MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	GALAXY DIAMONDS (BELGIUM)B.V.B.A BVBA

Registered Office :	Hoveniersstraat 53-Box 53, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

Date of Incorporation :	14.02.2008

Com. Reg. No.:	895902292

Legal Form :	Private Limited Company

Line of Business :	Wholesaler of diamonds and other precious stones

No of Employees :	01 (31.12.2013)

RATING & COMMENTS

MIRA’s Rating :

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

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 895902292

Company name GALAXY DIAMONDS (BELGIUM) B.V.B.A BVBA

Address HOVENIERSSTRAAT 53-BOX 53

2018 ANTWERPEN

Number of staff 1

Date of establishment 14/02/2008

Telephone number 032273772

Fax number 03294 7967

Commentary

The business was established over 6 years ago.
The business has 1 employees.
The business has been at the address for over 17 months.
Operating Result in the latest trading period increased 30% on the previous trading period.
A 51% decline in Total Assets occurred during the latest trading period.
The business saw a decrease in their Cash Balance of 74% during the latest trading period.
Turnover in the latest trading period decreased 25% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS TURNOVER PROFIT BEFORE TAX NET WORTH WORKING CAPITAL

31/12/2013 29,796,191 80,213 1,825,998 4,716,398

31/12/2012 39,747,048 87,867 1,757,371 4,656,056

31/12/2011 45,180,882 22,830 1,680,279 4,588,582

Accounts

DATE OF LATEST ACCOUNTS BALANCE TOTAL NUMBER OF EMPLOYEES CAPITAL CASHFLOW

31/12/2013 7,722,902 1 1,500,000 80,195

31/12/2012 15,953,144 2 1,500,000 87,831

31/12/2011 11,567,389 2 1,500,000 76,822

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Past payments Payment expectation days 22.73

Industry average payment expectation days 123.97

Industry average day sales outstanding 140.86

Day sales outstanding 57.17

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 31/10/2013

Event Details Het mandaat van Agrawalla Pradeep is vanaf 01/11/13 onbezoldigd.

Company accounts

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	338,141	-2.33	346,223	-1.67	352,102	-0.22	352,873	10766	3,247
Tangible fixed assets	337,341	-2.34	345,423	-1.67	351,302	-0.30	352,373	10750	3,247
Land & building	329,091	-2.44	337,318	-2.38	345,545	-0.83	348,425	-	-
Plant & machinery	8,058	3.07	7,818	49.33	5,235	58.59	3,301	31.84	2,504
Furniture & Vehicles	192	-33.43	288	-44.71	521	-19.44	647	-13.02	743
Other tangible assets	0	0	-1	-	0	-	0	-	0
Financial fixed assets	800	0	800	0	800	60.0	500	-	-
Total current assets	7,384,761	-52.68	15,606,921	39.16	11,215,287	-25.91	15,137,761	170	5,603,289
Inventories	2,560,742	-29.87	3,651,369	-21.58	4,656,162	41.20	3,297,585	26.20	2,613,007
Raw materials & consumables	-	-	-	-	-	-	-	-	-
Finished goods	2,560,742	-29.87	3,651,369	-21.58	4,656,162	41.20	3,297,585	-	0
Other stocks	0	-	0	-	0	-	0	-100	2,613,007

Trade debtors	4,666,848	-59.01	11,386,587	103	5,608,858	-44.99	10,195,978	292	2,598,597
Other amounts receivable	13,724	63.32	8,403	1.26	8,298	7.18	7,742	-17.54	9,389

