MIRA INFORM REPORT

Report Date :

27.02.2013

IDENTIFICATION DETAILS

Name :	D. NAVINCHANDRA GEMS BVBA
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	02.02.1998
Com. Reg. No.:	462600126
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	Not available

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 (31.03.2012)	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 summary

Business number	462600126
Company name	D. NAVINCHANDRA GEMS BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Number of staff	0
Date of establishment	02/02/1998
Telephone number	032332427
Fax number	032251132

Accounts & ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH
31/12/2011	43,235,521	87,152	1,646,589
31/12/2010	33,386,214	61,505	1,559,437
31/12/2009	14,042,782	29,053	278,420

Accounts & ratios

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	INVESTMENTS	CAPITAL	CASH FLOW	NUMBER OF EMPLOYEES
31/12/2011	12,946,206	800	1,615,178	406,290	0
31/12/2010	9,754,436	800	1,615,178	166,771	0
31/12/2009	6,157,690	200	395,666	297,676	0

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	35.78
Industry average payment expectation days	176.07	Industry average day sales outstanding	109.20

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Business number	462600126	Company name	D. NAVINCHANDRA GEMS BVBA
Fax number	032251132	Date founded	02/02/1998
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.0462.600.126
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	324.02
Description	JSC small merchandisers in the diamant industry and trade
category

Significant Events

Event Date	24/02/2011
Event Description
Event Details	Aanpassing & Coördinatie statuten.

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	43,235,521	29.50	33,386,214	137	14,042,782	56,956,839	-24.09
Total operating expenses	42,940,009	29.62	33,126,911	136	13,982,862	56,275,592	-23.70
Operating result	295,512	13.96	259,303	332	59,920	261,362	13.07
Total financial income	182	67207	0	-97.74	12	171,575	-99
Total financial expenses	208,542	5.43	197,799	540	30,879	345,491	-39.64
Results on ordinary operations before taxation	87,152	41.70	61,505	111	29,053	70,551	23.53
Taxation	-	-	-	-	-	38,627	-
Results on ordinary operations after taxation	87,152	41.70	61,505	111	29,053	44,441	96.11
Extraordinary items	0	-	0	-	0	11,574	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	87,152	41.70	61,505	111	29,053	55,954	55.76
OTHER INFORMATION
Dividends	-	-	-	-	-	135,797	-
Director remuneration	37,200	-	-	-	-	118,597	-68.63
Employee costs	24,700	19.19	20,722	135	8,814	152,047	-83.76
Wages and salary	18,406	15.15	15,985	131	6,896	128,978	-85.73
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	3,889	27.75	3,044	84.51	1,650	31,709	-87.74
Other employee costs	2,404	41.98	1,693	531	268	4,339	-44.59
Amortization and depreciation	14,709	395	2,966	-	-	21,658	-32.09

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	1,798	-100
Tangible fixed assets	449,053	340	101,988	-	-	208,025	115
Land & building	354,201	-	-	-	-	381,382	-7.13
Plant & machinery	90,178	-8.80	98,878	-	-	27,852	223
Other tangible assets	4,674	50.29	3,110	-	0	30,908	-84.88
Financial fixed assets	800	0	800	300	200	321,397	-99
Total fixed assets	449,853	337	102,788	51293	200	426,624	5.44
Inventories	2,060,717	59.89	1,288,825	31.47	980,300	3,529,386	-41.61
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,257	-100
Finished goods	2,060,717	59.89	1,288,825	31.47	980,300	2,460,331	-16.24
Other stocks	0	-	0	-	0	459,089	-100
Trade debtors	10,006,997	22.38	8,176,713	67.92	4,869,553	4,388,570	128
Cash	406,290	143	166,771	-43.98	297,676	306,223	32.68
other amounts receivable	9,235	39.57	6,617	128	2,898	446,946	-97.93
Miscellaneous current assets	13,114	3.08	12,722	80.12	7,063	41,869	-68.68
Total current assets	12,496,353	29.47	9,651,648	56.75	6,157,490	8,133,775	53.64
CURRENT LIABILITIES
Trade creditors	4,209,459	285	1,092,094	-72.11	3,915,084	2,931,125	43.61
Short term group loans	-	-	-	-	-	-	-
Other short term loans	2,451,033	-52.29	5,137,147	744	608,166	2,438,060	0.53
Miscellaneous current liabilities	1,283,711	-5.02	1,351,561	21.11	1,116,019	220	- -
Total current liabilities	7,944,203	4.79	7,580,803	34.43	5,639,270	5,653,417	40.52
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	3,115,413	1198	240,000	0	240,000	94.09	- -
Other long term liabilities	240,000	-35.86	374,195	-	0	288,744	-16.88
Total long term debts	3,355,413	446	614,195	155	240,000	942,911	255
SHAREHOLDERS EQUITY
Issued share capital	1,615,178	0.00	1,615,178	308	395,666	1,167,517	38.34
Share premium account	-	-	-	-	-	173,859	-
Reserves	31,411	56.35	-55,741	47.54	-117,245	723,438	-95.66
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	1,646,589	5.59	1,559,437	460	278,420	1,915,052	-14.02
Working capital	4,552,150	119	2,070,845	299	518,220	2,480,358	83.53
Net worth	1,646,589	5.59	1,559,437	460	278,420	1,913,253	-13.94

