MIRA INFORM REPORT

Report Date :

10.07.2013

IDENTIFICATION DETAILS

Name :	EURO DISTRIBUTORS DIAMONDS BVBA

Registered Office :	Schupstraat 1 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	02.04.2002

Com. Reg. No.:	477230496

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	1

RATING & COMMENTS

MIRA’s Rating :

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 – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Belgium

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

REGISTERED NAME & COMPANY SUMMARY

Business number	477230496
Company name	EURO DISTRIBUTORS DIAMONDS BVBA
Address	SCHUPSTRAAT 1
	2018 ANTWERPEN
Number of staff	1
Date of establishment	02/04/2002
Telephone number	032333556
Fax number	-

DIRECTORS/MANAGEMENT

Current director details

Name	GIRISH KUMAR KADEL
Position	Principal Manager
Start Date	01/01/2007
Street	28 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	GIRISH KADEL
Position	Principal Manager
Start Date	01/01/2007
Street
Post code
Country

Former director details

Name	MICHEL STEIGRAD
Position	Principal Manager
Start Date	15/03/2002
End Date	31/12/2007
Street	202 MECHELSESTEENWEG ANTWERPEN
Post code	2000
Country	Belgium

Name	HENRI JOANNA THEODORE JANSEN
Position	Principal Manager
Start Date	22/04/2002
End Date	31/12/2007
Street	761 RUGGEVELDLAAN ANTWERPEN
Post code	2100
Country	Belgium

NEGATIVE INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchcourt_data.aspx?CompanyNumber=477230496Court data summary

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

Business number	477230496	Company name	EURO DISTRIBUTORS DIAMONDS BVBA
Fax number	-	Date founded	02/04/2002
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.0477.230.496
Belgian Bullettin of Acts Publications	moniteur belge

Protested bills

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

NSSO details

Business number	477230496
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.

Individual Shareholders

Shareholder Name
Forename	Damayantibay	Middle name	-
Surname	Kadel
Shareholder Details
Start date	26/01/2012(estimated)	End date	-
Percentage owned	-
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	India

PAYMENT INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchpayment_information.aspx?CompanyNumber=477230496Payment expectations

Past payments		Payment expectation days	49.44
Industry average payment expectation days	163.35	Industry average day sales outstanding	105.94
Day sales outstanding	56.27

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	49.44
Day sales outstanding	56.27

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	49.44
Lower	120.63
Median	73.49
Upper	40.04

Day sales outstanding
Company result	56.27
Lower	105.52
Median	54.72
Upper	23.49

GROUP STRUCTURE & AFFILIATED COMPANIES

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchshareholders.aspx?CompanyNumber=477230496Ultimate holding company

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

No group structure for this company.

FINANCIAL INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchaccounts.aspx?CompanyNumber=477230496Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	30,092,737	29,099	1,539,509	3,746,594
31/12/2010	51,658,867	27,587	783,216	2,092,101
31/12/2009	20,086,460	31,885	756,201	1,553,428

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchaccounts.aspx?CompanyNumber=477230496Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	9,184,997	1	1,436,539	51,645
31/12/2010	6,194,276	0	698,858	35,623
31/12/2009	6,224,386	0	698,858	38,382

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	30,092,737	-41.75	51,658,867	157	20,086,460	49,567,599	-39.29
Total operating expenses	30,025,208	-41.82	51,607,613	157	20,042,000	48,933,721	-38.64
Operating result	67,529	31.75	51,254	15.28	44,460	237,792	-71.60
Total financial income	3,931	518	635	108	305	148,961	-97.36
Total financial expenses	42,362	74.32	24,302	88.69	12,879	287,043	-85.24
Results on ordinary operations before taxation	29,099	5.48	27,587	-13.48	31,885	84,348	-65.50
Taxation	10,487	1732	572	-58.37	1,375	37,920	-72.35
Results on ordinary operations after taxation	18,612	-31.10	27,015	-11.46	30,510	59,093	-68.50
Extraordinary items	0	-	0	-	0	3,218	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	18,612	-31.10	27,015	-11.46	30,510	62,195	-70.07
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	19,954	2411	795	1431	52	127,746	-84.38
Wages and salary	17,956	-	-	-	-	108,527	-83.45
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	601	-	-	-	-	27,065	-97.78
Other employee costs	1,397	75.83	795	1431	52	3,598	-61.17
Amortization and depreciation	33,033	283	8,608	9.34	7,872	18,392	79.60

