MIRA INFORM REPORT

Report Date :

04.04.2014

IDENTIFICATION DETAILS

Name :	EURASIA GEMS BVBA
Registered Office :	Hoveniersstraat, 30, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	09.05.1985
Com. Reg. No.:	427338349
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees	01 (31.12.2012)

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 2013 Belgian GDP grew by 0.1%, the unemployment rate increased to 8.8% from 7.6% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 3.2%. 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 & address

Business number 427338349

Company name EURASIA GEMS BVBA

Address HOVENIERSSTRAAT

30

2018 ANTWERPEN

Number of staff 01 (31.12.2012)

Date of establishment 09/05/1985

Telephone number 032329088

Fax number 032329088

Commentary

The business was established over 28 years ago.
The business has 1 employees.
The business has been at the address for over 23 years.
Operating Result in the latest trading period decreased 55% on the previous trading period.
Pre-tax profits decreased by 45% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 35% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	8,821,348	16,933	2,180,883	2,995,129
31/12/2011	10,183,478	31,257	2,170,671	3,021,935
31/12/2010	9,759,060	26,381	2,146,915	2,990,897

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	4,610,737	01	24,789	27,655
31/12/2011	4,361,991	0	24,789	27,555
31/12/2010	4,171,230	0	24,789	20,545

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	25.90
Industry average payment expectation days	168.35	Industry average day sales outstanding	120.21
Day sales outstanding	88.38

Court data summary

BANKRUPTCY DETAILS
Court action type	no

Company information

Business number	427338349	Company name	EURASIA GEMS BVBA
Fax number	032329088	Date founded	09/05/1985
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	Wholesaler of diamonds and other precious stones	VAT Number	BE.0427.338.349
Belgian Bullettin of Acts Publications	moniteur belge

Personnel

(NSSO classification)

Code	-
Description	01 EMPLOYEES

Company accounts

Comparison Mode

· Average Median Export accounts to CSV File

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	8,821,348	13.38	10,183,478	4.35	9,759,060	46,788,819	81.15
Total operating expenses	8,787,124	13.05	10,105,840	2.48	9,860,919	46,394,806	81.06
Operating result	34,224	55.92	77,637	76.22	-101,859	148,098	76.89
Total financial income	437,494	-8.66	478,998	33.42	719,410	98,058	346
Total financial expenses	454,784	13.44	525,378	11.13	591,170	204,982	121
Results on ordinary operations before taxation	16,933	45.83	31,257	18.48	26,381	32,874	48.49
Taxation	6,722	10.38	7,500	22.04	9,621	20,907	67.85
Results on ordinary operations after taxation	10,211	57.02	23,757	41.74	16,761	17,996	43.26
Extraordinary items	0	-	0	-	0	-4,526	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	10,211	57.02	23,757	41.74	16,761	13,489	24.30
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	114,302	-
Employee costs	-	-	-	-	-	126,363	-
Wages and salary	-	-	-	-	-	105,854	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	-	-	-	26,598	-
Other employee costs	0	-	0	-	0	4,380	-100
Amortization and depreciation	17,443	359	3,799	0.38	3,784	17,934	-2.74

