MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	GEMASIA BVBA

Registered Office :	Hoveniersstraat 53 Bus 49 Antwerpen, Post Code 2018

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	12.06.1991

Com. Reg. No.:	444382041

Legal Form :	Private Limited Company

Line of Business :	Wholesaler of diamonds and other precious stones

No. of Employees :	05 employees

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

REGISTERED NAME & COMPANY SUMMARY

Business number	444382041	Company name	GEMASIA BVBA
		Telephone number	032327580
Address	HOVENIERSSTRAAT 53 BUS 49 ANTWERPEN	Fax number	032326731
Post code	2018	Number of staff	5
Date of establishment	12/06/1991

DIRECTORS/MANAGEMENT

Current director details

Name	SAMIR ZAVERI
Position	Principal Manager
Street	33 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HARSHAD JAYANTILAL SHAH
Position	Principal Manager
Street	147 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	SUBODCHANDRA SHAH
Position	Principal Manager
Street	31 DENNENLAAN 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	05/09/2011

Business number	444382041	Company name	GEMASIA BVBA
Fax number	032326731	Date founded	12/06/1991
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.0444.382.041
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	444382041
Name of defendant	GEMASIA
Legal form of defendant	Private limited liability company
Date of summons	01/02/2005
Labour court	ANTWERPEN

Bankruptcy details

There is no bankruptcy data against this company

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	25.26
Industry average payment expectation days	178.29	Industry average day sales outstanding	109.45
Day sales outstanding	41.43

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	25.26
Day sales outstanding	41.43

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	178.29
Industry average day sales outstanding	109.45

Industry quartile analysis

Payment expectations
Company result	25.26
Lower	129.17
Median	75.20
Upper	41.71
Day sales outstanding
Company result	41.43
Lower	109.24
Median	57.26
Upper	24.45

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
31/12/2011	267,161,693	328,854	3,801,978
31/12/2010	181,299,754	261,594	3,586,277
31/12/2009	65,842,417	88,752	3,413,273

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	47,903,269	2,113	3,100,000	254,017	5
31/12/2010	51,428,946	2,113	3,100,000	473,654	5
31/12/2009	49,420,923	2,114	3,100,000	1,284,982	6

Trends

Profitability
Liquidity
Net worth

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	267,161,693	47.36	181,299,754	175	65,842,417	58,371,499	357
Total operating expenses	265,831,764	47.60	180,098,422	175	65,340,909	57,575,168	361
Operating result	1,329,929	10.70	1,201,332	139	501,508	294,004	352
Total financial income	9,832	76.96	5,556	57.61	3,525	175,482	-94.40
Total financial expenses	1,010,907	6.94	945,294	127	416,281	338,889	198
Results on ordinary operations before taxation	328,854	25.71	261,594	194	88,752	113,219	190
Taxation	113,153	27.73	88,590	82.05	48,662	39,276	188
Results on ordinary operations after taxation	215,701	24.68	173,004	331	40,090	86,751	148
Extraordinary items	0	-	0	-	0	7,843	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	215,701	24.68	173,004	331	40,090	94,500	128
other information
Dividends	-	-	-	-	-	137,001	-
Director remuneration	160,302	25.23	128,002	5.81	120,968	127,466	25.76
Employee costs	208,509	6.83	195,174	-24.25	257,639	159,536	30.70
Wages and salary	163,537	7.79	151,724	-25.15	202,693	135,152	21.00
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	39,879	6.43	37,469	-21.95	48,005	33,469	19.15
Other employee costs	5,093	-14.84	5,981	-13.84	6,941	4,556	11.79
Amortization and depreciation	60,855	8.55	56,061	-15.43	66,286	21,033	189

