MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	B.G. EL EUROPE BVBA
Registered Office :	Pelikaanstraat 78-B 127, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	03.02.2005
Com. Reg. No.:	871660608
Legal Form :	Private Limited Company
Line of Business :	· Wholesaler of watches and jewellery wholesaler diamonds and Other Precious Stones
No of Employees :	01 (31.12.2012)

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 – June 01, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Belgium	A1	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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	871660608
Company name	B.G. EL EUROPE BVBA
Address	PELIKAANSTRAAT 78-B 127
	2018 ANTWERPEN
Number of staff	01 (31.12.2012)
Date of establishment	03/02/2005
Telephone number	032253055
Fax number	032253056

Commentary

The business was established over 9 years ago.
The business has 1 employees.
The business has been at the address for over 3 years.
Operating Result in the latest trading period decreased 99% on the previous trading period.
A 53% decline in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 109% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 59% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	---	-7,551	221,030	203,844
31/12/2011	19,838,010	76,009	227,953	204,585
31/12/2010	27,634,297	52,302	176,790	146,657

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	2,772,911	1	18,600	425
31/12/2011	6,002,826	2	18,600	58,942
31/12/2010	15,209,626	3	18,600	46,612

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Industry average payment expectation days 248.30

Industry average day sales outstanding 294.91

Court data summary

BANKRUPTCY DETAILS

Court action type no

Company information

Business number	871660608	Company name	B.G. EL EUROPE BVBA
Fax number	032253056	Date founded	03/02/2005
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
		Liable for VAT	yes
Activity description	· Wholesaler of watches and jewellery wholesaler diamonds and Other Precious Stones	VAT Number	BE.0871.660.608 Check
			VAT number
Belgian Bullettin of Acts	moniteur belge

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year
ended 31-12-2012
Full-time Employees	1
Part-time Employees	1
Total Fte Employees	2
Number of hours worked
Full-time Employees	1,786
Part-time Employees	940
Total	2,726
Personnel Charges
Full-time Employees	30,908
Part-time Employees	16,267
Total	47,176
Benefits In Addition To Wages -
During the previous reporting year
Average number employees in Fte	3
Actual working hours	4,253
Personnel Charges	68,342
Benefits In Addition To Wages -

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	1	1	2
Limited Duration Contracts - - -
Contracts For Specific Work
Contracts Regarding	-	-	-
Substitution
Gender and Education
Level
Men	Full-Time	Part-Time	Total Fte
Primary education	1	-	1
Secondary education	-	-	-
Higher education (non university)
Higher education	-	-	-
(university)
Women	Full-Time	Part-Time	Total Fte
Primary education - - -
Secondary education	-	1	1
Higher education (non university)	-	-	-
Higher education	-	-	-
(university)
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	1	1	2
Blue collar worker - - -
Other - - -
New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	-	-	-
Leavers	1	-	1

Personnel

(NSSO classification)

Description FROM 1 TO 4 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

Company accounts

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	-	-	19,838,010	-28.21	27,634,297	40,868,488	-
Total operating expenses	-	-	19,747,766	-28.35	27,561,582	40,487,848	-
Operating result	377	-99	90,244	24.11	72,715	112,335	-99
Total financial income	10	-77.63	45	-79.06	213	77,561	-99
Total financial expenses	7,939	-44.40	14,280	-30.77	20,627	259,192	-96.94
Results on ordinary operations before taxation	-7,551	-109	76,009	45.33	52,302	-75,324	10.02
Taxation	-3	-100	24,119	66.90	14,451	15,552	-100
Results on ordinary operations after taxation	-7,548	-114	51,891	37.09	37,851	-85,611	8.82
Extraordinary items	0	0	-1,353	-	0	-21,718	0
Other appropriations	0	-	0.00	-	0.00	-	-
Net result	-7,548	-114	50,537	33.52	37,851	-107,260	7.04
OTHER INFORMATION

Gross Operating Margin	83,814	-	-	-	-	61,526	36.23
Dividends	-	-	-	-	-	140,677	-
Director remuneration	-	-	-	-	-	115,171	-
Employee costs	47,176	-30.97	68,342	-23.67	89,532	207,172	-77.23
Wages and salary	38,527	-29.78	54,864	-25.41	73,559	161,704	-76.17
Employee pension costs	-	-	-	-	-	2,718	-
Social security contributions	6,683	-40.58	11,247	-9.91	12,484	43,347	-84.58
Other employee costs	1,966	-11.87	2,231	-36.07	3,489	5,829	-66.27
Amortization and depreciation	7,973	-5.14	8,405	-4.07	8,761	23,505	-66.08

