 30 Bus 122 Antwerp, Post Code 2018

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	24.07.2002

Com. Reg. No.:	478160609

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 :	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

(31.03.2012)

Current Rating

(30.06.2012)

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

Company name & address

Business number 478160609

Company name DIVINE GEMS BVBA

Telephone number 0475850658

Address HOVENIERSSTRAAT 30 BUS 122 ANTWERP

Post code 2018

Fax number -

Number of staff 0

Date of establishment 24/07/2002

Accounts & ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH
31/12/2011	12,782,838	26,128	136,393
31/12/2010		28,953	118,763
31/12/2009		26,973	98,842

Accounts & ratios

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	INVESTMENTS	CAPITAL	CASH FLOW	NUMBER OF EMPLOYEES
31/12/2011	8,362,957		18,600	173,041	0
31/12/2010	3,820,870		18,600	234,493	0
31/12/2009	2,829,853		18,600	36,204	0

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	234.78
Industry average payment	178.38	Industry average day sales	119.22
Expectation days		Outstanding
Day sales outstanding	152.75

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Business number 478160609

Company name DIVINE GEMS BVBA

Fax number –

Date founded 24/07/2002

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.0478.160.609

Belgian Bullettin of Acts

Publications moniteur belge

Contractor details
Registered contractor number	-
Contractor description	-
Date struck off register
Personnel limit NSSO
Code	-
Description	-

Joint Industrial Committee (JIC)

Export accounts to CSV file

Comparison Mode

· average

median

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	12,782,838	-	-	-	-	58,703,071	-78.22
Total operating expenses	12,749,517	-	-	-	-	57,894,190	-77.98
Operating result	33,321	5.25	31,660	-7.24	34,131	296,729	-88.77
Total financial income	20	-97.88	947	1913	47	178,510	-99
Total financial expenses	7,214	97.40	3,654	-49.28	7,205	342,855	-97.90
Results on ordinary operations before taxation	26,128	-9.76	28,953	7.34	26,973	114,306	-77.14
Taxation	8,498	-5.91	9,032	-31.18	13,124	39,178	-78.31
Results on ordinary operations after taxation	17,630	-11.50	19,921	43.84	13,849	87,780	-79.92
Extraordinary items	0	-	0	-	0	7,986	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	17,630	-11.50	19,921	43.84	13,849	95,668	-81.57
Other information
Dividends	--	-	-	-	-	137001	-
Director remuneration	-	-	-	-	-	128104	-
EMPLOYEES COSTS	-	-	-	-	-	160652	-
Wages and salary	-	-	-	-	-	135,760	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	33,607	-
Other employee costs	0	-	0	-	0	4,602	-100
Amortization and depreciation	6830	85.85	675	540	574	21066	-67.58

