MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	GEMBEL EUROPEAN SALES
Registered Office :	Vestingstraat 74 Antwerpen, 2018
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	1997
Com. Reg. No.:	460253815
Legal Form :	Private Independent
LINE OF BUSINESS :	IMPORT AND EXPORT OF DIAMONDS, PRECIOUS STONES AND JEWELLERY
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

GEMBEL EUROPEAN SALES

Vestingstraat 74

Antwerpen, 2018

Belgium

Tel:	03 231 48 15
Fax:	03 234 05 39
www.geskay.com

Employees:	10
Company Type:	Private Independent
Incorporation Date:	1997

Financials in:	USD (In Millions)
Fiscal Year End:	31-Dec-2011
Reporting Currency:	Euro
Annual Sales:	82.9 ^1
Total Assets:	104.6

Business Description

Import and export of diamonds, precious stones and jewellery

Industry

Industry	Miscellaneous Wholesale
ANZSIC 2006:	3732 - Jewellery and Watch Wholesaling
ISIC Rev 4:	4649 - Wholesale of other household goods
NACE Rev 2:	4648 - Wholesale of watches and jewellery
NAICS 2012:	423940 - Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
UK SIC 2007:	4648 - Wholesale of watches and jewellery
US SIC 1987:	5094 - Jewelry, Watches, Precious Stones, and Precious Metals

Key Executives

Name	Title
Bhavin Mehta	Managing Director
Rashmi Mehta	Managing Director
Chetan Mehta	Managing Director
Lucas Alfons Ida Toelen	Representative/Auditor

Registered No.(VAT): 460253815

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327

Corporate Overview

Location
Vestingstraat 74
Antwerpen, 2018
Belgium

Tel:	03 231 48 15
Fax:	03 234 05 39

www.geskay.com

Sales EUR(mil):	59.6
Assets EUR(mil):	80.6
Employees:	10
Fiscal Year End:	31-Dec-2011

Industry:

Jewelry and Silverware

Incorporation Date:	1997
Company Type:	Private Independent
Quoted Status:	Not Quoted
Registered No.(VAT):	460253815

Managing Director:	Bhavin Mehta

Industry Codes

ANZSIC 2006 Codes:
3732	-	Jewellery and Watch Wholesaling

ISIC Rev 4 Codes:
4649	-	Wholesale of other household goods

NACE Rev 2 Codes:
4648	-	Wholesale of watches and jewellery

NAICS 2012 Codes:
423940	-	Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers

US SIC 1987:
5094	-	Jewelry, Watches, Precious Stones, and Precious Metals

UK SIC 2007:
4648	-	Wholesale of watches and jewellery

Business Description

Wholesale of other intermediate products

More Business Descriptions

Import and export of diamonds, precious stones and jewellery

Financial Data

Financials in:	EUR(mil)
Revenue:	59.6
Assets:	80.6
Current Assets:	79.8
Fixed Assets:	0.8
Total Liabilities:	80.6
Issued Capital:	1.0
Net Worth:	1.0
Date of Financial Data:	31-Dec-2011

1 Year Growth

NA

NA

Executives Report

Executives

Name	Title	Function
Bhavin Mehta	Managing Director	Managing Director
Age: 42
Rashmi Mehta	Managing Director	Managing Director
Age: 70
Chetan Mehta	Managing Director	Managing Director
Age: 48
Lucas Alfons Ida Toelen	Representative/Auditor	Accounting Executive
Age: 59

Annual Profit & Loss

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	52 Weeks	52 Weeks	52 Weeks
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.71919	0.755078	0.719047
Consolidated	No	No	No
Turnover	82.9	83.1	71.9
Other Operating Income	0.2	0.1	0.1
Operating Income	83.1	83.2	72.0
Purchases	67.4	71.7	50.6
Increase or Decrease in Stocks	11.7	5.8	16.9
Raw Materials, Consumables, and Goods for Release	79.1	77.6	67.5
Services and Sundry Goods	2.2	1.6	1.5
Remuneration, Social Security Charges, and Pensions	0.5	0.8	0.8
Depreciation of and Other Amounts Written Off of Formation Expense, Intangible and Tangible Fixed Assets	0.1	0.1	0.1
Other Operating Charges	0.0	0.0	0.0
Operating Charges	81.9	80.1	69.9
Income From Current Assets	0.0	0.0	0.0
Other Financial Income	0.6	0.1	0.0
Financial Income	0.6	0.1	0.1
Interest and Other Debt Charges	1.5	1.6	1.5
Other Financial Charges	0.1	1.4	0.5
Financial Charges	1.6	2.9	2.0
Income Taxes	0.1	0.1	0.1
Income Taxes	0.1	0.1	0.1
Employees	10	10	10

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Formation Expenses	-	-	0.0
Plant, Machinery, and Equipment	0.0	0.0	0.1
Furniture and Vehicles	0.0	0.1	0.1
Other Tangible Assets	0.0	0.0	0.0
Tangible Assets	0.0	0.1	0.2
Participating Interests	1.0	1.0	-
Affiliated Enterprises	1.0	1.0	-
Capital Assets	1.0	1.0	-
Fixed Assets	1.0	1.1	0.2
Other Amounts Receivable	0.9	0.9	1.0
Amounts Receivable After More Than One Year	0.9	0.9	1.0
Goods Purchased for Resale	24.7	36.8	45.7
Stocks	24.7	36.8	45.7
Inventory and Orders in Progress	24.7	36.8	45.7
Trade Debtors	76.5	54.6	77.5
Other Amounts Receivable	0.1	0.0	0.3
Amounts Receivable Within One Year	76.5	54.7	77.8
Liquid Assets	1.3	3.9	1.0
Adjustment Accounts	0.1	0.1	-
Current Assets	103.6	96.4	125.6
Total Assets	104.6	97.5	125.8
Issued Capital	1.2	1.3	1.4
Capital	1.2	1.3	1.4
Legal Reserve	0.0	0.0	0.0
Untaxed Reserves	25.9	26.7	28.6
Reserves	25.9	26.7	28.6
Capital and Reserves	27.0	27.8	29.5
Subordinated Loans	9.0	1.0	-
Financial Debts	9.0	1.0	-
Suppliers	-	8.0	8.0
Trade Debts	-	8.0	8.0
Amounts Due After More Than One Year	9.0	9.0	8.0
Credit Institutions	25.7	25.7	38.2
Financial Debts	25.7	25.7	38.2
Suppliers	42.2	34.5	49.7
Trade Debts	42.2	34.5	49.7
Advances Received on Orders in Progress	0.1	0.1	0.1
Taxes	0.1	0.1	-
Remuneration and Social Security	0.1	0.1	0.1
Taxes, Wages, and Social Security	0.1	0.1	0.1
Other Amounts Payable	0.2	0.1	0.1
Amounts Payable Within One Year	68.3	60.5	88.2
Adjustment Accounts	0.2	0.2	0.0
Creditors	77.6	69.8	96.2
Total Liabilities + Shareholders' Equity	104.6	97.5	125.8

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