MIRA INFORM REPORT

Report Date :

01.12.2014

IDENTIFICATION DETAILS

Name :	FIRST ELEMENT BVBA
Registered Office :	Hoveniersstraat 22, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	16.05.2013
Com. Reg. No.:	534592437
Legal Form :	Private Limited Company
Line of Business :	Wholesale of diamonds and other precious stones
No of Employees :	Not Available

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 :	Slow
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	A1	A2

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 534592437

Company name FIRST ELEMENT BVBA

Address HOVENIERSSTRAAT 22

2018 ANTWERPEN

Number of staff 0

Date of establishment 16/05/2013

Telephone number -

Fax number -

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	--	232,537	172,224	172,224
Accounts
DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	-	0	18,600	153,624
Payment expectations
Past payments	124.39	Payment expectation days		--
Industry average payment expectation days	--	Industry average day sales outstanding		141.74
Day sales outstanding	--

Company information

Business number	534592437	Company name	FIRST ELEMENT BVBA
Fax number	-	Date founded	16/05/2013
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2013
Activity code	46761	Liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0534.592.437 Check VAT number
Belgian Bullettin of Acts Publications	moniteur belge
Contractor details
Registered contractor number	-
Contractor description	-

Company accounts

Assets
Annual Accounts	31.12.2013
Weeks	EUR
Currency	-
Total fixed assets	-
Intangible fixed assets	0
Tangible fixed assets Land & building	-
Plant & machinery Furniture & Vehicles Leasing & Other Similar Rights	-
Other tangible assets	0
Financial fixed assets	-
Total current assets	3,952,170
Inventories Raw materials & consumables	242,367
Work in progress	0
Finished goods	0
Other stocks	242,367
Trade debtors Other amounts receivable	3,354,349 6,692
Cash	320,979
Miscellaneous current assets	27,784
Total Assets	3,952,170
Liabilities Total shareholders equity		172,224
Issued share capital		18,600
Share premium account		-
Revaluation reserve		-
Reserves		153,624
Provisions for Liabilities & Charges		0
Deffered taxes		_
Creditors		3,779,946
Other long term loans Long term group loans Other long term liabilities		0
Total long term debts		0
Current portion of long term debt		-
Financial debts		-

Trade creditors	3,701,010
Amounts Payable for Taxes, Remuneration & Social Security	78,913
Miscellaneous current liabilities	23
Total current liabilities	3,779,946
Total Liabilities	3,952,170
RATIO ANALYSIS
TRADING PERFORMANCE
Profit Before Tax	-
Return on capital employed	135.02
Return on total assets employed	5.88
Return on net assets employed	135.02
Sales / net working capital	-
Stock turnover ratio	-
Creditor days	-
Debtor days	-
SHORT TERM STABILITY
Current ratio	1.05
Liquidity ratio / acid ratio	0.98
Current debt ratio	21.95
Liquidity ratio reprocessed	-
Cashflow	153,624
Net worth	172,224
LONG TERM STABILITY
Gearing	-
Equity in percentage	4.36
Total debt ratio	21.95
Working capital	172,224
PROFIT & LOSS
Operating Income	-
Turnover	-
Total operating expenses	-
Gross Operating Margin	238,014
Operating Charges	-
Employee costs	-
Wages and salary	-
Employee pension costs	-

Social security contributions	-
Other employee costs Director remuneration Amortization and depreciation	0
Operating result	237,690
Total financial income	457
Total financial expenses	5,610
Results on ordinary operations before taxation	232,537
Extraordinary Income	-
Extraordinary Charges	-
Extraordinary items	0
Results for the Year Before Taxation	232,537
Other appropriations	-
Taxation	78,913
Results on ordinary operations after taxation	153,624
Net result	153,624
Profit (Loss) for the Year to be appropiated	153,624
Dividends	-

Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment	124.39
expectation days	141.74
Industry average day sales
outstanding
Industry quartile analysis
Payment expectations
Company result	--
Lower	122.66
Median	76.39
Upper	46.98

Day sales outstanding
Company result	--
Lower	102.84
Median	54.50
Upper	24.07

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual shareholders

Shareholder Name
Forename	Edward	Middle Name	--
Surname	Wilkes
Shareholder Details
Start Date	16/05/2013	End Date	--
Percentage Owned	5%
Shareholder Address
Street Name	--	House Number	--
Minor Town	--	Postal Town	--
Post Code	--	Country	South Africa
Shareholder Name
Forename	Johannes	Middle Name	Petrus
Surname	Erikson
Shareholder Details
Start Date	16/05/2013	End Date	--
Percentage Owned	95%
Shareholder Address
Street Name	--	House Number	--
Minor Town	--	Postal Town	--
Post Code	--	Country	South Africa

Summons

There is no data for this company

Protested Bills

There is no data for this company

Bankruptcy and other legal events

There is no data for this company

Director details

Current director details

Name EDWARD JAMES TIMOTHY WILKES

Position Principal Manager

Start Date 21/05/2013

Street

Post code

Country South Africa

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.61.87
UK Pound	1	Rs.97.69
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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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.