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	-	0	-	0	2,025	-100
Tangible fixed assets	28,660	-6.88	30,778	1232	2,309	203,087	-85.89
Land & building	-	-	-	-	-	375,806	-
Plant & machinery	10,878	22.34	8,892	285	2,309	27,985	-61.13
Other tangible assets	17,782	-18.75	21,886	-	0	30,618	-41.92
Financial fixed assets	-	-	-	-	-	317,446	-
Total fixed assets	28,660	-6.88	30,778	1232	2,309	419,812	-93.17
Inventories	2,798,195	140	1,161,862	20.40	965,002	3,442,463	-18.72
Raw materials & consumables	-	-	-	-	-	3,184,382	-
Work in progress	0	-	0	-	0	2,529	-100
Finished goods	2,798,195	-	0	-	0	2,379,510	17.60
Other stocks	0	-100	1,161,862	20.40	965,002	474,010	-100
Trade debtors	5,349,494	124	2,382,609	31.11	1,817,280	4,336,698	23.35
Cash	173,041	-26.21	234,493	547	36,204	314,146	-44.92
other amounts receivable	3,502	271	943	4.89	899	416,519	-99
Miscellaneous current assets	10,066	-1.17	10,185	24.84	8,159	41,315	-75.64
Total current assets	8,334,297	119	3,790,092	34.04	2,827,544	7,988,186	4.33
CURRENT LIABILITIES
Trade creditors	8,200,990	123	3,662,103	35.29	2,706,859	2,871,353	185
Short term group loans	-	-	-	-	-	-	-
Other short term loans	5,253	-30.18	7,523	72.88	4,352	2,413,042	-99
Miscellaneous current liabilities	11,362	-37.81	18,269	-7.74	19,801	-97.04	- -
Total current liabilities	8,217,604	122	3,687,895	35.04	2,731,011	5,541,776	48.28
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	8,960	-36.96	14,213	-	-	-99	- -
Other long term liabilities	0	-	0	-	0	296,362	-100
Total long term debts	8,960	-36.96	14,213	-	0	927,232	-99
SHAREHOLDERS EQUITY
Issued share capital	18,600	0	18,600	0	18,600	1,045,553	-98.22
Share premium account	-	-	-	-	-	173859	-
Reserves	117793	17.60	100163	24.83	80242	822367	-85.68
Revaluation reserve	-	-	-	-	-	759379	-
Total shareholders equity	136393	14.84	118763	20.15	98842	1892110	-92.79
Working capital	116693	14.18	102198	5.87	96533	2446410	-95.23
Net Worth	136393	14.84	118763	20.15	98842	1890085	-92.78

Ratio analysis

Annual accounts	31-12-2011	Change (%)	31-12-2010	Change (%)	31-12-2009	Industry Average 2011	%
Trading Performance
Profit before tax	0.20	-	-	-	-	100	-80.00
Return on capital employed	17.98	-17.41	21.77	-20.23	27.29	-21.00	85.62
Return on total assets employed	0.31	-59.21	0.76	-20.0	0.95	-34,00	0.91
Return on net assets employed	19.16	-21.41	24.38	-10.66	27.29	-29,00	66.07
Sales / net working capital	109.54	-	-	-	-	59,00	-99
Stock turnover ratio	21.89	-	-	-	-	41,00	-46.61
Debtor days	152.75	-	-	-	-	115,00	32.83
Creditor days	234.78	-	-	-	-	117,00	100
SHORT TERM STABILITY
Current ratio	1.01	-1.94	1.03	-0.96	1.04	4,00	-94.39
Liquidity ratio / acid ratio	0.67	-5.63	0.71	4.41	0.68	3,00	-77.67
Current debt ratio	60.25	94.04	31.05	12.38	27.63	18,00	234
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	10.42	-43.06	18.30	315	4.40	300,00	-96.53
Equity in percentage	1.63	-47.59	3.11	-10.89	3.49	-1.103,00	0.15
Total debt ratio	60.32	93.52	31.17	12.81	27.63	20,00	201

Industry comparison

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

Suspension of payments / moratorium history
Amount	-
Details	-

Payment expectations
Payment expectation days	234.78
Day sales outstanding	152.75

Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	178.38
Industry average day sales outstanding	119.22

Industry quartile analysis
Payment expectations
Company result	234.78
Lower	129.48
Median	75.51
Upper	41.95

Day sales outstanding
Company result	152.75
Lower	109.24
Median	57.26
Upper	24.94

Summary

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

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Summary

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

Protested bill

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-
NSSO details
Business number	478160609
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

Current Director Details
Name	VISHAL MEHTA
Position	Principal Manager
Street	20 BELGIELEI ANTWERP
Post code	2018
Country	Belgium

Name	WORLD SHINER BELGIUM BVBA
Position	Principal Manager
Date of birth	18/11/2004
Street	30 HOVENIERSSTRAAT ANTWERP
Post code	2018
Country	Belgium

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.52.21
UK Pound	1	Rs.84.00
Euro	1	Rs.67.75

INFORMATION DETAILS

Report Prepared by :

MNL

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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