MIRA INFORM REPORT

Report Date :

18.07.2013

IDENTIFICATION DETAILS

Name :	DIAMSTONES BVBA
Registered Office :	Hoveniersstraat 53 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	16.05.1990
Com. Reg. No.:	440710095
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	7

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 :	Good
Payment Behaviour :	Regular
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 and address

Business number	440710095
Company name	DIAMSTONES BVBA
Address	HOVENIERSSTRAAT 53
	2018 ANTWERPEN
Number of staff	7
Date of establishment	16/05/1990
Telephone number	032329093
Fax number	32329560

Commentary

The business was established over 23 years ago.

The business has 5 employees.

The business has been at the address for over 12 years.

The credit rating for this business has increased from 96 to 98.

The credit limit for this business has increased from €725000 to €740000.

Pre-tax profits increased by 66% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 57% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	40,896,694	228,712	3,103,711	1,232,579
31/12/2010	29,296,541	137,272	2,936,703	1,066,793
31/12/2009	24,011,373	43,226	2,819,827	947,350

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	12,937,927	7	1,516,980	227,050
31/12/2010	13,434,290	5	1,516,980	180,027
31/12/2009	13,601,006	7	1,516,980	109,545

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	74.35
Industry average payment expectation days	163.37	Industry average day sales outstanding	108.65
Day sales outstanding	64.08

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	440710095	Company name	DIAMSTONES BVBA
Fax number	32329560	Date founded	16/05/1990
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.0440.710.095
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	FROM 5 TO 9 EMPLOYEES

Joint Industrial Committee (JIC)

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

JIC Code	324.02
Description	JSC small merchandisers in the diamant industry and trade
category

Significant Events

Event Date	06/03/2013
Event Description	resignation-appointment of director(s)
Event Details	Commentaar 06-03-2013: Benoemd als zaakvoerder-directeur Kothari Rajiv.

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	40,896,694	39.60	29,296,541	22.01	24,011,373	49,567,599	-17.49
Total operating expenses	40,454,713	39.84	28,929,771	22.07	23,699,460	48,933,721	-17.33
Operating result	441,981	20.51	366,770	17.59	311,913	237,551	86.06
Total financial income	2,250	87.09	1,203	710	148	148,826	-98.49
Total financial expenses	215,520	-6.58	230,701	-14.19	268,835	286,757	-24.84
Results on ordinary operations before taxation	228,712	66.61	137,272	217	43,226	84,286	171
Taxation	63,853	157	24,754	1803	-1,373	37,920	68.39
Results on ordinary operations after taxation	164,858	46.52	112,518	152	44,599	59,056	179
Extraordinary items	0	-100	809	302	-267	3,215	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	164,858	45.47	113,327	155	44,332	62,155	165
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	86,518	115,275	-
Employee costs	372,191	12.72	330,204	-4.62	346,197	127,746	191
Wages and salary	292,691	13.51	257,861	-5.17	271,930	108,527	169
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	69,260	7.30	64,546	-1.90	65,794	27,065	155
Other employee costs	10,240	31.36	7,796	-7.99	8,473	3,594	184
Amortization and depreciation	62,191	-6.76	66,700	2.28	65,213	18,375	238

