MIRA INFORM REPORT

Report Date :

20.12.2013

IDENTIFICATION DETAILS

Name :	ASIAN-DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	17.02.1992
Com. Reg. No.:	446607992
Legal Form :	Private Limited 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		446607992
Company name		ASIAN-DIAMONDS BVBA
Address		HOVENIERSSTRAAT 2
		2018 ANTWERPEN
Number of staff		1
Date of establishment		17/02/1992
Telephone number		032338454
Fax number		032338454
Business number	446607992	Company name	ASIAN-DIAMONDS BVBA
Fax number	032338454	Date founded	17/02/1992
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.0446.607.992
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Former director details

Name	SANGHVI HASMUKH
Position	Principal Manager
Start Date	04/02/1999
End Date	-
Street	58 PLANTIN EN MORETUSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	RAKESH POPATLAL SANGHVI
Position	Principal Manager
Start Date	07/11/2009
End Date	31/12/2010
Street	30 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HASMUKH PRAKASHRAJ SANGHVI
Position	Principal Manager
Start Date	07/11/2009
End Date	31/12/2010
Street	30 BELGIËLEI 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	-

NSSO details

Business number

446607992

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	68.75
Industry average payment expectation days	165.68	Industry average day sales outstanding	116.68
Day sales outstanding	79.12

Industry comparison

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

Payment expectations

Payment expectation days	68.75
Day sales outstanding	79.12

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	165.68
Industry average day sales outstanding	116.68

Industry quartile analysis

Payment expectations
Company result	68.75
Lower	134.58
Median	84.97
Upper	45.29
Day sales outstanding
Company result	79.12
Lower	113.11
Median	59.42
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
31/12/2012	22,298,328	31,359	736,603	1,551,175
31/12/2011	27,602,329	45,178	710,450	1,294,326
31/12/2010	22,674,922	36,772	672,803	1,250,055

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	6,400,660	1	518,600	44,317
31/12/2011	7,481,973	0	518,600	53,929
31/12/2010	7,836,157	0	518,600	52,710

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	22,298,328	-19.22	27,602,329	21.73	22,674,922	47,072,785	-52.63
Total operating expenses	22,118,513	-19.30	27,409,686	21.70	22,522,140	46,675,644	-52.61
Operating result	179,814	-6.66	192,643	26.09	152,782	150,471	19.50
Total financial income	576	-42.76	1,007	371	214	98,373	-99
Total financial expenses	149,031	0.38	148,472	27.75	116,224	206,992	-28.00
Results on ordinary operations before taxation	31,359	-30.59	45,178	22.86	36,772	33,249	-5.68
Taxation	9,499	26.15	7,530	-	-	21,145	-55.08
Results on ordinary operations after taxation	21,860	-41.93	37,648	2.38	36,772	18,193	20.16
Extraordinary items	4,293	-	0	-100	4,639	-4,641	92.49
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	26,153	-30.53	37,648	-9.09	41,411	13,571	92.71
other information
Dividends	-	-	-	-	-	172,177	-
Director remuneration	66,855	2.42	65,275	6.98	61,016	114,526	-41.62
Employee costs	-	-	-	-	469	128,695	-
Wages and salary	-	-	-	-	-	107,319	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	-	-	-	27,055	-
Other employee costs	0	-	0	-100	469	4,458	-100
Amortization and depreciation	18,163	11.56	16,282	44.10	11,299	17,877	1.60

