MIRA INFORM REPORT

Report Date :

18.05.2013

IDENTIFICATION DETAILS

Name :	EXELCO SOURCING BVBA
Registered Office :	Pelikaanstraat 62 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	25.10.2007
Com. Reg. No.:	893075337
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	2

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 :	Small Company
Payment Behaviour :	Slow but 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 – 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

REGISTERED NAME & COMPANY SUMMARY

Business number	893075337
Company name	EXELCO SOURCING BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	2
Date of establishment	25/10/2007
Telephone number	032322804
Fax number	-

DIRECTORS/MANAGEMENT

Current director details

Name	EMMANUEL LANDAU
Position	Principal Manager
Start Date	25/10/2007
End Date
Street	6 CHARLOTTALEI ANTWERPEN
Post code	2018
Country	Belgium

Name	LIOR KUNSTLER
Position	Principal Manager
Start Date	01/01/2011
End Date
Street
Post code
Country	Israël

Former director details

Name	JEAN-PAUL MEIJER TOLKOWSKY
Position	Principal Manager
Start Date	01/01/2009
End Date	01/03/2012
Street	36 VAN PUTLEI ANTWERPEN
Post code	2018
Country	Belgium

NEGATIVE INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchcourt_data.aspx?CompanyNumber=893075337Court data summary

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

Business number	893075337	Company name	EXELCO SOURCING BVBA
Fax number	-	Date founded	25/10/2007
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.0893.075.337
Belgian Bullettin of Acts Publications	moniteur belge

Protested bills

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

NSSO details

Business number	893075337
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

Business number	Company name	Date of accounts
454661071	Exelco NV	31/12/2011

Minority Interests

No minority interests found.

PAYMENT INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchpayment_information.aspx?CompanyNumber=893075337Payment expectations

Past payments		Payment expectation days	88.78
Industry average payment expectation days	174.26	Industry average day sales outstanding	108.50
Day sales outstanding	111.24

Industry comparison

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	88.78
Day sales outstanding	111.24

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.26
Industry average day sales outstanding	108.50

Industry quartile analysis

Payment expectations
Company result	88.78
Lower	121.46
Median	72.36
Upper	40.99

Day sales outstanding
Company result	111.24
Lower	105.52
Median	54.63
Upper	23.61

GROUP STRUCTURE & AFFILIATED COMPANIES

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchshareholders.aspx?CompanyNumber=893075337Ultimate holding company

Company name	Company Number
-	-

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchaccounts.aspx?CompanyNumber=893075337Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	34,323,946	57,018	148,565	1,680,408
31/12/2010	22,584,361	58,086	110,269	1,217,867
31/12/2009	17,233,749	40,248	61,634	1,100,786

C:\Documents and SettingsCS03DesktopCreditsafe Templatesservicescompany_searchaccounts.aspx?CompanyNumber=893075337Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	12,758,369	2	20,710	38,720
31/12/2010	10,000,204	2	20,053	45,993
31/12/2009	8,558,926	2	18,600	26,969

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	34,323,946	51.98	22,584,361	31.05	17,233,749	49,416,669	-30.54
Total operating expenses	34,075,479	52.38	22,362,364	31.03	17,066,951	48,781,415	-30.15
Operating result	248,467	11.92	221,997	33.09	166,798	238,379	4.23
Total financial income	24,165	5.32	22,944	8083	280	149,137	-83.80
Total financial expenses	215,614	15.39	186,855	47.33	126,830	287,777	-25.08
Results on ordinary operations before taxation	57,018	-1.84	58,086	44.32	40,248	84,467	-32.50
Taxation	22,332	59.82	13,973	2.11	13,685	37,844	-40.99
Results on ordinary operations after taxation	34,686	-21.37	44,113	66.07	26,564	59,263	-41.47
Extraordinary items	0	0	-293	-	0	3,201	-100
Other appropriations	-1	-	0	-	0.00	-	-
Net result	34,685	-20.85	43,820	64.96	26,564	62,348	-44.37
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	29,146	-2.25	29,818	115,275	-
Employee costs	75,572	320	17,963	-52.73	37,999	127,998	-40.96
Wages and salary	62,627	318	14,967	-55.42	33,573	108,777	-42.43
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	9,781	506	1,614	-35.95	2,520	27,123	-63.94
Other employee costs	3,163	128	1,382	-27.52	1,907	3,607	-12.31
Amortization and depreciation	4,035	85.69	2,173	435	406	18,309	-77.96

