MIRA INFORM REPORT

Report Date :

11.04.2014

IDENTIFICATION DETAILS

Name :	ARJAV DIAMONDS NV
Registered Office :	Schupstraat 18 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	22.07.1981
Com. Reg. No.:	421848545
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and precious stones
No. of Employees :	09 (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 :	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 – 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 and address

Business number	421848545
Company name	ARJAV DIAMONDS NV
Address	SCHUPSTRAAT 18
	2018 ANTWERPEN
Number of staff	9
Date of establishment	22/07/1981
Telephone number	032338090
Fax number	032261321

Commentary

The business was established over 32 years ago.

The business has 9 employees.

The business is part of a group.

This business has a foreign parent business.

The business has been at the address for over 23 years.

Operating Result in the latest trading period decreased 61% on the previous trading period.

Net Worth decreased by 24% during the latest trading period.

Pre-tax profits decreased by 9167% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 75% during the latest trading period.

Turnover in the latest trading period increased 21% on the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	882,330,871	-54,839,353	77,605,662	2,908,682
31/12/2011	724,050,707	604,762	102,342,866	117,883,760
31/12/2010	826,021,237	985,207	131,910,265	702,446,224

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	657,089,429	9	65,178,173	-54,757,447
31/12/2011	543,372,695	8	50,376,210	432,074
31/12/2010	642,384,303	9	65,178,173	643,858

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	4.50
Industry average payment expectation days	167.13	Industry average day sales outstanding	121.37
Day sales outstanding	175.38

Court data summary

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

Company information

Business number	421848545	Company name	ARJAV DIAMONDS NV
Fax number	032261321	Date founded	22/07/1981
Company status	active	Company type	Public Limited Liability Company (BE)
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.0421.848.545
Belgian Bullettin of Acts Publications	moniteur belge

Personnel

(NSSO classification)

Code	-
Description	9 EMPLOYEES

Joint Industrial Committee

(JIC)

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

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Significant Events

Event Date	31/05/2013
Event Description	re-appointment of director(s)
Event Details	Commentaar 31-05-2013: Wordt herbenoemd als bestuurder en gedelegeerd bestuurder voor een periode van 6 jaar: Arjav Akshay Mehta.

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	882,330,871	21.86	724,050,707	-12.34	826,021,237	46,823,071	1784
Total operating expenses	876,750,349	23.54	709,686,565	-12.11	807,479,710	46,428,758	1788
Operating result	5,580,522	-61.15	14,364,142	-22.53	18,541,527	149,320	3637
Total financial income	53,977	-90.12	546,535	-1.31	553,796	97,292	-44.52
Total financial expenses	60,473,852	322	14,305,915	-21.01	18,110,116	205,178	29373
Results on ordinary operations before taxation	-54,839,353	-9167	604,762	-38.62	985,207	33,114	-165707
Taxation	-30,905	-112	246,236	-39.54	407,267	21,047	-246
Results on ordinary operations after taxation	-54,808,448	-15387	358,526	-37.96	577,940	18,114	-302675
Extraordinary items	0	-100	30,896	-	0	-4,596	0
Other appropriations	0	-	0	-	0	-	-
Net result	-54,808,448	-14174	389,422	-32.62	577,940	13,537	-404978
other information
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	214,702	-	-	114,302	-
Employee costs	584,302	34.63	433,995	-14.20	505,837	127,621	357
Wages and salary	-	-	324,354	-	-	107,066	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	93,111	-	-	26,956	-
Other employee costs	0	-100	16,530	-	0	4,433	-100
Amortization and depreciation	51,001	19.57	42,652	-35.30	65,918	17,804	186

