MIRA INFORM REPORT

Report Date :

21.06.2013

IDENTIFICATION DETAILS

Name :	BAITEL DIAMONDS NV

Registered Office :	Pelikaanstraat 78 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	27.02.1980

Com. Reg. No.:	420242008

Legal Form :	Public Limited Liability Company (BE)

LINE OF BUSINESS :	PREPARATION OF DIAMONDS

No. of Employees :	5

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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

Company name and address

Business number	420242008
Company name	BAITEL DIAMONDS NV
Address	PELIKAANSTRAAT 78
	2018 ANTWERPEN

Number of staff	5
Date of establishment	27/02/1980
Telephone number	014514682
Fax number	-

Commentary

The business was established over 32 years ago.
The business has 1 employees.
The business has been at the address for over 11 years.
The credit rating for this business has decreased from 76 to 74.
The credit limit for this business has decreased from €37000 to €0.
A 25% growth in Total Assets occurred during the latest trading period.
The business saw a decrease in their Cash Balance of 39% during the latest trading period.
Net Worth is a negative amount during the latest trading period.
Working Capital is a negative amount during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011		-5,241	-15,761	-72,044
31/12/2010		-36,310	-5,416	-79,101
31/12/2009		1,893	28,616	-17,471

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	1,885,482	0	62,000	7,057
31/12/2010	1,506,245	0	62,000	-16,630
31/12/2009	1,549,523	1	62,000	16,046

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	71.36	Industry average day sales outstanding	105.67
Day sales outstanding	-

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	420242008		Company name	BAITEL DIAMONDS NV
Fax number	-		Date founded	27/02/1980
Company status	active		Company type	Public Limited Liability Company (BE)
Currency	Euro (€)		Date of latest accounts	31/12/2011
Activity code	32121		liable for VAT	yes
Activity description	Preparation of diamonds		VAT Number	BE.0420.242.008
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	30/10/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 30-10-2012: Herbenoemd als bestuurder en gedelegeerd bestuurder tot de jaarvergadering van 2018 : Baitel Guy.

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	-	-	-	-	-	16,090,957	-
Total operating expenses	-	-	-	-	-	15,999,709	-
Operating result	-1,142	4.11	-27,792	-798	3,977	38,375	-102
Total financial income	3,111	14842	21	30.12	16	125,398	-97.52
Total financial expenses	7,210	-15.56	8,538	306	2,101	159,068	-95.47
Results on ordinary operations before taxation	-5,241	14.43	-36,310	-2018	1,893	-17,842	29.38
Taxation	7,148	484	1,222	-62.39	3,249	13,171	-45.73
Results on ordinary operations after taxation	-12,389	33.01	-37,532	-2667	-1,356	-26,266	47.17
Extraordinary items	2,044	-41.59	3,500	-	0	2,022	1.10
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	-10,345	30.40	-34,032	-2409	-1,356	-24,237	42.68
other information
Dividends	-	-	-	-	-	50,000	-
Director remuneration	-	-	-	-	-	42,001	-
Employee costs	-	-	7,514	-85.92	53,385	183,110	-
Wages and salary	-	-	6,970	-83.81	43,051	139,560	-
Employee pension costs	-	-	-	-	-	2,136	-
Social security contributions	-	-	-	-	10,034	43,455	-
Other employee costs	0	-100	544	81.27	300	4,229	-100
Amortization and depreciation	17,402	0	17,402	0.00	17,402	21,443	-18.85

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	1,621	-100
Tangible fixed assets	11,283	-60.67	28,685	-37.76	46,087	154,754	-92.71
Land & building	-	-	-	-	-	333,484	-
Plant & machinery	-	-	-	-	-	50,248	-
Other tangible assets	11,283	-60.67	28,685	-37.76	46,087	24,539	-54.02
Financial fixed assets	45,000	0	45,000	-	-	46,409	-3.04
Total fixed assets	56,283	-23.62	73,685	59.88	46,087	172,763	-67.42
Inventories	1,094,059	12.35	973,752	15.93	839,934	1,914,441	-42.85
Raw materials & consumables	-	-	-	-	-	2,596,619	-
Work in progress	0	-	0	-	0	6,491	-100
Finished goods	0	-	0	-	0	276,452	-100
Other stocks	1,094,059	12.35	973,752	15.93	839,934	925,544	18.21
Trade debtors	592,832	104	289,581	-24.51	383,612	964,402	-38.53
Cash	72,889	-39.69	120,856	-27.32	166,293	165,330	-55.91
other amounts receivable	65,837	48.68	44,280	-60.44	111,936	37,081	77.55
Miscellaneous current assets	3,582	-12.43	4,090	146	1,661	26,359	-86.41
Total current assets	1,829,199	27.69	1,432,560	-4.71	1,503,436	2,450,511	-25.35
current liabilities
Trade creditors	1,713,346	31.30	1,304,922	-0.56	1,312,265	1,006,443	70.24
Short term group loans	-	-	-	-	-	-	-
Other short term loans	0	-	0	-	0	182,667	-100
Miscellaneous current liabilities	187,897	-9.11	206,739	-0.91	208,642	-76.81	- -
Total current liabilities	1,901,243	25.77	1,511,661	-0.61	1,520,907	1,835,578	3.58
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	0	127,831	-100
Total long term debts	0	-	0	-	0	323,426	-100
shareholders equity
Issued share capital	62,000	0	62,000	0	62,000	466,951	-86.72
Share premium account	-	-	-	-	-	0	-
Reserves	-77,761	-15.35	-67,416	-101	-33,384	-28,797	-170
Revaluation reserve	-	-	-	-	-	0	-
Total shareholders equity	-15,761	-191	-5,416	-118	28,616	438,154	-103
Working capital	-72,044	91.08	-79,101	-352	-17,471	614,933	-111
Cashflow	7,057	42.43	-16,630	-203	16,046	-7,531	93.70
Net worth	-15,761	-191	-5,416	-118	28,616	436,533	-103

