MIRA INFORM REPORT

Report Date :

24.04.2013

IDENTIFICATION DETAILS

Name :	RICHDIAM BVBA
Registered Office :	Hoveniersstraat 30, 2018 Antwerpen, Be00226643
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	21.12.1989
Com. Reg. No.:	439607067
Legal Form :	Private Limited Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	01

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%. 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	439607067
Company name	RICHDIAM BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	1
Date of establishment	21/12/1989
Telephone number	032329312
Fax number	032318291

DIRECTORS/MANAGEMENT

Current director details

Name	VINAYKUMAR SINGH
Position	Principal Manager
Start Date	12/10/2010
Street	23 MECHELSESTEENWEG ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	FRANCO DA SILVA
Position	Principal Manager
Start Date	30/05/1997
End Date	-
Street	23 MECHELSESTEENWEG ANTWERPEN
Post code	2018
Country	Belgium

Name	SINGH VINAYKUMAR
Position	Principal Manager
Start Date	31/08/1997
End Date	-
Street	45 DAMHERTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SINGH MANISHKUMAR
Position	Principal Manager
Start Date	31/08/1997
End Date	-
Street
Post code
Country	India

NEGATIVE INFORMATION

Court data summary

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

Business number	439607067	Company name	RICHDIAM BVBA
Fax number	032318291	Date founded	21/12/1989
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.0439.607.067
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number	439607067
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	140.60
Industry average payment expectation days	174.77	Industry average day sales outstanding	108.66
Day sales outstanding	60.31

Industry comparison

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	140.60
Day sales outstanding	60.31

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.77
Industry average day sales outstanding	108.66

Industry quartile analysis

Payment expectations
Company result	140.60
Lower	121.46
Median	72.36
Upper	40.99

Day sales outstanding
Company result	60.31
Lower	105.52
Median	54.72
Upper	23.72

GROUP STRUCTURE & AFFILIATED COMPANIES

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	11,990,084	12,721	223,612	1,305,816
31/12/2010	7,736,592	-1,131	206,181	-140,155
31/12/2009	7,782,983	8,796	192,507	-142,825

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	6,441,968	1	6,205	40,313
31/12/2010	6,326,219	1	6,205	41,459
31/12/2009	5,244,962	0	6,205	37,949

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	11,990,084	54.98	7,736,592	-0.60	7,782,983	49,527,631	-75.79
Total operating expenses	11,970,361	54.87	7,729,473	-0.48	7,767,079	48,890,358	-75.52
Operating result	19,724	177	7,120	-55.23	15,904	238,466	-91.73
Total financial income	1,917	356	420	-25.86	566	148,968	-98.71
Total financial expenses	8,920	2.88	8,670	12.98	7,674	287,728	-96.90
Results on ordinary operations before taxation	12,721	1124	-1,131	-112	8,796	84,458	-84.94
Taxation	-	-	-	-	498	37,844	-
Results on ordinary operations after taxation	12,721	1124	-1,131	-113	8,298	59,254	-78.53
Extraordinary items	4,710	-68.19	14,805	983	1,367	3,201	47.14
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	17,431	27.47	13,674	41.49	9,665	62,339	-72.04
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	30,389	-	-	-	-	115,275	-73.64
Employee costs	38,960	265	10,652	-30.72	15,375	127,998	-69.56
Wages and salary	33,742	320	8,030	-35.82	12,510	108,777	-68.98
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	3,575	347	799	-52.42	1,680	27,123	-86.82
Other employee costs	1,643	-9.91	1,823	53.87	1,185	3,607	-54.46
Amortization and depreciation	22,883	-17.64	27,785	-1.77	28,284	18,309	24.98

