MIRA INFORM REPORT

Report Date :

11.12.2013

IDENTIFICATION DETAILS

Name :	DE BEERS AUCTION SALES BELGIUM NV
Registered Office :	Schupstraat 21, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	07.12.1964
Com. Reg. No.:	404946690
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	10

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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

Company name & address

Business number	404946690
Company name	DE BEERS AUCTION SALES BELGIUM NV
Address	SCHUPSTRAAT 21
	2018 ANTWERPEN
Number of staff	10
Date of establishment	07/12/1964
Telephone number	032023311
Fax number	032342698

Commentary

The business was established over 48 years ago.
The business has 10 employees.
The business has changed its registered name recently.
The business has been at the address for over 18 years.
Operating Result in the latest trading period decreased 137% on the previous trading period.
Net Worth decreased by 35% during the latest trading period.
A 39% decline in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 138% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 96% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	269,753,368	-13,477,871	24,002,915	23,561,325
31/12/2011	297,823,073	35,265,705	37,381,170	36,853,945
31/12/2010	201,375,328	12,535,113	12,193,217	11,926,722

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	30,357,240	10	5,786,537	-12,537,955
31/12/2011	50,368,523	11	5,901,061	25,159,921
31/12/2010	17,226,433	9	5,714,005	12,611,805

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	1.28
Industry average payment expectation days	166.75	Industry average day sales outstanding	118.14
Day sales outstanding	0

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	404946690		Company name	DE BEERS AUCTION SALES BELGIUM NV
Fax number	032342698		Date founded	07/12/1964
Company status	active		Company type	Public Limited Liability Company (BE)
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.0404.946.690
Belgian Bullettin of Acts Publications	moniteur belge

Social Balance Sheet Details

Social Balance Sheet		Total
During the reporting year ended 31-12-2012
Full-time Employees		10
Part-time Employees		3
Total Fte Employees		12
Number of hours worked
Full-time Employees		13,286
Part-time Employees		3,360
Total		16,646
Personnel Charges
Full-time Employees		1,628,525
Part-time Employees		356,868
Total		1,985,393
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		12
Actual working hours		18,466
Personnel Charges		2,517,038
Benefits In Addition To Wages		-
Type of Contract	Full-Time		Part-Time	Total Fte
Unlimited Duration Contracts	10		3	12
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)	2		-		2
Higher education (university)	3		-		3
Women	Full-Time		Part-Time		Total Fte
Primary education	-		-		-
Secondairy education	4		3		6
Higher education (non university)	-		-		-
Higher education (university)	-		-		-
Working Category		Full-Time		Part-Time		Total Fte
Management		-		-		-
White collar worker		10		3		12
Blue collar worker		-		-		-
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	1	1		2
Leavers	1	-		1

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	10	3
Number of training hours	40	12
Net costs for enterprise	758	227
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	-	-

Personnel (NSSO classification)

Code	-
Description	10 EMPLOYEES

Joint Industrial Committee (JIC)

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

Significant Events

Event Date	30/06/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 30-06-2012: Herbenoemd als bestuurder voor een periode van 6 jaar: Jonathan Whitney.

comparison mode

average

median

Export accounts to CSV file

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	269,753,368	-9.42	297,823,073	47.89	201,375,328	46,188,124	484
Total operating expenses	283,051,157	7.84	262,481,706	39.10	188,701,343	45,792,277	518
Operating result	-13,297,789	-137	35,341,367	178	12,673,985	149,257	-9009
Total financial income	336,643	103	165,453	70.55	97,014	98,814	240
Total financial expenses	516,725	114	241,115	2.22	235,887	206,175	150
Results on ordinary operations before taxation	-13,477,871	-138	35,265,705	181	12,535,113	33,122	-40791
Taxation	-682,418	-106	10,280,743	-	-	20,980	-3352
Results on ordinary operations after taxation	-12,795,453	-151	24,984,962	99	12,535,113	18,209	-70369
Extraordinary items	0	-	0	0	-14,818	-4,771	0
Other appropriations	1	-	0	0	-1	-	-
Net result	-12,795,452	-151	24,984,962	99	12,520,294	13,454	-95205
other information
Dividends	-	-	-	-	3,158,248	172,177	-
Director remuneration	-	-	-	-	-	114,096	-
Employee costs	2,088,659	-20.83	2,638,094	105	1,284,349	129,010	1518
Wages and salary	726,866	-41.76	1,248,159	87.69	665,010	107,733	574
Employee pension costs	103,266	-	71,240	-	40,289	14,428	615
Social security contributions	202,782	-41.07	344,100	157	133,878	27,134	647
Other employee costs	1,055,745	8.33	974,595	118	445,171	4,472	23507
Amortization and depreciation	257,497	47.18	174,959	91.19	91,511	17,629	1360

