MIRA INFORM REPORT

Report Date :

20.03.2013

IDENTIFICATION DETAILS

Name :	SPECTRA DIAM BVBA
Registered Office :	Pelikaanstraat 62, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	11.03.1992
Com. Reg. No.:	446829213
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 (Unfavorable Market Conditions)

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

Status :	Moderate
Payment Behaviour :	Usually Correct
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

REGISTERED NAME & COMPANY SUMMARY

Business number	446829213
Company name	SPECTRA DIAM BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	0
Date of establishment	11/03/1992
Telephone number	032342924
Fax number	032251142

Business number	446829213	Company name	SPECTRA DIAM BVBA
Fax number	032251142	Date founded	11/03/1992
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.0446.829.213
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	KUNAL BHARATKUMAR MEHTA
Position	Principal Manager
Start Date	06/09/2011
Date of birth	06/04/1976
Street	59 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	KUNAL BHARATKUMAR MEHTA,
Position	Principal Manager
Start Date	02/10/2000
Street
Post code
Country

Name	KUNAL MODI
Position	Principal Manager
Start Date	01/07/2012
Street
Post code
Country

Former director details

Name	DINESH SHAH
Position	Principal Manager
Start Date	18/09/1997
End Date	-
Street	14 TEN BOGAERDEPLEIN EDEGEM
Post code	2650
Country	Belgium

Name	MARIETTE ANNA ELIE DE VRY
Position	Principal Manager
Start Date	18/03/1999
End Date	-
Date of birth	24/03/1939
Street	37 CAMILLE HUYSMANSLAAN ANTWERPEN
Post code	2020
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Joint Industrial Committee (JIC)

Significant Events

Event Date	13/05/2012
Event Description	proposal to change address filed
Event Details

NSSO details

Business number	446829213
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	176.11	Industry average day sales outstanding	109.66
Day sales outstanding	-

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	-
Day sales outstanding	-

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.11
Industry average day sales outstanding	109.66

Industry quartile analysis

Payment expectations
Company result	-
Lower	121.46
Median	73.03
Upper	41.43

Day sales outstanding
Company result	-
Lower	106.41
Median	54.84
Upper	24.41

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	Working capital
31/12/2011		14,927	82,665	82,665
31/12/2010	2,397,333	5,599	70,729	68,233
31/12/2009	2,526,105	5,231	65,803	63,308

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	-	0	18,592	11,936
31/12/2010	1,316,985	0	18,592	4,926
31/12/2009	827,378	0	18,592	4,482

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	-	-	2,397,333	-5.10	2,526,105	49,761,740	-
Total operating expenses	-	-	2,386,974	-5.12	2,515,704	49,123,405	-
Operating result	26,732	158	10,359	-0.40	10,401	238,450	-88.79
Total financial income	-	-	79	7769	1	149,554	-
Total financial expenses	11,804	143	4,839	-6.40	5,170	288,302	-95.91
Results on ordinary operations before taxation	14,927	166	5,599	7.04	5,231	84,337	-82.30
Taxation	2,991	344	673	-21.97	863	37,937	-92.12
Results on ordinary operations after taxation	11,936	142	4,926	12.77	4,368	59,033	-79.78
Extraordinary items	0	-	0	-	0	3,114	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	11,936	142	4,926	12.77	4,368	62,031	-80.76
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	3,581	-100
Amortization and depreciation	-	-	-	-	114	18,431	-

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	1,448	-100
Tangible fixed assets	-	-	-	-	-	177,869	-
Land & building	-	-	-	-	-	346,516	-
Plant & machinery	-	-	-	-	-	21,761	-
Other tangible assets	0	-	0	-	0	24,774	-100
Financial fixed assets	-	-	2,496	0.01	2,496	277,948	-
Total fixed assets	-	-	2,496	0.01	2,496	364,361	-
Inventories	966,876	32.95	727,254	28.27	566,958	3,057,509	-68.38
Raw materials & consumables	-	-	-	-	-	4,164,364	-
Work in progress	0	-	0	-	0	2,470	-100
Finished goods	0	-	0	-	0	2,042,920	-100
Other stocks	966,876	32.95	727,254	28.27	566,958	470,724	105
Trade debtors	565,599	0.30	563,909	125	250,207	3,898,466	-85.49
Cash	39,225	83.65	21,359	349	4,749	240,068	-83.66
other amounts receivable	142,342	7139	1,966	3.05	1,908	247,007	-42.37
Miscellaneous current assets	1,817	-	0	-100	1,060	21,314	-91.48
Total current assets	1,715,858	30.53	1,314,489	59.35	824,882	6,955,068	-75.33
current liabilities
Trade creditors	1,314,237	35.73	968,289	107	466,476	2,783,115	-52.78
Short term group loans	-	-	-	-	-	-	-
Other short term loans	304	-	0	-100	1,000	1,893,711	-99
Miscellaneous current liabilities	318,653	14.64	277,967	-5.48	294,098	-14.13	- -
Total current liabilities	1,633,193	31.05	1,246,256	63.64	761,574	4,930,367	-66.87
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-100	1	143,350	-100
Total long term debts	0	-	0	-100	1	599,761	-100
shareholders equity
Issued share capital	18,592	0	18,592	0.00	18,592	1,025,391	-98.19
Share premium account	-	-	-	-	-	108,219	-
Reserves	64,073	22.89	52,137	10.43	47,211	698,475	-90.83
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	82,665	16.88	70,729	7.49	65,803	1,745,277	-95.26
Working capital	82,665	21.15	68,233	7.78	63,308	2,024,701	-95.92
Cashflow	11,936	142	4,926	9.90	4,482	77,239	-84.55
Net worth	82,665	16.88	70,729	7.49	65,803	1,743,828	-95.26

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	-	-	0.23	9.52	0.21	-748,00	-
Return on capital employed	18.06	128	7.92	-0.38	7.95	-14,00	129
Return on total assets employed	0.87	102	0.43	-31.75	0.63	-34,00	2.56
Return on net assets employed	18.06	128	7.92	-0.38	7.95	-13,00	138
Sales / net working capital	-	-	35.13	-11.95	39.90	67,00	-
Stock turnover ratio	-	-	30.34	35.20	22.44	67,00	-
Debtor days	-	-	85.86	137	36.15	58.397,00	-
Creditor days	-	-	148.06	118	67.68	330,00	-
short term stability
Current ratio	1.05	0	1.05	-2.78	1.08	4,00	-94.17
Liquidity ratio / acid ratio	0.46	-2.13	0.47	38.24	0.34	3,00	-84.67
Current debt ratio	19.76	12.15	17.62	52.29	11.57	18,00	9.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	0.37	-	-	-	1.52	265,00	-99
Equity in percentage	4.82	-10.24	5.37	-32.45	7.95	-1.082,00	0.45
Total debt ratio	19.76	12.15	17.62	52.29	11.57	19,00	4.00

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.54.26
UK Pound	1	Rs.81.94
Euro	1	Rs.70.21

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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