MIRA INFORM REPORT

Report Date :

04.12.2013

IDENTIFICATION DETAILS

Name :	RELIANCE BVBA

Registered Office :	Hoveniersstraat 30-38, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	15.05.1986

Com. Reg. No.:	428939542

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 :	Moderate

Payment Behaviour :	Slow but correct

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	428939542
Company name	RELIANCE BVBA
Address	HOVENIERSSTRAAT 30-38
	2018 ANTWERPEN
Number of staff	1
Date of establishment	15/05/1986
Telephone number	032330490
Fax number	032263380

Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0428.939.542
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	RAJESH TASWALA
Position	Principal Manager
Start Date	02/09/2011
Street	7 MARIA-HENRIËTTALEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	MANTHAN TASWALA
Position	Principal Manager
Start Date	09/09/2013
End Date	31/12/2012
Street	34 QUINTEN MATSIJSLEI 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	-

Business number	428939542	Company name	RELIANCE BVBA
Fax number	032263380	Date founded	15/05/1986

Personnel (NSSO classification)

Code	-
Description	1

Joint Industrial Committee (JIC)

NSSO details

Business number

428939542

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	-
Industry average payment expectation days	166.60	Industry average day sales outstanding	118.20
Day sales outstanding	-

Industry comparison

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

Industry comparison

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

Industry quartile analysis

Payment expectations
Company result	-
Lower	134.58
Median	84.93
Upper	44.86

Day sales outstanding
Company result	-
Lower	112.73
Median	58.70
Upper	28.58

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

Company name		Company Number
-		-

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
31/12/2012		3,590	724,553	705,885
31/12/2011		-2,403	722,985	702,035
31/12/2010		10,672	722,455	687,796

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	1,019,633	1	18,600	4,784
31/12/2011	1,885,231	1	18,600	4,088
31/12/2010	1,838,271	1	18,600	19,716

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	1
Part-time Employees	1
Total Fte Employees	2

Number of hours worked
Full-time Employees	1,764
Part-time Employees	876
Total	2,640

Personnel Charges
Full-time Employees	18,394
Part-time Employees	10,205
Total	28,598
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	2
Actual working hours	2,680
Personnel Charges	20,742
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	1	1	2
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-

Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	1	-	1
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	-	1	1
Higher education (non university)	-	-	-
Higher education (university)	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	-	1	1
Blue collar worker	1	-	1
Other	-	-	-

Temporary personnel	Total
Average number of temporary staff	-
Actual working hours	-
Cost of temporary staff	-

New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	-	-	-
Leavers	-	-	-

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of less formal and informal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of initial training initiatives at the expense of the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-

Profit & loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	46,267,848	-
Total operating expenses	-	-	-	-	-	45,870,796	-
Operating result	4,033	-27.73	5,580	-74.01	21,467	149,433	-97.30
Total financial income	7,779	93.28	4,025	969	376	98,928	-92.14
Total financial expenses	8,222	-31.53	12,008	7.49	11,171	206,375	-96.02
Results on ordinary operations before taxation	3,590	149	-2,403	-122	10,672	33,192	-89.18
Taxation	4,732	-20.20	5,930	4628	-128	21,020	-77.49
Results on ordinary operations after taxation	-1,142	13.71	-8,333	-177	10,800	18,256	-106
Extraordinary items	2,710	-69.42	8,863	-	0	-4,772	56.79
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	1,568	195	530	-95.09	10,800	13,500	-88.39
other information
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	114,096	-
Employee costs	28,598	37.87	20,742	13.62	18,256	128,844	-77.80
Wages and salary	19,912	32.12	15,071	27.24	11,845	107,570	-81.49
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	6,850	50.65	4,547	-1.78	4,629	27,113	-74.73
Other employee costs	1,836	63.30	1,124	-36.90	1,782	4,482	-59.04
Amortization and depreciation	3,216	-9.60	3,558	-60.10	8,916	17,612	-81.74