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
TRADING PERFORMANCE
Profit Before Tax	0.20	11.11	0.18	-14.29	0.21	-661,00	0.03
Return on capital employed	1.74	-38.52	2.83	-49.46	5.60	-12,00	14.50
Return on total assets employed	0.67	6.35	0.63	34.04	0.47	-30,00	2.23
Return on net assets employed	5.29	34.26	3.94	-62.22	10.43	-18,00	29.39
Sales / net working capital	9.50	-41.07	16.12	-40.52	27.10	61,00	-99
Stock turnover ratio	4.77	23.58	3.86	-44.70	6.98	62,00	-92.31
Debtor days	84.48	-5.49	89.39	-29.38	126.57	51.582,00	-99
Creditor days	35.78	197	12.03	-88.23	102.20	299,00	-88.03
SHORT TERM STABILITY
Current ratio	1.57	23.62	1.27	16.51	1.09	4,00	-90.19
Liquidity ratio / acid ratio	1.31	19.09	1.10	19.57	0.92	3,00	-56.33
Current debt ratio	4.82	-0.82	4.86	-76.00	20.25	16,00	-69.88
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	338.06	-1.96	344.81	13.19	304.64	273,00	23.83
Equity in percentage	12.72	-20.45	15.99	253	4.52	-988,00	1.29
Total debt ratio	6.86	30.42	5.26	-75.09	21.12	17,00	-59.65

Industry comparison

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

Suspension of payments

/ moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	35.78
Day sales outstanding	84.48

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.07
Industry average day sales outstanding	109.20

Industry quartile analysis

Payment expectations
Company result	35.78
Lower	122.08
Median	73.75
Upper	41.43

Day sales outstanding
Company result	84.48
Lower	106.72
Median	54.94
Upper	24.45

Minority Shareholders

Business number	Company name	%	Date of accounts
-	D. N. GEMS PTE. LTD.	-	-

Minority Interests

No minority interests found

Individual Shareholders

SHAREHOLDER NAME
Forename	Mihir	Middle name	-
Surname	Mehta
SHAREHOLDER DETAILS
Start date	16/07/2010(estimated)	End date	-
Percentage owned	-
SHAREHOLDER ADDRESS
Street name	90 Nepean Sea Road	House number	-
Minor town	-	Postal town	BOMBAY
Post code	6	Country	India

NSSO details

Business number	462600126
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	MANOJ KUMAR RASIKLAL MEHTA
Position	Principal Manager
Start Date	15/04/2009
Street	70 JACHTLAAN EDEGEM
Post code	2650
Country	Belgium
Name	RUSHIN HARESH CHOKSI
Position	Principal Manager
Start Date	01/09/2011
Street	102 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	MIHIR DILIPKUMAR MEHTA
Position	Principal Manager
Start Date	28/05/2010
Street
Post code
Country	India

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.54.06
UK Pound	1	Rs.82.15
Euro	1	Rs.70.61

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%)