MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	STARGEMS BVBA
Registered Office :	Hoveniersstraat 30 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	02.02.1990
Com. Reg. No.:	440106618
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	Not Available

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 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	440106618
Company name	STARGEMS BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	0
Date of establishment	02/02/1990
Telephone number	032336804
Fax number	032334450

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2011	103,337,889	214,265	9,985,492
31/12/2010	59,983,631	193,184	6,168,531
31/12/2009	48,587,549	84,506	5,548,853

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	36,159,218		9,269,461	175,890	0
31/12/2010	27,942,479		5,682,670	76,598	0
31/12/2009	31,441,253		5,270,784	71,088	0

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	24.41
Industry average payment expectation days	176.04	Industry average day sales outstanding	109.62
Day sales outstanding	102.49

Court data summary

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

Business number	440106618	Company name	STARGEMS BVBA
Fax number	032334450	Date founded	02/02/1990
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.0440.106.618
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

Code	-
Description	-

Joint Industrial Committee (JIC)

Significant Events

Event Date	19/12/2012
Event Description
Event Details	De 2149 nieuwe aandelen worden toegekend aan Stargems Holding Limited.

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	103,337,889	72.28	59,983,631	23.45	48,587,549	57,071,239	81.07
Total operating expenses	102,316,550	72.65	59,261,757	23.73	47,895,909	56,388,961	81.45
Operating result	1,021,339	41.48	721,874	4.37	691,640	261,580	290
Total financial income	1,559,444	515	253,409	315	60,969	170,510	814
Total financial expenses	2,366,518	202	782,098	17.06	668,102	344,640	586
Results on ordinary operations before taxation	214,265	10.91	193,184	128	84,506	70,654	203
Taxation	-	-	8,310	-40.13	13,881	38,720	-
Results on ordinary operations after taxation	214,265	15.90	184,874	161	70,625	44,504	381
Extraordinary items	0	-100	1,187	-	0	11,595	-100
Other appropriations	0	-	0	-	0.00	-	-
Net result	214,265	15.16	186,061	163	70,625	56,038	282
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	-	-	-	-	-	118,597	-
Employee costs	-	-	-	-	-	152,302	-
Wages and salary	-	-	-	-	-	129,219	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	31,775	-
Other employee costs	0	-	0	-	0	4,346	-100
Amortization and depreciation	17,948	157	6,982	80.89	3,860	21,699	-17.29

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	1,775	-100
Tangible fixed assets	145,354	-2.13	148,511	75.45	84,645	208,237	-30.20
Land & building	84,823	-0.91	85,603	3.62	82,616	381,832	-77.79
Plant & machinery	10,187	675	1,313	-35.29	2,029	27,852	-63.42
Other tangible assets	50,344	-18.27	61,595	-	0	30,964	62.59
Financial fixed assets	-	-	-	-	-	321,397	-
Total fixed assets	145,354	-2.13	148,511	75.45	84,645	427,235	-65.98
Inventories	6,644,370	157	2,579,861	-15.62	3,057,394	3,531,853	88.13
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,261	-100
Finished goods	6,644,370	157	2,579,861	-15.62	3,057,394	2,464,757	169
Other stocks	0	-	0	-	0	455,632	-100
Trade debtors	29,017,540	15.91	25,035,009	-11.19	28,189,146	4,392,223	560
Cash	175,890	129	76,598	7.75	71,088	306,714	-42.65
other amounts receivable	176,064	79.77	97,937	152	38,715	447,746	-60.68
Miscellaneous current assets	0	-100	4,563	1617	266	41,902	-100
Total current assets	36,013,864	29.57	27,793,968	-11.36	31,356,608	8,139,766	342
current liabilities
Trade creditors	6,841,195	227	2,087,698	-51.10	4,269,569	2,928,994	133
Short term group loans	-	-	-	-	-	-	-
Other short term loans	18,254,426	8.40	16,839,483	-18.97	20,782,692	2,442,273	647
Miscellaneous current liabilities	982,575	-52.51	2,069,218	1837	106,792	145	- -
Total current liabilities	26,078,196	24.20	20,996,399	-16.55	25,159,053	5,655,192	361
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	10,758	-50.89	21,906	-32.54	32,472	-99	- -
Other long term liabilities	84,772	-88.78	755,644	7.81	700,875	289,264	-70.69
Total long term debts	95,530	-87.71	777,550	6.03	733,347	944,427	-89.88
shareholders equity
Issued share capital	9,269,461	63.12	5,682,670	7.81	5,270,784	1,169,545	692
Share premium account	-	-	-	-	-	173,859	-
Reserves	716,031	47.37	485,861	74.73	278,069	724,519	-1.17
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	9,985,492	61.88	6,168,531	11.17	5,548,853	1,918,204	420
Working capital	9,935,668	46.17	6,797,569	9.68	6,197,556	2,484,574	299
Net worth	9,985,492	61.88	6,168,531	11.17	5,548,853	1,916,428	421