balance sheet

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,496	-100
Tangible fixed assets	39,813	-5.42	42,096	-24.56	55,804	179,878	-77.87
Land & building	35,690	-5.77	37,877	-26.02	51,200	352,266	-89.87
Plant & machinery	3,228	-20.68	4,069	7.88	3,772	22,362	-85.57
Furniture & Vehicles	896	495	150	-81.94	832	17,417 5,402	-94.86
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,940	-100
Financial fixed assets	545	0	545	0	545	297,704	-99
Total fixed assets	40,359	-5.35	42,641	-24.33	56,350	384,407	-89.50
Inventories	609,584	-21.29	774,494	51.16	512,372	3,079,225	-80.20
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,500	-100
Finished goods	0	-	0	-	0	1,957,453	-100
Other stocks	609,584	-21.29	774,494	51.16	512,372	580,982	4.92
Trade debtors	222,902	-76.09	932,403	-21.62	1,189,647	4,142,973	-94.62
Cash	58,830	-18.02	71,759	68.64	42,552	224,004	-73.74
other amounts receivable	86,479	39.87	61,827	75.05	35,320	185,757	-53.45
Miscellaneous current assets	1,480	-29.79	2,107	3.73	2,032	18,089	-91.82
Total current assets	979,275	-46.85	1,842,590	3.40	1,781,922	7,176,054	-86.35
Total Assets	1,019,633	-45.91	1,885,231	2.55	1,838,271	7,528,969 1,446,080	-86.46
current liabilities
Trade creditors	220,622	-79.43	1,072,488	3.56	1,035,616	3,006,949	-92.66
Short term group loans	-	-	-	-	-	-	-
Financial debts	334	-97.94	16,209	26.28	12,835	4,245,810 189,481	-99
Current portion of long term debt	-	-	-	-	-	109,218 14,984	-
Amounts Payable for Taxes, Remuneration & Social Security	12,394	13.51	10,919	76.87	6,173	9,343 -	-63.60
Miscellaneous current liabilities	40,040	-2.20	40,940	3.64	39,501	-86.63	- -
Total current liabilities	273,390	-76.03	1,140,555	4.24	1,094,125	5,301,126	-94.84
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	21,691	0	21,691	0	21,691	-98.06	- -
Deffered taxes	-	-	-	-	-	35,141 24,730	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,244 0	-100
Other long term liabilities	0	-	0	-	0	133,740	-100
Total long term debts	21,691	0	21,691	0	21,691	570,913	-96.20
shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	916,222	-97.97
Share premium account	-	-	-	-	-	109,362	-
Reserves	705,953	0.22	704,385	0.08	703,855	698,758	1.03
Revaluation reserve	-	-	-	-	-	934,864	-
Total shareholders equity	724,553	0.22	722,985	0.07	722,455	1,642,808	-55.90
Working capital	705,885	0.55	702,035	2.07	687,796	1,874,928	-62.35
Cashflow	4,784	17.04	4,088	-79.27	19,716	27,997	-82.91
Net worth	724,553	0.22	722,985	0.07	722,455	1,639,583	-55.81

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-	-	-	-	-	-27,00	-
Return on capital employed	0.48	150	-0.32	-122	1.43	31,00	-98.45
Return on total assets employed	0.35	269	-0.13	-122	0.58	-214,00	0.16
Return on net assets employed	0.50	151	-0.33	-122	1.48	21,00	-97.62
Sales / net working capital	-	-	-	-	-	45,00	-
Stock turnover ratio	-	-	-	-	-	116,00	-
Debtor days	-	-	-	-	-	138,00	-
Creditor days	-	-	-	-	-	126,00	-
short term stability
Current ratio	3.58	120	1.62	-0.61	1.63	7,00	-60.22
Liquidity ratio / acid ratio	1.35	43.62	0.94	-18.97	1.16	4,00	-66.25
Current debt ratio	0.38	-75.95	1.58	4.64	1.51	9,00	-95.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	3.04	-41.98	5.24	9.62	4.78	372,00	-99
Equity in percentage	71.06	85.29	38.35	-2.42	39.30	-3.347,00	2.12
Total debt ratio	0.41	-74.53	1.61	4.55	1.54	11,00	-96.27

FOREIGN EXCHANGE RATES

ADDITIONAL INFORMATION

Commentary

The business was established over 27 years ago.

The business has 1 employees.

The business has been at the address for over 20 years.

The business has changed address 1 times in the last year.

Operating Result in the latest trading period decreased 27% on the previous trading period.

A 45% decline in Total Assets occurred during the latest trading period.

Trends

Profitability
Liquidity
Net worth

NOTES & COMMENTS

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.62.34
UK Pound	1	Rs.102.06
Euro	1	Rs.84.46

INFORMATION DETAILS

Report Prepared by :

NNA

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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