MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	PANNADIAM BVBA
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	01.12.1986
Com. Reg. No.:	429946560
Legal Form :	Private Limited Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	1 employee.

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	429946560
Company name	PANNADIAM BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Date of establishment	01/12/1986
Telephone number	032133183
Fax number

Commentary

The business was established over 27 years ago.
The business has 1 employees.
The business has been at the address for over 14 years.
Operating Result in the latest trading period decreased 536% on the previous trading period.
A 115% growth in Total Assets occurred during the latest trading period.
Pre-tax profits increased by 39% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 47% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012		4,111	140,282	2,311,175
31/12/2011		2,938	136,640	126,756
31/12/2010		3,248	130,627	128,024

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	3,536,015	0	18,600	5,397
31/12/2011	1,641,592	0	18,600	7,509
31/12/2010	1,415,944	0	18,600	51

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	-
Industry average payment expectation days	166.26	Industry average day sales outstanding	117.75
Day sales outstanding	-

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	429946560		Company name	PANNADIAM BVBA
Fax number			Date founded	01/12/1986
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.0429.946.560
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	-

Joint Industrial Committee (JIC)

Comparison Mode

average

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	-	-	-	-	-	46,354,521	-
Total operating expenses	-	-	-	-	-	45,956,932	-
Operating result	-1,511	-536	346	-95.61	7,890	149,500	-101
Total financial income	7,357	45.65	5,051	2265	214	98,002	-92.49
Total financial expenses	1,735	-29.44	2,459	-49.36	4,856	205,562	-99
Results on ordinary operations before taxation	4,111	39.93	2,938	-9.53	3,248	33,157	-87.60
Taxation	469	-61.93	1,232	-61.46	3,197	21,221	-97.79
Results on ordinary operations after taxation	3,642	113	1,706	3268	51	18,054	-79.83
Extraordinary items	0	-100	4,307	-	0	-3,988	0
Other appropriations	0	-	0	-	0.00	-	-
Net result	3,642	-39.43	6,013	11771	51	14,082	-74.14
other information
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	115,777	-
Employee costs	-	-	-	-	-	129,073	-
Wages and salary	-	-	-	-	-	107,836	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	-	-	-	27,217	-
Other employee costs	0	-	0	-	0	4,515	-100
Amortization and depreciation	1,755	17.31	1,496	-	-	17,559	-90.01

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	1,511	-100
Tangible fixed assets	5,526	-24.10	7,281	-	-	179,640	-96.92
Land & building	-	-	-	-	-	352,323	-
Plant & machinery	-	-	-	-	-	22,451	-
Furniture & Vehicles	5,526	-24.10	7,281	-	-	17,356 5,364	-68.16
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	8,008	-100
Financial fixed assets	2,603	0	2,603	0.00	2,603	300,522	-99
Total fixed assets	8,128	-17.77	9,884	279	2,603	386,030	-97.89
Inventories	2,301,237	267	626,835	-13.61	725,570	3,026,992	-23.98
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,526	-100
Finished goods	0	-	0	-	0	1,916,646	-100
Other stocks	2,301,237	267	626,835	-13.61	725,570	578,300	297
Trade debtors	1,118,099	22.62	911,837	49.89	608,340	4,120,440	-72.86
Cash	6,578	-47.26	12,472	-66.47	37,200	222,305	-97.04
other amounts receivable	101,551	29.74	78,270	102	38,641	185,309	-45.20
Miscellaneous current assets	422	-81.60	2,294	-36.10	3,590	17,383	-97.57
Total current assets	3,527,887	116	1,631,708	15.45	1,413,341	7,108,156	-50.37
Total Assets	3,536,015	115	1,641,592	15.94	1,415,944	7,455,301 1,426,778	-52.57
current liabilities
Trade creditors	636,998	-30.63	918,243	30.58	703,221	2,968,999	-78.55
Short term group loans	-	-	-	-	-	-	-
Financial debts	-	-	-	-	13,494	4,248,885 189,481	-
Current portion of long term debt	-	-	-	-	-	108,507 14,935	-
Amounts Payable for Taxes, Remuneration & Social Security	4,350	363	939	-22.32	1,209	9,123 -	-87.27
Miscellaneous current liabilities	575,364	-1.78	585,770	3.24	567,392	94.46	- -
Total current liabilities	1,216,712	-19.15	1,504,952	17.09	1,285,317	5,250,281	-76.83
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,179,021	-	-	-	-	100	- -
Deffered taxes	-	-	-	-	-	35,141 24,730	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,279 0	-100
Other long term liabilities	0	-	0	-	0	134,961	-100
Total long term debts	2,179,021	-	0	-	0	560,424	288
shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	921,615	-97.98
Share premium account	-	-	-	-	-	109,362	-
Reserves	121,682	3.09	118,040	5.37	112,027	688,673	-82.33
Revaluation reserve	-	-	-	-	-	934,864	-
Total shareholders equity	140,282	2.67	136,640	4.60	130,627	1,638,407	-91.44
Working capital	2,311,175	1723	126,756	-0.99	128,024	1,857,875	24.40
Cashflow	5,397	-28.13	7,509	14725	51	28,578	-81.11
Net worth	140,282	2.67	136,640	4.60	130,627	1,635,153	-91.42

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-	-	-	-	-	-27,00	-
Return on capital employed	0.18	-91.63	2.15	-13.65	2.49	31,00	-99
Return on total assets employed	0.12	-33.33	0.18	-21.74	0.23	-216,00	0.06
Return on net assets employed	2.93	36.28	2.15	-13.65	2.49	21,00	-86.05
Sales / net working capital	-	-	-	-	-	44,00	-
Stock turnover ratio	-	-	-	-	-	116,00	-
Debtor days	-	-	-	-	-	138,00	-
Creditor days	-	-	-	-	-	126,00	-
short term stability
Current ratio	2.90	168	1.08	-1.82	1.10	7,00	-67.78
Liquidity ratio / acid ratio	1.01	50.75	0.67	24.07	0.54	4,00	-74.75
Current debt ratio	8.67	-21.25	11.01	11.89	9.84	9,00	-3.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	1553.31	-	-	-	10.33	375,00	314
Equity in percentage	3.97	-52.28	8.32	-9.86	9.23	-3.379,00	0.12
Total debt ratio	24.21	119	11.01	11.89	9.84	11,00	120

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

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	-
Day sales outstanding	-

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	166.26
Industry average day sales outstanding	117.75

Industry quartile analysis

Payment expectations
Company result	-
Lower	134.58
Median	84.60
Upper	44.86

Day sales outstanding
Company result	-
Lower	112.73
Median	58.70
Upper	28.61

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

Current director details

Name	CHARTURBHAI THESIA
Position	Principal Manager
Start Date	19/08/2010
Street	31 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	THESIA NAGJISHAI
Position	Principal Manager
Start Date	23/05/1997
End Date	-
Street	31 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	NAGJIBHAI THESIA
Position	Principal Manager
Start Date	23/08/1997
End Date	-
Street	31 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.63.29
UK Pound	1	Rs.101.36
Euro	1	Rs.84.59

INFORMATION DETAILS

Report Prepared by :

NLM

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.