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	-	-	-	-	-	-21,00	-
Return on capital employed	33.26	-95.04	670.45	10027	6.62	34,00	-2.18
Return on total assets employed	-0.28	11.62	-2.41	-2108	0.12	-3,00	9.33
Return on net assets employed	33.26	-95.04	670.45	10027	6.62	42,00	-20.81
Sales / net working capital	-	-	-	-	-	-427,00	-
Stock turnover ratio	-	-	-	-	-	19,00	-
Debtor days	-	-	-	-	-	91,00	-
Creditor days	-	-	-	-	-	49,00	-
short term stability
Current ratio	0.96	1.05	0.95	-4.04	0.99	11,00	-86.29
Liquidity ratio / acid ratio	0.39	30.0	0.30	-31.82	0.44	10,00	-96.10
Current debt ratio	-120.63	43.22	-279.12	-625	53.15	7,00	-1823
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	-	-	-	-	-	134,00	-
Equity in percentage	-0.84	-133	-0.36	-119	1.85	-21,00	4.00
Total debt ratio	-120.63	43.22	-279.12	-625	53.15	8,00	-1607

Industry comparison

Activity code	32121
Activity description	Preparation of diamonds
industry average credit rating	78.30
Industry average credit limit	9475.63

Industry comparison

Activity code	32121
Activity description	Preparation of diamonds
Industry average payment expectation days	71.36
Industry average day sales outstanding	105.67

Industry quartile analysis

Payment expectations
Company result	-
Lower	133.78
Median	67.36
Upper	20.85


Day sales outstanding
Company result	-
Lower	97.57
Median	38.92
Upper	14.97

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

NSSO details

Business number	420242008
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	CELINE MOONS-BAITEL
Position	Director
Start Date	01/11/2012
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	BRAM MOONS-BAITEL
Position	Director
Start Date	01/11/2012
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	GUY JACOB BAITEL
Position	Chairperson
Start Date	28/11/2008
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	GUY JACOB BAITEL
Position	Managing Director
Start Date	28/11/2008
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	GUY JACOB BAITEL
Position	Director
Start Date	28/11/2008
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

FORMER DIRECTOR DETAILS

Name	CHRISTIANA EMMA AUGUST VERLINDEN
Position	Director
Start Date	22/08/1997
End Date	-
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	CHRISTIANA EMMA AUGUST VERLINDEN
Position	Principal Manager
Start Date	22/08/1997
End Date	-
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	CHRISTIANA EMMA AUGUST VERLINDEN
Position	Managing Director
Start Date	19/05/1997
End Date	-
Street	85 RIEMSTRAAT SCHILDE
Post code	2970
Country	Belgium

Name	SIMONNE HOREMANS
Position	Director
Start Date	19/05/1997
End Date	-
Street	TEN DUINEN Z/N GROBBENDONK
Post code	2280
Country	Belgium

Name	MICHEL SUCHOWOLSKI
Position	Director
Start Date	24/10/1994
End Date	31/10/2012
Street	24 TENTOONSTELLINGSSTRAAT ANTWERPEN
Post code	2020
Country	Belgium

Name	HERMANUS (HANS) JOHANNES MARIA FRIELING
Position	Director
Start Date	24/10/1994
End Date	31/10/2012
Date of birth	20/06/1964
Street	25 PAEPESTRAAT
Post code	6931
Country	The Netherlands

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.59.70
UK Pound	1	Rs.92.22
Euro	1	Rs.79.18

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%)