MIRA INFORM REPORT

Report Date :

08.03.2013

IDENTIFICATION DETAILS

Name :	SNEHDIAM BVBA
Registered Office :	Pelikaanstraat 62, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	16.11.1992
Com. Reg. No.:	448544826
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	Not available

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 (31.03.2012)	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 & address

Business number	448544826
Company name	SNEHDIAM BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	0
Date of establishment	16/11/1992
Telephone number	032132793
Fax number	032268126

Accounts & ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2011	3,833,482	7,557	108,816	106,398
31/12/2010	2,531,527	8,002	100,629	99,301
31/12/2009	1,305,047	-9,999	92,627	91,234

Accounts & ratios

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2011	1,453,174	0	18,592	8,252
31/12/2010	1,437,357	0	18,592	8,067
31/12/2009	1,114,159	0	18,592	-9,481

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	65.45
Industry average payment expectation days	176.21	Industry average day sales outstanding	109.80
Day sales outstanding	43.87

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Company summary

Business number	448544826	Company name	SNEHDIAM BVBA
Fax number	032268126	Date founded	16/11/1992
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.0448.544.826
Belgian Bullettin of Acts Publications	moniteur belge

Registered contractor number	-
Contractor description	-
Date struck off register

Code	-
Description	-

Joint Industrial Committee (JIC)

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	3,833,482	51.43	2,531,527	93.98	1,305,047	49,761,740	-92.30
Total operating expenses	3,822,822	51.74	2,519,352	92.39	1,309,513	49,123,405	-92.22
Operating result	10,661	-12.43	12,174	272	-4,466	238,603	-95.53
Total financial income	-	-	-	-	-	149,585	-
Total financial expenses	3,104	-25.60	4,172	-24.60	5,533	288,402	-98.92
Results on ordinary operations before taxation	7,557	-5.57	8,002	80.03	-9,999	84,405	-91.05
Taxation	-630	-	-	-	-	37,989	-101
Results on ordinary operations after taxation	8,187	2.31	8,002	80.03	-9,999	59,079	-86.14
Extraordinary items	0	-	0	-	0	3,117	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	8,187	2.31	8,002	80.03	-9,999	62,080	-86.81
OTHER INFORMATION
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,336	-
Employee costs	-	-	-	-	-	128,224	-
Wages and salary	-	-	-	-	-	108,712	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	27,245	-
Other employee costs	0	-	0	-	0	3,584	-100
Amortization and depreciation	65	0	65	-87.44	518	18,442	-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	1,450	-100
Tangible fixed assets	1,220	837	130	-33.34	195	178,076	-99
Land & building	-	-	-	-	-	346,516	-
Plant & machinery	-	-	-	-	-	21,793	-
Other tangible assets	1,220	837	130	-33.34	195	24,790	-95.08
Financial fixed assets	1,198	0	1,198	0	1,198	278,374	-99
Total fixed assets	2,418	82.10	1,328	-4.67	1,393	364,754	-99
Inventories	948,833	65.16	574,500	-16.82	690,681	3,060,539	-69.00
Raw materials & consumables	-	-	-	-	-	4,164,364	-
Work in progress	0	-	0	-	0	2,472	-100
Finished goods	0	-	0	-	0	2,044,928	-100
Other stocks	948,833	65.16	574,500	-16.82	690,681	470,710	101
Trade debtors	460,770	-37.36	735,548	81.33	405,637	3,902,239	-88.19
Cash	37,624	-69.58	123,666	748	14,581	240,042	-84.33
other amounts receivable	2,387	103	1,175	61.86	726	247,223	-99
Miscellaneous current assets	1,140	0	1,140	0	1,140	21,335	-94.66
Total current assets	1,450,755	1.03	1,436,029	29.05	1,112,765	6,961,083	-79.16
CURRENT LIABILITIES
Trade creditors	685,472	0.83	679,844	96.44	346,086	2,785,370	-75.39
Short term group loans	-	-	-	-	-	-	-
Other short term loans	4,407	207	1,433	-	0	1,895,573	-99
Miscellaneous current liabilities	654,478	-0.15	655,451	-2.96	675,445	76.19	- -
Total current liabilities	1,344,358	0.57	1,336,728	30.86	1,021,531	4,934,638	-72.76
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	0	143,491	-100
Total long term debts	0	-	0	-	0	600,351	-100
SHAREHOLDERS EQUITY
Issued share capital	18,592	0	18,592	0	18,592	1,026,338	-98.19
Share premium account	-	-	-	-	-	108,219	-
Reserves	90,224	9.98	82,037	10.81	74,035	698,963	-87.09
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	108,816	8.14	100,629	8.64	92,627	1,746,733	-93.77
Working capital	106,398	7.15	99,301	8.84	91,234	2,026,445	-94.75
Cashflow	8,252	2.29	8,067	85.09	-9,481	77,294	-89.32
Net worth	108,816	8.14	100,629	8.64	92,627	1,745,283	-93.77

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
TRADING PERFORMANCE
Profit Before Tax	0.20	-37.50	0.32	41.56	-0.77	-748,00	0.03
Return on capital employed	6.94	-12.70	7.95	73.68	-10.79	-14,00	49.57
Return on total assets employed	0.52	-7.14	0.56	62.22	-0.90	-34,00	1.53
Return on net assets employed	6.94	-12.70	7.95	73.68	-10.79	-13,00	53.38
Sales / net working capital	36.03	41.35	25.49	78.25	14.30	67,00	-99
Stock turnover ratio	24.75	9.08	22.69	-57.12	52.92	67,00	-63.06
Debtor days	43.87	-58.63	106.05	-6.52	113.45	58.397,00	-99
Creditor days	65.45	-33.55	98.49	2.10	96.46	330,00	-80.17
SHORT TERM STABILITY
Current ratio	1.08	0.93	1.07	-1.83	1.09	4,00	-94.00
Liquidity ratio / acid ratio	0.37	-42.19	0.64	56.10	0.41	3,00	-87.67
Current debt ratio	12.35	-7.00	13.28	20.40	11.03	18,00	-31.39
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	4.05	185	1.42	-	-	265,00	-98.47
Equity in percentage	7.49	7.00	7	-15.76	8.31	-1.083,00	0.69
Total debt ratio	12.35	-7.00	13.28	20.40	11.03	19,00	-35.00

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	65.45
Day sales outstanding	43.87

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.21
Industry average day sales outstanding	109.80

Industry quartile analysis

Payment expectations
Company result	65.45
Lower	122.08
Median	73.49
Upper	40.99

Day sales outstanding
Company result	43.87
Lower	106.72
Median	54.94
Upper	24.41

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	448544826
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	SANJAY SHANTILAL MEHTA
Position	Principal Manager
Start Date	22/10/2010
Date of birth	25/07/1961
Street	71 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	SAMIR MEHTA
Position	Principal Manager
Start Date	03/03/2003
Street	ARIHANT APTS S.V. ROAD IRLA
Post code	400056
Country	India

Former director details

Name	PRADIP DOSHI
Position	Principal Manager
Start Date	10/10/1997
End Date	-
Street	JAWAHAR NAGAR
Post code
Country	India

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.54.74
UK Pound	1	Rs.82.14
Euro	1	Rs.71.27

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