MIRA INFORM REPORT

Report Date :

25.01.2013

IDENTIFICATION DETAILS

Name :	SANA DIAM NV
Registered Office :	Hoveniersstraat 2 Bus 608 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	19.05.1976
Com. Reg. No.:	416298264
Legal Form :	Public Limited Liability Company (BE)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	5

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

REGISTERED NAME & COMPANY SUMMARY

Business number	416298264	Company name	SANA DIAM NV
		Telephone number	032323965
Address	HOVENIERSSTRAAT 2 BUS 608 ANTWERPEN	Fax number	032334574
Post code	2018	Number of staff	5
Date of establishment	19/05/1976

Business number	416298264	Company name	SANA DIAM NV
Fax number	032334574	Date founded	19/05/1976
Company status	active	Company type	Public Limited Liability Company (BE)
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.0416.298.264
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	FIDAA NASSER
Position	Director
Start Date	02/09/2011
Street	3 JEAN-LOUIS CAUTREELSLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	OSSAMA HANI NASSER
Position	Managing Director
Start Date	02/09/2011
Street	82 PEETERSSTRAAT EDEGEM
Post code	2650
Country	Belgium

Name	OSSAMA HANI NASSER
Position	Director
Start Date	27/09/2006
Street	82 PEETERSSTRAAT EDEGEM
Post code	2650
Country	Belgium

Former director details

Name	MOHAMAD JAOUDAT NASSER
Position	Principal Manager
Start Date	19/05/1997
End Date	07/12/1998
Street	15 JOS RATINCKXSTRAAT ANTWERPEN
Post code	2600
Country	Belgium

Name	HANI NASSER
Position	Director
Start Date	27/09/2006
End Date	-
Street	0 ZAHIA SALMAN STREET, ABRAJ ALBASMAH BLOCK
Post code	.
Country	Lebanon

Name	HANI NASSER
Position	Managing Director
Start Date	08/03/2002
End Date	-
Street	0 ZAHIA SALMAN STREET, ABRAJ ALBASMAH BLOCK
Post code	.
Country	Lebanon

NEGATIVE INFORMATION

Court data summary

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

court data

there is no data for this company.

SHARE & SHARE CAPITAL INFORMATION

N/a

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	7.25
Industry average payment expectation days	176.30	Industry average day sales outstanding	109.72
Day sales outstanding	17.15

Suspension of payments / moratorium history

Amount	-
Details

Payment expectations

Payment expectation days	7.25
Day sales outstanding	17.15

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.30
Industry average day sales outstanding	109.72

Industry quartile analysis

Payment expectations
Company result	7.25
Lower	122.56
Median	73.75
Upper	41.43

GROUP STRUCTURE & AFFILIATED COMPANIES

Ultimate holding company

Company name	Company Number
Sana Diam NV	416298264

Group Structure

Company name	Number	Latest financials
- SANA DIAM NV	416298264	31-12-2011
- - AL SANA LTD

FINANCIAL INFORMATION

Accounts & ratio

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	65,787,830	250,736	6,367,785
31/12/2010	44,472,101	91,377	6,137,049
31/12/2009	36,787,934	48,908	5,933,200

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	12,758,508	13,114	6,000,000	39,314	5
31/12/2010	9,748,725	13,114	6,000,000	18,574	3
31/12/2009	12,218,351	13,114	6,000,000	1,074,919	3

Trends

Profitability
Liquidity
Net worth

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	65,787,830	47.93	44,472,101	20.89	36,787,934	57,071,239	15.27
Total operating expenses	65,234,828	46.80	44,436,498	22.47	36,284,192	56,388,961	15.69
Operating result	553,002	1453	35,602	-92.93	503,742	262,084	111
Total financial income	7,310	-99	1,155,584	17.27	985,438	170,510	-95.71
Total financial expenses	309,576	-71.85	1,099,809	-23.64	1,440,272	345,273	-10.34
Results on ordinary operations before taxation	250,736	174	91,377	86.84	48,908	70,815	254
Taxation	20,000	20.63	-96,932	-540	22,000	38,720	-48.35
Results on ordinary operations after taxation	230,736	22.53	188,310	599	26,908	44,618	417
Extraordinary items	0	-100	15,539	-	0	11,616	-100
Other appropriations	0	-	0.00	-	0	-	-
Net result	230,736	13.19	203,849	657	26,908	56,173	310
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	107,000	118,597	-
Employee costs	171,325	7.01	160,102	36.17	117,574	152,302	12.49
Wages and salary	136,904	16.93	117,083	24.46	94,073	129,219	5.95
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	31,912	-20.47	40,127	95.41	20,535	31,839	0.23
Other employee costs	2,509	-13.24	2,892	-2.49	2,966	4,354	-42.37
Amortization and depreciation	26,662	-7.67	28,878	-22.36	37,193	21,715	22.78