Cash	139,727	-74.78	554,101	-40.51	931,363	-42.99	1,633,724	327	382,295
Miscellaneous current assets	3720	-42.43	6462	-39.07	10606	288	2732	---	0
Total Assets	77722902	-51.59	125,953,144	37.91	1,1567,389	-25.33	154,900,634	176	5,606,536
Liabilities
Total shareholders equity	1,825,998	3.91	1,757,371	4.59	1,680,279	4.48	1,608,247	5.36	1,526,413
Issued share capital	1,500,000	0	1,500,000	0	1,500,000	0	1,500,000	0	1,500,000
Reserves	325,998	26.66	257,371	42.76	180279	66.54	108,247	309	26413
Creditors	5,896,904	-58.46	14,195,773	43.58	9,887,111	-28.78	13,882,387	245	4,012,637
Other long term loans	3,228,541	-0.50	3,244,908	-0.48	3,260,405	-0.45	3,275,038	--	---
Total long term debts	3,228,541	-0.50	3,244,908	-0.48	3,260,405	-0.45	3,275,038	4752	67486
Current portion of long term debt	16,367	5.61	15,497	5.91	14,633	5.31	13,895	---	---
Financial debts	652,600	-77.34	2,880,097	1,095,660	263	-99	2,635,234	---	---
Trade creditors	1,840,703	-76.66	7,887,786	22.11	6,459,317	-17.05	7,786,690	812	853,031
Amounts Payable for Taxes, Remuneration & Social Security	21,414	-34.13	32,509	153	12,837	-38.52	20,879	-51.52	43,070
Miscellaneous current liabilities	137,279	1.71	134,976	-3.35	139,655	-7.30	150,651	-95.71	3,116,536
Total current liabilities	2,668,363	-75.63	10,950,865	65.25	6,626,705	-37.53	10,607,349	164	4,012,637
Total Liabilities	7,722,902	-51.59	15,953,144	37.91	11,567,389	-25.33	15,490,634	176	5,606,536

Ratio Analysis

	31.12.2013	%	31.12.2012	%	31.12.2011	%	31.12.2010	%	31.12.2009
TRADING PERFORMANCE
Profit Before Tax	0.27	22.73	0.22	340	0.05	-54.55	0.11	---	---
Return on capital employed	1.59	-9.66	1.76	282	0.46	-57.41	1.08	-48.82	2.11
Return on total assets employed	1.04	89.09	0.55	175	0.20	-41.18	0.34	-43.33	0.60
Return on net assets employed	4.39	-12.20	5.00	267	1.36	-58.54	3.28	49.09	2.20
Sales / net working capital	6.32	-26.00	8.54	-13.30	9.85	-3.34	10.19	---	---
Stock turnover ratio	8.59	-6.53	9.19	-10.86	10.31	44.40	7.14	---	---
Creditor days	22.73	-68.76	72.77	39.14	52.30	-15.26	61.72	---	---
Debtor days	57.17	-45.32	104.56	130	45.31	-43.79	80.61	---	---
SHORT TERM STABILITY
Current ratio	2.77	93.71	1.43	-15.38	1.69	18.18	1.43	2.14	1.40
Liquidity ratio / acid ratio	1.84	66.06	1.09	10.10	0.99	-11.61	1.12	49.33	0.75
Current debt ratio	1.46	-76.57	6.23	58.12	3.94	-40.30	6.60	150	2.63
Cashflow	80,195	-8.69	87,831	14.33	76,822	-20.72	96,900	296	24,430
Net worth	1,825,998	3.91	1,757,371	4.59	1,680,279	4.48	1,608,247	5.36	1,526,413
LONG TERM STABILITY
Gearing	213.45	-38.91	349.41	79.25	194.93	-47.08	368.36	----	---
Equity in percentage	23.64	114	11.02	-24.16	14.53	39.98	10.38	-61.88	27.23
Total debt ratio	3.23	-60.02	8.08	37.41	5.88	-31.87	8.63	223	2.67
Working Capital	4,716,398	1.30	4,656,056	1.47	4,588,582	1.28	4,530,412	184	1,590,652