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	204,938	-	354,487	-	153,296	1,614	12597
Tangible fixed assets	343,295	-19.83	428,196	138	179,605	179,841	90.89
Land & building	-	-	-	-	-	351,498	-
Plant & machinery	266,622	-26.97	365,087	121	165,012	22,362	1092
Furniture & Vehicles	76,674	21.49	63,109	332	14,592	17,3905,364	340
Leasing & Other Similar Rights	-	-	-	-	-	142,15332,369	-
Other tangible assets	-1	-	0	-100	1	7,932	-100
Financial fixed assets	98,294	-0.74	99,029	13.97	86,890	297,220	-66.93
Total fixed assets	646,527	-26.67	881,712	110	419,791	384,269	68.25
Inventories	29,501,774	835	3,153,176	707	390,601	3,089,287	854
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,497	-100
Finished goods	29,501,774	835	3,153,176	707	390,601	1,967,160	1399
Other stocks	0	-	0	-	0	580,371	-100
Trade debtors	568	-75.51	2,319	-	0	4,142,083	-99
Cash	112,581	-96.01	2,823,008	-38.47	4,587,726	224,018	-49.74
other amounts receivable	79,045	-99	43,419,547	267	11,807,866	185,620	-57.42
Miscellaneous current assets	16,745	-81.13	88,761	334	20,449	18,072	-7.34
Total current assets	29,710,713	-39.96	49,486,811	194	16,806,642	7,184,048	313
Total Assets	30,357,240	-39.73	50,368,523	192	17,226,433	7,536,8921,449,923	302
current liabilities
Trade creditors	992,588	-25.75	1,336,830	134	570,864	3,014,509	-67.07
Short term group loans	-	-	-	-	-	-	-
Financial debts	4,253,919	-	-	-	-	4,243,150189,666	0.25
Current portion of long term debt	-	-	-	-	3,742,000	108,91015,032	-
Amounts Payable for Taxes, Remuneration & Social Security	801,685	-92.83	11,176,469	2287	468,046	9,397 -	2255
Miscellaneous current liabilities	101,196	-15.36	119,567	20.76	99,010	-66.17	- -
Total current liabilities	6,149,388	-51.32	12,632,866	158	4,879,920	5,309,231	15.82
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	35,14124,730	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,241 0	-100
Other long term liabilities	-1	-	0	-	0	133,599	-100
Total long term debts	-1	-	0	-	0	570,351	-100
shareholders equity
Issued share capital	5,786,537	-1.94	5,901,061	3.27	5,714,005	916,311	531
Share premium account	83,098	-1.94	84,743	3.27	82,057	109,362	-24.02
Reserves	18,338,218	-42.24	31,749,853	384	6,550,451	699,078	2523
Revaluation reserve	-	-	-	-	-	934,864	-
Total shareholders equity	24,207,853	-35.85	37,735,657	205	12,346,513	1,643,187	1373
Working capital	23,561,325	-36.07	36,853,945	209	11,926,722	1,874,818	1156
Cashflow	-12,537,955	-149	25,159,921	99	12,611,805	27,969	-44928
Net worth	24,002,915	-35.79	37,381,170	206	12,193,217	1,639,845	1363

