MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	BELFORD INTERNATIONAL NV
Registered Office :	Rijfstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	30.04.2012
Date of Incorporation :	30.01.1998
Com. Reg. No.:	462514707
Legal Form :	Public Limited Liability Company (BE)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
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	462514707
Company name	BELFORD INTERNATIONAL NV
Address	RIJFSTRAAT 2
	2018 ANTWERPEN
Number of staff	0
Date of establishment	30/01/1998
Telephone number	0474519909
Fax number	-

Business number	462514707	Company name	BELFORD INTERNATIONAL NV
Fax number	-	Date founded	30/01/1998
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	30/04/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0462.514.707
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	PARAS KUMARBHAI PATEL
Position	Director
Start Date	28/09/2007
Street
Post code
Country	China

Name	SIMABAHEN S. PATEL
Position	Director
Start Date	06/12/2011
Street
Post code
Country

Former director details

Name	SAMIR KISHOR PATEL
Position	Managing Director
Start Date	10/11/2009
End Date	30/04/2010
Street	4 JUSTITIESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	SAMIR KISHOR PATEL
Position	Director
Start Date	06/12/2011
End Date	-
Street	4 JUSTITIESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	PRADIPKUMAR CHIMANLAL THAKKAR
Position	Principal Manager
Start Date	30/01/1998
End Date	-
Street	JUHU POLICE STREET, MUMBAI 56
Post code
Country	India

Name	KISHOR PATEL
Position	Managing Director
Start Date	20/10/2005
End Date	-
Street
Post code
Country

Name	KISHOR PATEL
Position	Director
Start Date	27/07/2000
End Date	-
Street
Post code
Country

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 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	30/12/2012
Event Description	proposal to change address filed
Event Details

NSSO details

Business number	462514707
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

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Shareholder Name
Forename	Samir	Middle name	-
Surname	Patel
Shareholder Details
Start date	27/07/2000	End date	-
Percentage owned	-
Shareholder Address
Street name	Justitiestraat	House number	4
Minor town	-	Postal town	Antwerpen
Post code	2018	Country	Belgium

Shareholder Name
Forename	Pankajbhai	Middle name	-
Surname	Virani
Shareholder Details
Start date	27/07/2000	End date	-
Percentage owned	-
Shareholder Address
Street name	Acacialaan	House number	1
Minor town	-	Postal town	Antwerpen
Post code	2020	Country	Belgium

Shareholder Name
Forename	Pradipkumar	Middle name	-
Surname	Thakkar
Shareholder Details
Start date	27/07/2000	End date	-
Percentage owned	-
Shareholder Address
Street name	Juhu Police Street, MUMBAI 56	House number	-
Minor town	-	Postal town	-
Post code	-	Country	India

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	174.89	Industry average day sales outstanding	108.78
Day sales outstanding	-

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.89
Industry average day sales outstanding	108.78

Industry quartile analysis

Payment expectations
Company result	-
Lower	121.46
Median	73.03
Upper	41.43

Day sales outstanding
Company result	-
Lower	105.52
Median	54.72
Upper	24.41

GROUP STRUCTURE & AFFILIATED COMPANIES

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	Working capital
30/04/2012		98,881	176,617	2,318,895
30/04/2011		4,398	77,736	2,099,537
30/04/2010		-90	73,338	2,186,883

Accounts & ratios

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
30/04/2012	8,768,164	0	75,000	98,911
30/04/2011	2,202,620	0	75,000	4,428
30/04/2010	2,294,978	0	75,000	-60

Trends

Profitability
Liquidity
Net worth

Profit & loss

Annual accounts	30-04-2012	%	30-04-2011	%	30-04-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	50,592,964	-
Total operating expenses	-	-	-	-	-	50,010,042	-
Operating result	63,331	18.65	53,375	-12.04	60,683	361,663	-82.49
Total financial income	690,683	676	88,973	28700880	0	127,929	439
Total financial expenses	655,133	374	137,950	126	60,773	323,637	102
Results on ordinary operations before taxation	98,881	2148	4,398	4908	-90	154,303	-35.92
Taxation	-	-	-	-	-	60,731	-
Results on ordinary operations after taxation	98,881	2148	4,398	4908	-90	109,898	-10.02
Extraordinary items	0	-	0	-	0	-2,954	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	98,881	2148	4,398	4908	-90	106,943	-7.54
other information
Dividends	-	-	-	-	-	0	-
Director remuneration	-	-	-	-	-	98,780	-
Employee costs	-	-	-	-	9,066	233,793	-
Wages and salary	-	-	-	-	7,604	198,222	-
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	-	-	-	-	1,462	44,004	-
Other employee costs	0	-	0	-	0	7,925	-100
Amortization and depreciation	30	0	30	0	30	29,886	-99

