MIRA INFORM REPORT

Report Date :

02.08.2014

IDENTIFICATION DETAILS

Name :	BEAUTY GEMS BVBA
Registered Office :	Pelikaanstraat, 62, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	30.09.2013
Date of Incorporation :	19.07.1999
Com. Reg. No.:	466572572
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No of Employees :	01 (30.09.2013)

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 – 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 summary

Business number 466572572

Company name BEAUTY GEMS BVBA

Address PELIKAANSTRAAT

62

2018 ANTWERPEN

Number of staff 01 (30.09.2013)

Date of establishment 19/07/1999

Telephone number 032253767

Commentary

The business was established over 15 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 increased 226% on the previous trading period.

A 48% growth in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 77% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
30/09/2013	16,040,944	53,526	590,890	1,224,728
30/09/2012	14,855,006	-539	551,802	1,207,920
30/09/2011	16,166,998	38,621	552,305	527,310

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
30/09/2013	4,244,866	1	20,000	45,891
30/09/2012	2,850,100	1	20,000	6,540
30/09/2011	3,340,776	0	20,000	40,497

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Payment expectation days 54.52

Industry average payment expectation days 130.76

Day sales outstanding 51.31

Industry average day sales outstanding 132.73

Company information

Business number	466572572	Company name	BEAUTY GEMS BVBA
Company status	active	Date founded	19.07.1999
Currency	Euro (€)	Company type	Private Limited Company (BL/LX)
Activity code	46761	Date of latest accounts	30.09.2013
Activity description	Wholesaler of diamonds and other precious stones	liable for VAT	Yes
Belgian Bullettin of Acts Publications	moniteur belge	VAT Number	BE.0466.572.572 Check Vat Number

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year ended 30-09-2013

Full-time Employees 1

Part-time Employees -

Total Fte Employees 1

Number of hours worked

Full-time Employees 1,770

Part-time Employees -

Total 1,770

Personnel Charges

Full-time Employees 35,816

Part-time Employees -

Total 35,816

Benefits In Addition To Wages -

During the previous reporting year

Average number employees in Fte 1

Actual working hours 1,763

Personnel Charges 36,856

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration

Contracts 1 -- 1

Joint Industrial Committee

(JIC)

JIC Code 218

Description Additional national joint committee for the employees

Company accounts

Profit & Loss

Annual accounts	30-09-2013	%	30-09-2012 %	30-09-2011	Industry average 2013	%
Weeks Currency	52 EUR		52 EUR	52 EUR
Turnover	16,040,944	7.98	14,855,006 -8.12	16,166,998	46,378,598	-65.41
Total operating expenses	15,955,948	7.60	14,828,962 -7.92	16,104,345	45,895,622	-65.23
Operating result	84,996	226	26,044 -58.43	62,653	174,477	-51.29
Total financial income	3,204	-	- -	1,874	76,094	-95.79
Total financial expenses	34,674	30.44	26,583 2.61	25,906	181,895	-80.94
Results on ordinary operations before taxation	53,526	9928	-539 -101	38,621	60,293	-11.22
Taxation	14,438	40477	-36 -100	9,949	25,077	-42.42
Results on ordinary operations after taxation	39,088	7764	-503 -101	28,672	42,182	-7.34
Extraordinary items	0	-	0	0	2,190	-100
Other appropriations	0.00	-	0.00	0.00	-	-
Net result	39,088	7764	-503 -101	28,672	44,396	-11.96
Other Information
Gross Operating Margin	130,220	-32.23	192,162 121	86,895	45,999	183
Dividends	--	---	--	--	218,826	--
Director remuneration	--	--	--	--	158,864	--
Employee costs	35,916	-2.55	36,856 306	9,070	204,682	-82.45
Wages and salary	28,481	-0.07	28,502 389	5,821	177,014	-83.91
Employee pension costs	--	---	--	1,421	1,494	---
Social security contributions	6,154	1.22	6,080 382	1,260	45,319	-86.42
Other employee costs	1,281	-43.69	2,274 300	568	4,755	-73.07
Amortization and depreciation	6,803	-3.41	7,043 -40.44	11,825	22,115	-69.24

