MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	DIAMOND CREATIONS NV

Registered Office :	Schupstraat 20, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	21.03.1995

Com. Reg. No.:	454918221

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Preparation of diamonds

No. of Employees :	4

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Belgium

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 summary

Business number 454918221

Company name DIAMOND CREATIONS NV

Address SCHUPSTRAAT 20

2018 ANTWERPEN

Number of staff 4

Date of establishment 21/03/1995

Telephone number 032316117

Fax number 032323649

Commentary

The business was established over 19 years ago.

The business has 1 employees.

The business has been at the address for over 18 months.

Operating Result in the latest trading period decreased 27% on the previous trading period.

A 25% growth in Total Assets occurred during the latest trading period.

The business saw a decrease in their Cash Balance of 67% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	54,237,196	159,680	5,329,119	7,816,728
31/12/2011	51,930,636	153,345	5,275,439	7,781,133
31/12/2010	72,103,293	204,382	5,232,969	7,607,183

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cash flow
31/12/2012	26,552,670	4	30,987	182,454
31/12/2011	21,170,081	3	30,987	173,158
31/12/2010	24,704,270	3	30,987	223,597

Payment expectations

Past payments Payment expectation days 101.10

Industry average payment

expectation days 98.21

Industry average day sales

Outstanding 128.46

Day sales outstanding 101.86

Court data summary

Bankruptcy details

Court action type no

Protested bills

Bill amount -

NSSO details

Date of summons –

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year

ended 31-12-2012

Full-time Employees 3

Part-time Employees 1

Total Fte Employees 4

Number of hours worked

Full-time Employees 5,601

Part-time Employees 936

Total 6,537

Personnel Charges

Full-time Employees 150,433

Part-time Employees 28,111

Total 182,036

Benefits In Addition To Wages –

During the previous reporting year

Average number employees in Fte 4

Actual working hours 6,324

Personnel Charges 160,676

Benefits In Addition To Wages -

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration

Contracts 4 1 5

Limited Duration

Contracts - - -

Contracts For Specific

Work - - -

Contracts Regarding

Substitution - - -

Gender and Education

Level

Men Full-Time Part-Time Total Fte

Primary education - - -

Secondairy education 1 1 2

Higher education (non

university) - - -

Higher education

(university) - - -

Women Full-Time Part-Time Total Fte

Primary education - - -

Secondairy education 3 - 3

Higher education (non

university) - - -

Higher education

(university) - - -

Working Category Full-Time Part-Time Total Fte

Management - - -

White collar worker 4 1 5

Blue collar worker - - -

Other - - -

Personnel (NSSO classification)

Code -

Description FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code 218

Description Additional national joint committee for the employees

category

Significant Events

Event Date 03/05/2013

Event Description re-appointment of director(s)

Event Details Commentaar 03-05-2013: Herbenoemd als gedelegeerd bestuurder : Agarwal Alias Kedia Santosh.

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	54,237,196	4.44	51,930,636	-27.98	72,103,293	16,853,122	221
Total operating expenses	54,106,944	4.55	51,751,307	-27.68	71,558,957	16,740,088	223
Operating result	130,253	-27.37	179,329	-67.06	544,335	69,659	86.99
Total financial income	1,807,877	-35.45	2,800,744	-26.50	3,810,319	95,696	1789
Total financial expenses	1,778,449	-37.08	2,826,728	-31.89	4,150,272	101,103	1659
Results on ordinary operations before taxation	159,680	4.13	153,345	-24.97	204,382	53,820	196
Taxation	18,500	-20.86	23,375	25.17	18,674	20,063	-7.79
Results on ordinary operations after taxation	141,180	8.63	129,970	-30.01	185,708	40,692	246
Extraordinary items	0	-	0	-	0	-3,269	0
Other appropriations	0.00	-	0	-	0.00	-	-
Net result	141,180	8.63	129,970	-30.01	185,708	37,431	277
other information
Gross Operating Margin	-	-	-	-	-	117,937	-
Dividends	-	-	-	-	-	109,686	-
Director remuneration	-	-	-	-	-	48,130	-
Employee costs	182,036	13.29	160,676	36.08	118,075	207,590	-12.31
Wages and salary	142,125	14.81	123,796	30.47	94,881	163,565	-13.11
Employee pension costs	-	-	-	-	-	1,903	-
Social security contributions	36,225	16.26	31,158	37.45	22,669	50,546	-28.33
Other employee costs	3,686	-35.59	5,723	990	525	4,861	-24.17
Amortization and depreciation	41,274	-4.43	43,188	13.99	37,889	23,725	73.97

