MIRA INFORM REPORT

Report Date :

17.04.2013

IDENTIFICATION DETAILS

Name :	DHARM DIAM BVBA
Registered Office :	Hoveniersstraat 30, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	03.06.2002
Com. Reg. No.:	477689960
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	01 to 04 employees

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 (31.03.2012)	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 1.8%, the unemployment rate decreased slightly to 7.2% 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 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%, as compared to a 1.8% growth figure in 2011. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. Despite the relative improvement in Belgium's budget deficit, public debt hovers around 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 retail arm of a Franco-Belgian bank.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Business number	477689960
Company name	DHARM DIAM BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	2
Date of establishment	03/06/2002
Telephone number	032340115
Fax number	032341445

Business number	477689960	Company name	DHARM DIAM BVBA
Fax number	032341445	Date founded	03/06/2002
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.0477.689.960
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	SANDIPKAMAR DAYALBHAI PATEL
Position	Non Statutory Partner
Start Date	03/06/2002
Street	53 QUELLINSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	14/12/2011
Event Description	proposal of merger filed
Event Details	Commentaar 14-12-2011: Neerlegging fusievoorstel.

comparison mode

average

median

Export accounts to CSV file

Protested bills

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

NSSO details

Business number	477689960
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

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	97.68
Industry average payment expectation days	175.07	Industry average day sales outstanding	108.83
Day sales outstanding	128.45

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	97.68
Day sales outstanding	128.45

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	175.07
Industry average day sales outstanding	108.83

Industry quartile analysis

Payment expectations
Company result	97.68
Lower	122.08
Median	73.03
Upper	41.43
Day sales outstanding
Company result	128.45
Lower	105.69
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

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	279,783,849	742,427	29,745,458	33,774,406
31/12/2010	137,927,233	235,111	6,041,074	10,441,655
31/12/2009	74,669,469	358,740	3,316,980	5,231,054

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	156,081,536	2	28,228,047	1,123,140
31/12/2010	39,135,427	0	5,613,000	284,057
31/12/2009	31,639,194	0	3,087,618	360,453

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	279,783,849	102	137,927,233	84.72	74,669,469	49,527,631	464
Total operating expenses	277,963,609	102	137,298,331	85.92	73,847,892	48,890,358	468
Operating result	1,820,240	189	628,902	-23.45	821,577	238,466	663
Total financial income	1,702	70.88	996	-70.60	3,388	148,968	-98.86
Total financial expenses	1,079,515	173	394,788	-15.32	466,225	287,728	275
Results on ordinary operations before taxation	742,427	215	235,111	-34.46	358,740	84,458	779
Taxation	-21,968	-244	15,193	48.94	10,201	37,844	-158
Results on ordinary operations after taxation	764,395	247	219,918	-36.90	348,539	59,254	1190
Extraordinary items	310,928	31092700	1	0	1	3,201	9613
Other appropriations	0	-	0	-	0	-	-
Net result	1,075,323	388	219,919	-36.90	348,540	62,339	1624
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	66,567	-	-	-	-	115,275	-42.25
Employee costs	101,083	586	14,734	-	-	127,998	-21.03
Wages and salary	83,164	531	13,178	-	-	108,777	-23.55
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	17,403	1250	1,289	-	-	27,123	-35.84
Other employee costs	515	92.16	268	-	0	3,607	-85.72
Amortization and depreciation	47,817	-25.45	64,138	438	11,913	18,309	161

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	1,462	-100
Tangible fixed assets	786,843	5.37	746,753	196	251,443	177,648	342
Land & building	635,116	0.54	631,697	169	234,783	346,034	83.54
Plant & machinery	8,761	14.09	7,679	137	3,227	21,826	-59.86
Other tangible assets	142,966	33.14	107,377	699	13,433	24,613	480
Financial fixed assets	484,551	60017	806	7.75	748	276,884	75.00
Total fixed assets	1,271,394	70.07	747,559	196	252,190	363,620	249
Inventories	54,766,277	333	12,639,083	-27.08	17,333,989	3,060,929	1689
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	54,766,277	333	12,639,083	-27.08	17,333,989	2,049,305	2572
Other stocks	0	-	0	-	0	470,366	-100
Trade debtors	98,459,346	326	23,108,869	77.98	12,983,682	3,888,007	2432
Cash	1,569,864	-40.26	2,628,041	146	1,067,208	239,603	555
other amounts receivable	14,654	23.40	11,875	458	2,125	245,153	-94.02
Miscellaneous current assets	1	-	0	-	0	21,392	-99
Total current assets	154,810,142	303	38,387,868	22.30	31,387,004	6,943,733	2129
current liabilities
Trade creditors	74,386,170	233	22,306,309	3.27	21,600,206	2,777,715	2577
Short term group loans	-	-	-	-	-	-	-
Other short term loans	46,258,576	746	5,464,398	45.19	3,763,584	1,895,458	2340
Miscellaneous current liabilities	390,990	122	175,506	-77.84	792,160	5.69	- -
Total current liabilities	121,035,736	333	27,946,213	6.84	26,155,950	4,926,143	2357
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	5,300,342	2.96	5,148,141	137	2,166,265	360	- -
Other long term liabilities	0	0	-1	0	-1	142,929	-100
Total long term debts	5,300,342	2.96	5,148,140	137	2,166,264	597,953	786
shareholders equity
Issued share capital	28,228,047	402	5,613,000	81.79	3,087,618	1,022,392	2660
Share premium account	-	-	-	-	-	108,219	-
Reserves	1,517,411	254	428,074	86.64	229,362	695,355	118
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	29,745,458	392	6,041,074	82.13	3,316,980	1,739,095	1610
Working capital	33,774,406	223	10,441,655	99	5,231,054	2,017,589	1573
Cashflow	1,123,140	295	284,057	-21.19	360,453	77,438	1350
Net worth	29,745,458	392	6,041,074	82.13	3,316,980	1,737,632	1611

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.27	58.82	0.17	-64.58	0.48	-744,00	0.04
Return on capital employed	2.12	0.95	2.10	-67.89	6.54	-14,00	15.14
Return on total assets employed	0.48	-20.0	0.60	-46.90	1.13	-34,00	1.41
Return on net assets employed	2.50	-35.73	3.89	-64.05	10.82	-12,00	20.83
Sales / net working capital	8.28	-37.32	13.21	-7.43	14.27	67,00	-99
Stock turnover ratio	19.57	113	9.16	-60.53	23.21	67,00	-70.79
Debtor days	128.45	110	61.15	-3.66	63.47	58.055,00	-99
Creditor days	97.68	64.72	59.30	-44.45	106.76	328,00	-70.22
short term stability
Current ratio	1.28	-6.57	1.37	14.17	1.20	4,00	-92.89
Liquidity ratio / acid ratio	0.83	-9.78	0.92	70.37	0.54	3,00	-72.33
Current debt ratio	4.07	-12.10	4.63	-41.32	7.89	18,00	-77.39
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	173.33	-1.33	175.67	-1.73	178.77	265,00	-34.59
Equity in percentage	19.06	23.45	15.44	47.33	10.48	-1.079,00	1.77
Total debt ratio	4.25	-22.45	5.48	-35.83	8.54	19,00	-77.63

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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.33
UK Pound	1	Rs.83.17
Euro	1	Rs.71.05

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