MIRA INFORM REPORT

Report Date :

03.10.2013

IDENTIFICATION DETAILS

Name :	SUPERGEMS NV
Registered Office :	Schupstraat 18 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	17.01.1972
Com. Reg. No.:	411987308
Legal Form :	Public Limited Liability Company (BE)
LINE OF BUSINESS :	Wholesale of diamonds and other precious stones
No. of Employees :	10

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 and address

Business number	411987308
Company name	SUPERGEMS NV
Address	SCHUPSTRAAT 18
	2018 ANTWERPEN
Number of staff	10
Date of establishment	17/01/1972
Telephone number	032326907
Fax number	032326907

Ultimate holding company

Company name	Company Number
Supergems NV	411987308

Commentary

The business was established over 41 years ago.

The business has 5 employees.

The business is part of a group.

This business has a foreign parent business.

The business has been at the address for over 18 years.

The credit rating for this business has increased from 72 to 100.

The credit limit for this business has increased from €1450000 to €3050000.

Operating Result in the latest trading period increased 122% on the previous trading period.

Pre-tax profits increased by 228% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 67% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	133,751,581	794,598	24,347,448	23,599,156
31/12/2010	77,685,892	242,074	22,805,186	22,064,406
31/12/2009	34,878,101	54,342	20,955,602	20,220,382

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	54,580,570	10	1,667,250	858,640
31/12/2010	46,836,437	7	1,614,400	274,662
31/12/2009	33,188,975	9	1,497,483	91,904

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	36.47
Industry average payment expectation days	174.31	Industry average day sales outstanding	108.96
Day sales outstanding	83.76

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	411987308	Company name	SUPERGEMS NV
Fax number	032326907	Date founded	17/01/1972
Company status	active	Company type	Public Limited Liability Company (BE)
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.0411.987.308
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	FROM 5 TO 9 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	09/03/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 09-03-2012: Herbenoemd als bestuurder en gedelegeerd bestuurder tot na de jaarvergadering van 2017: Mehta Sachiv.

comparison mode

averagemedian

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	133,751,581	72.17	77,685,892	122	34,878,101	49,567,599	169
Total operating expenses	132,112,167	71.69	76,950,122	123	34,449,055	48,933,721	169
Operating result	1,639,414	122	735,770	71.49	429,046	238,043	588
Total financial income	92,432	2092	4,215	-41.99	7,266	148,968	-37.95
Total financial expenses	937,248	88.24	497,911	30.35	381,970	287,213	226
Results on ordinary operations before taxation	794,598	228	242,074	345	54,342	84,424	841
Taxation	-	-	-	-	17,321	37,970	-
Results on ordinary operations after taxation	794,598	228	242,074	553	37,021	59,148	1243
Extraordinary items	1,103	3.86	-28,608	-	0	3,209	-65.63
Other appropriations	0	0	-1	-	0	-	-
Net result	795,701	272	213,465	476	37,021	62,241	1178
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	419,331	7.03	391,800	-12.53	447,944	127,998	227
Wages and salary	311,458	9.28	285,001	-14.04	331,551	108,777	186
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	82,948	-0.89	83,694	-13.57	96,836	27,123	205
Other employee costs	24,924	7.87	23,105	18.14	19,558	3,600	592
Amortization and depreciation	62,939	2.85	61,197	11.50	54,883	18,413	241

