MIRA INFORM REPORT

Report Date :

05.07.2013

IDENTIFICATION DETAILS

Name :	ARJAV DIAMONDS NV
Registered Office :	Schupstraat 18, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	22.07.1981
Com. Reg. No.:	421848545
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	08

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

Maximum Credit Limit :	31.650.000 Euro (€)
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 – 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 name & address

Business number	421848545
Company name	ARJAV DIAMONDS NV
Address	SCHUPSTRAAT 18
	2018 ANTWERPEN
Number of staff	8
Date of establishment	22/07/1981
Telephone number	032338090
Fax number	032261321

Credit Limit

31.650.000 Euro (€)

Ultimate holding company

Company name	Company Number
Arjav Diamonds NV	421848545

Commentary

The business was established over 31 years ago.
The business has 8 employees.
The business is part of a group.
This business has a foreign parent business.
The business has been at the address for over 22 years.
The credit limit for this business has increased from €21150000 to €31650000.
Operating Result in the latest trading period decreased 22% on the previous trading period.
Net Worth decreased by 22% during the latest trading period.
Pre-tax profits decreased by 38% compared to the previous trading period.
The business saw an increase in their Cash Balance of 40% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	724,050,707	604,762	102,342,866	117,883,760
31/12/2010	826,021,237	985,207	131,910,265	702,446,224
31/12/2009	325,149,144	527,001	49,515,705	104,750,516

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	543,372,695	8	50,376,210	432,074
31/12/2010	642,384,303	9	65,178,173	643,858
31/12/2009	414,504,708	9	3,594,456	261,148

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	23.17
Industry average payment expectation days	163.35	Industry average day sales outstanding	105.94
Day sales outstanding	146.39

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	421848545		Company name	ARJAV DIAMONDS NV
Fax number	032261321		Date founded	22/07/1981
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.0421.848.545
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel

(NSSO classification)

Code	-
Description	08 EMPLOYEES

Joint Industrial Committee

(JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	01/02/2013
Event Description
Event Details	Neerlegging van de notulen van de bijzondere algemene vergadering van aandeelhouders houdende goedkeuring, van bepalingen die van toepassing zijn ingeval van controlewijziging.

comparison mode

averagemedian

Export accounts to CSV file

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	724,050,707	-12.34	826,021,237	154	325,149,144	49,567,599	1360
Total operating expenses	709,686,565	-12.11	807,479,710	164	305,664,890	48,933,721	1350
Operating result	14,364,142	-22.53	18,541,527	-4.84	19,484,254	237,792	5940
Total financial income	546,535	-1.31	553,796	-11.45	625,436	148,961	266
Total financial expenses	14,305,915	-21.01	18,110,116	-7.52	19,582,688	287,043	4883
Results on ordinary operations before taxation	604,762	-38.62	985,207	86.95	527,001	84,348	616
Taxation	246,236	-39.54	407,267	27.66	319,018	37,920	549
Results on ordinary operations after taxation	358,526	-37.96	577,940	177	207,983	59,093	506
Extraordinary items	30,896	-	0	-100	4,551	3,218	860
Other appropriations	0	-	0	-	0.00	-	-
Net result	389,422	-32.62	577,940	171	212,534	62,195	526
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	214,702	-	-	-	99,653	115,275	86.25
Employee costs	433,995	-14.20	505,837	19.08	424,784	127,746	239
Wages and salary	324,354	-	-	-	333,076	108,527	198
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	93,111	-	-	-	94,421	27,065	244
Other employee costs	16,530	-	0	0	-2,713	3,598	359
Amortization and depreciation	42,652	-35.30	65,918	35.60	48,614	18,392	131

