MIRA INFORM REPORT

Report Date :

01.07.2013

IDENTIFICATION DETAILS

Name :	HRC DIAMONDS BVBA
Registered Office :	Pelikaanstraat 62, 2018 AntwerpEN
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	12.03.2010
Com. Reg. No.:	824075475
Legal Form :	Private Limited Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Small Company
Payment Behaviour :	Slow
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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 1.8%, the unemployment rate decreased slightly to 7.2% 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 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. Despite the relative improvement in Belgium's budget deficit, public debt hovers around 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 retail arm of a Franco-Belgian bank.

Source : CIA

Company summary

Business number	824075475
Company name	HRC DIAMONDS BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	0
Date of establishment	12/03/2010
Telephone number	-
Fax number	-

Ultimate holding company

Company name	Company Number	View linked companies from outside this company's group structure
-	-	No linked companies have been found.

Commentary

The business was established over 3 years ago.
No employees are recorded for this business.
The business has changed its registered name recently.
The business has been at the address for over 3 years.
Operating Result in the latest trading period increased 854% on the previous trading period.
Net Worth increased by 95% during the latest trading period.
A 181% growth in Total Assets occurred during the latest trading period.
Pre-tax profits increased by 1087% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 56% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011		29,453	39,906	35,691
31/12/2010		2,480	20,433	16,190

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	1,133,475	0	18,600	20,277
31/12/2010	402,845	0	18,600	2,215

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	162.17	Industry average day sales outstanding	105.94
Day sales outstanding	-

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	824075475		Company name	HRC DIAMONDS BVBA
Fax number	-		Date founded	12/03/2010
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
Activity description	Wholesale of diamonds and other precious stones		VAT Number	BE.0824.075.475
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel (NSSO classification)

Code	-
Description	-

Joint Industrial Committee (JIC)

comparison mode

averagemedian

Export accounts to CSV file

Profit & loss

Annual accounts	31-12-2011	%	31-12-2010	%		Industry average	%
Weeks	52		42		-
Currency	EUR		EUR		-
Turnover	-	-	-	-	-	-	-
Total operating expenses	-	-	-	-	-	-	-
Operating result	33,295	854	3,487	-	-	-	-
Total financial income	39	-	-	-	-	-	-
Total financial expenses	3,881	285	1,006	-	-	-	-
Results on ordinary operations before taxation	29,453	1087	2,480	-	-	-	-
Taxation	9,980	1442	647	-	-	-	-
Results on ordinary operations after taxation	19,473	962	1,833	-	-	-	-
Extraordinary items	0	-	0	-	-	-	-
Other appropriations	0	-	0.00	-	-	-	-
Net result	19,473	962	1,833	-	-	-	-
OTHER INFORMATION
Dividends	-	-	-	-	-	-	-
Director remuneration	-	-	-	-	-	-	-
Employee costs	-	-	-	-	-	-	-
Wages and salary	-	-	-	-	-	-	-
Employee pension costs	-	-	-	-	-	-	-
Social security contributions	-	-	-	-	-	-	-
Other employee costs	0	-	0	-	-	-	-
Amortization and depreciation	804	110	382	-	-	-	-

balance sheet

Annual accounts	31-12-2011	%	31-12-2010	%		Industry average	%
Weeks	52		42		-
Currency	EUR		EUR		-
Intangible fixed assets	0	-	0	-	-	-	-
Tangible fixed assets	3,249	-0.88	3,278	-	-	-	-
Land & building	-	-	-	-	-	-	-
Plant & machinery	3,249	-0.88	3,278	-	-	-	-
Other tangible assets	0	-	0	-	-	-	-
Financial fixed assets	966	0.04	966	-	-	-	-
Total fixed assets	4,215	-0.67	4,244	-	-	-	-
Inventories	424,397	113	198,973	-	-	-	-
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	-	-	-
Finished goods	0	-	0	-	-	-	-
Other stocks	424,397	113	198,973	-	-	-	-
Trade debtors	645,209	625	88,936	-	-	-	-
Cash	41,709	-56.29	95,428	-	-	-	-
other amounts receivable	16,035	18.20	13,567	-	-	-	-
Miscellaneous current assets	1,910	12.51	1,698	-	-	-	-
Total current assets	1,129,260	183	398,601	-	-	-	-
CURRENT LIABILITIES
Trade creditors	956,061	270	257,797	-	-	-	-
Short term group loans	-	-	-	-	-	-	-
Other short term loans	0	-	0	-	-	-	-
Miscellaneous current liabilities	137,508	10.35	124,614	-	-	-	- -
Total current liabilities	1,093,569	185	382,412	-	-	-	-
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	-	-	-
Total long term debts	0	-	0	-	-	-	-
SHAREHOLDERS EQUITY
Issued share capital	18,600	0	18,600	-	-	-	-
Share premium account	-	-	-	-	-	-	-
Reserves	21,306	1062	1,833	-	-	-	-
Revaluation reserve	-	-	-	-	-	-	-
Total shareholders equity	39,906	95.30	20,433	-	-	-	-
Working capital	35,691	120	16,190	-	-	-	-
Cashflow	20,277	815	2,215	-	-	-	-
Net worth	39,906	95.30	20,433	-	-	-	-

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)		Industry average	%
Trading performance
Profit Before Tax	-	-	-	-	-	-	-
Return on capital employed	73.81	507	12.14	-	-	-	-
Return on total assets employed	2.60	319	0.62	-	-	-	-
Return on net assets employed	73.81	507	12.14	-	-	-	-
Sales / net working capital	-	-	-	-	-	-	-
Stock turnover ratio	-	-	-	-	-	-	-
Debtor days	-	-	-	-	-	-	-
Creditor days	-	-	-	-	-	-	-
short term stability
Current ratio	1.03	-0.96	1.04	-	-	-	-
Liquidity ratio / acid ratio	0.64	23.08	0.52	-	-	-	-
Current debt ratio	27.40	46.45	18.71	-	-	-	-
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	-	-	-	-	-	-	-
Equity in percentage	3.52	-30.57	5.07	-	-	-	-
Total debt ratio	27.40	46.45	18.71	-	-	-	-

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	-
Day sales outstanding	-

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	162.17
Industry average day sales outstanding	105.94

Industry quartile analysis

Payment expectations
Company result	-
Lower	120.63
Median	73.03
Upper	40.04
Day sales outstanding
Company result	-
Lower	104.97
Median	54.63
Upper	23.49

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

Protested bills

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

NSSO details

Business number	824075475
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	SHREYAS DINESHCHANDRA GANDHI
Position	Principal Manager
Start Date	12/12/2012
Street	50 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	JIGARKUMAR DEEPAKLAL SADHANI
Position	Principal Manager
Start Date	12/03/2010
End Date	12/12/2012
Street	22 VAN EYCKLEI ANTWERPEN
Post code	2018
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.

- 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 –

- Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

- The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.69
UK Pound	1	Rs.91.14
Euro	1	Rs.77.97

INFORMATION DETAILS

Report Prepared by :

NLM

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%)