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	1,925	-100
Tangible fixed assets	608,778	-0.79	613,617	-8.14	668,020	203,909	198
Land & building	539,322	-5.72	572,024	-5.41	604,726	375,397	43.67
Plant & machinery	1,499	-65.97	4,405	-37.49	7,048	27,763	-94.60
Other tangible assets	67,957	82.74	37,188	-33.88	56,246	30,216	124
Financial fixed assets	2,113	0	2,113	-0.04	2,114	313,265	-99
Total fixed assets	610,891	-0.79	615,730	-8.12	670,134	416,582	46.64
Inventories	16,613,243	10.20	15,075,928	-30.65	21,739,623	3,421,865	385
Raw materials & consumables	-	-	-	-	-	3,184,382	-
Work in progress	0	-	0	-	0	2,477	-100
Finished goods	16,613,243	10.20	15,075,928	-30.65	21,739,623	2,366,080	602
Other stocks	0	-	0	-	0	468,808	-100
Trade debtors	30,326,852	-13.03	34,871,539	35.67	25,703,841	4,349,500	597
Cash	254,017	-46.37	473,654	-63.14	1,284,982	312,720	-18.77
other amounts receivable	52,581	304	13,000	-15.61	15,405	412,086	-87.24
Miscellaneous current assets	45,685	-87.95	379,094	5364	6,938	40,616	12.48
Total current assets	47,292,377	-6.93	50,813,216	4.23	48,750,789	7,975,286	492
current liabilities
Trade creditors	18,397,517	-8.35	20,073,250	1.00	19,874,002	2,882,087	538
Short term group loans	-	-	-	-	-	-	-
Other short term loans	18,621,100	4.45	17,828,178	-12.61	20,401,557	2,408,624	673
Miscellaneous current liabilities	477,985	-86.59	3,565,233	-8.78	3,908,316	24.18	- -
Total current liabilities	37,496,601	-9.57	41,466,661	-6.15	44,183,875	5,550,695	575
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	6,604,690	3.59	6,376,009	249	1,823,775	330	- -
Other long term liabilities	0	-	0	-	0	292,746	-100
Total long term debts	6,604,690	3.59	6,376,009	249	1,823,775	919,923	617
shareholders equity
Issued share capital	3,100,000	0	3,100,000	0	3,100,000	1,027,766	201
Share premium account	-	-	-	-	-	173,859	-
Reserves	701,978	44.36	486,277	55.22	313,273	821,076	-14.51
Revaluation reserve	-	-	-	-	-	772,031	-
Total shareholders equity	3,801,978	6.01	3,586,277	5.07	3,413,273	1,873,641	102
Working capital	9,795,776	4.81	9,346,556	104	4,566,914	2,424,591	304
Net worth	3,801,978	6.01	3,586,277	5.07	3,413,273	1,871,716	103

Ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.12	-14.29	0.14	7.69	0.13	-733,00	0.02
Return on capital employed	3.16	20.15	2.63	55.62	1.69	-20,00	15.80
Return on total assets employed	0.69	35.29	0.51	183	0.18	-33,00	2.09
Return on net assets employed	8.65	18.66	7.29	180	2.60	-28,00	30.89
Sales / net working capital	27.27	40.57	19.40	34.54	14.42	60,00	-99
Stock turnover ratio	6.22	-25.24	8.32	-74.80	33.02	42,00	-85.19
Debtor days	41.43	-40.98	70.20	-50.73	142.49	58.284,00	-99
Creditor days	25.26	-37.91	40.68	-63.36	111.02	252,00	-89.98
short term stability
Current ratio	1.26	2.44	1.23	11.82	1.10	4,00	-93.00
Liquidity ratio / acid ratio	0.82	-4.65	0.86	40.98	0.61	3,00	-72.67
Current debt ratio	9.86	-14.71	11.56	-10.66	12.94	18,00	-45.22
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	663.49	-1.69	674.91	3.65	651.14	296,00	124
Equity in percentage	7.94	13.92	6.97	0.87	6.91	-1.080,00	0.74
Total debt ratio	11.60	-13.04	13.34	-1.04	13.48	19,00	-38.95

ADDITIONAL INFORMATION

Personnel limit NSSO

Code	-
Description	FROM 5 TO 9 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

Legal events

Legal event type	Social Security Summons
Legal event sub type
Event date	05/09/2011	Secondary event date
Court number		Registry body identfier
Court type	Employment Court	Court name	Antwerpen
3rd party name	Rijksdienst voor Sociale Zekerheid	3rd party type	Summoning Party
3rd party address

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.83.78
Euro	1	Rs.71.33

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%)

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.