MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	C. MAHENDRA BVBA
Registered Office :	Hoveniersstraat 30 Antwerp 2018
Country :	Belgium
Financials (as on) :	2013
Date of Incorporation :	13.11.2003
Com. Reg. No.:	861936159
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of Diamonds and Other Precious Stones
No. of Employees :	1

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 :	Regular
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

Company Name C. MAHENDRA BVBA

Company Registration 861936159

Country BE

Activity Code 46761

Activity Description Wholesale of diamonds and other precious stones

Company Status Active

Latest Turnover 87,744,017.00 (EUR)

Latest Shareholders Equity 18,199,641.00 (EUR)

Profit Before Tax 383,747.00 (EUR)

Company Identification

Activities

Activity Code 46761

Activity Description Wholesale of Diamonds and Other Precious Stones

Basic Information

Company Name C. MAHENDRA BVBA

Registered Company Name C. MAHENDRA BVBA

Company Registration Number 861936159

Country BE

VAT Registration Number BE.0861.936.159

Date of Company Registration 13/11/2003

Date of Starting Operations 13/11/2003

Legal Form Private Limited Company (BL/LX)

Company Status Active

Principal Activity Code 46761

Principal Activity Description Wholesale of diamonds and other precious stones

Contact Address Hoveniersstraat 30 Antwerp 2018

Contact Telephone Number 03/7070020

Main Address

Address HOVENIERSSTRAAT 30 ANTWERP 2018

Country BE

Telephone 03/7070020

Other Addresses

Address 40 HOVENIERSSTRAAT, ANTWERPEN 2018

Country BE

Current Directors Managers

Name VIKRAM SHAH

Address 1 VAN EYCKLEI ANTWERPEN

Position Principal Manager

Date Appointed 01/01/2012

Name C. MAHENDRA INTERNATIONAL LTD

Address 1204 PRANCHRATNA

Position Principal Manager

Date Appointed 03/08/2010

Name C MAHENDRA INTERNATIONAL LIMITED

Position Principal Manager

Date Appointed 31/01/2011

Share Capital Structure

Issued Share capital 12,700,385.00 (EUR)

Extended Group Structure

Company Name Registration Number Status Last Financials

1 C. MAHENDRA BVBA 861936159 Active 31/03/2013

2 BEST SHINE SOC.ETR. E.P.B.

Affiliated Companies

Affiliate Name BEST SHINE SOC.ETR. E.P.B.

Employee Information

Year 2013

Number of Employees 1

Financial Statements

Profit & Loss

Financial Year 2013 2012 2011

Number of Weeks 52 52 52

Currency EUR EUR EUR

Revenue 87,744,017.00 90,933,638.00 82,915,207.00

Operating Costs 86,655,214.00 89,966,525.00 82,381,746.00

Operating Profit 1,088,803.00 967,113.00 533,462.00

Wages & Salaries 38,553.00 46,111.00 31,743.00

Pension Costs 0.00 0.00 0.00

Depreciation 61,072.00 53,908.00 50,433.00

Financial Income 184,604.00 159,170.00 211,161.00

Financial Expenses 889,661.00 880,764.00 513,539.00

Profit Before Tax 383,747.00 245,519.00 231,083.00

Tax -3.00 0.00 18,956.00

Profit After Tax 383,750.00 245,519.00 212,127.00

Dividends 0.00 0.00 0.00

Other Appropriations 672.00 -22.00 0.00

Retained Profit 384,421.00 245,497.00 212,127.00

Balance Sheet

Financial Year 2013 2012 2011

Number of Weeks 52 52 52

Currency EUR EUR EUR

Land & Buildings 1,392,512.00 1,355,994.00 577,943.00

Plant & Machinery 88,656.00 115,357.00 132,308.00

Other Tangible Assets 24,948.00 29,986.00 7,068.00

Total Tangible Assets 1,506,116.00 1,501,337.00 717,318.00

Other Intangible Assets 0.00 0.00 0.00

Total Intangible Assets 0.00 0.00 0.00

Miscellaneous

Fixed Assets 11,714.00 1,145,793.00 21,192.00

Total Other Fixed

Assets 11,714.00 1,145,793.00 21,192.00

Total Fixed Assets 1,517,829.00 2,647,130.00 738,510.00

Raw Materials 0.00 0.00 0.00

Work in Progress 0.00 0.00 0.00

Finished Goods 5,121,444.00 7,841,514.00 10,990,875.00

Other Inventories 0.00 0.00 0.00

Total Inventories 5,121,444.00 7,841,514.00 10,990,875.00

Trade Receivables 26,651,167.00 25,781,094.00 12,876,954.00

Miscellaneous

Receivables 2,899,813.00 2,458,081.00 1,325,653.00

Total Receivables 29,550,980.00 28,239,175.00 14,202,607.00

Cash 213,747.00 1,419,958.00 424,873.00

Other Current Assets 90,303.00 58,451.00 176,949.00

Total Current Assets 34,976,474.00 37,559,098.00 25,795,304.00

Total Assets 36,494,303.00 40,206,228.00 26,533,814.00

Trade Payables 8,964,458.00 15,012,727.00 7,341,900.00

Other Loans/Finance 8,780,732.00 7,552,305.00 3,965,658.00

Miscellaneous

Liabilities 536,922.00 33,620.00 3,278,234.00

Total Current

Liabilities 18,282,112.00 22,598,652.00 14,585,792.00

Other Loans/Finance

due after 1 years 12,551.00 526,958.00 568,182.00

Miscellaneous Liabilities

due after 1 years -1.00 0.00 0.00

Total Long Term

Liabilities 12,550.00 526,958.00 568,182.00

Total Liabilities 18,294,662.00 23,125,610.00 15,153,974.00

Called Up Share

Capital 12,700,385.00 12,176,691.00 7,751,767.00

Share Premium 0.00 0.00 0.00

Revenue Reserves 4,744,878.00 4,180,656.00 3,628,073.00

Other Reserves 754,378.00 723,271.00 0.00

Total Shareholders

Equity 18,199,641.00 17,080,618.00 11,379,840.00

Other Financials

Working Capital 16,694,362.00 14,960,446.00 11,209,511.00

Net Worth 18,199,641.00 17,080,618.00 11,379,840.00

Ratios

Pre-Tax Profit Margin 0.44 0.27 0.28

Return on Capital

Employed 2.11 1.39 1.93

Return on Total

Assets 1.05 0.61 0.87

Employed

Return on Net Assets

Employed 2.11 1.44 2.03

Sales/Net Working

Capital 5.26 6.08 7.40

Stock Turnover Ratio 5.84 8.62 13.26

Debtor Days 110.86 103.48 56.69

Creditor Days 37.76 60.91 32.53

Current Ratio 1.91 1.66 1.77

Liquidity Ratio/Acid Test 1.63 1.32 1.01

Current Debt Ratio 1.00 1.32 1.28

Gearing 48.32 47.30 39.84

Equity in Percentage 49.87 42.48 42.89

Total Debt Ratio 1.01 1.35 1.33

Additional Information

Joint Industrial Committee

Jic Code 1

Description Additional national joint committee for the employees

Jic Code 2

Description Joint committee for the industry and the trade in diamant

Significant Events

Event Date 26/09/2008

Event Description --

Event Details expansion goal.

Negative Information --

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.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.