MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	AVNINA GEMS BVBA

Registered Office :	Pelikaanstraat 62, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.03.2014

Date of Incorporation :	19.12.2002

Com. Reg. No.:	479202566

Legal Form :	Private Limited Company

Line of Business :	Wholesaler of diamonds and other precious stones

No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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

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 & address

Business number 479202566

Company name AVNINA GEMS BVBA

Address PELIKAANSTRAAT 62

2018 ANTWERPEN

Number of staff 0

Date of establishment 19/12/2002

Telephone number 032316373

Fax number 032316373

Commentary

The business was established over 11 years ago.
The business has 0 employees.
The business has been at the address for over 11 years.
Operating Result in the latest trading period decreased 30% on the previous trading period.
A 42% decline in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 32% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 52% during the latest trading period.
Turnover in the latest trading period decreased 26% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/03/2014	61,954,628	135,209	1,073,484	1,073,670
31/03/2013	84,592,745	201,795	991,330	991,516
31/03/2012	53,087,919	16,286	855,821	855,969

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/03/2014	24,511,257	0	698,219	82,155
31/03/2013	42,996,642	0	698,219	135,547
31/03/2012	24,672,844	0	698,219	19,246

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Payment expectation days 130.57

Industry average payment expectation days 124.39

Industry average day sales outstanding 141.74

Day sales outstanding 96.09

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

Assets

Annual accounts	31-03-2014	%	31-03-2013	%	31-03-2012	%	31-03-2011	%	31-03-2010
Weeks	52		52		52		52		52
Currency	EUR		EUR		EUR		EUR		EUR
Total fixed assets	0	0	0	-99	39	-99	6,719	-60.58	17,045
Intangible fixed assets	0	-	0	-	0	-	0	-	0
Tangible fixed assets	0	0	0	-99	39	-99	6,719	-60.58	17,045
Plant & machinery	-	-	-	-	39	-62.39	103	-38.42	167
Furniture & Vehicles	0	0	0	0	0	-99	6,616	-60.80	16,878
Leasing & Other Similar Rights	-	-	-	-	-	-	-	-	-
Other tangible assets	0	-	0	-	0	-	0	-	0
Total current assets	24,511,257	-42.99	42,996,642	74.27	24,672,806	31.07	18,824,587	-35.03	28,973,607
Inventories	8,053,364	-28.37	11,243,351	-11.44	12,695,117	140	5,285,840	31.63	4,015,721
Work in progress	0	-	0	-	0	-	0	-	0
Finished goods	8,053,364	-28.37	11,243,351	-11.44	12,695,117	140	5,285,840	31.63	4,015,721
Other stocks	0	-	0	-	0	-	0	-	0
Trade debtors	16,309,642	-48.16	31,458,567	164	11,875,181	-11.94	13,485,905	-45.85	24,902,551
Other amounts receivable	11,133	18.79	9,371	409	1,840	13.12	1,627	22.26	1,330
Cash	136,242	-52.01	283,870	186	99,147	198	33,268	-37.48	53,210
Miscellaneous current assets	877	-40.85	1,482	-2.55	1,521	-91.53	17,946	2159	794
Total Assets	24,511,257	-42.99	42,996,642	74.27	24,672,844	31.02	18,831,305	-35.04	28,990,652
Liabilities
Total shareholders Equity	1,073,484	8.29	991,330	15.83	855,821	1.49	843,256	4.91	806,764
Is sued Share capital	698,219	0	698,219	0	698,219	0	698,219	0	698,219
Reserves	375,265	28.03	293,111	85.98	157,602	8.66	145,037	37.42	105,545
Creditors	23,437,772	-44.20	42,005,312	76.37	23,817,023	32.40	17,988,050	-36.18	28,186,887
Other Long Terms Loans	----	--	--	---	--	--	--		4,619
Other Long Term Liabilities	186	0	186	0	186	0	186	0	186
Total Long Term Debts	186	0	186	0	186	0	186	-96.13	4,805
Current portion of long term debt	-	-	-	-	-	-	4,619	-56.96	10,731
Financial debts	1,257	-99	1,572,923	4.36	1,507,243	7.07	1,407,757	-3.68	1,461,533
Trade creditors	22,055,037	-43.35	38,932,812	85.99	20,933,219	37.13	15,265,160	-40.18	25,516,901
Amounts Payable for Taxes,	56,212	-19.72	70,023	728	8,450	-63.58	23,205	-26.77	31,689
Remuneration & Social Security
Miscellaneous current liabilities	1,325,080	-7.30	1,429,368	4.49	1,367,925	6.28	1,287,123	10.84	1,161,228
Total current liabilities	23,437,586	-44.20	42,005,126	76.37	23,816,837	32.41	17,987,864	-36.17	28,182,083
Total Liabilities	24,511,257	-42.99	42,996,642	74.27	24,672,844	31.02	18,831,305	-35.04	28,990,652