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	4,084	-	6,233	-	9,783	1,458	180
Tangible fixed assets	2,071,395	-0.74	2,086,872	-0.94	2,106,639	176,937	1070
Land & building	1,964,386	-1.37	1,991,634	-1.35	2,018,883	344,128	470
Plant & machinery	40,391	-16.89	48,599	-14.85	57,075	21,768	85.55
Other tangible assets	66,618	42.84	46,639	52.01	30,681	24,534	171
Financial fixed assets	8,821	-3.29	9,121	2.24	8,921	275,213	-96.79
Total fixed assets	2,084,299	-0.85	2,102,227	-1.09	2,125,343	362,171	475
Inventories	3,153,317	4.18	3,026,815	22.98	2,461,262	3,056,168	3.18
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,453	-100
Finished goods	3,153,317	4.18	3,026,815	22.98	2,461,262	2,041,307	54.48
Other stocks	0	-	0	-	0	470,537	-100
Trade debtors	7,179,466	-2.39	7,355,552	-13.58	8,511,056	3,921,885	83.06
Cash	379,533	-57.42	891,241	93.07	461,608	238,824	58.92
other amounts receivable	99,236	818	10,805	-54.81	23,909	244,729	-59.45
Miscellaneous current assets	42,075	-11.70	47,651	167	17,827	21,329	97.27
Total current assets	10,853,628	-4.22	11,332,064	-1.25	11,475,662	6,968,418	55.75
current liabilities
Trade creditors	8,240,315	15.66	7,124,647	12.38	6,339,930	2,815,184	192
Short term group loans	-	-	-	-	-	-	-
Other short term loans	1,185,617	-60.62	3,010,564	-26.34	4,086,975	1,888,217	-37.21
Miscellaneous current liabilities	195,118	50.02	130,059	28.25	101,407	-47.16	- -
Total current liabilities	9,621,049	-6.28	10,265,271	-2.50	10,528,312	4,954,540	94.19
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	109,083	-13.48	126,083	-11.88	143,083	-90.51	- -
Other long term liabilities	100,000	0	100,000	0	100,000	143,002	-30.07
Total long term debts	209,083	-7.52	226,083	-6.99	243,083	597,384	-65.00
shareholders equity
Issued share capital	1,516,980	0	1,516,980	0	1,516,980	1,018,849	48.89
Share premium account	-	-	-	-	-	108,219	-
Reserves	552,545	42.52	387,687	41.31	274,360	694,738	-20.47
Revaluation reserve	1,038,270	0	1,038,270	0	1,038,270	815,555	27.31
Total shareholders equity	3,107,795	5.60	2,942,937	4.01	2,829,610	1,734,851	79.14
Working capital	1,232,579	15.54	1,066,793	12.61	947,350	2,013,878	-38.80
Cashflow	227,050	26.12	180,027	64.34	109,545	77,303	193
Net worth	3,103,711	5.69	2,936,703	4.14	2,819,827	1,733,393	79.05

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.56	19.15	0.47	161	0.18	-740,00	0.08
Return on capital employed	6.90	59.35	4.33	207	1.41	-14,00	49.29
Return on total assets employed	1.77	73.53	1.02	218	0.32	-33,00	5.36
Return on net assets employed	7.36	57.94	4.66	204	1.53	-12,00	61.33
Sales / net working capital	33.18	20.83	27.46	8.32	25.35	66,00	-99
Stock turnover ratio	7.71	-25.36	10.33	0.78	10.25	67,00	-88.49
Debtor days	64.08	-30.07	91.64	-29.17	129.38	57.718,00	-99
Creditor days	74.35	-17.29	89.89	-7.94	97.64	327,00	-77.26
short term stability
Current ratio	1.13	2.73	1.10	0.92	1.09	4,00	-93.72
Liquidity ratio / acid ratio	0.80	-1.23	0.81	-5.81	0.86	3,00	-73.33
Current debt ratio	3.10	-11.17	3.49	-6.18	3.72	18,00	-82.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	41.66	-60.91	106.58	-28.70	149.49	264,00	-84.22
Equity in percentage	24.03	9.63	21.92	5.28	20.82	-1.075,00	2.24
Total debt ratio	3.16	-11.24	3.56	-6.56	3.81	19,00	-83.37

Industry comparison

Payment expectations

Payment expectation days	74.35
Day sales outstanding	64.08

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	163.37
Industry average day sales outstanding	108.65

Industry quartile analysis

Payment expectations
Company result	74.35
Lower	122.56
Median	73.76
Upper	39.90
Day sales outstanding
Company result	64.08
Lower	110.17
Median	54.94
Upper	23.72

Company result	74.35
Lower	122.56
Median	73.76
Upper	39.90

Company result	64.08
Lower	110.17
Median	54.94
Upper	23.72

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

Individual Shareholders

Shareholder Name
Forename	Shaishav	Middle name	-
Surname	Mehta
Shareholder Details
Start date	04/02/2010(estimated)	End date	-
Percentage owned	-
Shareholder Address
Street name	Mechelsesteenweg	House number	165
Minor town	-	Postal town	Antwerpen
Post code	2018	Country	Belgium

NSSO details

Business number	440710095
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	SHREYENSH MEHTA
Position	Principal Manager
Start Date	06/03/2013
Street	45 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	NARESH JAIN
Position	Principal Manager
Start Date	06/03/2013
Street
Post code
Country

Former director details

Name	WF&CO BEDRIJFSREVISOREN B.V. BVBA
Position	Commissioner
Start Date	03/12/2009
End Date	-
Date of birth	01/10/1982
Street	1126 KORTRIJKSESTEENWEG GENT
Post code	9051
Country	Belgium

Name	SHAISHAV RAMESH CHANDRA MEHTA
Position	Principal Manager
Start Date	26/06/1995
End Date	31/12/2010
Street	41 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

	RAJIV SHASHIKANT KOTHARI
Position	Principal Manager
Start Date	09/11/2010
End Date	06/03/2013
Street	26 ARENDSNESTLAAN EDEGEM
Post code	2650
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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.98

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%)