Balance Sheets

Annual accounts	30-09-2013 %		30-09-2012 %		30-09-2011	average 2013	%
Weeks Currency	52 EUR		52 EUR		52 EUR
Intangible fixed assets	0	-	0	-	0	2,106	-100
Tangible fixed assets	9,339	-41.16	15,872	-25.36	21,265	212,392	-95.60
Land & building	-	-	-	-	-	410,992	-
Plant & machinery	-	-	-	-	-	39,238	-
Furniture & Vehicles	9,339	-41.16	15,872	-25.36	21,265	17,278 4,780	-45.95
Leasing & Other Similar Rights	-	-	-	-	-	14,695 19,027	-
Other tangible assets	0	-	0	-	0	17,738	-100
Financial fixed assets	4,731	0	4,731	26.81	3,731	42,895	-88.97
Total fixed assets	14,070	-31.71	20,603	-17.57	24,995	226,100	-93.78
Inventories	1,809,952	93.78	934,034	25.99	741,362	2,914,041	-37.89
Raw materials & consumables	-	-	-	-	-	113,995	-
Work in progress	0	-	0	-	0	2,929	-100
Finished goods	0	-	0	-	0	1,928,908	-100
Other stocks	1,809,952	93.78	934,034	25.99	741,362	488,119	270
Trade debtors	2,255,031	27.46	1,769,234	-17.14	2,135,285	4,686,594	-51.88
Cash	150,558	77.42	84,861	-80.11	426,681	216,985	-30.61
other amounts receivable	15,255	-63.12	41,368	232	12,452	188,692	-91.92
Miscellaneous current assets	0	-	0	-	0	17,879	-100
Total current assets	4,230,797	49.52	2,829,497	-14.67	3,315,780	7,526,807	-43.79
Total Assets	4,244,866	48.94	2,850,100	-14.69	3,340,776	7,725,272 1,213,986	-45.05
Current liabilities
Trade creditors	2,383,382	64.76	1,446,578	-33.81	2,185,474	2,917,810	-18.32
Short term group loans	-	-	-	-	--	--	-
Financial debts	596,572	258	166,328	-49.57	329,805	4,511,783 150,693	-86.78
Current portion of long term debt	-	-	-	--	--	83,646 13,475	-
Amounts Payable for Taxes, Remuneration & Social Security	26,114	201	8,672	-38.02	13,990	7,646	-32.97
Miscellaneous current liabilities	0	-	0	-100	259,202	-100	--
Total current liabilities	3,006,068	85.38	1,621,578	-41.85	2,788,470	5,356,068	-43.77
Long term debts and liabilities
Other long term loans	647,908	-4.26	676,721	---	---	-57.51	--
Deffered taxes	-	-	-	--	---	47,059 41,554	-
Provisions for Liabilities & Charges	0	-	0	---	0	7,395 0	-100
Other long term liabilities	0	-	0	---	0	87,126	-100
Total long term debts	647,908	-4.26	676,721	--	0	658,646	-1.63
Shareholders Equity
Issued share capital	20,000	0	20,000	0	20,000	1,077,101	-98.14
Share premium account	-	-	-	---	---	105,775	-
Reserves	570,890	7.35	531,802	-0.09	532,305	605,243	-5.68
Revaluation reserve	-	-	-	---	--	1,212,191	-
Total shareholders equity	590,890	7.08	551,802	-0.09	532,305	1,720,558	-65.66
Working capital	1,224,728	1.39	1,207,920	129	527,310	2,180,738	-43.84
Cashflow	45,891	601	6,540	-83.85	40,497	62,763	-26.88
Net worth	590,890	7.08	551,802	-0.09	552,305	1,718,452	-65.61

Ratio Analysis

Annual accounts	31-12-2012	Change (%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.33	-	0	-100	0.24	2,00	-83.50
Return on capital employed	4.32	10800	-0.04	-100	6.99	6,00	-28.00
Return on total assets employed	1.26	6300	-0.02	-101	1.16	-3,00	42.00
Return on net assets employed	9.06	9060	-0.10	-101	6.99	-1,00	906
Sales / net working capital	13.10	6.50	12.30	-59.88	30.66	220,00	-99
Stock turnover ratio	11.28	79.33	6.29	37.04	4.59	58,00	-80.55
Debtor days	51.31	18.04	43.47	-9.83	48.21	207,00	-75.21
Creditor days	54.52	53.10	35.61	-28.10	49.53	142,00	-61.61
Short Term liability
Current ratio	1.41	-18.97	1.74	46.22	1.19	3,00	-94.58
Liquidity ratio / acid ratio	0.81	-30.77	1.17	27.17	0.92	2,00	-59.50
Current debt ratio	5.09	73.13	2.94	-41.78	5.05	26,00	-80.42
Long term liability
Gearing	210.61	37.85	152.78	155	59.71	327,00	-35.59
Equity in percentage	13.92	-28.10	19.36	17.12	16.53	-147,00	9.47
Total debt ratio	6.18	48.20	4.17	-17.43	5.05	28,00	-77.93

Payment Information

Payment expectations

Payment expectation days 54.52

Day sales outstanding 51.31

Industry comparison

Activity code 46761

Activity description Wholesaler of diamonds and other precious stones

Industry average payment expectation days 130.76

Industry average day sales outstanding 132.73

Industry quartile analysis

Payment expectations

Company result 54.52

Lower 127.94

Median 76.94

Upper 45.68

Day sales outstanding

Company result 51.31

Lower 106.72

Median 55.26

Upper 26.51

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 466572572

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.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

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