MIRA INFORM REPORT

 

 

Report Date :

10.12.2014

 

IDENTIFICATION DETAILS

 

Name :

BLUE GEMS NV

 

 

Registered Office :

Hoveniersstraat 30 2018 Antwerpen

 

 

Country :

Belgium

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

17.03.1994

 

 

Com. Reg. No.:

452299419

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Wholesaler of diamonds and other precious stones

 

 

No. of Employees :

05 (31.12.2013)

 

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 – 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 summary

 

Business number         452299419

Company name           BLUE GEMS NV

Address                        HOVENIERSSTRAAT

30

2018 ANTWERPEN

Number of staff            5 (31.12.2013)

Date of establishment 17/03/1994

Telephone number      032272207

Fax number                 032262865

 

 

Commentary

 

The business was established over 20 years ago.

The business has 5 employees.

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

The business saw an increase in their Cash Balance of 235% during the latest trading period

 

 

Accounts

 

Date of latest accounts

Turnover

Profit Before Tax

Net worth

Working capital

31/12/2013

90,909,509

229,157

10,597,928

11,573,414

31/12/2012

88,801,462

222,021

10,439,459

11,543,868

31/12/2011

106,664,445

163,268

10,217,435

9,477,652

 

Accounts

 

Date of latest accounts

Balance Total

Number of Employees

Capital

Cashflow

31/12/2013

45,056,520

5

8,403,000

300,497

31/12/2012

49,366,535

4

8,403,000

286,084

31/12/2011

41,848,015

3

8,403,000

223,123

 

 


Payment expectations

 

Past payments

Payment expectation days                              40.65

Industry average payment expectation days   127.74

Day sales outstanding                          122.66

Court action type                                             no

Industry average day sales outstanding          143.61

 

 

Company information

 

Business number         452299419

Company name           BLUE GEMS NV

Fax number                 032262865

Date founded               17/03/1994

Company status           active

Company type                         Public Limited Liability Company (BE)

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

 

 

Social Balance Sheet Details

 

Social Balance Sheet Total

During the reporting year

ended 31-12-2013

Full-time Employees                            4

Part-time Employees                           3

Total Fte Employees                            5

Number of hours worked

Full-time Employees                            6,179

Part-time Employees                           3,431

Total                                                    9,610

Personnel Charges

Full-time Employees                            199,256

Part-time Employees                           110,644

Total                                                    309,901

Benefits In Addition To Wages            -

During the previous reporting year

Average number employees in Fte     4

Actual working hours                           7,405

Personnel Charges                              263,013

 

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

 

 

Significant Events

 

Event Date                   26/05/2014

Event Description         re-appointment of director(s)

Commentaar 26-05-2014: Herbenoemd als bestuurders voor een periode van 6 jaar: Shah

Event Details

Company accounts

Profit & loss

Mitesh (tevens gedelegeerd bestuurder), Shah Nareshkumar (tevens gedelegeerd

bestuurder) en Shah Surekhaben.

 


Profit & loss

 

Annual accounts                                        31.12.2013%                          31.12.2012%                          31.12.2011%

 

Weeks                                                          52                                            52                                            52

Currency                                         EUR                              EUR                              EUR

Turnover                                            90,909,509 2.37       88,801,462 -16.75 106,664,445 49,179,845               84.85

Total operating expenses                       89,523,260 2.15       87,641,000 -17.27 105,931,777 48,734,962               83.69

Operating result                                   1,386,249 19.46 1,160,462 58.39 732,667                     142,499             872

Total financial income                           94,936         -44.67 171,590        -58.23 410,797          66,370              43.04

Total financial expenses                        1,252,028 12.79 1,110,031           13.25 980,196           156,181             701

Taxation                                             688             26578 -3                -185  3                   19,329              -96.44

Results on ordinary operations before        229,157          3.21   222,021      35.99  163,268    45,989     398

 

Taxation

 

Taxatin                                                              688      26578 – 3   -185  3   19,329          -96.44

 

Results on ordinary operations after

Taxation                                                            228,469          2.90      222,024    35.99      163,265   31,833     617

 

Extraordinary items                               0                -         0                -         0                 2,592                -100

