MIRA INFORM REPORT

Report Date :

29.06.2013

IDENTIFICATION DETAILS

Name :	EUROSTAR DIAMOND TRADERS NV
Registered Office :	Hoveniersstraat 53, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	21.03.1991
Com. Reg. No.:	443117279
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	39

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 & address

Business number	443117279
Company name	EUROSTAR DIAMOND TRADERS NV
Address	HOVENIERSSTRAAT 53
	2018 ANTWERPEN
Number of staff	39
Date of establishment	21/03/1991
Telephone number	032253211
Fax number	032137799

Commentary

The business was established over 22 years ago.
The business has 20 employees.
The business has been at the address for over 8 years.
The credit rating for this business has decreased from 95 to 93.
The credit limit for this business has decreased from €26450000 to €25850000.
Sales in the latest trading period increased 57% on the previous trading period.
The business saw a decrease in their Cash Balance of 67% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	2,291,560,804	17,108,675	248,382,937	174,880,300
31/12/2010	1,554,834,961	-2,650,299	224,131,675	162,900,218
31/12/2009	1,250,879,504	4,132,425	210,212,322	143,543,607

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	577,431,870	39	127,528,500	17,275,402
31/12/2010	499,917,569	41	123,486,000	-2,193,764
31/12/2009	463,692,604	41	114,543,000	6,279,845

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	16.55
Industry average payment expectation days	174.26	Industry average day sales outstanding	108.50
Day sales outstanding	33.21

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	443117279		Company name	EUROSTAR DIAMOND TRADERS NV
Fax number	032137799		Date founded	21/03/1991
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.0443.117.279
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel

(NSSO classification)

Code	-
Description	FROM 20 TO 49 EMPLOYEES

Joint Industrial Committee

(JIC)

Significant Events

Event Date	22/12/2011
Event Description
Event Details	Omzetting aandelen aan toonder naar aandelen op naam.

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	2,291,560,804	47.38	1,554,834,961	24.30	1,250,879,504	49,416,669	4537
Total operating expenses	2,221,198,672	47.08	1,510,208,972	22.67	1,231,160,071	48,781,415	4453
Operating result	70,362,132	57.67	44,625,989	126	19,719,433	238,379	29416
Total financial income	2,762,499	-23.51	3,611,610	33.42	2,706,976	149,137	1752
Total financial expenses	56,015,956	10.08	50,887,898	178	18,293,985	287,777	19365
Results on ordinary operations before taxation	17,108,675	645	-2,650,299	-164	4,132,425	84,467	20154
Taxation	190,011	3166750	6	-99	607,372	37,844	402
Results on ordinary operations after taxation	16,918,664	638	-2,650,305	-175	3,525,053	59,263	28448
Extraordinary items	-17,080	-114	114,307	-95.32	2,441,120	3,201	-633
Other appropriations	1	-	0	-	0	-	-
Net result	16,901,585	666	-2,535,998	-142	5,966,173	62,348	27008
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	3,763,348	23.94	3,036,521	-3.06	3,132,498	127,998	2840
Wages and salary	2,535,188	21.35	2,089,088	-9.61	2,311,265	108,777	2230
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	856,210	14.17	749,957	16.22	645,307	27,123	3056
Other employee costs	371,950	88.35	197,476	12.25	175,925	3,607	10211
Amortization and depreciation	373,817	9.23	342,234	9.11	313,672	18,309	1941

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	7,021	-	18,795	-	57,248	1,462	380
Tangible fixed assets	5,007,060	-0.29	5,021,684	13.61	4,420,060	177,435	2721
Land & building	4,351,687	1.47	4,288,659	5.34	4,071,355	346,034	1157
Plant & machinery	311,462	-14.01	362,220	67.16	216,690	21,796	1328
Other tangible assets	343,911	-7.25	370,805	180	132,015	24,613	1297
Financial fixed assets	75,542,939	18.60	63,697,219	-10.47	71,149,993	276,470	27224
Total fixed assets	80,557,020	17.19	68,737,698	-9.11	75,627,301	363,228	22078
Inventories	233,203,212	25.34	186,061,959	13.86	163,414,797	3,063,024	7513
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	233,203,212	25.34	186,061,959	13.86	163,414,797	2,049,305	11279
Other stocks	0	-	0	-	0	472,115	-100
Trade debtors	208,475,293	14.56	181,977,376	8.06	168,400,840	3,890,045	5259
Cash	411,749	-67.64	1,272,395	91.50	664,427	239,652	71.81
other amounts receivable	54,214,444	-10.85	60,814,393	11.14	54,717,552	245,172	22012
Miscellaneous current assets	570,152	-45.89	1,053,748	21.44	867,687	21,403	2563
Total current assets	496,874,850	15.24	431,179,871	11.11	388,065,303	6,947,598	7051
current liabilities
Trade creditors	100,694,631	44.18	69,837,352	-1.76	71,088,213	2,779,144	3523
Short term group loans	-	-	-	-	-	-	-
Other short term loans	218,048,145	11.40	195,736,245	15.86	168,944,664	1,895,457	11403
Miscellaneous current liabilities	3,251,774	20.17	2,706,056	-39.72	4,488,819	777	- -
Total current liabilities	321,994,550	20.02	268,279,653	9.72	244,521,696	4,928,002	6433
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	6,177,076	-7.04	6,644,747	-18.16	8,119,669	437	- -
Other long term liabilities	870,286	3.27	842,699	7.81	781,669	143,055	508
Total long term debts	7,047,362	-5.88	7,487,446	-15.88	8,901,338	599,216	1076
shareholders equity
Issued share capital	127,528,500	3.27	123,486,000	7.81	114,543,000	1,022,445	12372
Share premium account	-	-	-	-	-	108,219	-
Reserves	120,861,458	20.06	100,664,470	5.16	95,726,570	696,058	17263
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	248,389,958	10.81	224,150,470	6.60	210,269,570	1,739,850	14176
Working capital	174,880,300	7.35	162,900,218	13.48	143,543,607	2,019,596	8559
Cashflow	17,275,402	787	-2,193,764	-134	6,279,845	77,447	22206
Net worth	248,382,937	10.82	224,131,675	6.62	210,212,322	1,738,388	14188

