MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	D. NAVINCHANDRA GEMS BVBA
Registered Office :	Hoveniersstraat 2-Bus 136 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	02.02.1998
Com. Reg. No.:	462600126
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 :

Ba

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Belgium	A2	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 name and address

Business number 462600126

Company name D. NAVINCHANDRA GEMS BVBA

Address HOVENIERSSTRAAT 2-BUS 136

2018 ANTWERPEN

Number of staff 0

Date of establishment 02/02/1998

Telephone number 032332427

Fax number 032251132

Commentary

The business was established over 16 years ago.

The business has 0 employees.

The business has been at the address for over 5 years.

Operating Result in the latest trading period increased 88% on the previous trading period.

Pre-tax profits increased by 25% compared to the previous trading period.

The business saw an increase in their Cash Balance of 15710% during the latest trading period.

Turnover in the latest trading period increased 28% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	50,595,096	78,750	1,782,400	5,980,566
31/12/2012	39,282,329	62,991	1,709,580	4,571,912
31/12/2011	43,235,521	87,152	1,646,589	4,552,150

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	14,522,402	0	1,615,178	93,141
31/12/2012	12,241,308	0	1,615,178	82,637
31/12/2011	12,946,206	0	1,615,178	101,861

Payment expectations

Past payments Payment expectation days 18.48

Industry average payment

expectation days 124.45 Industry average day sales

outstanding 141.74

Day sales outstanding 79.15

Company information

Business number 462600126

Company name D. NAVINCHANDRA GEMS BVBA

Fax number 032251132

Date founded 02/02/1998

Company status active

Company type Private Limited Company

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.0462.600.126 Check VAT number

Joint Industrial Committee (JIC)

JIC Code 218

Description Additional national joint committee for the employees

category

JIC Code 324.02

Description JSC small merchandisers in the diamant industry and trade

category

Significant Events

Event Date 24/02/2011

Event Description

Event Details Aanpassing & Coördinatie statuten.

Event Date 25/06/2010

Event Description

Event Details De 438 nieuwe aandelen worden toegekend aan Mihir Mehta (219 nieuwe aandelen) en

vennootschap naar het recht van de Republiek Singapore D.N. Gems Pte Ltd (219 nieuwe

aandelen).

Event Date 24/02/2011

Event Description

Event Details Aanpassing & Coördinatie statuten.

Event Date 25/06/2010

Event Description

Event Details De 438 nieuwe aandelen worden toegekend aan Mihir Mehta (219 nieuwe aandelen) en

vennootschap naar het recht van de Republiek Singapore D.N. Gems Pte Ltd (219 nieuwe

aandelen).

Event Date 24/02/2011

Event Description

Event Details Aanpassing & Coördinatie statuten.

Event Date 25/06/2010

Event Description

Event Details De 438 nieuwe aandelen worden toegekend aan Mihir Mehta (219 nieuwe aandelen) en

vennootschap naar het recht van de Republiek Singapore D.N. Gems Pte Ltd (219 nieuwe

aandelen).

Assets

Annual accounts 31-12-2013 % 31-12-2012 % 31-12-2011 % 31-12-2010 % 31-12-2009

Weeks 52 52 52 52 52

Currency EUR EUR EUR EUR EUR

Total fixed assets 415,000 -4.13 432,870 -3.78 449,853 337 102,788 51293 200

Intangible fixed assets	0	-	0	-	0	-	0	-	0
Tangible fixed assets	414,200	-4.14	432,070	-3.78	449,053	340	101,988	-	-
Land & building	339,758	-2.08	346,979	-2.04	354,201	-	-	-	-
Plant & machinery	69,981	-13.14	80,566	-10.66	90,178	-8.80	98,878	-	-
Furniture & Vehicles	4,461	-1.40	4,525	-3.19	4,674	50.29	3,110	-	-
Leasing & Other Similar Rights - - - - - - - - -
Other tangible assets	0	-	0	-	0	-	0	-	0
Financial fixed assets	800	0	800	0	800	0	800	300	200
Total current assets	14,107,402	19.47	11,808,438	-5.50	12,496,353	29.47	9,651,648	56.75	6,157,490
Inventories	2,570,991	-41.55	4,398,563	113	2,060,717	59.89	1,288,825	31.47	980,300
Raw materials & consumables	-	-	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	-	0	-	0
Finished goods	2,570,991	-41.55	4,398,563	113	2,060,717	59.89	1,288,825	31.47	980,300
Other stocks	0	-	0	-	0	-	0	-	0
	10,970,945 13,428					22.38 39.57	8,176,713 6,617	67.92 128
Trade debtors		48.42 113	7,391,838	-26.13	10,006,997				4,869,553
Other amounts receivable			6,296	-31.83	9,235				2,898
Cash	543,895	15710	3,440	-99	406,290	143	166,771	-43.98	297,676
Miscellaneous current assets	8,144	-1.89	8,301	-36.70	13,114	3.08	12,722	80.12	7,063
Total Assets	14,522,402	18.63	12,241,308	-5.44	12,946,206	32.72	9,754,436	58.41	6,157,690

