MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	HORIZON DIAMONDS BVBA
Registered Office :	Schupstraat 1, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	16.06.1977
Com. Reg. No.:	417418813
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 :

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 & address

Business number	417418813
Company name	HORIZON DIAMONDS BVBA
Address	SCHUPSTRAAT 1
	2018 ANTWERPEN
Number of staff	0
Date of establishment	16/06/1977
Telephone number	-
Fax number	032343976

Commentary

The business was established over 35 years ago.
The business has 1 employees.
The business has been at the address for over 25 years.
The credit rating for this business has increased from 57 to 88.
The credit limit for this business has increased from €0 to €420000.
Sales in the latest trading period increased 22% on the previous trading period.
The business saw a decrease in their Cash Balance of 93% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	29,135,760	103,749	4,945,889	5,025,216
31/12/2010	36,589,729	95,906	4,874,140	5,053,817
31/12/2009	24,978,487	73,335	4,808,063	5,022,188

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	12,659,841	0	4,600,000	118,221
31/12/2010	12,430,578	0	4,600,000	97,749
31/12/2009	16,688,711	0	4,600,000	73,839

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	64.29
Industry average payment expectation days	174.39	Industry average day sales outstanding	109.07
Day sales outstanding	60.88

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	417418813		Company name	HORIZON DIAMONDS BVBA
Fax number	032343976		Date founded	16/06/1977
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.0417.418.813
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

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	20/09/2010
Event Description	resignation-appointment of director(s)
Event Details	Commentaar 20-09-2010: Bevestiging van het ontslag als statutair zaakvoerder van de heer Mehta Girish.

comparison mode

averagemedian

Export accounts to CSV file

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	29,135,760	-20.37	36,589,729	46.48	24,978,487	49,567,599	-41.22
Total operating expenses	28,901,357	-20.60	36,398,640	47.03	24,756,420	48,933,721	-40.94
Operating result	234,404	22.67	191,089	-13.95	222,067	238,281	-1.63
Total financial income	1	-	-	-	-	148,968	-99
Total financial expenses	130,656	37.27	95,182	-36.00	148,732	287,498	-54.55
Results on ordinary operations before taxation	103,749	8.18	95,906	30.78	73,335	84,513	22.76
Taxation	32,000	7.28	29,829	39.41	21,397	37,970	-15.72
Results on ordinary operations after taxation	71,749	8.58	66,077	27.22	51,938	59,212	21.17
Extraordinary items	0	-	0	-	0	3,212	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	71,749	8.58	66,077	27.22	51,938	62,309	15.15
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	138,175	14.01	121,192	-15.36	143,193	115,275	19.87
Employee costs	33,864	1.36	33,410	-3.96	34,786	127,998	-73.54
Wages and salary	26,029	-3.88	27,080	-0.70	27,270	108,777	-76.07
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	7,715	24.23	6,210	-16.04	7,397	27,123	-71.55
Other employee costs	119	0	119	0.34	119	3,604	-96.69
Amortization and depreciation	46,472	46.73	31,672	44.61	21,901	18,413	152

