MIRA INFORM REPORT

Report Date :

27.04.2013

IDENTIFICATION DETAILS

Name :	PARAS GEMS NV
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	03.11.1982
Com. Reg. No.:	424588695
Legal Form :	Public Limited Liability Company
Line of business :	Wholesaler 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 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	424588695
Company name	PARAS GEMS NV
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Number of staff	1
Date of establishment	03/11/1982
Telephone number	-
Fax number	032317862

Accounts & ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2011	67,633,605	263,716	3,220,100	3,633,763
31/12/2010	47,307,004	147,426	3,014,831	2,432,152
31/12/2009	30,427,066	185,753	2,880,405	2,802,216

Accounts & ratios

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2011	24,153,019	1	1,936,000	233,160
31/12/2010	21,258,896	1	1,936,000	148,219
31/12/2009	12,978,292	1	1,936,000	188,533

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	69.03
Industry average payment expectation days	175.13	Industry average day sales outstanding	108.97
Day sales outstanding	104.75

Court data summary

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

Company summary

Business number	424588695	Company name	PARAS GEMS NV
Fax number	032317862	Date founded	03/11/1982
Company status	active	Company type	Public Limited Liability Company (BE)
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.0424.588.695
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

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	320
Description	Joint committee for the undertaker's business
category

Significant Events

Event Date	02/06/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 02-06-2012: Herbenoemd als bestuurders voor een nieuwe duur van 6 jaar: Shreyash Popatlal Shah (tevens gedelegeerd bestuurder en voorzitter van de Raad van Bestuur), Bhankharia Nainesh en Shreyash Kothari Nutan.

Export accounts to CSV file

comparison mode

averagemedian

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	67,633,605	42.97	47,307,004	55.48	30,427,066	49,655,111	36.21
Total operating expenses	66,967,405	43.96	46,516,762	54.66	30,077,449	49,016,171	36.62
Operating result	666,200	-15.70	790,242	126	349,617	238,897	178
Total financial income	2,405,679	36.78	1,758,767	54.43	1,138,872	149,300	1511
Total financial expenses	2,808,163	16.93	2,401,583	84.35	1,302,735	288,281	874
Results on ordinary operations before taxation	263,716	78.88	147,426	-20.63	185,753	84,603	211
Taxation	58,447	349	13,000	8.33	12,000	37,883	54.28
Results on ordinary operations after taxation	205,269	52.70	134,426	-22.63	173,753	59,360	245
Extraordinary items	0	-	0	-	0	3,207	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	205,269	52.70	134,426	-22.63	173,753	62,451	228
OTHER INFORMATION
Dividends	-	-	-	-	-	147,735	-
Director remuneration	68,722	110	32,722	-47.62	62,469	115,275	-40.38
Employee costs	62,452	-0.08	62,500	22.01	51,225	128,470	-51.39
Wages and salary	51,490	3.29	49,848	16.51	42,784	108,961	-52.74
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	10,413	-4.14	10,863	29.70	8,375	27,252	-61.79
Other employee costs	549	-69.30	1,789	2602	66	3,613	-84.80
Amortization and depreciation	27,891	102	13,793	-6.68	14,780	18,348	52.01