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	1,561	-100
Tangible fixed assets	143,836	59.36	90,260	54.19	58,538	185,388	22.41
Land & building	84,227	-4.59	88,283	56.84	56,289	362,952	76.79
Plant & machinery	2,405	21.66	1,977	12.12	2,249	22,760	89.43
Furniture & Vehicles	57,204	-	-	-	-	17,415 5,433	228
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,664	-100
Financial fixed assets	-	-	-	-	-	309,151	-
Total fixed assets	143,836	59.36	90,260	54.19	58,538	398,254	63.88
Inventories	2,099,302	157	814,631	51.74	1,688,017	3,108,260	32.46
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,411	-100
Finished goods	2,099,302	157	814,631	51.74	1,688,017	1,992,265	5.37
Other stocks	0	-	0	-	0	574,368	-100
Trade debtors	2,135,962	31.12	3,100,795	124	1,383,218	4,189,589	49.02
Cash	228,483	35.39	353,631	65.90	1,037,100	226,840	0.72
other amounts receivable	1,673	65.21	1,013	55.03	2,252	186,814	-99
Miscellaneous current assets	1,481	10.81	1,661	21.14	2,106	18,076	91.81
Total current assets	4,466,901	4.57	4,271,731	3.87	4,112,692	7,252,094	38.41
Total Assets	4,610,737	5.70	4,361,991	4.57	4,171,230	7,617,297 1,454,678	39.47
CURRENT LIABILITIES
Trade creditors	623,412	10.12	693,626	81.71	381,729	3,057,888	79.61
Short term group loans	-	-	-	-	-	-	-
Financial debts	743,777	8755	8,399	-	-	4,287,536 192,320	82.65
Current portion of long term debt	31,254	93.16	456,973	29.95	652,385	107,941 15,359	71.05
Amounts Payable for Taxes, Remuneration & Social Security	8,832	39.41	14,575	118	6,683	9,445 -	74.03
Miscellaneous current liabilities	64,498	15.38	76,223	-5.89	80,997	-78.44	- -
Total current liabilities	1,471,772	17.76	1,249,796	11.41	1,121,795	5,370,007	72.59
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	958,082	1.76	941,524	4.32	902,521	-13.14	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,200 0	-100
Other long term liabilities	0	-	0	-	0	129,533	-100
Total long term debts	958,082	1.76	941,524	4.32	902,521	562,172	70.43
SHAREHOLDERS EQUITY
Issued share capital	24,789	0	24,789	0	24,789	948,360	97.39
Share premium account	-	-	-	-	-	109,362	-
Reserves	2,156,093	0.48	2,145,882	1.12	2,122,125	693,149	211
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	2,180,883	0.47	2,170,671	1.11	2,146,915	1,671,347	30.49
Working capital	2,995,129	-0.89	3,021,935	1.04	2,990,897	1,882,087	59.14
Cashflow	27,655	0.36	27,555	34.12	20,545	28,291	-2.25
Net worth	2,180,883	0.47	2,170,671	1.11	2,146,915	1,668,090	30.74

Ratio Analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.19	-38.71	0.31	14.81	0.27	-26,00	0.73
Return on capital employed	0.54	-46.00	1	14.94	0.87	29,00	-98.14
Return on total assets employed	0.37	-48.61	0.72	14.29	0.63	-202,00	0.18
Return on net assets employed	0.78	-45.83	1.44	17.07	1.23	19,00	-95.89
Sales / net working capital	2.95	-12.46	3.37	3.37	3.26	45,00	-99
Stock turnover ratio	23.80	197	8	-53.76	17.30	111,00	-78.56
Debtor days	88.38	-20.48	111.14	114	51.73	133,00	-33.55
Creditor days	25.90	3.39	25.05	77.28	14.13	122,00	-78.77
SHORT TERM STABILITY
Current ratio	3.04	-11.11	3.42	-6.81	3.67	7,00	-66.22
Liquidity ratio / acid ratio	1.61	-41.88	2.77	28.24	2.16	4,00	-59.75
Current debt ratio	0.67	15.52	0.58	11.54	0.52	9,00	-92.56
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	79.47	22.62	64.81	-10.52	72.43	361,00	-77.99
Equity in percentage	47.30	-4.94	49.76	-3.32	51.47	-3.228,00	1.47
Total debt ratio	1.11	9.90	1.01	7.45	0.94	10,00	-88.90

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones

Payment Information

Payment expectations
Payment expectation days	25.90
Day sales outstanding	88.38

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment expectation days	168.35
Industry average day sales outstanding	120.21

Industry quartile analysis

Payment expectations
Company result	25.90
Lower	134.36
Median	84.62
Upper	45.29
Day sales outstanding
Company result	88.38
Lower	112.48
Median	58.56
Upper	28.58

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Court data

NSSO details
Business number	427338349

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Court Data

there is no data for this company

Director details

Current Director Details
Name	SANJAY MEHTA
Position	Principal Manager
Start Date	04/08/2010
Street	6 LUITHAGENLAAN MORTSEL
Post code	2640
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.60.12
UK Pound	1	Rs.100.07
Euro	1	Rs.82.74

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	MNL

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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