MIRA INFORM REPORT

Report Date :

29.04.2013

IDENTIFICATION DETAILS

Name :	SORADIAM NV

Registered Office :	Hoveniersstraat 2 Bus 223 Antwerpen 2018

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	31.05.1977

Com. Reg. No.:	417844821

Legal Form :	Public Limited Liability Company (BE)

Line of business :	Wholesaler of diamonds and other precious stones

No. of Employees :	01

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 :	Good
Payment Behaviour :	Regular
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 – March 31^st 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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

Company name and address

Top of Form

Business number	417844821	Company name	SORADIAM NV
		Telephone number	032330515
Address	HOVENIERSSTRAAT 2 BUS 223 ANTWERPEN	Fax number	032319729
Post code	2018	Number of staff	1
Date of establishment	31/05/1977

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	104,767,273	283,206	5,243,394
31/12/2010	80,421,587	179,193	5,053,986
31/12/2009	47,309,756	142,270	4,934,864

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	41,542,499	502	4,650,000	1,785,222	1
31/12/2010	34,036,128	422	4,650,000	170,545	1
31/12/2009	21,588,243	422	4,650,000	555,711	1

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	32
Industry average payment expectation days	177.37	Industry average day sales outstanding	110.45
Day sales outstanding	127.34

Court data summary

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

Business number	417844821	Company name	SORADIAM NV
Fax number	032319729	Date founded	31/05/1977
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.0417.844.821
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	324
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	29/06/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 29-06-2012: Herbenoemd als bestuurders tot de jaarvergadering 2018 : Zaveri Shehul (tevens als gedelegeerd bestuurder), Jhaveri Sohil en Shah Sivani.

Export accounts to CSV file

comparison mode

average

median

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	104,767,273	30.27	80,421,587	69.99	47,309,756	57,226,257	83.08
Total operating expenses	104,129,749	31.51	79,178,569	70.20	46,521,964	56,506,296	84.28
Operating result	637,524	-48.71	1,243,018	57.79	787,792	268,938	137
Total financial income	645,822	2306405	28	-	-	170,538	278
Total financial expenses	1,000,139	-5.99	1,063,853	64.81	645,522	328,869	204
Results on ordinary operations before taxation	283,206	58.05	179,193	25.95	142,270	93,182	203
Taxation	96,810	53.46	63,083	22.68	51,422	39,042	147
Results on ordinary operations after taxation	186,396	60.53	116,110	27.81	90,848	66,985	178
Extraordinary items	2,400	0	2,400	0	2,400	7,239	-66.85
Other appropriations	611.53	-0.08	612	0	612	-	-
Net result	189,408	59.00	119,122	26.91	93,860	74,140	155
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	144,000	0	144,000	0	144,000	124,228	15.92
Employee costs	93,484	13.58	82,305	-18.51	100,997	155,143	-39.74
Wages and salary	78,435	19.97	65,380	-20.14	81,865	131,259	-40.24
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	14,510	-10.26	16,170	-13.33	18,658	32,367	-55.17
Other employee costs	538	-28.71	755	59.28	474	4,362	-87.66
Amortization and depreciation	61,466	-5.39	64,968	22.44	53,060	21,200	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	1,824	-100
Tangible fixed assets	1,032,969	-5.62	1,094,436	12.38	973,912	204,619	404
Land & building	1,006,632	-4.62	1,055,337	11.62	945,466	374,278	168
Plant & machinery	3,941	-24.87	5,245	206	1,714	27,404	-85.62
Other tangible assets	22,397	-33.84	33,854	26.64	26,732	30,990	-27.73
Financial fixed assets	502	18.92	422	0	422	303,187	-99
Total fixed assets	1,033,471	-5.61	1,094,858	12.37	974,334	410,117	151
Inventories	2,154,135	2.47	2,102,216	-6.23	2,241,941	3,360,658	-35.90
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,324	-100
Finished goods	2,154,135	2.47	2,102,216	-6.23	2,241,941	2,308,799	-6.70
Other stocks	0	-	0	-	0	464,502	-100
Trade debtors	36,550,015	19.45	30,599,088	72.17	17,772,909	4,234,718	763
Cash	1,785,222	946	170,545	-69.31	555,711	309,075	477
other amounts receivable	10,562	-84.79	69,421	70.29	40,766	397,807	-97.34
Miscellaneous current assets	9,094	-	0	-100	2,582	39,019	-76.69
Total current assets	40,509,028	22.97	32,941,270	59.80	20,613,909	7,786,094	420
current liabilities
Trade creditors	9,130,282	43.80	6,349,174	103	3,127,645	2,833,987	222
Short term group loans	-	-	-	-	-	-	-
Other short term loans	20,746,054	13.31	18,309,256	93.43	9,465,398	2,351,179	782
Miscellaneous current liabilities	131,134	-58.64	317,066	-75.03	1,269,879	-66.01	- -
Total current liabilities	30,007,471	20.15	24,975,496	80.16	13,862,922	5,455,678	450
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	6,279,200	57.23	3,993,600	43.82	2,776,800	325	- -
Other long term liabilities	12,434	-4.69	13,046	-4.47	13,657	277,461	-95.52
Total long term debts	6,291,634	57.03	4,006,646	43.58	2,790,457	875,974	618
shareholders equity
Issued share capital	4,650,000	0	4,650,000	0	4,650,000	1,016,715	357
Share premium account	-	-	-	-	-	173,859	-
Reserves	593,394	46.88	403,986	41.82	284,864	775,790	-23.51
Revaluation reserve	-	-	-	-	-	797,191	-
Total shareholders equity	5,243,394	3.75	5,053,986	2.41	4,934,864	1,817,179	188
Working capital	10,501,557	31.83	7,965,774	17.99	6,750,987	2,330,415	350
Net worth	5,243,394	3.75	5,053,986	2.41	4,934,864	1,815,355	188