Ratio Analysis

Annual accounts	31-03-2014	%	31-03-2013	%	31-03-2012	%	31-03-2011	%	31.12.2010
TRADING PERFORMANCE
Profit Before Tax	0.22	-8.33	0.24	700	0.03	-80.0	0.15	-28.57	0.21
Return on capital employed	12.59	-38.13 20.35		971	1.90	-73.31	7.12	-19.64	8.86
Return on total assets employed	0.55	17.02	0.47	571	0.07	-78.12	0.32	28.00	0.25
Return on net assets employed	12.60	-38.11	20.36	971	1.90	-73.31	7.12	-20.09	8.91
Sales / net working capital	57.70	-32.37	85.32	37.57	62.02	30.71	47.45	9.13	43.48
Stock turnover ratio	13.00	-2.18	13.29	-44.42	23.91	79.64	13.31	14.05	11.67
Creditor days	130.57	-22.67	168.85	16.84	144.52	23.37	141.17	--48.12	272.10
Debtor days	96.09	-29.21	135.74	66.25	81.65	-34.15	123.99	-53.05	264.11
Short Term Liability
Current ratio	1.05	2.94	1.02	-1.92	1.04	-0.95	1.05	1.94	1.03
Liquidity ratio / acid ratio	0.70	-7.89	0.76	52.00	0.50	-33.33	0.75	-15.73	0.89
Current debt ratio	21.83	-48.48	42.37	52.25	27.83	30.47	21.33	-39.16	35.06
Cash flow	82,155	-39.39	135,547	604	19,246	-61.37	49,818	-16.41	59,596
Net worth	1,073,484	8.29	991,330	15.83	855,821	1.49	843,256	4.91	803,764

Profit & Loss

Annual accounts	31-03-2014	%	31-03-2013	%	31-03-2012	%	31-03-2011	%	31.12.2010
Operating Income	61,960,755	-26.77	84,608,640	59.36	53,093,432	33.73	39,701,362	15.04	34,511,643
Turnover	61,954,628	-26.76	84,592,745	59.34	53,087,919	33.72	39,700,100	15.36	34,415,564
Total operating expenses	61,653,476	-26.74	84,159,464	59.19	52,868,034	33.95	39,467,429	15.31	34,228,329
Operating Charges	61,659,602	-26.75	84,175,359	59.20	52,873,547	33.96	39,468,691	14.99	34,324,408
Employee costs	11,337	9.49	10,354	9.13	9,488	136	4,020	-82.20	22,579
Wages and salary	9,346	3.25	9,052	4.59	8,655	133	3,703	-82.37	21,004
Social security contributions	1,825	60.56	1,137	56.64	726	380	151	-89.85	1,487
Other employee costs	165	0.22	165	53.87	107	-35.30	166	89.29	88
Director remuneration	-	-	-	-	-	-	3,710	-	-
Amortization and depreciation	-	-	39	-99	6,680	-35.31	10,326	-31.42	15,057
Operating result	301,152	-30.49	433,281	97.05	219,885	-5.50	232,672	24.27	187,235
Total financial income	353	29.75	272	-67.18	828	358	181	106223	0
Total financial expenses	166,296	-28.25	231,758	13.37	204,427	18.30	172,804	49.51	115,582
Results on ordinary operations Before taxation	135,209	-33.00	201,795	1139	16,286	-72.88	60,048	-16.20	71,653
Extra ordinary Income	--	--	--	--	2,000	--	--	--	--
Extraordinary Items	0	--	0	-100	2,000	--	---	---	---
Results for the Year Before Taxation	135,209	-33.00	201,795	1003	18,286	-69.55	60,048	-16.20	71,653
Taxation	53,054	-19.96	66287	1058	5,720	-72.17	20,557	-24.19	27,115
Results on ordinary operations after taxation	82,155	-39.37	135,508	1182	10,566	-73.25	39,491	-11.33	44,538
Net result	82,155	-39.37	135,508	978	12,566	-68.18	39,491	-11.33	44,538
Profit (Loss) for the Year to be	82,155	-39.37	135,508	978	12,566	-68.18	39,491	-11.33	44,538

Social Balance Sheet Details

Social Balance Sheet Details
Social Balance Sheet	Total
During the reporting year ended 31-03-2014
Full-time Employees	-
Part-time Employees	1
Total Fte Employees	0

Number of hours worked
Full-time Employees	-
Part-time Employees	699
Total	699

Personnel Charges
Full-time Employees	-
Part-time Employees	11,337
Total	11,337
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	0
Actual working hours	630
Personnel Charges	10,354
Benefits In Addition To Wages	-

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration -Contracts -- 1 0

Gender and Education Level

Men Full-Time Part-Time Total Fte

Primary education - - -- --

Secondary education - -- 1 0

Payment expectations
Payment expectation days	130.57
Day sales outstanding	96.09
Industry comparison
Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment expectation days	124.39
Industry average day sales	141.74

Industry quartile analysis

Payment expectations

Company result 130.57

Lower 122.66

Median 76.39

Upper 46.98

Day sales outstanding

Company result 96.09

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

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 JAMIR SHAH

Position Principal Manager

Start Date 01/10/2013

Street 42 VIJVERLAAN ANTWERPEN

Post code 2610

Country Belgium

Name AMI DOSHI

Position Principal Manager

Start Date 05/02/2011

Street 12 VAN EYCKLEI ANTWERPEN

Post code 2018

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 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.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Analysis Done by :	KAR

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.

MIRA INFORM REPORT

Company name & address

Commentary

Accounts

TRENDS

Payment expectations

Company information

Joint Industrial Committee (JIC)

Company accounts

Social Balance Sheet Details

Payment expectations

Industry comparison

Industry quartile analysis

Group Structure

Minority Shareholders

Minority Interests

Summons

Protested Bills

Bankruptcy and other legal events

Director details

Unit