Profit & Loss

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
Operating Income	29,797,456	-25.04	39,749,280	-12.03	45,186,620	-2.18	46,194,991	--	---
Turnover	29,796,191	-25.04	39,747,048	-12.03	45,180,882	-2.13	46,165,077	--	---
Total Operating Expense	29,555,657	-25.29	39,562,398	-12.23	45,077,012	-2.10	46,045,272	---	---
Gross Operating Margin	---	---	---	---	---	---	---	---	258,176
Operating Charges	29,556,922	-25.29	39,564,630	-12.24	45,082,750	-2.15	46,075,186	---	---
Employees Costs	93,438	-8.81	102,469	-3.33	106,002	27.57	83,096	30.45	63,698
Wages & Salary	73,554	-9.84	81,586	-3.79	84,802	46.50	57,886	14.72	50,459
Social security Contribution	17,363	-8.19	18,911	1.39	18,652	24.10	15,030	20.01	12,524
Other Employees Costs	2,521	27.83	1,972	1.39	18,652	24.10	15,030	20.01	12,524
Director remuneration	--	---	36,000	---	---	---	---	---	---
Amortization & Depreciation	11,568	7.73	10,738	124	4,790	-68.20	15,066	1410	998
Operating result	240,534	30.26	184,650	77.77	103,870	-13.30	119,805	-3.20	123,763
Total financial income	573	73.18	331	-95.61	7,547	709	933	-99	549,346
Total financial expenses	160,894	65.67	97,114	9.63	88,587	30.26	68,007	-89.37	639,471
Results on ordinary operations before taxation	80,213	-8.71	87,867	284	22,830	-56.71	52,731	56.76	33,638
Extra ordinary Income	---	---	---	---	53,888	32472	40,000	---	---
Extraordinary Items	0	---	0	-100	53,888	34.72	40,000	---	0
Results for the year Before Taxation	80,213	-8.71	87,867	14.53	76,718	-17.27	92,731	175	33,638
Taxation	11,587	7.54	10,774	129	4,686	-57.00	10,897	6.77	10,206
Result on ordinary Operations after taxation	68,627	-10.98	77,093	324	18,144	-56.63	41,834	78.53	23,432
Net result	68,627	-10.98	77,093	7.03	72,032	-11.98	81,834	249	23,432
Profit (Loss) for the year to be appropriated	68,627	10.98	77,093	7.03	72,032	-11.98	81,834	249	23,432

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2013
Full-time Employees	2
Part-time Employees	2
Total Fte Employees	2

Number of hours worked
Full-time Employees	2,706
Part-time Employees	1,016
Total	3,722

Personnel Charges
Full-time Employees	67,932
Part-time Employees	25,506
Total	93,438
Benefits In Addition To Wages -

During the previous reporting year
Average number employees in Fte	2
Actual working hours	4,272
Personnel Charges	102,469
Benefits In Addition To Wages -

Type of Contract	Full Time	Part-Time	Total Fte
Unlimited Duration Contracts	--	2	1
Limited Duration Contracts	1	-	1

Gender and Education
Level
Men	Full-Time	Part-Time	Total Fte
Secondary education	1	-	1

Women	Full-Time	Part-Time	Total Fte
Primary education	-	1	0
Secondary education	-	1	0
Higher education (non	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
White collar worker	1	1	1
Blue collar worker	-	1	0

New staff Leavers	--	--	--
Leavers	1	--	1

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 123.97

Industry average day sales

Outstanding 140.86

Payment expectations

Payment expectation days 22.73

Day sales outstanding 57.17

Industry quartile analysis

Payment expectations

Company result 22.73

Lower 122.34

Median 75.38

Upper 46.32

Day sales outstanding

Company result 57.17

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 Pradeep

Surname Agrawalla

SHAREHOLDER DETAILS

Start date 10/12/2009(estimated)

SHAREHOLDER ADDRESS

Country India

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

Current director details

Name PRADEEP AGRAWALLA

Position Principal Manager

Start Date 28/05/2009

Street 44 CHARLOTTALEI ANTWERPEN

Post code 2018

Country Belgium

Name AKSHAY SHAH

Position Principal Manager

Start Date 01/07/2013

Street 30 VAN EYCKLEI ANTWERPEN

Post code 2018

Country Belgium

Former director details

Name JOZEF JORIS

Position Principal Manager

Start Date 01/01/2008

End Date 31/12/2010

Street 9 HÜGERLAAN GROBBENDONK

Post code 2280

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.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.02

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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

Significant Events

Company accounts

Social Balance Sheet Details

Industry comparison

Payment expectations

Industry quartile analysis

Group Structure

Minority Shareholders

Minority Interests

Individual shareholders

Summons

Protested Bills

Bankruptcy and other legal events

Current director details

Former director details

Unit