MIRA INFORM REPORT

Report Date :

07.03.2013

IDENTIFICATION DETAILS

Name :	VAMA-GEMS BVBA

Registered Office :	Hoveniersstraat 12, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	08.12.1998

Com. Reg. No.:	464983752

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesaler of diamonds and other precious stones

No. of Employees :	Not available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

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

(31.03.2012)

Current Rating

(30.06.2012)

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 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

REGISTERED NAME & COMPANY SUMMARY

Business number	464983752
Company name	VAMA-GEMS BVBA
Address	HOVENIERSSTRAAT 12
	2018 ANTWERPEN
Number of staff	0
Date of establishment	08/12/1998
Telephone number	032274540
Fax number	-

Company status

active

Business number	464983752	Company name	VAMA-GEMS BVBA
Fax number	-	Date founded	08/12/1998
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.0464.983.752
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	RUPESH NAVINCHENDRA SHAH
Position	Principal Manager
Start Date	03/08/2010
Street	48 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	PINKY SHAH
Position	Principal Manager
Start Date	08/12/1998
Street	514 BOMBAY MARKET, TARDEO ROAD BOMBAY
Post code
Country	India

Name	PINKY SHIROIYA
Position	Principal Manager
Start Date	01/04/1999
Street	BOMBAY MARKET, TARDEO ROAD BOMBAY
Post code
Country	India

NEGATIVE INFORMATION

Court data summary

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

Protested bills

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

NSSO details

Business number	464983752
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.

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found.

Minority Interests

No minority interests found.

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	176.22	Industry average day sales outstanding	109.21
Day sales outstanding	-

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	-
Day sales outstanding	-

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	109.21

Industry quartile analysis

Payment expectations
Company result	-
Lower	122.08
Median	73.49
Upper	41.43

Day sales outstanding
Company result	-
Lower	106.72
Median	54.94
Upper	24.45

GROUP STRUCTURE & AFFILIATED COMPANIES

Summary

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011		39,975	-17,415
31/12/2010		-11,569	-57,390
31/12/2009		949	-51,735

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	726,861	310	18,600	63,394	0
31/12/2010	762,822	310	18,600	42,406	0
31/12/2009	843,454	310	18,600	49,332	0

Trends

Profitability
Liquidity
Net worth

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	-	-	-	-	-	57,090,076	-
Total operating expenses	-	-	-	-	-	56,410,071	-
Operating result	41,380	378	-10,927	-839	1,478	261,663	-84.19
Total financial income	1	-99	284	-51.71	589	171,399	-99
Total financial expenses	1,406	51.82	926	-17.10	1,117	345,442	-99
Results on ordinary operations before taxation	39,975	345	-11,569	-1318	949	70,625	-43.40
Taxation	-	-	-	-	-	38,658	-
Results on ordinary operations after taxation	39,975	345	-11,569	-1318	949	44,506	-10.18
Extraordinary items	0	-100	5,913	-	0	11,553	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	39,975	706	-5,656	-695	949	55,999	-28.61
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	118,229	-
Employee costs	-	-	-	-	-	154,084	-
Wages and salary	-	-	-	-	-	130,727	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	32,208	-
Other employee costs	0	-	0	-	0	4,344	-100
Amortization and depreciation	33	-	-	-	4,238	21,733	-99

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	1,838	-100
Tangible fixed assets	1,387	-	-	-	1,114	207,842	-99
Land & building	-	-	-	-	-	381,382	-
Plant & machinery	889	-	-	-	-	27,827	-96.80
Other tangible assets	498	-	0	-100	1,114	30,881	-98.39
Financial fixed assets	310	0	310	0	310	320,500	-99
Total fixed assets	1,697	447	310	-78.23	1,424	425,853	-99
Inventories	268,144	-43.70	476,240	54.58	308,079	3,551,116	-92.45
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,253	-100
Finished goods	0	-	0	-	0	2,480,105	-100
Other stocks	268,144	-43.70	476,240	54.58	308,079	458,613	-41.53
Trade debtors	384,660	58.57	242,574	-49.60	481,305	4,455,314	-91.37
Cash	63,394	49.49	42,406	-14.04	49,332	306,492	-79.32
other amounts receivable	2,242	2003	107	-94.53	1,948	447,480	-99
Miscellaneous current assets	6,723	467	1,185	-13.30	1,367	41,848	-83.93
Total current assets	725,164	-4.90	762,512	-9.44	842,031	8,220,540	-91.18
current liabilities
Trade creditors	407,277	-14.19	474,621	-15.17	559,499	2,988,787	-86.37
Short term group loans	-	-	-	-	-	-	-
Other short term loans	0	-	0	-	0	2,450,272	-100
Miscellaneous current liabilities	336,999	-2.49	345,591	2.95	335,690	-15.82	- -
Total current liabilities	744,276	-9.26	820,213	-8.38	895,189	5,721,566	-86.99
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	0	288,227	-100
Total long term debts	0	-	0	-	0	961,997	-100
shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	1,167,234	-98.41
Share premium account	-	-	-	-	-	173,859	-
Reserves	-36,015	47.39	-75,990	-8.04	-70,335	722,699	-104
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	-17,415	30.35	-57,390	-10.93	-51,735	1,913,986	-100
Working capital	-19,112	33.12	-57,700	-8.54	-53,158	2,498,974	-100
Net worth	-17,415	30.35	-57,390	-10.93	-51,735	1,912,149	-100

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	-	-	-	-	-	-657,00	-
Return on capital employed	-229.54	-1238	20.16	1095	-1.84	-12,00	-1812
Return on total assets employed	5.50	361	-1.52	-1481	0.11	-30,00	18.33
Return on net assets employed	-229.54	-1238	20.16	1095	-1.84	-18,00	-1175
Sales / net working capital	-	-	-	-	-	61,00	-
Stock turnover ratio	-	-	-	-	-	62,00	-
Debtor days	-	-	-	-	-	51.316,00	-
Creditor days	-	-	-	-	-	299,00	-
short term stability
Current ratio	0.97	4.30	0.93	-1.06	0.94	4,00	-93.94
Liquidity ratio / acid ratio	0.61	74.29	0.35	-41.67	0.60	3,00	-79.67
Current debt ratio	-42.74	-199	-14.29	82.60	-17.30	16,00	-367
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	-	-	-	-	-	274,00	-
Equity in percentage	-2.40	31.91	-7.52	-22.68	-6.13	-986,00	0.24
Total debt ratio	-42.74	-199	-14.29	82.60	-17.30	17,00	-351

ADDITIONAL INFORMATION

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	-

Industry comparison

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

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 :

MNL

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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