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	1,465	-100
Tangible fixed assets	617,641	587	89,784	-7.17	96,720	178,069	246
Land & building	596,395	853	62,520	-4.94	65,772	346,034	72.35
Plant & machinery	5,665	-33.26	8,488	92.35	4,413	21,851	-74.08
Other tangible assets	15,581	-17.01	18,775	-29.24	26,536	24,659	-36.81
Financial fixed assets	372	-99	504,583	135595	372	277,747	-99
Total fixed assets	618,013	3.98	594,367	512	97,092	364,422	69.59
Inventories	3,789,400	20.17	3,153,245	-20.01	3,942,206	3,066,899	23.56
Raw materials & consumables	1,598,984	54.61	1,034,173	-13.06	1,189,537	4,101,634	-61.02
Work in progress	0	-	0	-	0	2,467	-100
Finished goods	2,190,416	3.37	2,119,072	-23.02	2,752,669	2,053,327	6.68
Other stocks	0	-	0	-	0	470,262	-100
Trade debtors	19,410,598	28.39	15,118,190	81.12	8,347,149	3,895,452	398
Cash	184,565	-91.90	2,279,338	9261	24,347	239,949	-23.08
other amounts receivable	132,105	122	59,406	-88.58	520,148	245,621	-46.22
Miscellaneous current assets	18,338	-66.26	54,350	14.79	47,349	21,423	-14.40
Total current assets	23,535,006	13.89	20,664,529	60.42	12,881,199	6,955,994	238
CURRENT LIABILITIES
Trade creditors	12,664,451	16.07	10,911,327	129	4,752,036	2,782,980	355
Short term group loans	-	-	-	-	-	-	-
Other short term loans	7,152,727	3.58	6,905,709	30.99	5,272,022	1,899,178	276
Miscellaneous current liabilities	84,065	-79.76	415,342	656	54,925	-77.26	- -
Total current liabilities	19,901,243	9.15	18,232,378	80.89	10,078,984	4,934,433	303
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	26,905	130	11,687	-38.17	18,903	-97.66	- -
Other long term liabilities	1,004,770	-	0	-	0	143,210	601
Total long term debts	1,031,675	8727	11,687	-38.17	18,903	599,127	72.20
SHAREHOLDERS EQUITY
Issued share capital	1,936,000	0	1,936,000	0	1,936,000	1,024,362	89.00
Share premium account	-	-	-	-	-	108,219	-
Reserves	1,284,100	19.03	1,078,831	14.23	944,405	696,760	84.30
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	3,220,100	6.81	3,014,831	4.67	2,880,405	1,742,511	84.80
Working capital	3,633,763	49.41	2,432,152	-13.21	2,802,216	2,021,562	79.75
Cashflow	233,160	57.31	148,219	-21.38	188,533	77,576	200
Net worth	3,220,100	6.81	3,014,831	4.67	2,880,405	1,741,046	84.95

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
TRADING PERFORMANCE
Profit Before Tax	0.39	25.81	0.31	-49.18	0.61	-746,00	0.05
Return on capital employed	6.20	27.31	4.87	-24.02	6.41	-14,00	44.29
Return on total assets employed	1.09	57.97	0.69	-51.75	1.43	-34,00	3.21
Return on net assets employed	8.19	67.48	4.89	-24.19	6.45	-13,00	63.00
Sales / net working capital	18.61	-4.32	19.45	79.10	10.86	66,00	-99
Stock turnover ratio	5.60	-16.04	6.67	-48.53	12.96	67,00	-91.64
Debtor days	104.75	-10.20	116.65	16.50	100.13	58.225,00	-99
Creditor days	69.03	-19.38	85.62	48.47	57.67	329,00	-79.02
SHORT TERM STABILITY
Current ratio	1.18	4.42	1.13	-11.72	1.28	4,00	-93.44
Liquidity ratio / acid ratio	0.99	3.12	0.96	7.87	0.89	3,00	-67.00
Current debt ratio	6.18	2.15	6.05	72.86	3.50	18,00	-65.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	222.96	-2.83	229.45	24.91	183.69	265,00	-15.86
Equity in percentage	13.33	-5.99	14.18	-36.10	22.19	-1.081,00	1.23
Total debt ratio	6.50	7.44	6.05	72.36	3.51	19,00	-65.79

Industry comparison

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

Payment expectations

Payment expectation days	69.03
Day sales outstanding	104.75

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	175.13
Industry average day sales outstanding	108.97

Industry quartile analysis

Payment expectations
Company result	69.03
Lower	122.08
Median	73.03
Upper	41.66

Day sales outstanding
Company result	104.75
Lower	105.69
Median	54.84
Upper	24.18

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

NSSO details

Business number	424588695
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	SHREYASH POPATLAL SHAH
Position	Chairman of the Board
Start Date	25/07/2012
Street	22 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium
Name	SHREYASH POPATLAL SHAH
Position	Director
Start Date	25/07/2012
Street	22 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	WOUTERS, VAN MERODE & CO BVBA
Position	Commissioner
Start Date	23/06/2008
End Date	-
Date of birth	01/01/2002
Street	645 HERENTALSEBAAN WOMMELGEM
Post code	2160
Country	Belgium
Name	NUTAN SHREYASH KOTHARI
Position	Director
Start Date	23/06/2006
End Date	29/04/2012
Street	22 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	NAINESH BHANKHARIA
Position	Director
Start Date	23/06/2006
End Date	29/04/2012
Street	36 INGENIEUR HAESAERTSLAAN EDEGEM
Post code	2650
Country	Belgium
Name	SHREYASH POPATLAL SHAH
Position	Managing Director
Start Date	23/06/2006
End Date	29/04/2012
Street	22 FAZANTENLAAN ANTWERPEN
Post code	2610
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.54.29
UK Pound	1	Rs.83.88
Euro	1	Rs.70.67

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%)

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.