balance sheet

Annual accounts	30-04-2012	%	30-04-2011	%	30-04-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	5,364	-100
Tangible fixed assets	110	-21.43	140	-17.65	170	327,497	-99
Land & building	-	-	-	-	-	713,072	-
Plant & machinery	110	-21.43	140	-17.65	170	35,720	-99
Other tangible assets	0	-	0	-	0	40,783	-100
Financial fixed assets	124	0	124	0	124	33,060	-99
Total fixed assets	234	-11.37	264	-10.21	294	342,199	-99
Inventories	627,600	210	202,156	0	202,156	3,709,986	-83.08
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	23,071	-100
Finished goods	0	-	0	-	0	2,590,557	-100
Other stocks	627,600	210	202,156	0	202,156	458,081	37.01
Trade debtors	7,909,949	358	1,723,438	-7.42	1,861,481	9,571,372	-17.36
Cash	41,133	197	13,810	-24.82	18,370	402,332	-89.78
other amounts receivable	188,979	7.26	176,192	-1.72	179,279	223,370	-15.40
Miscellaneous current assets	269	-99	86,759	159	33,397	10,195	-97.36
Total current assets	8,767,930	298	2,202,356	-4.02	2,294,684	13,278,979	-33.97
current liabilities
Trade creditors	6,425,014	6822	92,820	-7.00	99,801	4,885,958	31.50
Short term group loans	-	-	-	-	-	-	-
Other short term loans	0	-	0	-	0	4,573,686	-100
Miscellaneous current liabilities	24,021	140	10,000	25.00	8,000	-96.04	- -
Total current liabilities	6,449,035	6172	102,820	-4.62	107,801	9,908,035	-34.91
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,142,512	5.96	2,022,064	-4.34	2,113,839	22.59	- -
Other long term liabilities	0	-	0	-	0	228,623	-100
Total long term debts	2,142,512	5.96	2,022,064	-4.34	2,113,839	1,130,646	89.49
shareholders equity
Issued share capital	75,000	0	75,000	0	75,000	1,784,157	-95.80
Share premium account	-	-	-	-	-	98,781	-
Reserves	101,617	3614	2,736	164	-1,662	647,282	-84.30
Revaluation reserve	-	-	-	-	-	1,664,632	-
Total shareholders equity	176,617	127	77,736	6.00	73,338	2,542,021	-93.05
Working capital	2,318,895	10.45	2,099,537	-3.99	2,186,883	3,370,944	-31.21
Cashflow	98,911	2133	4,428	7428	-60	133,294	-25.79
Net worth	176,617	127	77,736	6.00	73,338	2,536,657	-93.04

ratio analysis

Annual accounts	30-04-2012	change(%)	30-04-2011	change(%)	30-04-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-	-	-	-	-	1,00	-
Return on capital employed	4.26	1928	0.21	-	0	169,00	-97.48
Return on total assets employed	1.13	465	0.20	-	0	-1,00	113
Return on net assets employed	55.99	889	5.66	4716	-0.12	22,00	154
Sales / net working capital	-	-	-	-	-	38,00	-
Stock turnover ratio	-	-	-	-	-	19,00	-
Debtor days	-	-	-	-	-	122,00	-
Creditor days	-	-	-	-	-	85,00	-
short term stability
Current ratio	1.36	-93.65	21.42	0.61	21.29	5,00	-77.33
Liquidity ratio / acid ratio	1.26	-93.52	19.45	0.21	19.41	4,00	-68.50
Current debt ratio	36.51	2665	1.32	-10.20	1.47	6,00	508
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	1213.08	-53.36	2601.20	-9.75	2882.33	190,00	538
Equity in percentage	2.01	-43.06	3.53	10.31	3.20	12,00	-83.25
Total debt ratio	48.65	78.01	27.33	-9.77	30.29	7,00	595

FOREIGN EXCHANGE RATES

Na

ADDITIONAL INFORMATION

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

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.54.44
UK Pound	1	Rs.83.77
Euro	1	Rs.71.33

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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