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	22.73	0.22	-26.67	0.30	-686,00	0.04
Return on capital employed	2.46	24.24	1.98	7.61	1.84	-13,00	18.92
Return on total assets employed	0.68	28.30	0.53	-19.70	0.66	-31,00	2.19
Return on net assets employed	5.40	52.11	3.55	23.26	2.88	-20,00	27.00
Sales / net working capital	9.98	-1.19	10.10	44.08	7.01	63,00	-99
Stock turnover ratio	2.06	-21.07	2.61	-44.94	4.74	41,00	-94.98
Debtor days	127.34	-8.31	138.88	1.28	137.12	54.449,00	-99
Creditor days	32	9.33	29.27	19.27	24.54	243,00	-86.83
short term stability
Current ratio	1.35	2.27	1.32	-11.41	1.49	4,00	-92.06
Liquidity ratio / acid ratio	1.28	4.07	1.23	-7.52	1.33	3,00	-57.33
Current debt ratio	5.72	15.79	4.94	75.80	2.81	17,00	-66.35
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	515.42	16.80	441.29	77.88	248.08	266,00	93.77
Equity in percentage	12.62	-15.02	14.85	-35.04	22.86	-1.018,00	1.24
Total debt ratio	6.92	20.77	5.73	70.03	3.37	18,00	-61.56

Industry comparison

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

Payment expectations

Payment expectation days	32
Day sales outstanding	127.34

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	177.37
Industry average day sales outstanding	110.45

Industry quartile analysis

Payment expectations
Company result	32
Lower	126.91
Median	74.09
Upper	41.66


Day sales outstanding
Company result	127.34
Lower	111.91
Median	57.26
Upper	24.94

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	417844821
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	SHEHUL ZAVERI
Position	Director
Start Date	18/03/1998
Date of birth	23/05/1974
Street	5 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Former director details

Name	SIVANI KUMARPAL SHAH
Position	Director
Start Date	16/08/2010
End Date	28/04/2012
Street	5 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	SOHIL RAJNIKANT JHAVERI
Position	Director
Start Date	16/08/2010
End Date	28/04/2012
Date of birth	25/05/1957
Street	119 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	SHEHUL ZAVERI
Position	Managing Director
Start Date	16/08/2010
End Date	28/04/2012
Date of birth	23/05/1974
Street	5 DELLA FAILLELAAN ANTWERPEN
Post code	2020
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.

- 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.54.29
UK Pound	1	Rs.83.88
Euro	1	Rs.70.68

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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