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	345,585	32.03	261,745	11.59	234,563	177,242	94.98
Land & building	294,171	41.64	207,693	5.63	196,629	346,034	-14.99
Plant & machinery	-	-	-	-	-	21,796	-
Other tangible assets	51,415	-4.88	54,052	42.49	37,934	24,606	108
Financial fixed assets	4,849	0	4,849	0.01	4,849	276,060	-98.24
Total fixed assets	350,435	31.45	266,594	11.35	239,412	362,860	-3.42
Inventories	7,416,864	49.18	4,971,707	-51.39	10,227,171	3,063,024	142
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,460	-100
Finished goods	7,416,864	49.18	4,971,707	-51.39	10,227,171	2,047,299	262
Other stocks	0	-	0	-	0	471,653	-100
Trade debtors	4,859,359	-28.64	6,809,626	11.77	6,092,606	3,932,951	23.56
Cash	26,205	-93.04	376,477	193	128,228	239,422	-89.05
other amounts receivable	6,642	13.78	5,837	509	957	245,023	-97.29
Miscellaneous current assets	337	0	337	-0.07	337	21,390	-98.43
Total current assets	12,309,406	1.20	12,163,984	-26.05	16,449,299	6,987,619	76.16
current liabilities
Trade creditors	5,090,663	-0.97	5,140,573	-43.94	9,170,295	2,823,141	80.32
Short term group loans	-	-	-	-	-	-	-
Other short term loans	2,012,701	5.92	1,900,140	-1.90	1,936,855	1,893,760	6.28
Miscellaneous current liabilities	180,826	160	69,455	-78.29	319,961	-51.16	- -
Total current liabilities	7,284,190	2.45	7,110,167	-37.78	11,427,111	4,968,349	46.61
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	429,762	-3.70	446,271	-1.60	453,537	-62.63	- -
Other long term liabilities	0	-	0	-	0	142,915	-100
Total long term debts	429,762	-3.70	446,271	-1.60	453,537	598,630	-28.21
shareholders equity
Issued share capital	4,600,000	0	4,600,000	0	4,600,000	1,021,462	350
Share premium account	-	-	-	-	-	108,219	-
Reserves	345,889	26.17	274,140	31.76	208,063	697,041	-50.38
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	4,945,889	1.47	4,874,140	1.37	4,808,063	1,739,829	184
Working capital	5,025,216	-0.57	5,053,817	0.63	5,022,188	2,019,270	148
Cashflow	118,221	20.94	97,749	32.38	73,839	77,497	52.55
Net worth	4,945,889	1.47	4,874,140	1.37	4,808,063	1,738,367	184

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.36	38.46	0.26	-10.34	0.29	-740,00	0.05
Return on capital employed	1.93	7.22	1.80	29.50	1.39	-14,00	13.79
Return on total assets employed	0.82	6.49	0.77	75.00	0.44	-34,00	2.41
Return on net assets employed	2.10	6.60	1.97	28.76	1.53	-12,00	17.50
Sales / net working capital	5.80	-19.89	7.24	45.67	4.97	66,00	-99
Stock turnover ratio	25.46	87.34	13.59	-66.81	40.94	67,00	-62.00
Debtor days	60.88	-10.38	67.93	-23.70	89.03	57.718,00	-99
Creditor days	64.29	24.71	51.55	-61.87	135.20	327,00	-80.34
short term stability
Current ratio	1.69	-1.17	1.71	18.75	1.44	4,00	-90.61
Liquidity ratio / acid ratio	0.67	-33.66	1.01	87.04	0.54	3,00	-77.67
Current debt ratio	1.47	0.68	1.46	-38.66	2.38	18,00	-91.83
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	49.38	2.58	48.14	-3.18	49.72	264,00	-81.30
Equity in percentage	39.07	-0.36	39.21	36.10	28.81	-1.078,00	3.62
Total debt ratio	1.56	0.65	1.55	-37.25	2.47	19,00	-91.79

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	64.29
Day sales outstanding	60.88

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.39
Industry average day sales outstanding	109.07

Industry quartile analysis

Payment expectations
Company result	64.29
Lower	122.56
Median	73.03
Upper	41.43
Day sales outstanding
Company result	60.88
Lower	105.52
Median	54.63
Upper	23.72

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

Protested bills

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

NSSO details

Business number	417418813
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	SHAH KSHITIJ
Position	Principal Manager
Start Date	01/03/1999
End Date
Street	35 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	KERUL BHARATKUMAR SHAH
Position	Principal Manager
Start Date	09/09/2010
End Date
Street	67 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	JITENDRA JAYANTILAL SHAH
Position	Non Statutory Partner
Start Date	20/09/2010
End Date
Street	6 ANGELUS RONCALLILAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	JITENDRA JAYANTILAL SHAH
Position	Principal Manager
Start Date	17/02/1997
End Date	20/09/2010
Street	6 ANGELUS RONCALLILAAN 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.

- 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.55.52
UK Pound	1	Rs.84.09
Euro	1	Rs.71.67

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%)