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	1,461	-100
Tangible fixed assets	593,705	-3.24	613,611	-0.05	613,891	177,242	234
Land & building	526,702	-3.03	543,169	1.60	534,594	346,034	52.21
Plant & machinery	59,821	0.94	59,261	-5.49	62,702	21,796	174
Other tangible assets	7,182	-35.77	11,181	-32.62	16,595	24,582	-70.78
Financial fixed assets	154,587	21.56	127,169	-14.49	148,721	276,060	-44.00
Total fixed assets	748,292	1.01	740,780	-2.86	762,612	362,860	106
Inventories	22,898,515	-9.96	25,432,811	15.44	22,030,275	3,063,024	647
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,458	-100
Finished goods	22,898,515	-9.96	25,432,811	15.44	22,030,275	2,045,298	1019
Other stocks	0	-	0	-	0	471,192	-100
Trade debtors	30,694,860	52.73	20,097,977	94.68	10,323,724	3,929,112	681
Cash	172,670	-67.19	526,270	2139	23,501	239,216	-27.82
other amounts receivable	33,822	208	10,976	-39.86	18,250	244,784	-86.18
Miscellaneous current assets	32,411	17.33	27,623	-9.77	30,613	21,369	51.67
Total current assets	53,832,278	16.78	46,095,657	42.15	32,426,363	6,980,828	671
current liabilities
Trade creditors	13,200,053	87.37	7,044,745	40.19	5,025,213	2,820,279	368
Short term group loans	-	-	-	-	-	-	-
Other short term loans	16,890,977	0.25	16,848,670	138	7,062,998	1,891,909	792
Miscellaneous current liabilities	142,092	3.09	137,836	17.04	117,770	-61.59	- -
Total current liabilities	30,233,122	25.81	24,031,251	96.88	12,205,981	4,963,567	509
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	27,393	-	- -
Other long term liabilities	0	-	0	0	-1	142,775	-100
Total long term debts	0	-	0	-100	27,392	598,045	-100
shareholders equity
Issued share capital	1,667,250	3.27	1,614,400	7.81	1,497,483	1,020,482	63.38
Share premium account	-	-	-	-	-	108,219	-
Reserves	22,680,198	7.03	21,190,786	8.90	19,458,119	696,305	3157
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	24,347,448	6.76	22,805,186	8.83	20,955,602	1,738,093	1300
Working capital	23,599,156	6.96	22,064,406	9.12	20,220,382	2,017,261	1069
Cashflow	858,640	212	274,662	198	91,904	77,414	1009
Net worth	24,347,448	6.76	22,805,186	8.83	20,955,602	1,736,632	1301

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.59	90.32	0.31	93.75	0.16	-740,00	0.08
Return on capital employed	3.26	207	1.06	307	0.26	-14,00	23.29
Return on total assets employed	1.46	180	0.52	225	0.16	-33,00	4.42
Return on net assets employed	3.26	207	1.06	307	0.26	-12,00	27.17
Sales / net working capital	5.67	61.08	3.52	104	1.72	66,00	-99
Stock turnover ratio	17.12	-47.71	32.74	-48.16	63.16	67,00	-74.45
Debtor days	83.76	-11.30	94.43	-12.60	108.04	57.718,00	-99
Creditor days	36.47	9.13	33.42	-37.23	53.24	327,00	-88.85
short term stability
Current ratio	1.78	-7.29	1.92	-27.82	2.66	4,00	-90.11
Liquidity ratio / acid ratio	1.02	18.60	0.86	1.18	0.85	3,00	-66.00
Current debt ratio	1.24	18.10	1.05	81.03	0.58	18,00	-93.11
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	69.37	-6.10	73.88	118	33.84	264,00	-73.72
Equity in percentage	44.61	-8.38	48.69	-22.89	63.14	-1.077,00	4.14
Total debt ratio	1.24	18.10	1.05	81.03	0.58	19,00	-93.47

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

Payment expectations

Payment expectation days	36.47
Day sales outstanding	83.76

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.31
Industry average day sales outstanding	108.96

Industry quartile analysis

Payment expectations
Company result	36.47
Lower	121.46
Median	73.49
Upper	41.43
Day sales outstanding
Company result	83.76
Lower	105.69
Median	54.63
Upper	24.45

Company result	36.47
Lower	121.46
Median	73.49
Upper	41.43

Company result	83.76
Lower	105.69
Median	54.63
Upper	24.45

Summary

Group - Number of Companies	2
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Latest financials
- SUPERGEMS NV	411987308	31-12-2011
- - SUPERGEMS MANUFACTURING IN VEREFFENING N...	425768731	31-12-2010

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number	411987308
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	SACHIV MEHTA
Position	Managing Director
Start Date	26/02/2003
Street	10 PALMENLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	SACHIV MEHTA
Position	Director
Start Date	26/02/2003
Street	10 PALMENLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	SUPERGEMS FAR EAST LIMITED BUITENL.VEN
Position	Director
Start Date	09/03/2012
Street
Post code
Country	Hong Kong

Name	ASHA SHAH
Position	Legal Representative
Start Date	09/03/2012
Street
Post code
Country

Former director details

Name	SUPERGEMS MANUFACTURING IN VEREF NV
Position	Director
Start Date	20/05/1998
End Date	09/03/2012
Date of birth	22/05/1984
Street	10 PALMENLAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	ASHA SHAH
Position	Legal Representative
Start Date	09/03/2012
End Date	-
Street
Post code
Country

Bottom of Form

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.62.36
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

INFORMATION DETAILS

Report Prepared by :

NIS

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.