MIRA INFORM REPORT

Report Date :

16.12.2013

IDENTIFICATION DETAILS

Name :	ANTWERP STAR DIAMONDS NV
Registered Office :	Schupstraat 18, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.03.2013
Date of Incorporation :	25.07.2008
Com. Reg. No.:	899516632
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 – 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

REGISTERED NAME & COMPANY SUMMARY

Business number	899516632
Company name	ANTWERP STAR DIAMONDS NV
Address	SCHUPSTRAAT 18
	2018 ANTWERPEN
Number of staff	1
Date of establishment	25/07/2008
Telephone number	037708727

DIRECTORS/MANAGEMENT

Current director details

Name	HENRI POMERANZ
Position	Managing Director
Start Date	27/01/2011
Date of birth	10/07/1956
Street	26 ALBERTSTRAAT ANTWERPEN
Post code	2000
Country	Belgium

Name	HENRI POMERANZ
Position	Director
Start Date	26/01/2011
Date of birth	10/07/1956
Street	26 ALBERTSTRAAT ANTWERPEN
Post code	2000
Country	Belgium

Name	BLUE STAR DIAMONDS PRIVATE LIMITED
Position	Managing Director
Start Date	26/01/2011
Street
Post code
Country	India

Name	BLUE STAR DIAMONDS PRIVATE LIMITED
Position	Director
Start Date	26/01/2011
Country	India

Former director details

Name	HENRI POMERANZ
Position	Principal Manager
Start Date	25/07/2008
Date of birth	10/07/1956
Street	26 ALBERTSTRAAT ANTWERPEN
Post code	2000
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Business number	899516632	Company name	ANTWERP STAR DIAMONDS NV
Fax number		Date founded	25/07/2008
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/03/2013
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0899.516.632
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number

899516632

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	103.21
Industry average payment expectation days	165.54	Industry average day sales outstanding	116.45
Day sales outstanding	134.13

Industry comparison

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

Payment expectations

Payment expectation days	103.21
Day sales outstanding	134.13

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	165.54
Industry average day sales outstanding	116.45

Industry quartile analysis

Payment expectations
Company result	103.21
Lower	134.36
Median	84.93
Upper	44.93
Day sales outstanding
Company result	134.13
Lower	112.73
Median	59.01
Upper	28.58

GROUP STRUCTURE & AFFILIATED COMPANIES

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
31/03/2013	258,372,117	388,096	4,170,436	23,119,705
31/03/2012	125,525,634	552,789	3,833,470	3,810,578
31/12/2010		350,497	358,073	357,870

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/03/2013	128,348,999	1	3,123,600	307,781
31/03/2012	96,329,294	0	3,091,600	398,239
31/12/2010	8,528,053	0	20,484	229,906

Profit & loss

Annual accounts	31-03-2013	%	31-03-2012	%	31-12-2010	Industry average 2013	%
Weeks	52		65		52
Currency	EUR		EUR		EUR
Turnover	258,372,117	105	125,525,634	-	-	115,261,487	124
Total operating expenses	256,922,100	105	124,961,929	-	-	113,785,535	125
Operating result	1,450,017	157	563,705	54.48	364,900	840,550	72.51
Total financial income	10,969	-40.07	18,303	107	8,823	385,865	-97.16
Total financial expenses	1,072,889	3571	29,219	25.81	23,225	998,709	7.43
Results on ordinary operations before taxation	388,096	-29.79	552,789	57.72	350,497	196,420	97.58
Taxation	90,809	-42.63	158,282	30.81	120,998	40,675	123
Results on ordinary operations after taxation	297,287	-24.64	394,507	71.90	229,499	165,638	79.48
Extraordinary items	0	-	0	-	0	10,219	-100
Other appropriations	1	-	0	-100	1	-	-
Net result	297,288	-24.64	394,507	71.90	229,500	175,857	69.05
other information
Dividends	-	-	-	-	-	50,000	-
Director remuneration	46,043	-	-	-	-	109,381	-57.91
Employee costs	5,463	-	-	-	-	166,462	-96.72
Wages and salary	3,498	-	-	-	-	141,350	-97.53
Employee pension costs	-	-	-	-	-	-	-
Social security contributions	1,329	-	-	-	-	34,094	-96.10
Other employee costs	636	-	0	-	0	3,657	-82.61
Amortization and depreciation	10,493	181	3,732	819	406	49,533	-78.82

