MIRA INFORM REPORT

Report Date :

15.01.2013

IDENTIFICATION DETAILS

Name :	GENESIS DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	02.04.1991
Com. Reg. No.:	443767872
Legal Form :	Private Limited Company (BL/LX)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	2

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

REGISTERED NAME & COMPANY SUMMARY

Business number	443767872	Company name	GENESIS DIAMONDS BVBA
		Telephone number	32343160
Address	HOVENIERSSTRAAT 2 ANTWERPEN	Fax number	32343184
Post code	2018	Number of staff	2
Date of establishment	02/04/1991

DIRECTORS/MANAGEMENT

Current director details

Name	NILANG RAJNINKANT MEHTA
Position	Principal Manager
Start Date	09/08/2010
Street	3 DE LANNOYLEI BRASSCHAAT
Post code	2930
Country	Belgium

Name	RONIL MAYANK MEHTA
Position	Principal Manager
Start Date	09/08/2010
Street	24 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	ALKESH PRATAPCHANDRA BHANSALI
Position	Principal Manager
Start Date	09/08/2010
Street	24 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	TEJPAL JAYANTILAL MEHTA
Position	Principal Manager
Start Date	14/01/2000
End Date	-
Street	25 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	-

Business number	443767872	Company name	GENESIS DIAMONDS BVBA
Fax number	32343184	Date founded	02/04/1991
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.0443.767.872
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number	443767872
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

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	62.11
Industry average payment expectation days	176.97	Industry average day sales outstanding	110.53
Day sales outstanding	49.40

Payment expectations

Payment expectation days	62.11
Day sales outstanding	49.40

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.97
Industry average day sales outstanding	110.53

Industry quartile analysis

Payment expectations
Company result	62.11
Lower	126.91
Median	74.09
Upper	41.71

Day sales outstanding
Company result	49.40
Lower	109.24
Median	57.26
Upper	24.94

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

Company name	Company Number
Genesis Diamonds BVBA	443767872

Summary

Group - Number of Companies	2
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Latest financials
- GENESIS DIAMONDS BVBA	443767872	31-12-2011
- - FACET INTERNATIONAL

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	127,502,349	338,139	3,762,951
31/12/2010	76,382,657	190,610	3,540,216
31/12/2009	36,307,099	50,674	2,888,416

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	34,724,679	1,982	2,649,160	683,012	2
31/12/2010	28,836,586	1,963	2,649,160	64,351	2
31/12/2009	24,480,448	1,704	2,649,160	229,937	1

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	127,502,349	66.93	76,382,657	110	36,307,099	57,367,727	122
Total operating expenses	126,661,764	67.06	75,816,020	109	36,105,039	56,658,997	123
Operating result	840,585	48.35	566,637	180	202,060	267,715	213
Total financial income	6,690	2454	262	-75.10	1,052	168,578	-96.03
Total financial expenses	509,136	35.30	376,289	146	152,437	327,013	55.69
Results on ordinary operations before taxation	338,139	77.40	190,610	276	50,674	92,525	265
Taxation	116,032	80.53	64,274	132	27,628	38,923	198
Results on ordinary operations after taxation	222,107	75.81	126,336	448	23,047	66,234	235
Extraordinary items	0	-	0	-	0	7,151	-100
Other appropriations	628.51	0	628.51	0	628.51	-	-
Net result	222,735	75.43	126,965	436	23,675	73,323	203
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	121,186	-
Employee costs	73,941	17.72	62,813	36.44	46,037	152,642	-51.56
Wages and salary	57,748	20.72	47,838	31.17	36,470	129,732	-55.49
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	11,612	30.58	8,892	50.15	5,922	31,896	-63.59
Other employee costs	4,580	-24.70	6,082	66.87	3,645	4,360	5.05
Amortization and depreciation	46,443	3.52	44,865	-4.17	46,817	21,168	119

