MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	ROSY BLUE NV
Registered Office :	Hoveniersstraat 53 Bus 127 Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	15.10.1973
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	26

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 and address

Business number 413178230

Company name ROSY BLUE NV

Telephone number 032061600

Address HOVENIERSSTRAAT 53 BUS 127

ANTWERPEN

Fax number 032061601

Post code 2018

Number of staff 26

Date of establishment 15/10/1973

Ultimate holding company

Company name	Company Number
Rosy Blue Enterprises S.A.	B96232

Accounts and ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH
31/12/2011	1,625,598,969	-3,775,408	21,416,659
31/12/2010	1,191,260,897	-3,261,713	20,440,777
31/12/2009	866,329,592	-3,330,713	18,287,755

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	INVESTMENTS	CAPITAL	CASH FLOW	NUMBER OF EMPLOYEES
31/12/2011	302,422,069	392,368	22,618,900	24,751,036	26
31/12/2010	229,355,658	407,320	21,901,908	5,200,175	26
31/12/2009	238,704,987	453,615	20,315,746	22,477,051	27

Payment expectations

Past payments Payment expectation days 6.73

Industry average payment 178.38 Industry average day sales 119.22

expectation days outstanding

Day sales outstanding 14.37

Court data summary

BANKRUPTCY DETAILS

Court action type no

Summary

Business number 413178230 Company name ROSY BLUE NV

Fax number 032061601 Date founded 15/10/1973

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.0413.178.230

Belgian Bullettin of Acts moniteur belge

Publications

Contractor details
Registered contractor number	-
Contractor description	-
Date struck off register
Personnel limit NSSO
Code	-
Description	FROM 20 TO 49 EMPLOYEES
Joint Industrial Committee (JIC) Significant Events
Event Date	15/05/2010
Event Description	re-appointment of director(s)
Event Details	Commentaar 15-05-2010: Herbenoeming bestuurders voor de duur van 6 jaar: Dilip Mehta, Amit Bhansali en Rajesh Mehta.
Event Date	02/01/2007
Event Description	re-appointment of director(s)
Event Details	Commentaar 02-01-2007: Herbenoemig: Rajkumar Mehta als bestuurder
Event Date	01/01/2009
Event Description
Event Details	Het mandaat van Dilip Mehta als bestuurder zal niet meer bezoldigd zijn vanaf 01/01/2009.

Financials

Profit and loss

Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	1,625,598,969	36.46	1,191,260,897	37.51	866,329,592	58,703,071	2669
Total operating expenses	1,615,924,691	36.63	1,182,690,007	37.08	862,796,453	57,894,190	2691
Operating result	9,674,278	12.87	8,570,890	142	3,533,139	296,729	3160
Total financial income	2,288,167	74.18	1,313,651	-83.94	8,177,743	178,510	1181
Total financial expenses	15,737,852	19.71	13,146,254	-12.60	15,041,595	342,855	4490
Results on ordinary operations before taxation	-3,775,408	-15.75	-3,261,713	97.93	-3,330,713	114,306	-3402
Taxation	-	-	-28,593	-207	26,522	39,178	-
Results on ordinary operations after taxation	-3,775,408	-16.77	-3,233,120	96.30	-3,357,235	87,780	-4400
Extraordinary items	4,136,643	6.70	3,876,742	384	800,968	7,986	51698
Other appropriations	0	-	0	-	0	-	-
Net result	361,235	-43.87	643,622	25.18	-2,556,267	95,668	277
OTHER INFORMATION
Dividends	-	-	-	-	-	137,001	-
Director remuneration	-	-	-	-	217,779	128,104	-
Employee costs	1,347,695	5.44	1,278,144	-14.66	1,497,649	160,652	738
Wages and salary	982,514	5.44	931,829	-15.72	1,105,679	135,760	623
Employee pension costs	-	-	-	-	2,223	8,542	-
Social security contributions	312,324	9.55	285,101	-14.97	335,309	33,607	829
Other employee costs	52,857	-13.65	61,214	12.45	54,438	4,602	1048
Amortization and depreciation	731,514	-6.23	780,098	-38.48	1,268,115	21,066	3372