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	1,596	-100
Tangible fixed assets	366,322	67.99	218,059	-6.95	234,341	185,178	97.82
Land & building	330,126	92.31	171,661	-2.00	175,156	359,116	-8.07
Plant & machinery	11,165	-5.55	11,820	-21.51	15,061	23,025	-51.51
Furniture & Vehicles	25,031	-27.61	34,578	-21.64	44,124	17,541 5,457	42.70
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,841	-100
Financial fixed assets	1,684	146	684	0	684	293,802	-99
Total fixed assets	368,006	68.24	218,743	-6.93	235,025	386,621	-4.81
Inventories	1,176,077	28.93	912,174	-48.07	1,756,394	3,124,254	-62.36
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,469	-100
Finished goods	1,176,077	28.93	912,174	-48.07	1,756,394	2,005,001	-41.34
Other stocks	0	-	0	-	0	575,173	-100
Trade debtors	4,833,519	-23.71	6,335,546	8.68	5,829,593	4,223,178	14.45
Cash	5,321	-3.99	5,543	120	2,510	223,371	-97.62
other amounts receivable	13,189	144	5,395	-28.05	7,498	184,709	-92.86
Miscellaneous current assets	4,547	-0.55	4,572	-11.00	5,137	18,016	-74.76
Total current assets	6,032,654	-16.94	7,263,230	-4.45	7,601,132	7,295,191	-17.31
Total Assets	6,400,660	-14.45	7,481,973	-4.52	7,836,157	7,650,696 1,454,122	-16.34
current liabilities
Trade creditors	4,165,925	-20.93	5,268,591	-5.17	5,555,935	3,082,205	35.16
Short term group loans	-	-	-	-	-	-	-
Financial debts	271,203	-59.44	668,572	-3.61	693,625	4,285,403 195,315	-93.67
Current portion of long term debt	26,369	39.51	18,901	4.41	18,102	108,524 15,189	-75.70
Amounts Payable for Taxes, Remuneration & Social Security	17,876	54.68	11,557	-12.28	13,175	9,398 -	-47.71
Miscellaneous current liabilities	106	-91.74	1,283	-98.17	70,242	-99	- -
Total current liabilities	4,481,479	-24.92	5,968,903	-6.02	6,351,078	5,411,387	-17.18
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	1,182,577	47.34	802,619	-1.19	812,277	6.24	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,204 0	-100
Other long term liabilities	0	-	0	-	0	132,058	-100
Total long term debts	1,182,577	47.34	802,619	-1.19	812,277	570,907	107
shareholders equity
Issued share capital	518,600	0	518,600	0	518,600	912,159	-43.15
Share premium account	-	-	-	-	-	109,362	-
Reserves	218,003	13.63	191,850	24.41	154,203	711,673	-69.37
Revaluation reserve	-	-	-	-	-	968,672	-
Total shareholders equity	736,603	3.68	710,450	5.60	672,803	1,654,216	-55.47
Working capital	1,551,175	19.84	1,294,326	3.54	1,250,055	1,883,804	-17.66
Cashflow	44,317	-17.82	53,929	2.31	52,710	28,308	56.55
Net worth	736,603	3.68	710,450	5.60	672,803	1,650,900	-55.38

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.14	-12.50	0.16	0	0.16	-26,00	0.54
Return on capital employed	1.63	-45.48	2.99	20.56	2.48	30,00	-94.57
Return on total assets employed	0.49	-18.33	0.60	27.66	0.47	-211,00	0.23
Return on net assets employed	4.26	-33.02	6.36	16.27	5.47	20,00	-78.70
Sales / net working capital	14.38	-32.58	21.33	17.59	18.14	45,00	-99
Stock turnover ratio	5.27	59.70	3.30	-57.42	7.75	113,00	-95.34
Debtor days	79.12	-5.56	83.78	-10.72	93.84	134,00	-40.96
Creditor days	68.75	-2.01	70.16	-22.08	90.04	122,00	-43.65
short term stability
Current ratio	1.35	10.66	1.22	1.67	1.20	7,00	-85.00
Liquidity ratio / acid ratio	1.08	1.89	1.06	15.22	0.92	4,00	-73.00
Current debt ratio	6.08	-27.62	8.40	-11.02	9.44	9,00	-32.44
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	200.94	-4.20	209.74	-7.41	226.52	370,00	-45.69
Equity in percentage	11.51	21.16	9.50	10.59	8.59	-3.305,00	0.35
Total debt ratio	7.69	-19.31	9.53	-10.52	10.65	11,00	-30.09

ADDITIONAL INFORMATION

Commentary

The business was established over 21 years ago.
The business has 1 employees.
The business has been at the address for over 11 years.
Pre-tax profits decreased by 30% compared to the previous trading period.

Trends

Profitability
Liquidity
Net worth

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.62.38
UK Pound	1	Rs.102.15
Euro	1	Rs.85.29

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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