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	1,582	-100
Tangible fixed assets	1,523,399	25.81	1,210,878	-24.88	1,611,998	184,305	726
Land & building	1,305,524	27.68	1,022,511	-23.72	1,340,385	357,819	264
Plant & machinery	187,576	16.46	161,058	-31.37	234,674	22,984	716
Furniture & Vehicles	30,299	10.95	27,308	-26.07	36,939	17,422 5,418	73.91
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-100	1	-	0	7,775	-100
Financial fixed assets	73,326,081	65.49	44,307,328	-22.71	57,326,081	290,933	25103
Total fixed assets	74,849,480	64.44	45,518,206	-22.77	58,938,079	383,918	19396
Inventories	150,083,921	-14.12	174,756,599	-25.66	235,073,078	3,104,591	4734
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,446	-100
Finished goods	150,083,921	-14.12	174,756,599	-25.66	235,073,078	1,991,469	7436
Other stocks	0	-	0	-	0	570,647	-100
Trade debtors	423,942,679	45.99	290,391,312	-4.17	303,014,811	4,197,502	9999
Cash	7,820,135	-75.97	32,546,748	40.43	23,176,329	226,005	3360
other amounts receivable	275,307	142	113,524	-99	22,120,465	183,916	49.69
Miscellaneous current assets	117,907	154	46,306	-24.76	61,541	17,918	558
Total current assets	582,239,949	16.95	497,854,489	-14.67	583,446,224	7,252,540	7928
Total Assets	657,089,429	20.93	543,372,695	-15.41	642,384,303	7,605,072 1,453,566	8540
current liabilities
Trade creditors	10,810,255	-76.00	45,043,827	6.54	42,277,751	3,073,569	251
Short term group loans	-	-	-	-	-	-	-
Financial debts	409,309,442	23.47	331,517,683	-3.50	343,536,317	4,258,483 192,320	9511
Current portion of long term debt	-	-	-	-	-	108,183 15,032	-
Amounts Payable for Taxes, Remuneration & Social Security	82,141	-86.34	601,195	-20.56	756,760	9,445 -	140
Miscellaneous current liabilities	159,129,429	5566	2,808,024	0.56	-505,570,828	52692	- -
Total current liabilities	579,331,267	52.47	379,970,729	319	-119,000,000	5,383,936	10660
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	152,500	-99	61,059,100	-48.69	119,000,000	-86.21	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,174 0	-100
Other long term liabilities	0	-	0	-100	510,474,038	130,834	-100
Total long term debts	152,500	-99	61,059,100	-90.30	629,474,038	566,199	-73.07
shareholders equity
Issued share capital	65,178,173	29.38	50,376,210	-22.71	65,178,173	904,365	7107
Share premium account	-	-	-	-	-	109,362	-
Reserves	12,427,489	-76.09	51,966,656	-22.13	66,732,092	706,508	1659
Revaluation reserve	-	-	-	-	-	968,672	-
Total shareholders equity	77,605,662	-24.17	102,342,866	-22.41	131,910,265	1,640,963	4629
Working capital	2,908,682	-97.53	117,883,760	-83.22	702,446,224	1,868,604	55.66
Cashflow	-54,757,447	-12773	432,074	-32.89	643,858	28,206	-194234
Net worth	77,605,662	-24.17	102,342,866	-22.41	131,910,265	1,637,691	4638

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-6.22	-7875	0.08	-33.33	0.12	-26,00	23.92
Return on capital employed	-70.53	-19162	0.37	184	0.13	29,00	-343
Return on total assets employed	-8.35	-7690	0.11	-26.67	0.15	-205,00	4.07
Return on net assets employed	-70.66	-12076	0.59	-21.33	0.75	19,00	-471
Sales / net working capital	303.34	4840	6.14	420	1.18	45,00	-99
Stock turnover ratio	17.01	-29.54	24.14	-15.18	28.46	112,00	-84.81
Debtor days	175.38	19.80	146.39	9.33	133.90	134,00	30.88
Creditor days	4.50	-80.58	23.17	21.25	19.11	123,00	-96.34
short term stability
Current ratio	1.01	-22.90	1.31	26.73	-4.90	7,00	-88.78
Liquidity ratio / acid ratio	0.75	-11.76	0.85	29.01	-2.93	4,00	-81.25
Current debt ratio	7.47	101	3.71	412	-0.90	9,00	-17.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	527.62	37.55	383.59	9.40	350.64	366,00	44.16
Equity in percentage	11.81	-37.28	18.83	-8.28	20.53	-3.274,00	0.36
Total debt ratio	7.47	73.32	4.31	11.37	3.87	11,00	-32.09

Industry comparison

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	4.50
Day sales outstanding	175.38

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	167.13
Industry average day sales outstanding	121.37

Industry quartile analysis

Payment expectations
Company result	4.50
Lower	134.36
Median	84.93
Upper	45.17
Day sales outstanding
Company result	175.38
Lower	113.52
Median	61
Upper	28.61

Company result	4.50
Lower	134.36
Median	84.93
Upper	45.17

Company result	175.38
Lower	113.52
Median	61
Upper	28.61

Summary

Group - Number of Companies	3
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

Company name	Number	Latest financials
- ARJAV DIAMONDS NV	421848545	31-12-2012
- - LUMINUS STAR NV	881553816	31-12-2012
- - ARJAV DIAMONDS INDIA PVT LTD SOC.ETR. E....

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Shareholder Name
Forename	Ashit	Middle name	-
Surname	Metha
Shareholder Details
Start date	28/10/2010	End date	-
Percentage owned	49.50%
Shareholder Address
Street name	Della Faillelaan	House number	19
Minor town	Wilrijk	Postal town	Antwerpen
Post code	2610	Country	Belgium

Shareholder Name
Forename	Arjav	Middle name	-
Surname	Mehta
Shareholder Details
Start date	28/10/2010	End date	-
Percentage owned	46.09%
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	-

NSSO details

Business number	421848545
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	ASHIT VASANTIAL METHA
Position	Managing Director
Start Date	06/11/2007
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHIT VASANTIAL METHA
Position	Director
Start Date	08/10/2002
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHIT MEHTA
Position	Managing Director
Start Date	27/06/1996

Name	ASHIT MEHTA
Position	Director
Start Date	27/06/1996

Name	ARJAV MEHTA
Position	Managing Director
Start Date	01/04/2008

Name	ARJAV MEHTA
Position	Director
Start Date	01/04/2008

Former director details

Name	MEETA ASHIT PARIKH
Position	Director
Start Date	17/09/1999
End Date	-
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2000
Country	Belgium

Name	ANISH MEHTA
Position	Managing Director
Start Date	03/06/2008
End Date	03/06/2014
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2600
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.60.21
UK Pound	1	Rs.101.05
Euro	1	Rs.83.33

INFORMATION DETAILS

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