MIRA INFORM REPORT

Report Date :

12.02.2013

IDENTIFICATION DETAILS

Name :	A.Z. DIAMOND BVBA
Registered Office :	Hovenierstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	12.02.1997
Com. Reg. No.:	459966674
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 :

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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
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 2.0%, the unemployment rate decreased slightly to 7.7% 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. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

Company name and address

Business number	459966674
Company name	A.Z. DIAMOND BVBA
Address	HOVENIERSTRAAT 2
	2018 ANTWERPEN
Number of staff	1
Date of establishment	12/02/1997
Telephone number	032314495
Fax number	032269123

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	5,026,411	7,874	104,079
31/12/2010	6,692,287	12,131	98,931
31/12/2009	4,459,520	6,039	93,476

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	3,236,775	372	62,000	197,548	1
31/12/2010	3,337,533	372	62,000	54,211	2
31/12/2009	3,536,527	372	62,000	183,811	1

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	104.97
Industry average payment expectation days	176.04	Industry average day sales outstanding	109.62
Day sales outstanding	8.27

Court data summary

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

Business number	459966674	Company name	A.Z. DIAMOND BVBA
Fax number	032269123	Date founded	12/02/1997
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.0459.966.674
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

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

Export accounts to CSV file

comparison mode

average

median

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	5,026,411	-24.89	6,692,287	50.07	4,459,520	57,071,239	-91.19
Total operating expenses	4,913,666	-25.77	6,619,825	43.15	4,624,510	56,388,961	-91.29
Operating result	112,745	55.59	72,462	43.92	-164,990	261,580	-56.90
Total financial income	-	-	-	-	181,771	170,510	-
Total financial expenses	104,872	73.83	60,331	461	10,742	344,640	-69.57
Results on ordinary operations before taxation	7,874	-35.09	12,131	100	6,039	70,654	-88.86
Taxation	2,726	9.01	2,500	44.86	1,726	38,720	-92.96
Results on ordinary operations after taxation	5,148	-46.54	9,630	123	4,313	44,504	-88.43
Extraordinary items	0	0	-4,175	-	0	11,595	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	5,148	-5.63	5,455	26.49	4,313	56,038	-90.81
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	118,597	-
Employee costs	41,456	4.29	39,751	28.43	30,950	152,302	-72.78
Wages and salary	33,735	11.93	30,140	24.54	24,202	129,219	-73.89
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	6,345	20.19	5,279	11.28	4,744	31,775	-80.03
Other employee costs	1,376	-68.24	4,331	116	2,004	4,346	-68.35
Amortization and depreciation	4,804	-6.61	5,144	-27.62	7,107	21,699	-77.86

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	0	-	0	-	0	1,775	-100
Tangible fixed assets	25,402	-11.97	28,856	-25.69	38,832	208,237	-87.80
Land & building	15,733	-3.99	16,387	-3.84	17,042	381,832	-95.88
Plant & machinery	4,908	-16.16	5,854	16.73	5,015	27,852	-82.38
Other tangible assets	4,761	-28.02	6,615	-60.57	16,775	30,964	-84.62
Financial fixed assets	372	0	372	0	372	321,397	-99
Total fixed assets	25,774	-11.82	29,228	-25.45	39,204	427,235	-93.97
Inventories	2,892,573	32.31	2,186,200	-13.48	2,526,780	3,531,853	-18.10
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,261	-100
Finished goods	2,892,573	32.31	2,186,200	-13.48	2,526,780	2,464,757	17.36
Other stocks	0	-	0	-	0	455,632	-100
Trade debtors	113,874	-89.26	1,060,488	36.06	779,401	4,392,223	-97.41
Cash	197,548	264	54,211	-70.51	183,811	306,714	-35.59
other amounts receivable	3,977	-1.85	4,052	17.61	3,446	447,746	-99
Miscellaneous current assets	3,029	-9.66	3,353	-13.69	3,885	41,902	-92.77
Total current assets	3,211,001	-2.94	3,308,305	-5.40	3,497,322	8,139,766	-60.55
current liabilities
Trade creditors	1,413,135	64.56	858,758	-26.41	1,166,989	2,928,994	-51.75
Short term group loans	-	-	-	-	-	-	-
Other short term loans	0	-	0	-	0	2,442,273	-100
Miscellaneous current liabilities	14,800	-10.71	16,575	13.19	14,643	-96.30	- -
Total current liabilities	1,427,935	63.13	875,333	-25.92	1,181,632	5,655,192	-74.75
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	1,704,761	-27.86	2,363,269	4.50	2,261,419	6.00	- -
Other long term liabilities	0	-	0	-	0	289,264	-100
Total long term debts	1,704,761	-27.86	2,363,269	4.50	2,261,419	944,427	80.51
shareholders equity
Issued share capital	62,000	0	62,000	0	62,000	1,169,545	-94.70
Share premium account	-	-	-	-	-	173,859	-
Reserves	42,079	13.94	36,931	17.33	31,476	724,519	-94.19
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	104,079	5.20	98,931	5.84	93,476	1,918,204	-94.57
Working capital	1,783,066	-26.71	2,432,972	5.06	2,315,690	2,484,574	-28.23
Net worth	104,079	5.20	98,931	5.84	93,476	1,916,428	-94.57

