MIRA INFORM REPORT

Report Date :

07.03.2013

IDENTIFICATION DETAILS

Name :	AJARI GEMS BVBA
Registered Office :	Hoveniersstraat 30-B 171 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	22.09.1997
Com. Reg. No.:	461487891
Legal Form :	Private Limited Company (BL/LX)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	Slow
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
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 2.0%, the unemployment rate decreased slightly to 7.7% 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. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

Company name and address

Business number	461487891
Company name	AJARI GEMS BVBA
Address	HOVENIERSSTRAAT 30-B 171
	2018 ANTWERPEN
Number of staff	2
Date of establishment	22/09/1997
Telephone number	032333664
Fax number	-

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	32,038,394	57,780	1,493,766
31/12/2010	48,179,773	75,264	1,452,537
31/12/2009		52,308	1,312,939

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	9,164,812		18,600	435,945	2
31/12/2010	12,399,505		18,600	34,199	1
31/12/2009	7,363,564		18,600	694,346	1

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	62.97
Industry average payment expectation days	176.22	Industry average day sales outstanding	109.82
Day sales outstanding	37.25

Court data summary

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

Business number	461487891	Company name	AJARI GEMS BVBA
Fax number	-	Date founded	22/09/1997
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.0461.487.891
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	07/05/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 07-05-2012: Herbenoemd als zaakvoerder : Sanghvi Bharat en Golchna Manish.

Export accounts to CSV file

comparison mode

average

median

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	32,038,394	-33.50	48,179,773	-	-	49,761,740	-35.62
Total operating expenses	31,953,935	-33.59	48,115,704	-	-	49,123,405	-34.95
Operating result	84,459	31.82	64,070	72.35	37,174	238,828	-64.64
Total financial income	41	-99	44,078	39.88	31,510	149,758	-99
Total financial expenses	26,720	-18.74	32,883	100	16,377	288,684	-90.74
Results on ordinary operations before taxation	57,780	-23.23	75,264	43.89	52,308	84,484	-31.61
Taxation	17,840	-35.97	27,862	8.34	25,718	38,045	-53.11
Results on ordinary operations after taxation	39,940	-15.74	47,402	78.27	26,590	59,134	-32.46
Extraordinary items	0	-100	132,777	-	0	3,121	-100
Other appropriations	1288.34	3.17	-40581.63	-	0.00	-	-
Net result	41,229	-70.47	139,598	425	26,590	62,138	-33.65
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,336	-
Employee costs	63,072	-4.04	65,730	49.25	44,042	128,224	-50.81
Wages and salary	51,379	-1.58	52,205	53.64	33,979	108,712	-52.74
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	10,438	7.13	9,743	26.48	7,704	27,245	-61.69
Other employee costs	1,255	-66.82	3,782	60.29	2,359	3,588	-65.03
Amortization and depreciation	49,131	29.52	37,932	128	16,572	18,442	166