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	1,459	-100
Tangible fixed assets	1,210,878	-24.88	1,611,998	38.40	1,164,734	177,029	583
Land & building	1,022,511	-23.72	1,340,385	42.21	942,534	344,924	196
Plant & machinery	161,058	-31.37	234,674	29.39	181,375	21,796	638
Other tangible assets	27,309	-26.07	36,939	-9.52	40,825	24,558	11.20
Financial fixed assets	44,307,328	-22.71	57,326,081	43.00	40,088,029	275,637	15974
Total fixed assets	45,518,206	-22.77	58,938,079	42.87	41,252,763	362,460	12458
Inventories	174,756,599	-25.66	235,073,078	13.00	208,028,410	3,059,710	5611
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,455	-100
Finished goods	174,756,599	-25.66	235,073,078	13.00	208,028,410	2,043,301	8452
Other stocks	0	-	0	-	0	470,962	-100
Trade debtors	290,391,312	-4.17	303,014,811	91.64	158,117,727	3,925,709	7297
Cash	32,546,748	40.43	23,176,329	246	6,683,444	239,002	13517
other amounts receivable	113,524	-99	22,120,465	23320	94,450	244,545	-53.58
Miscellaneous current assets	46,306	-24.76	61,541	-81.23	327,914	21,348	116
Total current assets	497,854,489	-14.67	583,446,224	56.31	373,251,945	6,974,699	7038
current liabilities
Trade creditors	45,043,827	6.54	42,277,751	98.74	21,273,034	2,817,971	1498
Short term group loans	-	-	-	-	-	-	-
Other short term loans	331,517,683	-3.50	343,536,317	43.69	239,088,169	1,890,061	17440
Miscellaneous current liabilities	3,409,219	0.68	-504,814,068	-6301	8,140,226	822	- -
Total current liabilities	379,970,729	319	-119,000,000	-144	268,501,429	4,959,298	7561
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	61,059,100	-48.69	119,000,000	23.33	96,487,575	5209	- -
Other long term liabilities	0	-100	510,474,038	-	0	142,636	-100
Total long term debts	61,059,100	-90.30	629,474,038	552	96,487,575	597,461	10119
shareholders equity
Issued share capital	50,376,210	-22.71	65,178,173	1713	3,594,456	1,019,505	4841
Share premium account	-	-	-	-	-	108,219	-
Reserves	51,966,656	-22.13	66,732,092	45.32	45,921,249	695,720	7369
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	102,342,866	-22.41	131,910,265	166	49,515,705	1,736,509	5793
Working capital	117,883,760	-83.22	702,446,224	570	104,750,516	2,015,401	5749
Cashflow	432,074	-32.89	643,858	146	261,148	77,354	458
Net worth	102,342,866	-22.41	131,910,265	166	49,515,705	1,735,050	5798

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.08	-33.33	0.12	-25.00	0.16	-740,00	0.01
Return on capital employed	0.37	184	0.13	-63.89	0.36	-14,00	2.64
Return on total assets employed	0.11	-26.67	0.15	15.38	0.13	-33,00	0.33
Return on net assets employed	0.59	-21.33	0.75	-29.25	1.06	-12,00	4.92
Sales / net working capital	6.14	420	1.18	-61.94	3.10	66,00	-99
Stock turnover ratio	24.14	-15.18	28.46	-55.52	63.98	67,00	-63.97
Debtor days	146.39	9.33	133.90	-24.56	177.50	57.718,00	-99
Creditor days	23.17	21.25	19.11	-24.76	25.40	327,00	-92.91
short term stability
Current ratio	1.31	26.73	-4.90	-452	1.39	4,00	-92.72
Liquidity ratio / acid ratio	0.85	29.01	-2.93	-572	0.62	3,00	-71.67
Current debt ratio	3.71	412	-0.90	-116	5.42	18,00	-79.39
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	383.59	9.40	350.64	-48.26	677.72	264,00	45.30
Equity in percentage	18.83	-8.28	20.53	71.80	11.95	-1.076,00	1.75
Total debt ratio	4.31	11.37	3.87	-47.49	7.37	19,00	-77.32

Industry comparison

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	23.17
Day sales outstanding	146.39

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	163.35
Industry average day sales outstanding	105.94

Industry quartile analysis

Payment expectations
Company result	23.17
Lower	120.63
Median	73.49
Upper	40.04

Day sales outstanding
Company result	146.39
Lower	105.52
Median	54.72
Upper	23.49

Summary

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

Group Structure

Company name	Number	Latest financials
- ARJAV DIAMONDS NV	421848545	31-12-2011
- - ARJAV DIAMONDS INDIA PVT LTD SOC.ETR. E....

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Shareholder Name
Forename	Ashit	Middle name	-
Surname	Metha
Shareholder Details
Start date	28/10/2010	End date	-
Percentage owned	49.50%
Shareholder Address
Street name	Della Faillelaan	House number	19
Minor town	Wilrijk	Postal town	Antwerpen
Post code	2610	Country	Belgium

---

Shareholder Name
Forename	Arjav	Middle name	-
Surname	Mehta
Shareholder Details
Start date	28/10/2010	End date	-
Percentage owned	46.09%
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country

Protested bills

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

NSSO details

Business number	421848545
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	ASHIT VASANTIAL METHA
Position	Managing Director
Start Date	06/11/2007
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHIT VASANTIAL METHA
Position	Director
Start Date	08/10/2002
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	MEETA ASHIT PARIKH
Position	Director
Start Date	17/09/1999
End Date	-
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2000
Country	Belgium

Name	ANISH MEHTA
Position	Managing Director
Start Date	03/06/2008
End Date	03/06/2014
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2600
Country	Belgium

Name	MEETA MEHTA
Position	Director
Start Date	07/07/2008
End Date	03/06/2008

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.60.09
UK Pound	1	Rs.91.58
Euro	1	Rs.78.08

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%)