MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	EXELCO NV
Registered Office :	Pelikaanstraat 62, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	08.03.1995
Com. Reg. No.:	454661071
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	09

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

REGISTERED NAME & COMPANY SUMMARY

Business number	454661071
Company name	EXELCO NV
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	9
Date of establishment	08/03/1995
Telephone number	-
Fax number	032269459

Business number	454661071	Company name	EXELCO NV
Fax number	032269459	Date founded	08/03/1995
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.0454.661.071
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	EMMANUEL LANDAU
Position	Director
Start Date	01/03/2012
End Date
Street	6 CHARLOTTALEI ANTWERPEN
Post code	2018
Country	Belgium

Name	LIOR KUNSTLER
Position	Managing Director
Start Date	15/06/2010
End Date
Street
Post code
Country	Israël

Name	LIOR KUNSTLER
Position	Director
Start Date	15/06/2010
End Date
Street
Post code
Country	Israël

Name	EXELCO INTERNATIONAL LTD SOC. ETRANGERE
Position	Director
Start Date	02/01/2009
End Date
Street
Post code
Country	Mauritius

Name	FAZAL CHAUDRI
Position	Legal Representative
Start Date	22/07/2010
End Date
Street
Post code
Country

Name	HENDRIK BARHOORN
Position	Legal Representative
Start Date	22/07/2010
End Date
Street
Post code
Country

Name	SONA PILLAY
Position	Legal Representative
Start Date	22/07/2010
End Date
Street
Post code
Country

Former director details

Name	JEAN-PAUL MEIJER TOLKOWSKY
Position	Director
Start Date	11/04/2012
End Date	01/03/2012
Street	36 VAN PUTLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	JEAN-PAUL MEIJER TOLKOWSKY
Position	Managing Director
Start Date	16/12/2010
End Date	01/03/2012
Street	36 VAN PUTLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	GARY GUTFREUND
Position	Director
Start Date	23/11/2007
End Date	30/09/2010
Street	8 HOF TER SCHRIECKLAAN ANTWERPEN
Post code	2600
Country	Belgium

Name	EMMANUEL WEITMAN
Position	Director
Start Date	03/01/2005
End Date	28/08/2007
Street
Post code
Country	Hong Kong

Name	EXELCO INTERNATIONAL LTD
Position	Director
Start Date	01/01/2009
End Date	-

NEGATIVE INFORMATION

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel (NSSO classification)

Code	-
Description	FROM 5 TO 9 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324.02
Description	JSC small merchandisers in the diamant industry and trade
category

Protested bills

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

NSSO details

Business number	454661071
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

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	100.89
Industry average payment expectation days	174.26	Industry average day sales outstanding	108.50
Day sales outstanding	110.65

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	100.89
Day sales outstanding	110.65

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.26
Industry average day sales outstanding	108.50

Industry quartile analysis

Payment expectations
Company result	100.89
Lower	121.46
Median	72.36
Upper	40.99
Day sales outstanding
Company result		110.65
Lower		105.52
Median		54.63
Upper		23.61

GROUP STRUCTURE & AFFILIATED COMPANIES

Summary

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

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	94,531,890	39,079	3,821,244	11,819,555
31/12/2010	72,725,797	57,203	3,691,039	11,145,066
31/12/2009	70,281,719	107,832	3,413,528	7,947,899

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	50,370,991	9	3,409,937	46,164
31/12/2010	46,032,769	7	3,301,847	71,028
31/12/2009	40,434,892	7	3,062,525	116,572

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	94,531,890	29.98	72,725,797	3.48	70,281,719	49,416,669	91.30
Total operating expenses	93,945,085	30.22	72,144,256	3.64	69,608,749	48,781,415	92.58
Operating result	586,805	0.91	581,541	-13.59	672,970	238,379	146
Total financial income	122,049	-7.10	131,379	680	16,843	149,137	-18.16
Total financial expenses	669,775	2.14	655,717	12.67	581,982	287,777	132
Results on ordinary operations before taxation	39,079	-31.68	57,203	-46.95	107,832	84,467	-53.73
Taxation	31,857	-16.59	38,193	-18.22	46,703	37,844	-15.82
Results on ordinary operations after taxation	7,222	-62.01	19,010	-68.90	61,129	59,263	-87.81
Extraordinary items	-1,520	-160	2,532	24.50	-10,333	3,201	-147
Other appropriations	1	-	0	-	0.00	-	-
Net result	5,703	-73.53	21,542	-57.59	50,796	62,348	-90.85
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	109,348	22.61	89,184	-16.63	106,980	115,275	-5.14
Employee costs	320,936	24.41	257,962	4.66	246,478	127,998	150
Wages and salary	248,075	23.80	200,390	5.09	190,692	108,777	128
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	53,112	24.78	42,566	5.11	40,496	27,123	95.82
Other employee costs	19,748	31.61	15,005	-1.87	15,291	3,607	447
Amortization and depreciation	40,461	-18.24	49,486	-24.77	65,776	18,309	120