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	1,451	-100
Tangible fixed assets	897,000	1.30	885,525	0.21	883,641	178,076	403
Land & building	814,236	-3.31	842,085	-2.14	860,494	346,516	134
Plant & machinery	7,445	98.83	3,745	-	-	21,793	-65.84
Other tangible assets	75,319	89.75	39,694	71.49	23,147	24,815	203
Financial fixed assets	-	-	-	-	-	278,810	-
Total fixed assets	897,000	1.30	885,525	0.21	883,641	365,162	145
Inventories	3,748,358	-39.28	6,172,795	225	1,897,354	3,063,465	22.36
Raw materials & consumables	-	-	-	-	-	4,164,364	-
Work in progress	0	-	0	-	0	2,475	-100
Finished goods	3,748,358	-39.28	6,172,795	-	0	2,046,941	83.12
Other stocks	0	-	0	-100	1,897,354	470,603	-100
Trade debtors	3,269,794	-28.43	4,568,424	42.25	3,211,616	3,905,230	-16.27
Cash	435,945	1174	34,199	-95.07	694,346	240,281	81.43
other amounts receivable	809,667	10.61	731,984	8.85	672,491	247,463	227
Miscellaneous current assets	4,048	-38.46	6,579	59.85	4,116	21,356	-81.04
Total current assets	8,267,812	-28.19	11,513,981	77.69	6,479,923	6,966,509	18.68
current liabilities
Trade creditors	5,512,899	-46.95	10,392,831	94.42	5,345,492	2,787,008	97.81
Short term group loans	-	-	-	-	-	-	-
Other short term loans	27,184	135	11,549	-54.74	25,515	1,897,437	-98.57
Miscellaneous current liabilities	1,812,108	679	232,330	13.75	204,241	387	- -
Total current liabilities	7,352,192	-30.88	10,636,709	90.78	5,575,248	4,938,135	48.89
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	279,561	3.67	269,677	-43.27	475,377	-75.75	- -
Other long term liabilities	39,293	-3.17	40,582	-	0	143,632	-72.64
Total long term debts	318,854	2.77	310,259	-34.73	475,377	600,942	-46.94
shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	1,027,330	-98.19
Share premium account	-	-	-	-	-	108,219	-
Reserves	1,475,166	2.88	1,433,937	10.79	1,294,339	699,604	110
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	1,493,766	2.84	1,452,537	10.63	1,312,939	1,748,386	-14.56
Working capital	915,620	4.37	877,271	-3.03	904,675	2,028,374	-54.86
Net worth	1,493,766	2.84	1,452,537	10.63	1,312,939	1,746,935	-14.49

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.18	12.50	0.16	-	-	-748,00	0.02
Return on capital employed	3.19	-25.29	4.27	46.23	2.92	-14,00	22.79
Return on total assets employed	0.63	3.28	0.61	-14.08	0.71	-34,00	1.85
Return on net assets employed	3.87	-25.29	5.18	30.15	3.98	-13,00	29.77
Sales / net working capital	34.99	-36.29	54.92	-	-	67,00	-99
Stock turnover ratio	11.70	-8.67	12.81	-	-	67,00	-82.54
Debtor days	37.25	7.63	34.61	-	-	58.397,00	-99
Creditor days	62.97	-20.13	78.84	-	-	330,00	-80.92
short term stability
Current ratio	1.12	3.70	1.08	-6.90	1.16	4,00	-93.78
Liquidity ratio / acid ratio	0.61	22.00	0.50	-39.02	0.82	3,00	-79.67
Current debt ratio	4.92	-32.79	7.32	72.24	4.25	18,00	-72.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	20.54	6.10	19.36	-49.25	38.15	265,00	-92.25
Equity in percentage	16.30	39.20	11.71	-34.32	17.83	-1.084,00	1.50
Total debt ratio	5.14	-31.83	7.54	63.56	4.61	19,00	-72.95

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

Payment expectations

Payment expectation days	62.97
Day sales outstanding	37.25

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.22
Industry average day sales outstanding	109.82

Industry quartile analysis

Payment expectations
Company result	62.97
Lower	122.08
Median	73.49
Upper	41.43
Day sales outstanding
Company result	37.25
Lower	106.72
Median	54.94
Upper	24.45

Company result	62.97
Lower	122.08
Median	73.49
Upper	41.43

Company result	37.25
Lower	106.72
Median	54.94
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

NSSO details

Business number	461487891
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	MANISH SHAH
Position	Principal Manager
Start Date	01/07/2012
Street	34 JACOB JORDAENSSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	BHARAT SANGHVI
Position	Principal Manager
Start Date	19/08/2010
End Date	31/12/2011
Street	118 LANGE HERENTALSESTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	MANISH GOLCHHA
Position	Principal Manager
Start Date	01/07/2010
End Date	31/12/2011
Street	25 SNEEUWBESLAAN ANTWERPEN
Post code	2610
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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.71
UK Pound	1	Rs.82.79
Euro	1	Rs.71.43

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.