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	7,083			-		9,583		-		12,083	728	872
Tangible fixed assets	352,311			-9.72		390,239		-9.24		429,972	162,301	117
Land & building	-			-		-		-		334,319	322,542	-
Plant & machinery	13,351			-38.94		21,866		-31.66		31,998	58,827	-77.30
Furniture & Vehicles	20,249			-32.76		30,116		-24.72		40,005	16,122 4,454	25.60
Leasing & Other Similar Rights	-			-		-		-		-	13,254 19,602	-
Other tangible assets	318,711			-5.78		338,257		1330		23,650	20,806	1431
Financial fixed assets	2,281			-0.02		2,281		0.02		2,281	51,594	-95.58
Total fixed assets	361,675			-10.05		402,103		-9.50		444,336	183,379	97.23
Inventories	9,884,407			138		4,152,874		11.77		3,715,485	1,232,741	701
Raw materials & consumables	9,884,407			138		4,152,874		11.77		3,715,485	3,520,209	180
Work in progress	0			-		0		-		0	5,098	-100
Finished goods	0			-		0		-		0	417,244	-100
Other stocks	0			-		0		-		0	253,888	-100
Trade debtors	15,135,544			3.96		14,559,667		-21.35		18,512,301	1,243,059	1117
Cash	657,044			-67.25		2,006,368		29.20		1,552,924	105,189	524
other amounts receivable	493,070			1104		40,927		-91.31		470,737	61,884	696
Miscellaneous current assets	20,931			157		8,142		-4.07		8,487	26,466	-20.91
Total current assets	26,190,995			26.11		20,767,978		-14.39		24,259,934	2,241,908	1068
Total Assets	26,552,670			25.43		21,170,081		-14.31		24,704,270	2,404,912 269,408	1004
current liabilities
Trade creditors	14,986,705			41.43		10,596,709		-24.39		14,014,421	1,099,691	1262
Short term group loans	-	-			-		-			-	-	-
Financial debts	692,934	744			82,014		59542			138	979,191 50,800	-29.2
Current portion of long term debt	-	-			-		-			-	141,020 20,235	-
Amounts Payable for Taxes, Remuneration & Social Security	64,229	-5.36			67,869		52.57			44,485	11,996 -	108
Miscellaneous current liabilities	2,630,398	17.42			2,240,253		-13.63			2,593,708	1627	--
Total current liabilities	18,374,267	41.48			12,986,845		-22.01			16,652,751	1,537,342	1095
	Long term debts and liabilities
Long term group loans	-	-			-				-	-	-	--
Other long term loans	2,842,201	-1.93			2,898,215				3.27	2,806,466	322	--
Deffered taxes	-	-			-				-	-	4,048 4,048	-
Provisions for Liabilities & Charges	0	-			0				-	0	00	-
Other long term liabilities	0	0			-1				-	0	80,969	-100
Total long term debts	2,842,201	-1.93			2,898,214				3.27	2,806,466	296,790	857
Shareholders equity
Issued share capital	30,987		0.00		30,987				0.00	30,987	311,750	-90.0
Share premium account	-		-		-				-	-	0	-
Reserves	5,305,215		0.97		5,254,035				0.77	5,214,065	259,029	1948
Revaluation reserve	-		-		-				-	-	0	-
Total shareholders equity	5,336,202		0.97		5,285,022				0.76	5,245,052	570,780	834
Working capital	7,816,728		0.46		7,781,133				2.29	7,607,183	704,566	1009
Cashflow	182,454		5.37		173,158				-22.56	223,597	57,055	219
Net worth	5,329,119		1.02		5,275,439				0.81	5,232,969	570,051	834

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry Average 2012	%
Trading performance
Profit Before Tax	0.29	-3.33	0.30	7.14	0.28	2,00	-85.50
Return on capital employed	1.95	4.28	1.87	-26.38	2.54	10,00	-80.50
Return on total assets employed	0.60	-16.67	0.72	-13.25	0.83	-94,00	0.64
Return on net assets employed	2.99	3.10	2.90	-25.64	3.90	39,00	-92.33
Sales / net working capital	6.94	4.05	6.67	-29.64	9.48	84,00	-99
Stock turnover ratio	18.22	127	8	55.34	5.15	40,00	-54.45
Debtor days	101.86	-0.46	102.33	9.20	93.71	94,00	8.36
Creditor days	101.10	35.27	74.74	4.56	71.48	140,00	-27.79
		short term stability
Current ratio	1.43	-10.62	1.60	9.59	1.46	351,00	-
Liquidity ratio / acid ratio	0.89	-30.47	1.28	4.07	1.23	354,00	-99
Current debt ratio	3.44	39.84	2.46	-22.40	3.17	0,00	-
Liquidity ratio reprocessed	-	-	-	-	-	-	-
		long term stability
Gearing	66.25	17.49	56.39	5.38	53.51	140,00	-52.68
Equity in percentage	20.10	-19.54	24.98	17.61	21.24	-656,00	3.06
Total debt ratio	3.98	32.23	3.01	-18.87	3.71	1,00	298

Payment expectations

Payment expectation days 101.10

Day sales outstanding 101.86

Industry comparison

Activity code 32121

Activity description Preparation of diamonds

Industry average payment

expectation days 98.21

Industry average day sales

Outstanding 128.46

Industry quartile analysis

Payment expectations

Company result 101.10

Lower 153.51

Median 70.12

Upper 29.79

Day sales outstanding

Company result 101.86

Lower 95.64

Median 51.36

Upper 14.94

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 454918221

Name of defendant -

Legal form of defendant -

Date of summons -

Labour court –

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.61.41
UK Pound	1	Rs.103.42
Euro	1	Rs.82.17

INFORMATION DETAILS

Report Prepared by :

TPT

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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

MIRA INFORM REPORT

Company summary

Commentary

Payment expectations

Company information

Social Balance Sheet Details

Personnel (NSSO classification)

Joint Industrial Committee (JIC)

Significant Events

Profit & loss

balance sheet

ratio analysis

Payment expectations

Industry comparison

Industry quartile analysis

Bankruptcy Data

Unit