MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	MY DEAR DIAMONDS BVBA
Registered Office :	Pelikaanstraat 62, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	22.02.2005
Com. Reg. No.:	872381178
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 :	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

Company Summary

Business number	872381178
Company name	MY DEAR DIAMONDS BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	0
Date of establishment	22/02/2005
Telephone number	032253676
Fax number	--

Commentary

The business was established over 8 years ago.

No employees are recorded for this business.

The business has been at the address for over 5 years.

There has been no significant change in the business's credit rating.

The credit limit for this business has decreased from €170000 to €130000.

Operating Result in the latest trading period decreased 54% on the previous trading period.

Pre-tax profits decreased by 65% compared to the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012		7,027	58,174	810,635
31/12/2011		20,191	53,795	40,175
31/12/2010		-6,401	37,614	16,040

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	3,572,542	0	18,600	13,336
31/12/2011	3,422,625	0	18,600	25,041
31/12/2010	3,303,101	0	18,600	2,033

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	158.11	Industry average day sales outstanding	115.12
Day sales outstanding	-

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	872381178		Company name	MY DEAR DIAMONDS BVBA
Fax number	--		Date founded	22/02/2005
Company status	active		Company type	Private Limited Company (BL/LX)
Currency	Euro (€)		Date of latest accounts	31/12/2012
Activity code	46761		liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones		VAT Number	BE.0872.381.178
Belgian Bullettin of Acts Publications	moniteur belge

Joint Industrial Committee (JIC)

Comparison mode

average

median

Profit & loss

	Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
	Weeks	52		52		52
	Currency	EUR		EUR		EUR
	Turnover	-	-	-	-	-	46,503,400	-
	Total operating expenses	-	-	-	-	-	46,107,334	-
	Operating result	10,722	-54.31	23,465	1187	-1,976	147,511	-92.73
	Total financial income	50	327	12	-74.96	47	97,177	-99
	Total financial expenses	3,744	13.98	3,285	-26.53	4,472	203,413	-98.16
	Results on ordinary operations before taxation	7,027	-65.20	20,191	315	-6,401	32,531	-78.40
	Taxation	2,649	-33.95	4,010	-	-	21,158	-87.48
	Results on ordinary operations after taxation	4,379	-72.94	16,181	252	-6,401	17,405	-74.84
	Extraordinary items	0	-	0	-	0	-4,326	0
	Other appropriations	0.00	-	0.00	-	0.00	-	-
	Net result	4,379	-72.94	16,181	252	-6,401	13,093	-66.56
	other information
	Dividends	-	-	-	-	-	172,177	-
	Director remuneration	-	-	-	-	-	117,330	-
	Employee costs	-	-	-	-	-	129,950	-
	Wages and salary	-	-	-	-	-	108,712	-
	Employee pension costs	-	-	-	-	-	14,428	-
	Social security contributions	-	-	-	-	-	27,484	-
	Other employee costs	0	-	0	-	0	4,567	-100
	Amortization and depreciation	8,958	1.11	8,860	5.04	8,434	17,238	-48.03
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balance sheet

	Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
	Weeks	52		52		52
	Currency	EUR		EUR		EUR
	Intangible fixed assets	0	-	0	-	0	1,527	-100
	Tangible fixed assets	5,459	-59.92	13,620	-36.87	21,574	175,171	-96.88
	Land & building	-	-	-	-	-	349,975	-
	Plant & machinery	1,048	-21.63	1,337	-32.38	1,977	22,556	-95.35
	Furniture & Vehicles	4,411	-64.09	12,283	-37.32	19,597	17,376 5,325	-74.61
	Leasing & Other Similar Rights	-	-	-	-	-	68,695 30,812	-
	Other tangible assets	0	-	0	-	0	8,129	-100
	Financial fixed assets	-	-	-	-	-	291,639	-
	Total fixed assets	5,459	-59.92	13,620	-36.87	21,574	375,523	-98.55
	Inventories	1,536,061	102	756,852	-43.50	1,339,573	2,958,728	-48.08
	Raw materials & consumables	-	-	-	-	-	7,209,884	-
	Work in progress	0	-	0	-	0	2,565	-100
	Finished goods	0	-	0	-	0	1,856,037	-100
	Other stocks	1,536,061	102	756,852	-43.50	1,339,573	576,338	166
	Trade debtors	1,766,077	-27.02	2,419,999	46.61	1,650,588	4,015,506	-56.02
	Cash	255,221	13.67	224,528	-20.77	283,405	217,855	17.15
	other amounts receivable	4,460	115	2,066	-42.28	3,579	180,390	-97.53
	Miscellaneous current assets	5,264	-5.33	5,561	26.92	4,381	17,571	-70.04
	Total current assets	3,567,083	4.64	3,409,005	3.88	3,281,526	6,932,571	-48.55
	Total Assets	3,572,542	4.38	3,422,625	3.62	3,303,101	7,270,5261,413,356	-50.86
	current liabilities
	Trade creditors	2,217,598	9.26	2,029,651	13.18	1,793,260	2,931,749	-24.36
	Short term group loans	-	-	-	-	-	-	-
	Financial debts	5,005	-62.23	13,252	-37.18	21,096	4,175,955185,463	-99
	Current portion of long term debt	-	-	-	-	-	109,549 14,919	-
	Amounts Payable for Taxes, Remuneration & Social Security	4,280	-73.22	15,982	32.46	12,065	9,123 -	-87.55
	Miscellaneous current liabilities	529,566	-59.57	1,309,945	-8.97	1,439,065	76.01	- -
	Total current liabilities	2,756,448	-18.18	3,368,830	3.16	3,265,487	5,154,773	-46.53
	Long term debts and liabilities
	Long term group loans	-	-	-	-	-	-	- -
	Other long term loans	757,920	-	-	-	-	-29.16	- -
	Deffered taxes	-	-	-	-	-	35,097 23,101	-
	Provisions for Liabilities & Charges	0	-	0	-	0	3,328 0	-100
	Other long term liabilities	0	-	0	-	0	130,650	-100
	Total long term debts	757,920	-	0	-	0	546,968	38.57
	shareholders equity
	Issued share capital	18,600	0	18,600	0	18,600	882,078	-97.89
	Share premium account	-	-	-	-	-	109,362	-
	Reserves	39,574	12.44	35,195	85.10	19,014	652,081	-93.93
	Revaluation reserve	-	-	-	-	-	934,864	-
	Total shareholders equity	58,174	8.14	53,795	43.02	37,614	1,562,621	-96.28
	Working capital	810,635	1917	40,175	150	16,040	1,777,798	-54.40
	Cashflow	13,336	-46.74	25,041	1131	2,033	27,315	-51.18
	Net worth	58,174	8.14	53,795	43.02	37,614	1,559,406	-96.27
	back to top

ratio analysis

	Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
	Trading performance
	Profit Before Tax	-	-	-	-	-	-23,00	-
	Return on capital employed	0.86	-97.71	37.53	220	-17.02	32,00	-97.31
	Return on total assets employed	0.20	-66.10	0.59	310	-0.19	-219,00	0.09
	Return on net assets employed	12.08	-67.81	37.53	220	-17.02	21,00	-42.48
	Sales / net working capital	-	-	-	-	-	45,00	-
	Stock turnover ratio	-	-	-	-	-	111,00	-
	Debtor days	-	-	-	-	-	135,00	-
	Creditor days	-	-	-	-	-	112,00	-
	short term stability
	Current ratio	1.29	27.72	1.01	1.00	1	7,00	-83.88
	Liquidity ratio / acid ratio	0.74	-6.33	0.79	33.90	0.59	4,00	-81.50
	Current debt ratio	47.38	-24.34	62.62	-27.87	86.82	8,00	492
	Liquidity ratio reprocessed	-	-	-	-	-	-	-
	long term stability
	Gearing	1311.46	5222	24.64	-56.07	56.09	379,00	246
	Equity in percentage	1.63	3.82	1.57	37.72	1.14	-3.430,00	0.05
	Total debt ratio	60.41	-3.53	62.62	-27.87	86.82	10,00	504

Rating History

Date	Rating	Description
16/08/2013	66	credit worthy
11/07/2013	64	credit worthy
02/10/2012	61	credit worthy
26/07/2012	40	caution - credit at your discretion

Limit History

date	Credit limit
23/08/2013	170,000
16/08/2013	170,000
11/07/2013	165,000
02/10/2012	160,000

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

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	158.11
Industry average day sales outstanding	115.12

Industry quartile analysis

Payment expectations
Company result	-
Lower	133.74
Median	84.60
Upper	44.36
Day sales outstanding
Company result	-
Lower	112.17
Median	58.49
Upper	28.11

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

NSSO details

Business number	872381178
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	YASH BIRENDRAKUMAR BOTHRA
Position	Principal Manager
Start Date	31/08/2010
Street	11 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	AJAY BHANDARI
Position	Principal Manager
Start Date	22/02/2005
End Date	31/03/2006
Street	28 VAN EYCKLEI ANTWERPEN
Post code	2018
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.62.57
UK Pound	1	Rs.100.63
Euro	1	Rs.84.62

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%)