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	1,459	-100
Tangible fixed assets	387,088	1947	18,903	-25.21	25,274	177,029	118
Land & building	241,393	-	-	-	-	344,924	-30.02
Plant & machinery	129,043	3246	3,856	33.16	2,896	21,796	492
Other tangible assets	16,653	10.67	15,047	-32.76	22,378	24,558	-32.19
Financial fixed assets	258	0	258	0	258	275,637	-99
Total fixed assets	387,346	1921	19,161	-24.95	25,532	362,460	6.87
Inventories	3,960,087	255	1,113,346	-	-	3,059,710	29.43
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,455	-100
Finished goods	3,960,087	255	1,113,346	-	0	2,043,301	93.81
Other stocks	0	-	0	-	0	470,962	-100
Trade debtors	4,638,948	-1.84	4,725,940	-22.64	6,109,007	3,925,709	18.17
Cash	55,900	-73.24	208,896	187	72,721	239,002	-76.61
other amounts receivable	142,717	13.41	125,839	636	17,076	244,545	-41.64
Miscellaneous current assets	0	-100	1,094	2085	50	21,348	-100
Total current assets	8,797,651	42.47	6,175,115	-0.38	6,198,854	6,974,699	26.14
current liabilities
Trade creditors	4,066,710	5.41	3,858,002	-10.40	4,305,869	2,817,971	44.31
Short term group loans	-	-	-	-	-	-	-
Other short term loans	696,286	14208	4,866	-25.63	6,544	1,890,061	-63.16
Miscellaneous current liabilities	288,061	30.85	220,146	-33.89	333,013	-22.06	- -
Total current liabilities	5,051,057	23.71	4,083,014	-12.11	4,645,426	4,959,298	1.85
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,594,431	95.36	1,328,047	61.41	822,759	125	- -
Other long term liabilities	0	-	0	-	0	142,636	-100
Total long term debts	2,594,431	95.36	1,328,047	61.41	822,759	597,461	334
shareholders equity
Issued share capital	1,436,539	105	698,858	0	698,858	1,019,505	40.91
Share premium account	-	-	-	-	-	108,219	-
Reserves	102,970	22.06	84,358	47.11	57,343	695,720	-85.20
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	1,539,509	96.56	783,216	3.57	756,201	1,736,509	-11.34
Working capital	3,746,594	79.08	2,092,101	34.68	1,553,428	2,015,401	85.90
Cashflow	51,645	44.98	35,623	-7.19	38,382	77,354	-33.24
Net worth	1,539,509	96.56	783,216	3.57	756,201	1,735,050	-11.27

Ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.10	100	0.05	-68.75	0.16	-740,00	0.01
Return on capital employed	0.70	-46.56	1.31	-35.15	2.02	-14,00	5.00
Return on total assets employed	0.32	-28.89	0.45	-11.76	0.51	-33,00	0.97
Return on net assets employed	1.89	-46.31	3.52	-16.59	4.22	-12,00	15.75
Sales / net working capital	8.03	-67.48	24.69	90.95	12.93	66,00	-99
Stock turnover ratio	13.16	509	2.16	-	-	67,00	-80.36
Debtor days	56.27	68.52	33.39	-69.92	111.01	57.718,00	-99
Creditor days	49.44	81.17	27.29	-65.20	78.42	327,00	-84.88
short term stability
Current ratio	1.74	15.23	1.51	13.53	1.33	4,00	-90.33
Liquidity ratio / acid ratio	0.96	-22.58	1.24	-6.77	1.33	3,00	-68.00
Current debt ratio	3.28	-37.04	5.21	-15.15	6.14	18,00	-81.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	213.75	25.60	170.18	55.17	109.67	264,00	-19.03
Equity in percentage	16.76	32.59	12.64	4.03	12.15	-1.076,00	1.56
Total debt ratio	4.97	-28.08	6.91	-4.43	7.23	19,00	-73.84

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Commentary

The business was established over 11 years ago.

The business has 1 employees.

The business has been at the address for over 18 months.

The business has changed address 1 times in the last year.

The credit rating for this business has decreased from 82 to 75.

The credit limit for this business has decreased from €390000 to €355000.

Operating Result in the latest trading period increased 31% on the previous trading period.

Net Worth increased by 96% during the latest trading period.

A 48% growth in Total Assets occurred during the latest trading period.

The business saw a decrease in their Cash Balance of 73% during the latest trading period.

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	30/12/2011
Event Description
Event Details	De 3464 nieuwe aandelen worden toegekend aan mevrouw Damayanti Munnalal Kadel.

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

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.60.07
UK Pound	1	Rs.89.91
Euro	1	Rs.77.43

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.