MIRA INFORM REPORT

Report Date :

30.04.2013

IDENTIFICATION DETAILS

Name :	Veediam Bvba

Registered Office :	Hoveniersstraat 30, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	04.06.2004

Com. Reg. No.:	865620278

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of Diamonds and Other Precious Stones

No. of Employees :	1

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company

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 – 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

REGISTERED NAME & COMPANY SUMMARY

Business number	865620278
Company name	VEEDIAM BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	1
Date of establishment	04/06/2004
Telephone number	032270360
Fax number	032250360

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	94,657,480	186,648	3,179,044	7,975,768
31/12/2010	57,435,657	106,996	2,930,370	6,643,315
31/12/2009	46,515,825	88,231	1,059,975	4,819,189

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	24,164,118	1	2,697,160	175,254
31/12/2010	19,116,696	1	2,611,663	116,343
31/12/2009	17,018,729	1	855,335	80,401

Payment expectations

Past payments		Payment expectation days	18.24
Industry average payment expectation days	174.77	Industry average day sales outstanding	108.66
Day sales outstanding	73.59

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	865620278		Company name	VEEDIAM BVBA
Fax number	032250360		Date founded	04/06/2004
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.0865.620.278
Belgian Bullettin of Acts Publications	moniteur belge

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
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	08/12/2005
Event Description	proposal to change address filed
Event Details	Commentaar 08-12-2005: Overbrenging maatschappelijke zetel naar Hoveniersstraat 30 bus 194 te 2018 Antwerpen vanaf 01/01/2006.

Event Date	05/05/2008
Event Description
Event Details	Verbeterde akte: Het maatschappelijk kapitaal is verhoogd tot 855335 door opname uit de reserves.

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	94,657,480	64.81	57,435,657	23.48	46,515,825	49,527,631	91.12
Total operating expenses	94,019,454	64.92	57,010,454	23.44	46,183,598	48,890,358	92.31
Operating result	638,026	50.05	425,203	27.99	332,227	238,466	167
Total financial income	180,581	176	65,228	17171	378	148,968	21.22
Total financial expenses	631,959	64.82	383,435	56.91	244,373	287,728	119
Results on ordinary operations before taxation	186,648	74.44	106,996	21.27	88,231	84,458	120
Taxation	35,297	230	10,668	-63.26	29,040	37,844	-6.73
Results on ordinary operations after taxation	151,351	57.12	96,328	62.74	59,191	59,254	155
Extraordinary items	0	-100	399	-84.91	2,644	3,201	-100
Other appropriations	1	-	0	-	0.00	-	-
Net result	151,352	56.47	96,727	56.43	61,835	62,339	142
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	30,555	9.34	27,946	23.10	22,701	127,998	-76.13
Wages and salary	25,442	9.78	23,176	26.63	18,301	108,777	-76.61
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	4,904	9.76	4,468	23.48	3,618	27,123	-81.92
Other employee costs	209	-30.79	302	-61.35	781	3,607	-94.21
Amortization and depreciation	23,902	21.85	19,616	5.66	18,566	18,309	30.55

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	410	-	1,745	-	2,869	1,462	-71.96
Tangible fixed assets	828,480	273	221,983	0.22	221,504	177,648	366
Land & building	742,162	303	183,945	4.51	176,007	346,034	114
Plant & machinery	73,330	97.90	37,055	-3.76	38,504	21,826	235
Other tangible assets	12,988	1221	983	-85.94	6,993	24,613	-47.23
Financial fixed assets	583	3.37	564	7.84	523	276,884	-99
Total fixed assets	829,473	269	224,292	-0.27	224,895	363,620	128
Inventories	3,533,186	-8.53	3,862,464	197	1,299,380	3,060,929	15.43
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	3,533,186	-8.53	3,862,464	197	1,299,380	2,049,305	72.41
Other stocks	0	-	0	-	0	470,366	-100
Trade debtors	19,084,438	37.01	13,929,126	-9.15	15,332,194	3,888,007	390
Cash	630,713	-39.37	1,040,247	570	155,202	239,603	163
other amounts receivable	75,756	38.00	54,894	1955	2,670	245,153	-69.10
Miscellaneous current assets	10,552	86.00	5,673	29.26	4,389	21,392	-50.67
Total current assets	23,334,645	23.51	18,892,404	12.50	16,793,834	6,943,733	236
current liabilities
Trade creditors	4,699,285	-6.78	5,040,815	-22.31	6,488,258	2,777,715	69.18
Short term group loans	-	-	-	-	-	-	-
Other short term loans	10,237,925	44.14	7,102,705	30.62	5,437,687	1,895,458	440
Miscellaneous current liabilities	421,667	299	105,569	116	48,700	13.98	- -
Total current liabilities	15,358,877	25.39	12,249,089	2.29	11,974,645	4,926,143	211
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	5,305,963	46.34	3,625,807	98.79	1,823,948	361	- -
Other long term liabilities	319,824	3.27	309,685	-85.64	2,157,293	142,929	123
Total long term debts	5,625,787	42.95	3,935,492	-1.15	3,981,241	597,953	840
shareholders equity
Issued share capital	2,697,160	3.27	2,611,663	205	855,335	1,022,392	163
Share premium account	-	-	-	-	-	108,219	-
Reserves	482,294	50.50	320,452	54.43	207,509	695,355	-30.64
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	3,179,454	8.44	2,932,115	175	1,062,844	1,739,095	82.82
Working capital	7,975,768	20.06	6,643,315	37.85	4,819,189	2,017,589	295
Cashflow	175,254	50.64	116,343	44.70	80,401	77,438	126
Net worth	3,179,044	8.49	2,930,370	176	1,059,975	1,737,632	82.95

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.20	5.26	0.19	0	0.19	-744,00	0.03
Return on capital employed	2.12	35.90	1.56	-10.86	1.75	-14,00	15.14
Return on total assets employed	0.77	37.50	0.56	7.69	0.52	-34,00	2.26
Return on net assets employed	5.87	60.82	3.65	-56.02	8.30	-12,00	48.92
Sales / net working capital	11.87	37.23	8.65	-10.36	9.65	67,00	-99
Stock turnover ratio	3.73	-44.49	6.72	140	2.79	67,00	-94.43
Debtor days	73.59	-16.87	88.52	-26.42	120.31	58.055,00	-99
Creditor days	18.24	-43.48	32.27	-37.07	51.28	328,00	-94.44
short term stability
Current ratio	1.52	-1.30	1.54	10.0	1.40	4,00	-91.56
Liquidity ratio / acid ratio	1.29	4.88	1.23	-4.65	1.29	3,00	-57.00
Current debt ratio	4.83	15.55	4.18	-62.91	11.27	18,00	-73.17
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	488.89	33.61	365.90	-46.45	683.23	265,00	84.49
Equity in percentage	13.16	-14.21	15.34	145	6.25	-1.079,00	1.22
Total debt ratio	6.60	19.57	5.52	-63.22	15.01	19,00	-65.26

Industry comparison

Payment expectations

Payment expectation days	18.24
Day sales outstanding	73.59

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	18.24
Lower	121.46
Median	72.36
Upper	40.99

Day sales outstanding
Company result	73.59
Lower	105.52
Median	54.72
Upper	23.72

Summary

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number	865620278
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	PRAKASH BHAGWANBHAI PATEL
Position	Principal Manager
Start Date	29/07/2010
Street	7 BELGIËLEI ANTWERPEN
Post code	2018
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.54.28
UK Pound	1	Rs.84.23
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

NIT

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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