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.21	-34.38	0.32	88.24	0.17	-662,00	0.03
Return on capital employed	2.13	-23.38	2.78	105	1.35	-12,00	17.75
Return on total assets employed	0.59	-14.49	0.69	155	0.27	-31,00	1.90
Return on net assets employed	2.15	-31.31	3.13	105	1.52	-18,00	11.94
Sales / net working capital	10.40	17.91	8.82	12.50	7.84	61,00	-99
Stock turnover ratio	6.43	49.53	4.30	-31.64	6.29	62,00	-89.63
Debtor days	102.49	-32.72	152.34	-28.06	211.76	51.715,00	-99
Creditor days	24.41	89.81	12.86	-60.48	32.54	299,00	-91.84
short term stability
Current ratio	1.38	4.55	1.32	5.60	1.25	4,00	-91.38
Liquidity ratio / acid ratio	1.13	-5.83	1.20	7.14	1.12	3,00	-62.33
Current debt ratio	2.61	-23.24	3.40	-24.94	4.53	16,00	-83.69
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	182.92	-33.08	273.35	-27.13	375.13	273,00	-33.00
Equity in percentage	27.62	25.09	22.08	25.10	17.65	-990,00	2.79
Total debt ratio	2.62	-25.78	3.53	-24.41	4.67	17,00	-84.59

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	24.41
Day sales outstanding	102.49

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.04
Industry average day sales outstanding	109.62

Industry quartile analysis

Payment expectations
Company result	24.41
Lower	122.08
Median	73.75
Upper	41.43
Day sales outstanding
Company result	102.49
Lower	106.72
Median	54.84
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

Business number	Company name	%	Date of accounts
-	STERLING STAR TRADING (L.L.C)	16.11	-

Minority Interests

No minority interests found

Individual Shareholders

Shareholder Name
Forename	Shailesh	Middle name	-
Surname	Javeri
Shareholder Details
Start date	11/12/2009(estimated)	End date	-
Percentage owned	8.09%
Shareholder Address
Street name	Fazantenlaan	House number	24
Minor town	Wilrijk	Postal town	Antwerpen
Post code	2610	Country	Belgium

Shareholder Name
Forename	Karan	Middle name	-
Surname	Javeri
Shareholder Details
Start date	10/05/2011(estimated)	End date	-
Percentage owned	7.25%
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	United Arab Emirates

Shareholder Name
Forename	Bhavesh	Middle name	-
Surname	Javeri
Shareholder Details
Start date	11/12/2009(estimated)	End date	-
Percentage owned	68.55%
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	United Arab Emirates

NSSO details

Business number	440106618
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	SHAILESH JAVERI
Position	Principal Manager
Start Date	27/10/2010
Street	24 FAZANTENLAAN 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.54.28
UK Pound	1	Rs.84.32
Euro	1	Rs.70.99

INFORMATION DETAILS

Report Prepared by :

NIT

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.