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	1,462	-100
Tangible fixed assets	12,917	-11.55	14,603	768	1,681	177,435	-92.72
Land & building	-	-	-	-	-	346,034	-
Plant & machinery	5,831	-14.51	6,821	305	1,681	21,796	-73.25
Other tangible assets	7,086	-8.94	7,782	-	0	24,613	-71.21
Financial fixed assets	1,040	160	400	0	400	276,470	-99
Total fixed assets	13,957	-6.97	15,002	620	2,081	363,228	-96.16
Inventories	2,032,950	-22.80	2,633,373	34.51	1,957,715	3,063,024	-33.63
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	2,032,950	-22.80	2,633,373	34.51	1,957,715	2,049,305	-0.80
Other stocks	0	-	0	-	0	472,115	-100
Trade debtors	10,460,817	43.78	7,275,734	10.81	6,566,133	3,890,045	168
Cash	237,283	249	67,981	145	27,731	239,652	-0.99
other amounts receivable	9,512	97.18	4,824	1.43	4,756	245,172	-96.12
Miscellaneous current assets	3,850	17.02	3,290	546	509	21,403	-82.01
Total current assets	12,744,412	27.63	9,985,202	16.69	8,556,845	6,947,598	83.44
current liabilities
Trade creditors	8,288,276	23.35	6,719,185	21.84	5,514,916	2,779,144	198
Short term group loans	-	-	-	-	-	-	-
Other short term loans	2,733,587	35.10	2,023,400	6.22	1,904,978	1,895,457	44.22
Miscellaneous current liabilities	42,141	70.27	24,750	-31.56	36,166	-88.62	- -
Total current liabilities	11,064,004	26.20	8,767,335	17.59	7,456,059	4,928,002	124
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	1,041,233	-	- -
Other long term liabilities	1,545,800	37.70	1,122,600	-	0	143,055	980
Total long term debts	1,545,800	37.70	1,122,600	7.81	1,041,233	599,216	157
shareholders equity
Issued share capital	20,710	3.28	20,053	7.81	18,600	1,022,445	-97.97
Share premium account	-	-	-	-	-	108,219	-
Reserves	127,855	41.72	90,216	109	43,034	696,058	-81.63
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	148,565	34.73	110,269	78.91	61,634	1,739,850	-91.46
Working capital	1,680,408	37.98	1,217,867	10.64	1,100,786	2,019,596	-16.79
Cashflow	38,720	-15.81	45,993	70.54	26,969	77,447	-50.00
Net worth	148,565	34.73	110,269	78.91	61,634	1,738,388	-91.45

Ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.17	-34.62	0.26	13.04	0.23	-742,00	0.02
Return on capital employed	3.37	-28.45	4.71	29.04	3.65	-14,00	24.07
Return on total assets employed	0.45	-22.41	0.58	23.40	0.47	-34,00	1.32
Return on net assets employed	38.38	-27.15	52.68	-19.33	65.30	-12,00	319
Sales / net working capital	20.43	10.19	18.54	18.39	15.66	66,00	-99
Stock turnover ratio	5.92	-49.23	11.66	2.64	11.36	67,00	-91.16
Debtor days	111.24	-5.40	117.59	-15.45	139.07	57.886,00	-99
Creditor days	88.78	-19.05	109.67	-7.01	117.94	327,00	-72.85
short term stability
Current ratio	1.15	0.88	1.14	-0.87	1.15	4,00	-93.61
Liquidity ratio / acid ratio	0.97	15.48	0.84	-5.62	0.89	3,00	-67.67
Current debt ratio	74.47	-6.34	79.51	-34.27	120.97	18,00	313
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	1839.99	0.27	1834.97	-61.61	4780.19	265,00	594
Equity in percentage	1.16	5.45	1.10	52.78	0.72	-1.079,00	0.11
Total debt ratio	84.88	-5.36	89.69	-34.95	137.87	19,00	346

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	19/12/2012
Event Description
Event Details	Toekenning van 650 nieuwe aandelen aan NV Exelco.

NOTES & COMMENTS

Commentary

The business was established over 5 years ago.
The business has 1 employees.
The business has been at the address for over 5 years.
The credit rating for this business has decreased from 81 to 79.
The credit limit for this business has decreased from €850000 to €830000.
Net Worth increased by 34% during the latest trading period.
A 27% growth in Total Assets occurred during the latest trading period.
The business saw an increase in their Cash Balance of 249% during the latest trading period.

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.54.88
UK Pound	1	Rs.83.66
Euro	1	Rs.70.58

INFORMATION DETAILS

Report Prepared by :

SDA

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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