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-5	-142	11.84	90.35	6.22	-27,00	18.52
Return on capital employed	-55.68	-159	93.45	-7.96	101.53	31,00	-279
Return on total assets employed	-44.40	-163	70.02	-3.78	72.77	-214,00	20.75
Return on net assets employed	-55.68	-159	93.45	-7.96	101.53	21,00	-365
Sales / net working capital	11.45	41.71	8.08	-52.13	16.88	45,00	-99
Stock turnover ratio	10.94	932	1.06	457	0.19	115,00	-90.49
Debtor days	0	-	0	-	-	138,00	-100
Creditor days	1.28	-31.18	1.86	69.09	1.10	126,00	-98.98
short term stability
Current ratio	4.83	23.21	3.92	13.95	3.44	7,00	-46.33
Liquidity ratio / acid ratio	0.03	-99	3.67	9.23	3.36	4,00	-99
Current debt ratio	0.25	-24.24	0.33	-17.50	0.40	9,00	-97.22
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	17.57	-	-	-	30.31	371,00	-95.26
Equity in percentage	80.29	6.41	75.45	4.33	72.32	-3.343,00	2.40
Total debt ratio	0.25	-24.24	0.33	-17.50	0.40	11,00	-97.73

Industry comparison

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

Payment expectations

Payment expectation days	1.28
Day sales outstanding	0

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	166.75
Industry average day sales outstanding	118.14

Industry quartile analysis

Payment expectations
Company result	1.28
Lower	134.36
Median	84.93
Upper	44.86

Day sales outstanding
Company result	0
Lower	112.73
Median	58.56
Upper	28.58

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

404946690

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details

Name	JONATHAN WHITENY
Position	Director
Start Date	29/07/2010
Street	61 CAMILLE HUYSMANSLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	JONATHAN WHITNEY
Position	Director
Start Date	05/06/2009
Street	61 CAMILLE HUYSMANSLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	ERIC CAVERHILL
Position	Director
Start Date	22/06/2010
Street	42 RUE DES ROSES
Post code	2445
Country	Luxembourg

Name	BERNARD OLIVIER
Position	Director
Start Date	22/06/2010
Street	21 RUE DES LILAS STRASSEN
Post code	L-8035
Country	Luxembourg

Name	NEIL VENTURA
Position	Director
Start Date	20/07/2007
Country	United Kingdom

Name	MARK COLAO
Position	Director
Start Date	01/08/2004

Name	SANDRA GOLDSCHNEIDER
Position	Director
Start Date	03/03/2005

Name	NIEL VENTURA
Position	Director
Start Date	16/04/2008

Name	FRANCIS AUGER
Position	Managing Director
Start Date	01/01/2005
Street

Former director details

Name	THEODOOR CORDEMANS
Position	Director
Start Date	07/06/1994
End Date	-
Street	46 RIJMENAMSESTEENWEG MECHELEN
Post code	2812
Country	Belgium

Name	JOHN M. FINLAISON
Position	Managing Director
Start Date	15/03/1996
End Date	-
Street	10 VRIESDONKAKKER BRASSCHAAT
Post code	2930
Country	Belgium

Name	DESMOND JAMES CAVANAGH
Position	Director
Start Date	08/11/1999
End Date	01/08/2004
Street	12 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	DESMOND JAMES CAVANAGH
Position	Managing Director
Start Date	06/06/2000
End Date	-
Street	12 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	MELINDA PAGE
Position	Director
Start Date	24/01/2003
End Date	-
Street	WOLLOW COTTAGE,HOUGHTON'S LANE
Post code	CB7 5SR
Country	United Kingdom

Name	KEVIN STAPP
Position	Director
Start Date	20/07/2007
End Date	30/09/2008
Street
Post code
Country	United Kingdom

Name	TOM BEARDMORE-GRAY
Position	Director
Start Date	24/01/2003
End Date	05/06/2009
Street
Post code
Country	United Kingdom

Name	ANDREW COXON
Position	Director
Start Date	07/06/1994
End Date	-
Street	10 SOMMERSET SQUARE LONDEN
Post code	W14 8EE
Country

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.61.21
UK Pound	1	Rs.100.65
Euro	1	Rs.84.15

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%)

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.