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	96,099	-	40,268	-	113,019	2,025	4645
Tangible fixed assets	5,951,777	-1.27	6,028,386	-1.67	6,130,850	203,087	2830
Land & building	1,788,966	1.94	1,754,869	-7.48	1,896,749	375,806	376
Plant & machinery	373,437	29.83	287,630	9.07	263,704	27,985	1234
Other tangible assets	3,789,374	-4.93	3,985,887	0.39	3,970,397	30,618	12276
Financial fixed assets	392,368	-3.67	407,320	-10.21	453,615	317,446	23.60
Total fixed assets	6,440,244	-0.55	6,475,973	-3.31	6,697,483	419,812	1434
Inventories	-	-	-	-	-	3,442,463	-
Raw materials & consumables	-	-	-	-	-	3,184,382	-
Work in progress	0	-	0	-	0	2,529	-100
Finished goods	0	-	0	-	0	2,379,510	-100
Other stocks	0	-	0	-	0	474,010	-100
Trade debtors	63,987,998	-7.51	69,185,668	-13.76	80,220,509	4,336,698	1375
Cash	24,751,036	375	5,200,175	-76.86	22,477,051	314,146	7778
other amounts receivable	187,575,078	44.21	130,067,391	13.00	115,106,926	416,519	44933
Miscellaneous current assets	19,667,713	6.74	18,426,451	29.74	14,203,018	41,315	47504
Total current assets	295,981,825	32.80	222,879,685	-3.93	232,007,504	7,988,186	3605
CURRENT LIABILITIES
Trade creditors	29,778,739	595	4,282,829	-74.35	16,698,006	2,871,353	937
Short term group loans	-	-	-	-	-	-	-
Other short term loans	122,184,114	46.67	83,304,773	-1.99	84,996,631	2,413,042	4963
Miscellaneous current liabilities	5,528,893	42.70	3,874,564	5.10	3,686,573	1338	--
Total current liabilities	157,491,746	72.19	91,462,166	-13.21	105,381,210	5,541,776	2741
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	--
Other long term loans	115,297,759	8.44	106,321,344	-1.33	107,759,031	7383	--
Other long term liabilities	8,119,806	-26.79	11,091,103	54.82	7,163,972	296,362	2639
Total long term debts	123,417,565	5.11	117,412,447	2.17	114,923,003	927,232	13210
SHAREHOLDERS EQUITY
Issued share capital	22,618,900	3.27	21,901,908	7.81	20,315,746	1,045,553	2063
Share premium account	-	-	-	-	-	173,859	-

Reserves	-1,106,142	77.85	-1,420,863	74.20	-1,914,972	822,367	-234
Revaluation reserve	-	-	-	-	-	759,379	-
Total shareholders equity	21,512,758	5.04	20,481,045	11.31	18,400,774	1,892,110	1036
Working capital	138,490,079	5.38	131,417,519	3.78	126,626,294	2,446,410	5560
Net worth	21,416,659	4.77	20,440,777	11.77	18,287,755	1,890,085	1033

Ration analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
TRADING PERFORMANCE
Profit Before Tax	-0.23	85.19	-0.27	71.05	-0.38	1,00	-123
Return on capital employed	-2.60	-9.70	-2.37	94.80	-2.50	-21,00	12.38
Return on total assets employed	-1.25	88.03	-1.42	-1.43	-1.40	-34,00	3.68
Return on net assets employed	-17.55	-10.17	-15.93	88.01	-18.10	-29,00	60.52
Sales / net working capital	11.74	29.58	9.06	32.46	6.84	59,00	-99
Stock turnover ratio	-	-	-	-	-	41,00	-
Debtor days	14.37	-32.22	21.20	-37.28	33.80	115,00	-87.50
Creditor days	6.73	409	1.32	-81.30	7.06	117,00	-94.25
SHORT TERM STABILITY
Current ratio	1.88	-22.95	2.44	10.91	2.20	4,00	-89.56
Liquidity ratio / acid ratio	1.88	-22.95	2.44	10.91	2.20	3,00	-37.33
Current debt ratio	7.32	63.76	4.47	-21.99	5.73	18,00	-59.33
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	1103.91	19.23	925.86	-11.62	1047.54	300,00	267
Equity in percentage	7.12	-20.27	8.93	15.82	7.71	-1.103,00	0.65
Total debt ratio	13.06	28.04	10.20	-14.79	11.97	20,00	-34.70

Payment expectations
Payment expectation days	6.73
Day sales outstanding	14.37
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	178.38
Industry average day sales outstanding	119.22
Industry quartile analysis
Payment expectations
Company result	6.73
Lower	129.48
Median	75.51
Upper	41.95
Day sales outstanding
Company result	14.37
Lower	109.24
Median	57.26
Upper	24.94

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Group Structure
Company name	Number	Latest financials
- ROSY BLUE ENTERPRISES S.A.	B96232	31-12-2010
- - ROSY BLUE NV	413178230	31-12-2011

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

NSSO details
Business number	413178230
Name of defendant	-
Legal form of defendant	-
□ate 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	RAJKUMAR MEHTA
Position	Director
Date of birth	21/01/1971
Street	15 AHORNENLAAN ANTWERPEN
Post code	2610
Country	Belgium
Name	AMIT BHANUCHANDRA BHANSALI
Position	Director
Date of birth	09/12/1962
Street	11 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium
Name	AMIT BHANUCHANDRA BHANSALI
Position	Managing Director
Date of birth	09/12/1962
Street	11 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium
Name	RAJESH MEHTA
Position	Director

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.54.27
UK Pound	1	Rs.84.32
Euro	1	Rs.70.99

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.