Liabilities

Total shareholders equity 1,782,400 4.26 1,709,580 3.83 1,646,589 5.59 1,559,437 460 278,420

Issued share capital	1,615,178	0	1,615,178	0	1,615,178	0.00	1,615,178	308	395,666
Share premium account	-	-	-	-	-	-	-	-	—
Revaluation reserve	-	-	-	-	-	-	-	-
Reserves	167,222	77.14	94,402	200	31,411	56.35	-55,741	47.54	-117,245
Provisions for Liabilities & Charges	0	-	0	-	0	-	0	-	0
Deffered taxes								j	—
Creditors	12,740,002	20.97	10,531,727	-6.80	11,299,616	37.88	8,194,998	39.39	5,879,270
Other long term loans	4,373,166	43.14	3,055,202	-1.93	3,115,413	1198	240,000	0	240,000
Long term group loans	-	-	-	-	-	-	-	-	-
Other long term liabilities	240,000	0	240,000	0	240,000	-35.86	374,195	-	0
Total long term debts	4,613,166	40.00	3,295,202	-1.79	3,355,413	446	614,195	155	240,000
Current portion of long term debt	-	-	-	-	-	-	-	-	-
Financial debts	4,342,281	102	2,140,002	-12.69	2,451,033	-52.29	5,137,147	744	608,166
Trade creditors	2,543,435	-34.04	3,855,780	-8.40	4,209,459	285	1,092,094	-72.11	3,915,084
Amounts Payable for Taxes, Remuneration & Social Security	19,296	51.59	12,729	27.90	9,953	4.91	9,487	364	2,044
Miscellaneous current liabilities	1,221,825	-0.50	1,228,014	-3.59	1,273,759	-5.09	1,342,075	20.48	1,113,975

Total current liabilities	8,126,836	12.30	7,236,526	-8.91	7,944,203	4.79	7,580,803	34.43	5,639,270
Total Liabilities	14,522,402 18.63		12,241,308 -5.44		12,946,206 32.72		9,754,436	58.41	6,157,690

ratio analysis

TRADING PERFORMANCE
Profit Before Tax	0.16	0	0.16	-20.0	0.20	11.11	0.18	-14.29	0.21
Return on capital employed	1.23	-2.38	1.26	-27.59	1.74	-38.52	2.83	-49.46	5.60
Return on total assets employed	0.54	5.88	0.51	-23.88	0.67	6.35	0.63	34.04	0.47
Return on net assets employed	4.42	20.11	3.68	-30.43	5.29	34.26	3.94	-62.22	10.43
Sales / net working capital	8.46	-1.51	8.59	-9.58	9.50	-41.07	16.12	-40.52	27.10
Stock turnover ratio	5.08	-54.64	11.20	134	4.77	23.58	3.86	-44.70	6.98
Creditor days	18.48	-48.67	36.00	0.61	35.78	197	12.03	-88.23	102.20
Debtor days	79.15	15.24	68.68	-18.70	84.48	-5.49	89.39	-29.38	126.57
SHORT TERM STABILITY
Current ratio	1.74	6.75	1.63	3.82	1.57	23.62	1.27	16.51	1.09
Liquidity ratio / acid ratio	1.42	39.22	1.02	-22.14	1.31	19.09	1.10	19.57	0.92
Current debt ratio	4.56	7.80	4.23	-12.24	4.82	-0.82	4.86	-76.00	20.25
Liquidity ratio reprocessed	-	-	-	-	-	-	-	-	^-
Cashflow	93,141	12.71	82,637	-18.87	101,861	57.99	64,471	121	29,053
Net worth	1,782,400	4.26	1,709,580	3.83	1,646,589	5.59	1,559,437	460	278,420
LONG TERM STABILITY
Gearing	488.97	60.90	303.89	-10.11	338.06	-1.96	344.81	13.19	304.64
Equity in percentage	12.27	-12.17	13.97	9.83	12.72	-20.45	15.99	253	4.52
Total debt ratio	7.15	16.07	6.16	-10.20	6.86	30.42	5.26	-75.09	21.12
Working capital	5,980,566	30.81	4,571,912	0.43	4,552,150	119	2,070,845	299	518,220
Profit & loss
Operating Income	50,596,415	28.80	39,283,693	-9.14	43,237,073	29.51	33,386,348	137	14,042,782
Turnover	50,595,096	28.80	39,282,329	-9.14	43,235,521	29.50	33,386,214	137	14,042,782
Total operating expenses	50,240,984	28.51	39,094,515	-8.96	42,940,009	29.62	33,126,911	136	13,982,862
Gross Operating Margin - - - - - - - - -
Operating Charges	50,242,302	28.51	39,095,879	-8.96	42,941,561	29.63	33,127,045	136	13,982,862
Employee costs	28,595	5.92	26,995	9.30	24,700	19.19	20,722	135	8,814
Wages and salary	20,545	1.71	20,201	9.75	18,406	15.15	15,985	131	6,896
Employee pension costs - - - - - - - - -
Social security contributions	4,253	0.06	4,251	9.31	3,889	27.75	3,044	84.51	1,650
Other employee costs	3,796	49.21	2,544	5.81	2,404	41.98	1,693	531	268
Director remuneration	55,800	0	55,800	50.0	37,200	-	-	-	-
Amortization and depreciation	20,322	3.44	19,646	33.57	14,709	395	2,966	-	-