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.75	441	-0.17	-151	0.33	-742,00	0.10
Return on capital employed	6.70	587	-1.14	-160	1.89	-14,00	47.86
Return on total assets employed	2.96	558	-0.53	-159	0.89	-34,00	8.71
Return on net assets employed	6.89	583	-1.18	-159	1.97	-12,00	57.42
Sales / net working capital	13.10	37.32	9.54	9.53	8.71	66,00	-99
Stock turnover ratio	10.18	-14.95	11.97	-8.35	13.06	67,00	-84.81
Debtor days	33.21	-22.26	42.72	-13.06	49.14	57.886,00	-99
Creditor days	16.55	-1.95	16.88	-19.92	21.08	327,00	-94.94
short term stability
Current ratio	1.54	-4.35	1.61	1.26	1.59	4,00	-91.44
Liquidity ratio / acid ratio	0.82	-9.89	0.91	-1.09	0.92	3,00	-72.67
Current debt ratio	1.30	8.33	1.20	3.45	1.16	18,00	-92.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	90.27	-0.02	90.29	7.22	84.21	265,00	-65.94
Equity in percentage	43.02	-4.06	44.84	-1.12	45.35	-1.079,00	3.99
Total debt ratio	1.32	7.32	1.23	1.65	1.21	19,00	-93.05

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones

Suspension of payments

/ moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	16.55
Day sales outstanding	33.21

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.26
Industry average day sales outstanding	108.50

Industry quartile analysis

Payment expectations
Company result	16.55
Lower	121.46
Median	72.36
Upper	40.99
Day sales outstanding
Company result	33.21
Lower	105.52
Median	54.63
Upper	23.61

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

Business number	Company name	%	Date of accounts
347532632	EUROSTARS FRANCE	25	31/12/2011

Protested bills

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

NSSO details

Business number	443117279
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

Legal events

Legal event type	Fragmentation
Legal event sub type
Event date	10/04/2008	Secondary event date
3rd party name	Dimexon Antwerp	3rd party type	Absorbing Company
3rd party address	Hoveniersstraat, 53 Antwerpen 2018

Legal event type	Fragmentation
Legal event sub type
Event date	10/04/2008	Secondary event date
3rd party name	Eurostar Diamond Traders	3rd party type	Fragmented Company
3rd party address	Hoveniersstraat, 53 Antwerpen 2018

Current director details

Name	RAJ PRAVIN KOTHARI
Position	Director
Start Date	01/01/2011
End Date
Date of birth	20/05/1966
Street	97 INGENIEUR HAESAERTSLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	KAUSHIK KIRTILAL MEHTA
Position	Managing Director
Start Date	16/08/2010
End Date
Date of birth	29/06/1949
Street	25 EEKHOORNLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	KAUSHIK KIRTILAL MEHTA
Position	Director
Start Date	13/10/2006
End Date
Date of birth	29/06/1949
Street	25 EEKHOORNLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHISH PRAVIN KOTHARI
Position	Managing Director
Start Date	13/08/2010
End Date
Street	7 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHISH PRAVIN KOTHARI
Position	Director
Start Date	13/08/2010
End Date
Street	7 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Chairman of the Board
Start Date	13/08/2010
End Date
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Managing Director
Start Date	30/06/2010
End Date
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	SACHIN DINUKUMAR MEHTA
Position	Director
Start Date	17/11/2005
End Date
Date of birth	09/01/1964
Street	39 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	KUNAL MEHTA
Position	Director
Start Date	13/10/2006
End Date
Street
Post code
Country

Former director details

Name	KUNAL MEHTA
Position	Director
Start Date	13/10/2006
End Date	-
Street
Post code
Country

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.91.14
Euro	1	Rs.77.97

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.