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	529		-		1,155			-	1,781		2,466		-78.55
Tangible fixed assets	17,187		-26.01		23,228			-22.55	29,992		203,534		-91.56
Land & building	-		-		-			-	-		378,468		-
Plant & machinery	13,250		-31.91		19,461			-24.95	25,929		26,530		-50.06
Furniture & Vehicles	3,937		4.50		3,768			-7.29	4,064		21,063 8,419		-81.31
Leasing & Other Similar Rights	-		-		-			-	-		168,270 22,496		-
Other tangible assets	0		-		0			-	0		9,957		-100
Financial fixed assets	-		-		140			0	140		569,592		-
Total fixed assets	17,715		-27.76		24,523			-23.16	31,913		553,169		-96.80
Inventories	753,071		10.39		682,190			-89.87	6,734,639		1,983,932		-62.04
Raw materials & consumables	-		-		-			-	-		5,256,220		-
Work in progress	0		-		0			-	0		346		-100
Finished goods	0		-100		682,190			-89.87	6,734,639		1,239,648		-100
Other stocks	753,071		-		0			-	0		292,976		157
Trade debtors	1,695,099		-62.74		4,549,141			-24.53	6,027,715		2,773,211		-38.88
Cash	297,538		-59.38		732,408			-69.49	2,400,420		189,883		56.70
other amounts receivable	2,739		-63.22		7,448			132	3,197		382,239		-99
Miscellaneous current assets	6,749		-5.17		7,117			-39.39	11,743		55,369		-87.81
Total current assets	2,755,196		-53.91		5,978,303			-60.61	15,177,713		4,973,242		-44.60
Total Assets	2,772,911		-53.81		6,002,826			-60.53	15,209,626		5,477,955 324,488		-49.38
Current liabilities
Trade creditors		2,514,112		-56.03		5,718,063	-61.82			14,976,150	1,393,399	80.43
Financial debts		-		-		-	-			-	5,377,556 37,143	-
Current portion of long term debt		-		-		-	-			-	100,064 17,006	-
Amounts Payable for Taxes, Remuneration & Social Security		33,059		-37.31		52,734	1.90			51,748	11,285 -	-11.26
Miscellaneous current liabilities		4,181		43.12		2,921	-7.49			3,158	-99	--
Total current liabilities		2,551,352		-55.81		5,773,718	-61.59			15,031,056	3,758,286	-32.11
LONG TERM DEBTS AND LIABILITIES
Long term group loans		-		-		-	-			-	-	--
Other long term loans		-		-		-	-			-	-	--
Deffered taxes		-		-		-	-			-	45,597 29,464	-
Provisions for Liabilities & Charges		0		-		0	-			0	14,834 0	-100
Other long term liabilities		0		-		0	-			0	282,947	-100
Total long term debts		0		-		0	-			0	683,504	-100
SHAREHOLDERS EQUITY
Issued share capital		18,600		0		18,600	0			18,600	690,901	-97.31
Share premium account		-		-		-	-			-	255,692	-
Reserves		202,959		-3.59		210,508	31.59			159,970	309,927	-34.51
Revaluation reserve		-		-		-	-			-	517,619	-
Total shareholders equity		221,559		-3.29		229,108	28.30			178,570	1,017,045	-78.22
Working capital		203,844		-0.36		204,585	39.50			146,657	1,214,957	-83.22
Cashflow		425		-99		58,942	26.45			46,612	-87,980	0.48
Net worth		221,030		-3.04		227,953	28.94			176,790	1,014,578	-78.21

Ratio Analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	-	-	0.38	100	0.19	-120,00	-
Return on capital employed	-3.41	-110	33.18	13.28	29.29	328,00	-101
Return on total assets employed	-0.27	-121	1.27	273	0.34	-11,00	2.45
Return on net assets employed	-3.41	-110	33.18	13.28	29.29	330,00	-101
Sales / net working capital	-	-	96.97	-48.54	188.43	4,00	-
Stock turnover ratio	-	-	3.44	-85.88	24.37	612,00	-
Debtor days	-	-	83.70	5.12	79.62	226,00	-
Creditor days	-	-	105.69	-46.71	198.33	151,00	-
SHORT TERM STABILITY
Current ratio	1.08	3.85	1.04	2.97	1.01	65,00	-98.73
Liquidity ratio / acid ratio	0.78	-15.22	0.92	64.29	0.56	58,00	-98.66
Current debt ratio	11.52	-54.29	25.20	-70.06	84.17	85,00	-86.45
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	-	-	-	-	-	245,00	-
Equity in percentage	7.99	109	3.82	226	1.17	-1.206,00	0.66
Total debt ratio	11.52	-54.29	25.20	-70.06	84.17	85,00	-86.45

Industry comparison

Activity description	· Wholesaler of watches and jewellery wholesaler diamonds and Other Precious Stones
Industry average payment expectation days	248.30
Industry average day sales outstanding	294.91

Industry quartile analysis

Payment Expectations

Lower	124.25
Median	57.45
Upper	18.68
Day Sales Outstanding
Lower	112.56
Median	55.15
Upper	23.16

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 871660608

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Court Data

there is no data for this company

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.60.25
UK Pound	1	Rs.101.92
Euro	1	Rs.80.70

INFORMATION DETAILS

Analysis Done by :	RAS
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.