Operating result	354,112	88.54	187,814	-36.44	295,512	13.96	259,303	332	59,920
Total financial income	29,726	6.97	27,789	15191	182	67207	0	-97.74	12
Total financial expenses	305,089	99	152,612	-26.82	208,542	5.43	197,799	540	30,879
Results on ordinary operations before taxation	78,750	25.02	62,991	-27.72	87,152	41.70	61,505	111	29,053
Extraordinary Income	-	-	-	-	-	-	-	-	-
Extraordinary Charges	-	-	-	-	-	-	-	-	-
Extraordinary items	0	-	0	-	0	-	0	-	0
Results for the Year Before Taxation	78,750	25.02	62,991	-27.72	87,152	41.70	61,505	111	29,053
Other appropriations	-	-	-	-	-	-	-	-	-
Taxation	5,930	-	-	-	-	-	-	-	-
Results on ordinary operations after taxation	72,820	15.60	62,991	-27.72	87,152	41.70	61,505	111	29,053
Net result	72,820	15.60	62,991	-27.72	87,152	41.70	61,505	111	29,053
Profit (Loss) for the Year to be appropiated	72,820	15.60	62,991	-27.72	87,152	41.70	61,505	111	29,053
Dividends	-	-	-	-	-	-	-	-	-

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2013
Full-time Employees	-
Part-time Employees	1
Total Fte Employees	1
Number of hours worked
Full-time Employees	-
Part-time Employees	1,165
Total	1,165
Personnel Charges
Full-time Employees	-
Part-time Employees	28,595
Total	28,595
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	1
Actual working hours	1,180
Personnel Charges	26,995
Benefits In Addition To Wages	-
Type of Contract Full-Time	Part-Time	Total Fte
Unlimited Duration -Contracts	1	1
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 -	-	-
Higher education (non -university)	-	-
Higher education -(university)	-	-
Women Full-Time	Part-Time	Total Fte
Primary education -	1	1
Secondairy education -	-	-
Higher education (non -university)	-	-
Higher education -(university)	-	-

Payment Information

Payment expectation days	18.48
Day sales outstanding	79.15
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment	124.45
expectation days
Industry average day sales	141.74
outstanding

Industry quartile analysis

Payment expectations

Company result 18.48

Lower 122.66

Median 75.69

Upper 46.98

Day sales outstanding

Company result 79.15

Lower 102.58

Median 54.52

Upper 24.07

Shareholder Details

Group Structure

No group structure for this company.

Minority Interests

No minority interests found

Individual Shareholders

SHAREHOLDER NAME

Forename Mihir Middle name -

Surname Mehta

SHAREHOLDER DETAILS

Start date 16/07/2010(estimated) End date –

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 RUSHIN HARESH CHOKSI

Position Principal Manager

Start Date 01/09/2011

Street 102 BELGIËLEI ANTWERPEN

Post code 2018

Country Belgium

Name MANOJ KUMAR RASIKLAL MEHTA

Position Principal Manager

Start Date 15/04/2009

Street 70 JACHTLAAN EDEGEM

Post code 2650

Country Belgium

Name MIHIR DILIPKUMAR MEHTA

Position Principal Manager

Start Date 28/05/2010

Country India

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.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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.