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	9,673	-	12,921	-	1,985	1,462	561
Tangible fixed assets	96,741	-21.52	123,268	-14.78	144,654	177,435	-45.48
Land & building	-	-	-	-	-	346,034	-
Plant & machinery	57,736	28.64	44,881	-0.98	45,323	21,796	164
Other tangible assets	39,005	-50.24	78,387	-21.09	99,332	24,613	58.47
Financial fixed assets	12,463	4.35	11,944	3.46	11,544	276,470	-95.49
Total fixed assets	118,877	-19.75	148,134	-6.35	158,183	363,228	-67.27
Inventories	19,628,034	13.77	17,252,436	29.13	13,360,934	3,063,024	540
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	19,628,034	13.77	17,252,436	29.13	13,360,934	2,049,305	857
Other stocks	0	-	0	-	0	472,115	-100
Trade debtors	28,658,539	5.70	27,113,762	6.01	25,576,835	3,890,045	636
Cash	86,086	33.38	64,541	175	23,427	239,652	-64.08
other amounts receivable	1,844,376	29.66	1,422,425	13.60	1,252,172	245,172	652
Miscellaneous current assets	35,079	11.46	31,471	-50.31	63,341	21,403	63.90
Total current assets	50,252,114	9.52	45,884,635	13.92	40,276,709	6,947,598	623
current liabilities
Trade creditors	25,967,213	9.30	23,757,175	0.95	23,533,463	2,779,144	834
Short term group loans	-	-	-	-	-	-	-
Other short term loans	12,257,684	12.71	10,875,320	24.77	8,716,138	1,895,457	546
Miscellaneous current liabilities	207,662	93.94	107,074	35.18	79,209	-43.94	- -
Total current liabilities	38,432,559	10.63	34,739,569	7.46	32,328,811	4,928,002	679
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	8,107,515	6.83	7,589,240	61.80	4,690,570	605	- -
Other long term liabilities	0	-	0	-	0	143,055	-100
Total long term debts	8,107,515	6.83	7,589,240	61.80	4,690,570	599,216	1253
shareholders equity
Issued share capital	3,409,937	3.27	3,301,847	7.81	3,062,525	1,022,445	233
Share premium account	-	-	-	-	-	108,219	-
Reserves	420,980	4.69	402,113	13.92	352,987	696,058	-39.52
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	3,830,917	3.43	3,703,960	8.45	3,415,512	1,739,850	120
Working capital	11,819,555	6.05	11,145,066	40.23	7,947,899	2,019,596	485
Cashflow	46,164	-35.01	71,028	-39.07	116,572	77,447	-40.39
Net worth	3,821,244	3.53	3,691,039	8.13	3,413,528	1,738,388	119

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.04	-50.0	0.08	-46.67	0.15	-742,00	0.01
Return on capital employed	0.33	-35.29	0.51	-61.65	1.33	-14,00	2.36
Return on total assets employed	0.08	-33.33	0.12	-55.56	0.27	-34,00	0.24
Return on net assets employed	1.02	-33.77	1.54	-51.27	3.16	-12,00	8.50
Sales / net working capital	8	22.51	6.53	-26.13	8.84	66,00	-99
Stock turnover ratio	20.76	-12.48	23.72	24.78	19.01	67,00	-69.01
Debtor days	110.65	-18.69	136.08	2.45	132.83	57.886,00	-99
Creditor days	100.89	-16.06	120.19	-2.60	123.40	327,00	-69.15
short term stability
Current ratio	1.31	-0.76	1.32	5.60	1.25	4,00	-92.72
Liquidity ratio / acid ratio	0.80	-2.44	0.82	-1.20	0.83	3,00	-73.33
Current debt ratio	10.03	6.93	9.38	-0.95	9.47	18,00	-44.28
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	531.60	6.64	498.51	27.00	392.52	265,00	100
Equity in percentage	7.61	-5.47	8.05	-4.73	8.45	-1.079,00	0.71
Total debt ratio	12.15	6.30	11.43	5.44	10.84	19,00	-36.05

ADDITIONAL INFORMATION

Commentary

The business was established over 18 years ago.
The business has 5 employees.
The business has been at the address for over 8 years.
The credit rating for this business has increased from 48 to 97.
The credit limit for this business has decreased from €3750000 to €2900000.
Pre-tax profits decreased by 31% compared to the previous trading period.
The business saw an increase in their Cash Balance of 33% during the latest trading period.

Trends

Profitability
Liquidity
Net worth

Significant Events

Event Date	26/06/2006
Event Description	re-appointment of director(s)
Event Details	Commentaar 26-06-2006: De bestuurdersmandaten van Kunstler Lior, van Tolkowsky Jean-Paul en van Weitman Emmanuel worden verlengd voor een periode van zes jaar.

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.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

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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