MIRA INFORM REPORT

Report Date :

04.12.2014

IDENTIFICATION DETAILS

Name :	SWADIP GEMS BVBA
Registered Office :	Hoveniersstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	20.06.1985
Com. Reg. No.:	427397836
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No of Employees :	02 (31.12.2013)

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 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	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 427397836

Company name SWADIP GEMS BVBA

Address HOVENIERSSTRAAT 2

2018 ANTWERPEN

Number of staff 2 (31.12.2013)

Date of establishment 20/06/1985

Telephone number 032313851

Fax number 032326589

Commentary

The business was established over 29 years ago.

The business has 2 employees.

Number of employees in the latest trading period increased 100% on the previous trading period.

The business has been at the address for over 15 years.

A 26% decline in Total Assets occurred during the latest trading period.

The business saw a decrease in their Cash Balance of 91% during the latest trading period.

Turnover in the latest trading period decreased 22% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	35,225,076	59,001	4,103,309	6,529,422
31/12/2012	45,474,618	61,244	4,063,496	6,599,816
31/12/2011	42,383,696	58,176	4,019,389	6,750,557

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	17,465,265	2	3,766,631	47,308
31/12/2012	23,685,122	1	3,766,631	51,498
31/12/2011	20,687,257	1	3,766,631	42,852

Payment expectations

Past payments		Payment expectation days	33.35
Industry average payment expectation days	123.06	Industry average day sales outstanding	140.65
Day sales outstanding	135.35

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Company information

Business number 427397836

Company name SWADIP GEMS BVBA

Fax number 032326589

Date founded 20/06/1985

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 Wholesaler of diamonds and

other precious stones

VAT Number BE.0427.397.836

Belgian Bullettin of Acts

Publications moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year ended 31-12-2013

Full-time Employees 1

Part-time Employees -

Total Fte Employees 1

Number of hours worked

Full-time Employees 1,954

Part-time Employees -

Total 1,954

Personnel Charges

Full-time Employees 33,361

Part-time Employees -

Total 33,361

Benefits In Addition To Wages -

During the previous reporting year

Average number employees in Fte 1

Actual working hours 1,421

Personnel Charges 31,070

Benefits In Addition To Wages -

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration 2 - 2

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

Higher education (non - - university)

Women Full-Time Part-Time Total Fte

Primary education - - -

Secondairy education 1 - 1

Higher education (non - - university)

Higher education - - -

(university)

Working Category Full-Time Part-Time Total Fte

Management - - -

White collar worker 1 -- 1

Blue collar worker 1 - 1

Other - - -

Total of formal continuing vocational training initiatives

for workers paid by the employer Male Female

Number of employees - -

Number of training hours - -

Net costs for enterprise - -

Total of less formal and informal continuing vocational

training initiatives for workers paid by the employer Male Female

Number of training hours - -

Net costs for enterprise - -

Total of initial training initiatives at the expense of the

employer Male Female

Number of employees - -

Number of training hours - -

Net costs for enterprise - -

Personnel (NSSO classification)

Code	-
Description	-

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

Company accounts

Profit & loss

Annual accounts	31-12-2013	%	31.12.2012	%	31-12-2011	Industry average b 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	35,225,076	-22.54	45,474,618	7.29	42,383,696	54,683,986	-35.58
Total operating expenses	34,710,462	-22.69	44,898,297	6.99	41,963,329	54,229,444	-35.99
Operating result	514,614	-10.71	576,321	37.10	420,367	149,665	243
Total financial income	2,272	20.44	1,886	-88.26	16,067	80,146	-97.17
Total financial expenses	457,885	-11.43	516,964	36.67	378,259	188,437	142
Results on ordinary operations before taxation	59,001	-3.66	61,244	5.27	58,176	35,192	67.65
Taxation	19,188	-9.78	21,269	-6.68	22,790	21,872	-12.27
Results on ordinary operations after taxation	39,813	-0.41	39,975	12.97	35,386	19,134	108
Extraordinary items	0	-100	4,132	-	0	5,377	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	39,813	-9.74	44,107	24.65	35,386	24,645	61.55
OTHER INFORMATION
Gross Operating Margin	-	-	-	-	-	33,386	-
Dividends	-	-	-	-	-	234,766	-
Director remuneration	-	-	-	-	-	125,886	-
Employee costs	33,361	7.38	31,070	52.88	20,323	139,237	-76.04
Wages and salary	27,125	11.15	24,404	56.82	15,561	120,283	-77.45
Employee pension costs	-	-	-	-	-	23,129	-
Social security contributions	4,513	-16.76	5,422	59.74	3,394	29,738	-84.82
Other employee costs	1,723	38.50	1,244	-9.03	1,368	3,980	-56.71
Amortization and depreciation	7,495	1.41	7,390	-1.01	7,466	17,900	-58.13

