MIRA INFORM REPORT

Report Date :

03.06.2013

IDENTIFICATION DETAILS

Name :	MIKISA GEMS BVBA
Registered Office :	Hoveniersstraat 30 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	20.09.2000
Com. Reg. No.:	472800368
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	Not Available

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 – 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

MIKISA GEMS BVBA

Business number	472800368
Company name	MIKISA GEMS BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	0
Date of establishment	20/09/2000
Telephone number	032260957
Fax number	032270156

Commentary

The business was established over 12 years ago.
The business has 1 employees.
The business has been at the address for over 17 months.
The credit rating for this business has decreased from 77 to 70.
The credit limit for this business has decreased from €325000 to €295000.
Operating Result in the latest trading period increased 471% on the previous trading period.
Net Worth increased by 72% during the latest trading period.
A 134% growth in Total Assets occurred during the latest trading period.
Pre-tax profits increased by 811% compared to the previous trading period.
The business saw an increase in their Cash Balance of 304% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	30,289,477	320,962	505,228	488,644
31/12/2010		35,225	293,723	282,863
31/12/2009		4,654	258,473	255,033

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	7,408,577	0	219,000	220,203
31/12/2010	3,164,358	0	219,000	39,617
31/12/2009	3,006,666	0	219,000	10,112

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	64.72
Industry average payment expectation days	174.24	Industry average day sales outstanding	109.03
Day sales outstanding	40.99

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	472800368		Company name	MIKISA GEMS BVBA
Fax number	032270156		Date founded	20/09/2000
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.0472.800.368
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	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

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	30,289,477	-	-	-	-	49,567,599	-38.89
Total operating expenses	29,909,587	-	-	-	-	48,933,721	-38.88
Operating result	379,889	471	66,504	167	24,849	238,281	59.43
Total financial income	453	1382	31	-21.62	39	148,968	-99
Total financial expenses	59,381	89.66	31,310	54.74	20,234	287,498	-79.35
Results on ordinary operations before taxation	320,962	811	35,225	656	4,654	84,513	279
Taxation	109,457	1561	6,586	1684	369	37,970	188
Results on ordinary operations after taxation	211,505	638	28,638	568	4,285	59,212	257
Extraordinary items	0	-100	6,612	-	0	3,212	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	211,505	500	35,250	722	4,285	62,309	239
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	420	-	-	-	-	127,998	-99
Wages and salary	-	-	-	-	-	108,777	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	27,123	-
Other employee costs	420	-	0	-	0	3,604	-88.34
Amortization and depreciation	8,698	99	4,368	-25.05	5,827	18,413	-52.76

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	1,462	-100
Tangible fixed assets	279,189	700	34,878	913	3,440	177,242	57.52
Land & building	245,627	-	-	-	-	346,034	-29.02
Plant & machinery	3,122	219	977	15.02	849	21,796	-85.67
Other tangible assets	30,440	-10.21	33,902	1208	2,591	24,606	23.71
Financial fixed assets	447	-	-	-	-	276,060	-99
Total fixed assets	279,636	701	34,878	913	3,440	362,860	-22.94
Inventories	2,229,993	70.32	1,309,300	-39.01	2,146,760	3,063,024	-27.20
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,460	-100
Finished goods	2,229,993	-	0	-	0	2,047,299	8.92
Other stocks	0	-100	1,309,300	-39.01	2,146,760	471,653	-100
Trade debtors	3,401,364	163	1,288,458	70.28	756,676	3,932,951	-13.52
Cash	1,460,652	304	361,275	9760	3,664	239,422	510
other amounts receivable	31,479	-81.11	166,639	78.07	93,579	245,023	-87.15
Miscellaneous current assets	5,453	43.18	3,809	49.53	2,547	21,390	-74.51
Total current assets	7,128,941	127	3,129,480	4.20	3,003,226	6,987,619	2.02
current liabilities
Trade creditors	5,303,680	209	1,714,976	61.23	1,063,670	2,823,141	87.86
Short term group loans	-	-	-	-	-	-	-
Other short term loans	343,542	106	166,159	-73.98	638,563	1,893,760	-81.86
Miscellaneous current liabilities	993,075	2.86	965,482	-7.69	1,045,960	168	- -
Total current liabilities	6,640,297	133	2,846,617	3.58	2,748,193	4,968,349	33.65
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	263,052	995	24,018	-	-	-77.13	- -
Other long term liabilities	0	-	0	-	0	142,915	-100
Total long term debts	263,052	995	24,018	-	0	598,630	-56.06
shareholders equity
Issued share capital	219,000	0	219,000	0	219,000	1,021,462	-78.56
Share premium account	-	-	-	-	-	108,219	-
Reserves	286,228	283	74,723	89.30	39,473	697,041	-58.94
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	505,228	72.01	293,723	13.64	258,473	1,739,829	-70.96
Working capital	488,644	72.75	282,863	10.91	255,033	2,019,270	-75.80
Cashflow	220,203	455	39,617	291	10,112	77,497	184
Net worth	505,228	72.01	293,723	13.64	258,473	1,738,367	-70.94

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	1.06	-	-	-	-	-740,00	0.14
Return on capital employed	41.78	276	11.09	516	1.80	-14,00	298
Return on total assets employed	4.33	290	1.11	640	0.15	-34,00	12.74
Return on net assets employed	63.53	429	11.99	566	1.80	-12,00	529
Sales / net working capital	61.99	-	-	-	-	66,00	-99
Stock turnover ratio	7.36	-	-	-	-	67,00	-89.01
Debtor days	40.99	-	-	-	-	57.718,00	-99
Creditor days	64.72	-	-	-	-	327,00	-80.21
short term stability
Current ratio	1.07	-2.73	1.10	0.92	1.09	4,00	-94.06
Liquidity ratio / acid ratio	0.74	15.62	0.64	106	0.31	3,00	-75.33
Current debt ratio	13.14	35.60	9.69	-8.84	10.63	18,00	-27.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	120.06	85.42	64.75	-73.79	247.05	264,00	-54.52
Equity in percentage	6.82	-26.51	9.28	7.91	8.60	-1.078,00	0.63
Total debt ratio	13.66	39.82	9.77	-8.09	10.63	19,00	-28.11

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

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	64.72
Day sales outstanding	40.99

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.24
Industry average day sales outstanding	109.03

INDUSTRY QUARTILE ANALYSIS

Payment expectations
Company result	64.72
Lower	121.46
Median	73.03
Upper	41.43
Day sales outstanding
Company result	40.99
Lower	105.52
Median	54.63
Upper	24.45

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	472800368
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	SHILPABEN BIPINKUMAR SASPARA
Position	Principal Manager
Start Date	02/08/2011
Street	47 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	BIPINKUMAR DJANJIBHAI SASPARA
Position	Principal Manager
Start Date	02/08/2011
Street	47 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	DHANJIBHAI SASPARA BIPINKUMAR
Position	Principal Manager
Start Date	05/09/2000
Street
Post code
Country

Former director details

Name	NILESH BABUBAL SHAN
Position	Principal Manager
Start Date	07/09/2000
End Date	30/06/2007
Street	22 ADRIAAN WILLAERTSTRAAT 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.56.49
UK Pound	1	Rs.86.81
Euro	1	Rs.73.68

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.