Balance sheet

Annual accounts	31-03-2013	%	31-03-2012	%	31-12-2010	Industry average 2013	%
Weeks	52		65		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,256	-100
Tangible fixed assets	573,231	2404	22,892	11176	203	484,575	18.30
Land & building	553,494	-	-	-	-	1,173,922	-52.85
Plant & machinery	-	-	-	-	-	66,330	-
Furniture & Vehicles	19,736	-13.79	22,892	11176	203	22,838 7,993	-13.58
Leasing & Other Similar Rights	-	-	-	-	-	204,658 20,725	-
Other tangible assets	1	-	0	-	0	10,868	-99
Financial fixed assets	-	-	-	-	-	64,332	-
Total fixed assets	573,231	2404	22,892	11176	203	463,249	23.74
Inventories	32,446,727	-25.24	43,399,576	431	8,163,991	14,072,033	130
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	32,446,727	-25.24	43,399,576	-	0	10,880,872	198
Other stocks	0	-	0	-100	8,163,991	528,884	-100
Trade debtors	94,949,871	79.94	52,766,674	364335	14,479	22,861,595	315
Cash	320,407	151	127,328	-58.89	309,708	1,082,121	-70.39
other amounts receivable	23,892	163	9,069	-70.87	31,137	602,792	-96.04
Miscellaneous current assets	34,871	828	3,755	-56.00	8,535	77,975	-55.28
Total current assets	127,775,768	32.68	96,306,402	1029	8,527,850	36,034,240	254
Total Assets	128,348,999	33.24	96,329,294	1029	8,528,053	36,447,408 6,199,231	252
current liabilities
Trade creditors	72,646,318	-21.33	92,337,484	1055	7,991,846	13,329,355	445
Short term group loans	-	-	-	-	-	-	-
Financial debts	31,236,000	-	-	-	-	20,816,079 5,052,128	50.06
Current portion of long term debt	-	-	-	-	-	74,152 11,114	-
Amounts Payable for Taxes, Remuneration & Social Security	107,335	-32.21	158,340	-11.11	178,134	30,757 -	62.84
Miscellaneous current liabilities	666,410	-	0	-	0	104	- -
Total current liabilities	104,656,063	13.15	92,495,824	1032	8,169,980	25,792,334	305
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	19,522,500	-	-	-	-	332	- -
Deffered taxes	-	-	-	-	-	- -	-
Provisions for Liabilities & Charges	0	-	0	-	0	4,892 0	-100
Other long term liabilities	0	-	0	-	0	426,089	-100
Total long term debts	19,522,500	-	0	-	0	2,869,960	580
shareholders equity
Issued share capital	3,123,600	1.04	3,091,600	14992	20,484	6,413,170	-51.29
Share premium account	-	-	-	-	-	538,244	-
Reserves	1,046,836	41.11	741,870	119	337,589	1,155,633	-9.41
Revaluation reserve	-	-	-	-	-	1,731,760	-
Total shareholders equity	4,170,436	8.79	3,833,470	970	358,073	7,785,115	-46.43
Working capital	23,119,705	506	3,810,578	964	357,870	10,241,906	125
Cashflow	307,781	-22.71	398,239	73.22	229,906	213,342	44.27
Net worth	4,170,436	8.79	3,833,470	970	358,073	7,783,859	-46.42

Ratio analysis

Annual accounts	31-03-2013	change(%)	31-03-2012	change(%)	31-12-2010	Industry average 2013	%
Trading performance
Profit Before Tax	0.15	-65.91	0.44	-	-	33,00	-99
Return on capital employed	1.64	-88.63	14.42	-85.27	97.88	9,00	-81.78
Return on total assets employed	0.30	-47.37	0.57	-86.13	4.11	1,00	-70.00
Return on net assets employed	9.31	-35.44	14.42	-85.27	97.88	8,00	16.38
Sales / net working capital	11.18	-66.06	32.94	-	-	26,00	-99
Stock turnover ratio	12.56	-63.67	34.57	-	-	15,00	-16.27
Debtor days	134.13	-12.58	153.43	-	-	136,00	-1.38
Creditor days	103.21	-61.73	269.71	-	-	90,00	14.68
short term stability
Current ratio	1.22	17.31	1.04	0	1.04	9,00	-88.91
Liquidity ratio / acid ratio	0.91	59.65	0.57	1325	0.04	8,00	-88.62
Current debt ratio	25.09	3.98	24.13	5.74	22.82	11,00	128
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	1217.10	-	-	-	-	246,00	394
Equity in percentage	3.25	-18.34	3.98	-5.24	4.20	16,00	-79.69
Total debt ratio	29.78	23.41	24.13	5.74	22.82	11,00	170

ADDITIONAL INFORMATION

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-03-2013
Full-time Employees	0
Part-time Employees	-
Total Fte Employees	0
Number of hours worked
Full-time Employees	272
Part-time Employees	-
Total	272
Personnel Charges
Full-time Employees	5,463
Part-time Employees	-
Total	5,463
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	1	-	1
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	-	-	-
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	-	-	-
Other	-	-	-

Temporary personnel

Total

New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	1	-	1
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	-	-

Personnel (NSSO classification)

Code	-
Description	1 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	01/02/2013
Event Details	Neerlegging van de notulen van de bijzondere algemene vergadering van aandeelhouders houdende goedkeuring, van bepalingen die van toepassing zijn ingeval van controlewijziging.

NOTES & COMMENTS

Commentary

The business was established over 5 years ago.
The business has 1 employees.
The business has been at the address for over 5 years.
Operating Result in the latest trading period increased 157% on the previous trading period.
A 33% growth in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 29% compared to the previous trading period.
The business saw an increase in their Cash Balance of 151% during the latest trading period.
Turnover in the latest trading period increased 105% on the previous trading period.

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.62.13
UK Pound	1	Rs.101.53
Euro	1	Rs.85.41

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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