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	1,778	-100
Tangible fixed assets	206,128	2.96	200,196	-9.04	220,099	208,237	-1.01
Land & building	119,076	-2.60	122,254	-1.08	123,590	381,832	-68.81
Plant & machinery	64,242	-0.70	64,692	-20.09	80,961	27,852	130
Other tangible assets	22,810	72.15	13,250	-14.78	15,548	31,019	-26.46
Financial fixed assets	13,114	0.00	13,114	0.00	13,114	321,574	-95.92
Total fixed assets	219,242	2.78	213,311	-8.53	233,213	427,471	-48.71
Inventories	9,266,998	49.34	6,205,334	3.37	6,003,038	3,531,853	162
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,265	-100
Finished goods	9,266,998	49.34	6,205,334	3.37	6,003,038	2,469,198	275
Other stocks	0	-	0	-	0	456,453	-100
Trade debtors	3,090,627	-4.21	3,226,620	-33.55	4,855,866	4,400,137	-29.76
Cash	39,314	111	18,574	-98.27	1,074,919	307,269	-87.21
other amounts receivable	125,190	75.29	71,417	73.44	41,176	448,541	-72.09
Miscellaneous current assets	17,137	27.24	13,469	32.84	10,139	41,977	-59.18
Total current assets	12,539,266	31.50	9,535,415	-20.44	11,985,138	8,154,413	53.77
current liabilities
Trade creditors	1,296,460	359	282,020	-85.22	1,908,622	2,934,481	-55.82
Short term group loans	-	-	-	-	-	-	-
Other short term loans	5,013,591	52.00	3,298,432	-21.69	4,211,867	2,446,673	104
Miscellaneous current liabilities	80,672	158	31,224	-81.04	164,662	-79.85	- -
Total current liabilities	6,390,723	76.95	3,611,677	-42.54	6,285,151	5,665,157	12.81
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	0	282,125	-100
Total long term debts	0	-	0	-	0	938,470	-100
shareholders equity
Issued share capital	6,000,000	0	6,000,000	0	6,000,000	1,171,581	412
Share premium account	-	-	-	-	-	173,859	-
Reserves	367,785	168	137,049	205	-66,800	725,924	-49.34
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	6,367,785	3.76	6,137,049	3.44	5,933,200	1,921,689	231
Working capital	6,148,543	3.79	5,923,738	3.93	5,699,987	2,489,256	147
Net worth	6,367,785	3.76	6,137,049	3.44	5,933,200	1,919,911	231

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.38	80.95	0.21	61.54	0.13	-662,00	0.06
Return on capital employed	3.94	164	1.49	81.71	0.82	-13,00	30.31
Return on total assets employed	1.97	109	0.94	135	0.40	-30,00	6.57
Return on net assets employed	3.94	164	1.49	81.71	0.82	-19,00	20.74
Sales / net working capital	10.70	42.48	7.51	16.43	6.45	61,00	-99
Stock turnover ratio	14.09	1.00	13.95	-14.52	16.32	62,00	-77.27
Debtor days	17.15	-35.23	26.48	-45.04	48.18	51.715,00	-99
Creditor days	7.25	212	2.32	-87.92	19.20	299,00	-97.58
short term stability
Current ratio	1.96	-25.76	2.64	38.22	1.91	4,00	-87.75
Liquidity ratio / acid ratio	0.51	-44.57	0.92	-3.16	0.95	3,00	-83.00
Current debt ratio	1	69.49	0.59	-44.34	1.06	16,00	-93.75
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	78.73	46.47	53.75	-24.29	70.99	273,00	-71.16
Equity in percentage	49.91	-20.71	62.95	29.63	48.56	-991,00	5.04
Total debt ratio	1	69.49	0.59	-44.34	1.06	17,00	-94.12

Minority Shareholders

No minority shareholders found.

Minority Interests

No minority interests found.

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	21/08/2006
Event Description	re-appointment of director(s)
Event Details	Commentaar 21-08-2006: Herbenoeming bestuurders voor een periode van zes jaar: Nasser Ossama, Nasser Hani en Nasser Fidaa.

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

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

Day sales outstanding
Company result	17.15
Lower	107.66
Median	55.21
Upper	24.45

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	416298264
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company.

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.53.85
UK Pound	1	Rs.85.25
Euro	1	Rs.71.72

INFORMATION DETAILS

Report Prepared by :

SDA

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.