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	383,629	-4.41	401,318	4.01	385,843	177,648	115
Land & building	278,329	-0.58	279,959	-0.58	281,589	346,034	-19.57
Plant & machinery	4,855	1.67	4,775	12.03	4,262	21,826	-77.76
Other tangible assets	100,446	-13.84	116,585	16.59	99,991	24,613	308
Financial fixed assets	298	0	298	0	298	276,884	-99
Total fixed assets	383,927	-4.40	401,616	4.01	386,140	363,620	5.58
Inventories	4,026,202	50.29	2,678,947	-19.85	3,342,282	3,060,929	31.54
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	4,026,202	50.29	2,678,947	-19.85	3,342,282	2,049,305	96.47
Other stocks	0	-	0	-	0	470,366	-100
Trade debtors	1,981,105	-38.12	3,201,724	129	1,393,840	3,888,007	-49.05
Cash	44,575	22.57	36,367	-64.94	103,729	239,603	-81.40
other amounts receivable	3,767	43.96	2,617	-83.59	15,945	245,153	-98.46
Miscellaneous current assets	2,391	-51.66	4,947	63.53	3,025	21,392	-88.82
Total current assets	6,058,040	2.25	5,924,602	21.93	4,858,822	6,943,733	-12.76
current liabilities
Trade creditors	4,611,098	-21.76	5,893,321	18.36	4,979,060	2,777,715	66.00
Short term group loans	-	-	-	-	-	-	-
Other short term loans	24,138	40.15	17,223	-13.71	19,961	1,895,458	-98.73
Miscellaneous current liabilities	116,988	-24.14	154,213	5772	2,626	-68.38	- -
Total current liabilities	4,752,224	-21.64	6,064,758	21.26	5,001,646	4,926,143	-3.53
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	1,466,131	2552	55,279	8.80	50,809	27.50	- -
Other long term liabilities	0	-	0	-	0	142,929	-100
Total long term debts	1,466,131	2552	55,279	8.80	50,809	597,953	145
shareholders equity
Issued share capital	6,205	0	6,205	0	6,205	1,022,392	-99
Share premium account	-	-	-	-	-	108,219	-
Reserves	-18,900	52.02	-36,331	72.65	-50,005	695,355	-102
Revaluation reserve	236,307	0	236,307	0	236,307	815,555	-71.02
Total shareholders equity	223,612	8.45	206,181	7.10	192,507	1,739,095	-87.14
Working capital	1,305,816	931	-140,155	98.13	-142,825	2,017,589	-35.28
Cashflow	40,313	-2.76	41,459	9.25	37,949	77,438	-47.94
Net worth	223,612	8.45	206,181	7.10	192,507	1,737,632	-87.13

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.11	1100	-0.01	-109	0.11	-744,00	0.01
Return on capital employed	0.75	174	-0.43	-111	3.62	-14,00	5.36
Return on total assets employed	0.20	1000	-0.02	-111	0.17	-34,00	0.59
Return on net assets employed	5.69	1034	-0.55	-112	4.57	-12,00	47.42
Sales / net working capital	9.18	16.63	-55.20	-1.30	-54.49	67,00	-99
Stock turnover ratio	33.58	-3.03	34.63	-19.35	42.94	67,00	-49.88
Debtor days	60.31	-60.07	151.05	131	65.37	58.055,00	-99
Creditor days	140.60	-49.48	278.29	18.94	233.98	328,00	-57.13
short term stability
Current ratio	1.27	29.59	0.98	1.03	0.97	4,00	-92.94
Liquidity ratio / acid ratio	0.43	-20.37	0.54	80.0	0.30	3,00	-85.67
Current debt ratio	21.25	-27.75	29.41	13.20	25.98	18,00	18.06
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	666.45	1795	35.16	-4.35	36.76	265,00	151
Equity in percentage	3.47	6.44	3.26	-11.17	3.67	-1.079,00	0.32
Total debt ratio	27.81	-6.30	29.68	13.07	26.25	19,00	46.37

ADDITIONAL INFORMATION

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)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324.02
Description	JSC small merchandisers in the diamant industry and trade
category

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.54.30
UK Pound	1	Rs.82.88
Euro	1	Rs.70.80

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.