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.16	-11.11	0.18	28.57	0.14	-662,00	0.02
Return on capital employed	0.44	-10.20	0.49	88.46	0.26	-12,00	3.67
Return on total assets employed	0.24	-33.33	0.36	111	0.17	-31,00	0.77
Return on net assets employed	7.57	-38.25	12.26	89.78	6.46	-18,00	42.06
Sales / net working capital	2.82	2.55	2.75	42.49	1.93	61,00	-99
Stock turnover ratio	57.55	76.16	32.67	-42.34	56.66	62,00	-7.18
Debtor days	8.27	-85.70	57.84	-9.33	63.79	51.715,00	-99
Creditor days	104.97	121	47.35	-48.59	92.11	299,00	-64.89
short term stability
Current ratio	2.25	-40.48	3.78	27.70	2.96	4,00	-85.94
Liquidity ratio / acid ratio	0.22	-82.81	1.28	56.10	0.82	3,00	-92.67
Current debt ratio	13.72	55.03	8.85	-29.98	12.64	16,00	-14.25
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	1637.95	-31.43	2388.80	-1.26	2419.26	273,00	499
Equity in percentage	3.22	8.78	2.96	12.12	2.64	-990,00	0.33
Total debt ratio	30.10	-8.06	32.74	-11.11	36.83	17,00	77.06

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Payment expectations

Payment expectation days	104.97
Day sales outstanding	8.27

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.04
Industry average day sales outstanding	109.62

Industry quartile analysis

Payment expectations
Company result	104.97
Lower	122.08
Median	73.75
Upper	41.43
Day sales outstanding
Company result	8.27
Lower	106.72
Median	54.84
Upper	24.45

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

Individual Shareholders

Shareholder Name
Forename	Pierre	Middle name	Philemon
Surname	Zeldenrust
Shareholder Details
Start date	12/02/1997	End date	-
Percentage owned	-
Shareholder Address
Street name	Albert Jonnartlaan	House number	77
Minor town	-	Postal town	Brussel
Post code	1200	Country	Belgium

NSSO details

Business number	459966674
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	PIERRE FERNAND PHILEMON ZELDENRUST
Position	Principal Manager
Start Date	11/08/2010
Date of birth	09/09/1952
Street	77 ALBERT JONNARTLAAN BRUSSEL
Post code	1200
Country	Belgium

Former director details

Name	PIERRE FERNAND PHILEMON ZELDENRUST
Position	Director
Start Date	07/09/2005
End Date	30/03/2009
Date of birth	09/09/1952
Street	77 ALBERT JONNARTLAAN BRUSSEL
Post code	1200
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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.68
UK Pound	1	Rs.84.84
Euro	1	Rs.71.87

INFORMATION DETAILS

Report Prepared by :

PRL

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.