Other appropriations                             0.00            -         0.00            -         0.00             -                      -

Net result                                            228,469       2.90     222,024       35.99 163,265           34,736              557

 

 

other information

Gross Operating Margin                        -                -         -                -         -                 43,643              -

Dividends                                           -                -         -                -         -                 216,234             -

Director remuneration                            194,867       -3.23 201,381          7.67     187,030         139,796             39.39

Employee costs                                    309,901       17.83 263,013         36.72 192,369           144,790             114

Wages and salary                            243,504       18.31 205,826         37.06 150,174           127,968             90.29

Employee pension costs                   -                -         -                -         -                 1,459                -

Social security contributions             64,480         16.13 55,523           35.10 41,099            31,664              103

Other employee costs                      1,916          15.17 1,664            51.75 1,096              3,044                -37.05

Amortization and depreciation       72,028    12.44 64,060        7.02       59,858    18,069    298

 

 

Balance sheet

 

Annual accounts

31-12-2013

%

31-12-2012

%      31-12-2011 industry average

%

Weeks

52

 

52

52

 

 

Currency

EUR

 

EUR

EUR

 

 

Assets

 

 

 

 

 

 

Intangible fixed assets

0

-

0

0

1,350

-100

Tangible fixed assets

1,491,227

-1.34

1,511,441

-4.00 1,574,338

190,398

683

Land & building

1,421,748

-3.57

1,474,377

-3.45 1,527,006

372,677

281

Plant & machinery

6,004

325

1,411

78.21 792

29,905

-79.92

Furniture & Vehicles

63,476

78.03

35,654

-23.39 46,540

15,727 4,224

303

Leasing & Other Similar Rights

-

-

-

-

42,007 20,215

-

Other tangible assets

0

-

0

0

11,122

-100

Financial fixed assets

124

0

124

0 124

40,537

-99

Total fixed assets

1,491,351

-1.34

1,511,565

-3.99 1,574,462

203,814

631

Inventories

11,915,903

-12.34 13,593,514    94.27    

                                  6,997,213

2,596,151

358

Raw materials & consumables

-

-

-

-

113,995

-

Work in progress

0

-

0

0

1,907

-100

Finished goods

11,915,903

-12.34   13,593,514      94.27   

                                 6,997,213

1,668,987

613

Other stocks

0

-

0

0

460,279

-100

Trade debtors

30,550,148

-5.85

32,447,907 1.13    32,084,546 4,142,761

637

Cash

610,835

235

182,315

-77.89 824,731

775,601,743

-99

other amounts receivable

437,251

-72.32 1,579,614

374 333,037

153,656

184

Miscellaneous current assets

51,032

-1.14

51,619

51.70 34,026

-762,730,407

0.01

Total current assets

43,565,169

-8.96

47,854,969 18.82 40,273,553 6,676,319

552

Total Assets

45,056,520

-8.73

49,366,535 17.97 41,848,015

6,864,166 1,130,848

556

 

Current liabilities

Trade creditors                                   9,969,943 -27.27 13,708,241 21.56 11,277,270 2,789,953                         257

Short term group loans                         -                -         -                -         -                -                        -

Financial                                                          18,104,384 -1.85 18,445,946 36.47 13,516,463 3,917,566   362

current portion of long term debt           3,737,803 -3.47 3,872,065 -34.34 5,897,447 104,458 13,701 3478

Miscellaneous current liabilities             111,903       -48.90 218,974        252      62,050         -50.45                 --

Total current liabilities                         31,991,755 -11.90 36,311,102 17.91 30,795,901 4,757,152                       572

 

 

Long term debts and liabilities

Long term group loans                         -                -         -                -         -                -                        --

Other long term loans                          2,466,838 -5.70 2,615,974 213                834,679       79.30                  --

 

Deffered taxes                                    -                -         -                -         -                47,059 41,554       -

Provisions for Liabilities & Charges       0                -         0                -         0               5,184 0                -100

Other long term liabilities                      0                -         0                -         0               102,495               -100

Total long term debts                          2,466,838 -5.70 2,615,974 213                834,679       620,712               297

 

