MIRA INFORM REPORT

Report Date :

15.01.2013

IDENTIFICATION DETAILS

Name :	SAVANI GEMS BVBA
Registered Office :	Quinten Matsijslei 11 Bus 44 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	18.11.2004
Com. Reg. No.:	870280436
Legal Form :	Private Limited Company (BL/LX)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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	870280436	Company name	SAVANI GEMS BVBA
		Telephone number	0489791490
Address	QUINTEN MATSIJSLEI 11 BUS 44 ANTWERPEN	Fax number	-
Post code	2018	Number of staff	0
Date of establishment	18/11/2004

DIRECTORS/MANAGEMENT

Current director details

Name	NIKHIL SAVANI
Position	Principal Manager
Start Date	01/07/2010
Street	11 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	MAVJIBHAI LAVJIBHAI SAVANI
Position	Principal Manager
Start Date	01/07/2010
Street	11 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	DAVID JOANNES CYPERS
Position	Principal Manager
Start Date	18/11/2004
End Date	31/08/2008
Street	128 EUGÈNE DEMOLDERLAAN BRUSSEL
Post code	1030
Country	Belgium

Name	SAVANI JEWELS EBVBA
Position	Principal Manager
Start Date	01/09/2008
End Date	30/06/2010
Date of birth	27/06/2002
Street	55 HOVENIERSSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	SAVANI JEWELS EBVBA
Position	Legal Representative
Start Date	01/09/2008
End Date	-
Date of birth	27/06/2002
Street	55 HOVENIERSSTRAAT 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	08/03/2011

Business number	870280436	Company name	SAVANI GEMS BVBA
Fax number	-	Date founded	18/11/2004
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.0870.280.436
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

NSSO details

Business number	870280436
Name of defendant	SAVANI GEMS
Legal form of defendant	Private limited liability company
Date of summons	08/02/2011
Labour court	ANTWERPEN

Bankruptcy details

There is no bankruptcy data against this company

Legal events

Legal event type	Social Security Summons
Legal event sub type
Event date	08/03/2011	Secondary event date
Court number		Registry body identfier
Court type	Employment Court	Court name	Antwerpen
3rd party name	Rijksdienst voor Sociale Zekerheid	3rd party type	Summoning Party
3rd party address

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	-
Industry average payment expectation days	176.97	Industry average day sales outstanding	110.53
Day sales outstanding	-

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	-
Day sales outstanding	-

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	-
Lower	126.91
Median	74.09
Upper	41.71

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

GROUP STRUCTURE & AFFILIATED COMPANIES

N/a

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011		7,385	35,835
31/12/2010		10,648	30,356
31/12/2009		10,947	23,032

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	1,236,980		18,600	17,347	0
31/12/2010	1,225,025		18,600	42,233	0
31/12/2009	-		18,600	23,017	0

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	-	-	-	-	-	57367727	-
Total operating expenses	-	-	-	-	-	56658997	-
Operating result	8838	-25.28	11828	5.96	11162	267715	-96.70
Total financial income	88	-62.71	236	22372	1	168578	-99
Total financial expenses	1541	8.88	1415	553	217	327013	-99
Results on ordinary operations before taxation	7385	-30.65	10648	-2.72	10947	92525	-92.02
Taxation	1906	-42.68	3325	160	1274	38923	-95.10
Results on ordinary operations after taxation	5479	-25.18	7323	-24.29	9673	66234	-91.73
Extraordinary items	0	-	0	-	0	7151	-100
Other appropriations	0	-	0	-	0	-	-
Net result	5479	-25.18	7323	-24.29	9673	73323	-92.53
other information
Dividends	-	-	-	-	-	135797	-
Director remuneration	-	-	-	-	-	121186	-
Employee costs	-	-	6788	-	-	152642	-
Wages and salary	-	-	5731	-	-	129732	-
Employee pension costs	-	-	-	-	-	8542	-
Social security contributions	-	-	1057	-	-	31896	-
Other employee costs	0	-	0	-	0	4360	-100
Amortization and depreciation	1778	3056	56	-	-	21168	-91.60
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	1794	-100
Tangible fixed assets	17125	6439	262	-	-	205277	-91.66
Land & building	-	-	-	-	-	378102	-
Plant & machinery	365	-	-	-	-	27171	-98.66
Other tangible assets	16760	6300	262	-	0	30716	-45.44
Financial fixed assets	-	-	-	-	-	308816	-
Total fixed assets	17125	6439	262	-	-	414598	-95.87
Inventories	360345	424	68678	6.43	64531	3355987	-89.26
Raw materials & consumables	-	-	-	-	-	3816893	-
Work in progress	0	-	0	-	0	2286	-100
Finished goods	0	-	0	-	0	2312289	-100
Other stocks	360345	424	68678	6.43	64531	460603	-21.77
Trade debtors	820608	-26.28	1113160	306	273863	4269549	-80.78
Cash	17347	-58.93	42233	83.49	23017	308153	-94.37
other amounts receivable	19876	2772	692	-89.59	6646	392111	-94.93
Miscellaneous current assets	1679	-	0	-	0	38686	-95.66
Total current assets	1219855	-0.40	1224764	232	368057	7812493	-84.39
current liabilities
Trade creditors	1180774	-0.42	1185785	246	342455	2848296	-58.54
Short term group loans	-	-	-	-	-	-	-
Other short term loans	3000	-	0	-	0	2352479	-99
Miscellaneous current liabilities	4557	-48.71	8885	245	2570	-98.81	- -
Total current liabilities	1188331	-0.53	1194670	246	345025	5471395	-78.28
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	12814	-	-	-	-	-99	- -
Other long term liabilities	0	-	0	-	0	286427	-100
Total long term debts	12814	-	0	-	0	889411	-98.56
shareholders equity
Issued share capital	18600	0	18600	0	18600	1026013	-98.19
Share premium account	-	-	-	-	-	173859	-
Reserves	17235	46.61	11756	165	4432	768510	-97.76
Revaluation reserve	-	-	-	-	-	797191	-
Total shareholders equity	35835	18.05	30356	31.80	23032	1818794	-98.03
Working capital	31524	4.75	30094	30.66	23032	2341097	-98.65
Net worth	35835	18.05	30356	31.80	23032	1817000	-98.03
RATIO ANALYSIS
Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	-	-	-	-	-	-666,00	-
Return on capital employed	15.18	-56.73	35.08	-26.19	47.53	-13,00	116
Return on total assets employed	0.6	-31.03	0.87	-70.71	2.97	-31,00	1.94
Return on net assets employed	20.61	-41.25	35.08	-26.19	47.53	-20,00	103
Sales / net working capital	-	-	-	-	-	63,00	-
Stock turnover ratio	-	-	-	-	-	40,00	-
Debtor days	-	-	-	-	-	52.994,00	-
Creditor days	-	-	-	-	-	237,00	-
short term stability
Current ratio	1.03	0	1.03	-3.74	1.07	4,00	-93.56
Liquidity ratio / acid ratio	0.72	-25.77	0.97	10.23	0.88	3,00	-76.00
Current debt ratio	33.16	-15.75	39.36	162	14.98	16,00	107
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	44.13	-	-	-	-	277,00	-84.07
Equity in percentage	2.9	16.94	2.48	-60.38	6.26	-1.001,00	0.29
Total debt ratio	33.52	-14.84	39.36	162	14.98	18,00	86.22

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	14/10/2008
Event Description
Event Details	Rechtzetting : de benoeming tot zaakvoerder van Ketan Savani wordt nietig verklaard.

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

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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