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	35,225,076	-22.54	45,474,618	7.29	42,383,696	54,683,986	-35.58
Total operating expenses	34,710,462	-22.69	44,898,297	6.99	41,963,329	54,229,444	-35.99

balance sheet

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,302	-100
Tangible fixed assets	175,115	-4.10	182,610	-2.39	187,075	187,893	-6.80
Land & building	171,413	-3.34	177,336	-3.23	183,259	366,558	-53.24
Plant & machinery	1,731	-27.30	2,381	-22.86	3,087	26,683	-93.51
Furniture & Vehicles	1,971	-31.86	2,893	296	729	15,790 4,605	-87.52
Leasing & Other Similar Rights	-	-	-	-	-	107,517 34,551	-
Other tangible assets	0	-	0	-	0	9,053	-100
Financial fixed assets	50	0	50	0	50	181,018	-99
Total fixed assets	175,165	-4.10	182,660	-2.39	187,125	299,085	-41.43
Inventories	4,104,045	-27.76	5,681,477	-14.39	6,636,469	2,918,261	40.63
Raw materials & consumables	-	-	-	-	-	6,545,857	-
Work in progress	0	-	0	-	0	1,130	-100
Finished goods	4,104,045	-27.76	5,681,477	-14.39	6,636,469	1,935,062	112
Other stocks	0	-	0	-	0	448,905	-100
Trade debtors	13,062,032	-23.66	17,110,990	27.78	13,390,520	4,230,323	208
Cash	61,988	-91.07	693,898	1430	45,352	459,215,604	-99
other amounts receivable	54,061	556	8,241	-97.91	395,169	200,558	-73.04
Miscellaneous current assets	7,973	1.50	7,856	-75.92	32,623	-452,072,752	0.00
Total current assets	17,290,100	-26.43	23,502,462	14.65	20,500,132	7,110,230	143
Total Assets	17,465,265	-26.26	23,685,122	14.49	20,687,257	7,376,509 1,285,756	136

CURRENT LIABILITIES
Trade creditors	3,171,132	-61.95	8,334,965	13.83	7,322,356	2,899,893	9.35
Short term group loans	-	-	-	-	-	-	-
Financial debts	7,543,767	-11.39	8,513,830	39.24	6,114,487	4,398,237 146,879	71.52
Current portion of long term debt	-	-	-	-	-	76,213 13,806	-
Amounts Payable for Taxes, Remuneration & Social Security	23,434	-28.81	32,917	-31.67	48,171	8,335 -	-26.10
Miscellaneous current liabilities	22,346	6.74	20,934	-92.09	264,561	-90.69	- -
Total current liabilities	10,760,678	-36.34	16,902,646	22.93	13,749,575	5,064,975	112
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	46,266 28,377	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,948 0	-100
Other long term liabilities	2,601,278	-4.33	2,718,980	-6.83	2,918,294	244,149	965
Total long term debts	2,601,278	-4.33	2,718,980	-6.83	2,918,294	674,710	285
SHAREHOLDERS EQUITY
Issued share capital	3,766,631	0	3,766,631	0	3,766,631	962,167	291
Share premium account	-	-	-	-	-	124,160	-
Reserves	336,678	13.41	296,865	17.45	252,758	645,592	-47.85
Revaluation reserve	-	-	-	-	-	852,199	-
Total shareholders equity	4,103,309	0.98	4,063,496	1.10	4,019,389	1,628,919	151
Working capital	6,529,422	-1.07	6,599,816	-2.23	6,750,557	2,045,255	219
Cashflow	47,308	-8.14	51,498	20.18	42,852	39,169	20.78
Net worth	4,103,309	0.98	4,063,496	1.10	4,019,389	1,627,617	152

Ratio Analysis

Annual accounts	31-12-2013	change(%)	31-12-2012	change(%)	31-12-2011	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	0.17	30.77	0.13	-7.14	0.14	-7,00	2.43
Return on capital employed	0.88	-2.22	0.90	7.14	0.84	-8,00	11.00
Return on total assets employed	0.34	30.77	0.26	-7.14	0.28	-8,00	4.25
Return on net assets employed	1.44	-4.64	1.51	4.14	1.45	-8,00	18.00
Sales / net working capital	5.39	-21.77	6.89	9.71	6.28	133,00	-99
Stock turnover ratio	11.65	-6.73	12.49	-20.24	15.66	76,00	-84.67
Debtor days	135.35	-1.45	137.34	19.09	115.32	140,65	-3.77
Creditor days	33.35	-50.78	67.76	6.39	63.69	123,06	-72.90
SHORT TERM STABILITY
Current ratio	1.61	15.83	1.39	-6.71	1.49	4,00	-83.90
Liquidity ratio / acid ratio	1.23	17.14	1.05	3.96	1.01	3,00	-59.00
Current debt ratio	2.62	-37.02	4.16	21.64	3.42	10,00	-73.80
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	183.85	-12.25	209.52	37.73	152.12	231,00	-20.41
Equity in percentage	23.49	36.89	17.16	-11.68	19.43	-211,00	11.13
Total debt ratio	3.26	-32.51	4.83	16.39	4.15	11,00	-70.36

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Payment Information

Amount	-
Details	-

Suspension of payments / moratorium history

Payment expectations

Payment expectation days	33.35
Day sales outstanding	135.35

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment expectation days	123.06
Industry average day sales outstanding	140.65

Industry quartile analysis

Payment expectations

Company result	33.35
Lower	122.66
Median	75.38
Upper	46.73

Day sales outstanding

Company result	135.35
Lower	101.92
Median	54.34
Upper	24.45

Shareholder Details

Summary

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

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Linked Companies

Summary

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

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 RAJESH VRAJLAL SHAH

Position Principal Manager

Start Date 15/11/2007

Street 8 BLAUWMEERSLAAN ANTWERPEN

Post code 2610

Country Belgium

Name RAJESH SHAH RAJESH

Position Principal Manager

Start Date 20/03/1986

Former director details

Name L. DISCRY

Position Partner

Start Date 17/02/1998

DIAMOND INDUSTRY

- 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 and 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.96.83
Euro	1	Rs.76.57

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SDA

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.