 

shareholders equity

Issued share capital                             8,403,000 0            8,403,000 0             8,403,000 923,185                   810

Share premium account                        -                -         -                -         -                90,761                 -

Reserves                                           2,194,928 7.78         2,036,459 12.24 1,814,435 522,194                         320

Revaluation reserve                             -                -         -                -         -                1,100,228             -

Total shareholders equity                     10,597,928 1.52       10,439,459 2.17       10,217,435 1,473,890               619

Working capital                                  11,573,414 0.26       11,543,868 21.80 9,477,652 1,919,167                     503

Cashflow                                           300,497       5.04     286,084       28.22 223,123         49,603                 505

Net worth                                          10,597,928 1.52       10,439,459 2.17       10,217,435 1,472,540               619

 

Ratio analysis

 

Trading Performance

 

 

 

 

 

 

Profit Before Tax

0.25

0

0.25

66.67

0.15

-5,00

Return on capital employed

1.75

2.94

1.70

14.86

1.48

8,00

Return on total assets

0.51

13.33

0.45

15.38

0.39

-2,00

employed

 

 

 

 

 

 

 

 

Return on net assets employed

2.16

1.41

2.13

33.12

1.60

4,00

Sales / net working capital

7.86

2.21

7.69

-31.64

11.25

215,00

Stock turnover ratio

13.11

-14.37

15.31

133

6.56

55,00

Debtor days

122.66

-8.03

133.37

21.48

109.79

143,61

Creditor days

40.65

-28.80

57.09

46.91

38.86

127,74

short term stability

 

 

 

Current ratio

1.36

3.03

1.32

0.76

1.31

4,00

Liquidity ratio / acid ratio

0.99

5.32

0.94

-12.96

1.08

3,00

Current debt ratio

3.02

-13.22

3.48

15.61

3.01

16,00

Liquidity ratio reprocessed

:

-

-

-

-

-

long term stability

 

 

 

Gearing

229.38

-3.96

238.84

20.52

198.18

254,00

Equity in percentage

23.52

11.21

21.15

-13.39

24.42

-318,00

Total debt ratio

3.25

-12.87

3.73

20.32

3.10

17,00

 

 

Industry comparison

 

Activity code                                        46761

Activity description                              Wholesale of diamonds and other precious stones

 

 

Suspension of payments / moratorium history

 

Amount                                     -

Details                                                 -

Payment expectations

Payment expectation days      40.65

Day sales outstanding 122.66

 

 

Industry comparison

 

Activity code                            46761

Activity description                  Wholesale of diamonds and other precious stones

Industry average payment

expectation days                     127.74

Industry average day sales

outstanding                              143.61

 

 

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

 

 

Current director details

 

Name MITESH NARESH SHAH

Position Managing Director

Start Date 26/06/2014

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Name MIHIR SHAH Show all 3 [+]

Position Principal Manager

Start Date 01/07/2002

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Position Managing Director

Start Date 11/08/2010

End Date 25/05/2020

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

Position Director

Start Date 26/01/2009

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Name NARESHKUMAR MANEKLAL SHAH

Position Managing Director

Start Date 29/08/2011

End Date 25/05/2020

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

Position Director

 

Position Director

Start Date 26/01/2009

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Name SUREKHABEN NARESHKUMAR SHAH

Position Director

Start Date 16/08/2014

End Date 25/05/2020

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Former director details

Name NARESHKUMAR MANEKLAL SHAH

Position Principal Manager

Start Date 25/02/1999

End Date 26/01/2009

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Name SUBODCHANDRA SHAH

Position Director

Start Date 11/08/2010

End Date 31/12/2013

Street 31 DENNENLAAN ANTWERPEN

Post code 2610

Country Belgium

 

Name CHODHARI MIHIR

Position Principal Manager

Start Date 14/12/1999

End Date Unknown date

Street 7 QUINTEN MATSIJSDOORGANG ANTWERPEN

Post code 2000

Country Belgium

 

 

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 8th Century B.C.  India, in fact, remained undisputed leader till 18th 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 30th 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.61.88

UK Pound

1

Rs.96.90

Euro

1

Rs.76.29

 

 

INFORMATION DETAILS

 

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.