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	1,794	-100
Tangible fixed assets	1,033,870	-2.35	1,058,747	87.39	565,000	205,277	403
Land & building	913,392	-1.14	923,917	125	409,607	378,102	141
Plant & machinery	92,852	-19.51	115,359	-20.37	144,874	27,171	241
Other tangible assets	27,627	41.88	19,472	85.11	10,519	30,716	-10.06
Financial fixed assets	1,982	1.00	1,963	15.18	1,704	308,816	-99
Total fixed assets	1,035,853	-2.34	1,060,710	87.17	566,704	414,598	149
Inventories	15,712,613	20.78	13,009,658	10.20	11,805,221	3,355,987	368
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,286	-100
Finished goods	15,712,613	20.78	13,009,658	10.20	11,805,221	2,312,289	579
Other stocks	0	-	0	-	0	460,603	-100
Trade debtors	17,258,045	17.59	14,675,838	23.81	11,853,126	4,269,549	304
Cash	683,012	961	64,351	-72.01	229,937	308,153	121
other amounts receivable	12,978	37.68	9,426	21.04	7,788	392,111	-96.69
Miscellaneous current assets	22,179	33.59	16,602	-6.05	17,672	38,686	-42.67
Total current assets	33,688,826	21.29	27,775,876	16.15	23,913,744	7,812,493	331
current liabilities
Trade creditors	21,552,640	20.18	17,934,084	17.01	15,326,873	2,848,296	656
Short term group loans	-	-	-	-	-	-	-
Other short term loans	3,332,715	-35.63	5,177,245	22.22	4,236,101	2,352,479	41.67
Miscellaneous current liabilities	295,357	-34.57	451,433	-30.03	645,219	-23.19	- -
Total current liabilities	25,180,712	6.87	23,562,762	16.60	20,208,192	5,471,395	360
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	5,764,728	235	1,716,691	25.65	1,366,294	288	- -
Other long term liabilities	16,289	-3.72	16,917	-3.58	17,546	286,427	-94.31
Total long term debts	5,781,016	233	1,733,608	25.28	1,383,840	889,411	549
shareholders equity
Issued share capital	2,649,160	0	2,649,160	0	2,649,160	1,026,013	158
Share premium account	-	-	-	-	-	173,859	-
Reserves	588,955	60.82	366,220	53.07	239,255	768,510	-23.36
Revaluation reserve	524,835	0	524,835	-	-	797,191	-34.16
Total shareholders equity	3,762,951	6.29	3,540,216	22.57	2,888,416	1,818,794	106
Working capital	8,508,115	101	4,213,114	13.70	3,705,551	2,341,097	263
Net worth	3,762,951	6.29	3,540,216	22.57	2,888,416	1,817,000	107

RATIO ANALYSIS

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.27	8.00	0.25	78.57	0.14	-666,00	0.04
Return on capital employed	3.54	-1.94	3.61	203	1.19	-13,00	27.23
Return on total assets employed	0.97	46.97	0.66	214	0.21	-31,00	3.13
Return on net assets employed	8.99	67.10	5.38	207	1.75	-20,00	44.95
Sales / net working capital	14.99	-17.32	18.13	85.00	9.80	63,00	-99
Stock turnover ratio	12.32	-27.66	17.03	-47.62	32.51	40,00	-69.20
Debtor days	49.40	-29.56	70.13	-41.15	119.16	52.994,00	-99
Creditor days	62.11	-28.06	86.34	-44.28	154.95	237,00	-73.79
short term stability
Current ratio	1.34	13.56	1.18	0	1.18	4,00	-91.62
Liquidity ratio / acid ratio	0.71	12.70	0.63	5.00	0.60	3,00	-76.33
Current debt ratio	6.69	0.45	6.66	-4.86	7	16,00	-58.19
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	241.76	24.15	194.73	0.40	193.96	277,00	-12.72
Equity in percentage	10.84	-11.73	12.28	4.07	11.80	-1.001,00	1.08
Total debt ratio	8.23	15.10	7.15	-4.41	7.48	18,00	-54.28

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

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

NOTES & COMMENTS

N/a

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.54.63
UK Pound	1	Rs.88.17
Euro	1	Rs.73.13

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%)

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