MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	GEM DIAMONDS MARKETING SERVICES BVBA
Registered Office :	Hoveniersstraat 50, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	09.01.2006
Com. Reg. No.:	878452091
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No of Employees :	From 1 To 4 Employees

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 Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 878452091

Company name GEM DIAMONDS MARKETING SERVICES BVBA

Address HOVENIERSSTRAAT 50

2018 ANTWERPEN

Number of staff From 1 To 4 Employees

Date of establishment 09/01/2006

Telephone number 03203 40 80

Fax number 03203 40 81

Ultimate holding company

Company name

KIMBERLY DIAMOND COMPANY NL

Commentary

The business was established over 8 years ago.
The business is part of a group.
The business has been at the address for over 15 months.
Operating Result in the latest trading period decreased 60% on the previous trading period.
Net Worth increased by 24% during the latest trading period.
A 238% growth in Total Assets occurred during the latest trading period.
Pre-tax profits decreased by 61% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 56% during the latest trading period.
Turnover in the latest trading period decreased 48% on the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	151,296,090	501,140	1,582,067	51,677
31/12/2011	294,490,428	1,292,723	1,269,719	1,044,578
30/06/2010	---	164,241	413,003	383,005

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	10,385,833	From 1 To 4 Employees	300,901	500,064
31/12/2011	3,065,615	2	306,857	1,118,658
30/06/2010	676,382	1	300,000	130,367

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Past payments

Payment expectation days 1.05

Industry average payment expectation days 164.62

Industry average day sales outstanding 125.68

Day sales outstanding 0.01

Court data summary

Bankruptcy details

Court action type no

Company summary

Business number 878452091

Company name GEM DIAMONDS MARKETING SERVICES BVBA

Fax number 03203 40 81

Date founded 09/01/2006

Company status active

Company type Private Limited Company (BL/LX)

Currency Euro (€)

Date of latest accounts 31/12/2012

Activity code 46761

Activity description Wholesaler of diamonds and other precious stones

Liable for VAT yes

VAT Number BE.0878.452.091

Check VAT number

Belgian Bullettin of Acts

Publications moniteur belge

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year

ended 31-12-2012

Full-time Employees 3

Part-time Employees -

Total Fte Employees 3

Number of hours worked

Full-time Employees 4,894

Part-time Employees -

Total 4,894

Personnel Charges

Full-time Employees 221,157

Part-time Employees -

Total 221,157

Benefits In Addition To Wages -

During the previous reporting year

Average number employees in Fte 2

Actual working hours 3,944

Personnel Charges 228,440

Benefits In Addition To Wages -

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration

Contracts 3 - 3

Women Full-Time Part-Time Total Fte

Secondary education 3 - 3

Working Category Full-Time Part-Time Total Fte

White collar worker 3 - 3

New staff and leavers Full-Time Part-Time Total Fte

New Starters 1 - 1

Personnel

(NSSO classification)

Code -

Description FROM 1 TO 4 EMPLOYEES

COMPANY ACCOUNTS

Comparison Mode

· Average Median Export accounts to CSV File

Profit & loss

Annual accounts	31-12-2012 %	31-12-2011 %		30-06-2010	average 2012	%
Weeks	52	78		52
Currency	EUR	EUR		EUR
Turnover	151,296,090 -48.62 294,490,428 -		-	-	46,485,458	225
Total operating expenses	150,741,607 -48.57 293,094,050 -		-	-	46,114,879	226
Operating result	554,483 -60.29	1,396,378	1941	68,387	140,820	293
Total financial income	13,058 -80.53	67,065	-35.15	103,419	98,771	-86.78
Total financial expenses	66,400 - 61.11	170,720	2156	7,566	206,101	-67.78
Results on ordinary operations before taxation	501,140 -61.23	1,292,723	687	164,241	25,231	1886
Taxation	163,340 - 63.80	451,266	695	56,723	20,807	685
Results on ordinary operations after taxation	337,800	841,457	682	107,518	10,456	3130
Extraordinary items	0	-0	-	0	-3,965	0
Other appropriations	0	-0	-	0.00	-	-
Net result	337,800	-59.86 841,457	682	107,518	6,510	5088
other information
Gross Operating Margin	-	--	-	135,493	56,746	-
Dividends	-	--	-	-	172,177	-
Director remuneration	-	--	-	-	112,544	-
Employee costs	221,157	-5.07 232,961	475	40,476	125,946	75.60
Wages and salary	167,969	1.97 164,732	404	32,682	105,550	59.14
Employee pension costs	-	--	-	-	14,428	-
Social security contributions	41,630	-2.70 42,784	497	7,155	26,656	56.17
Other employee costs	11,558	-54.58 25,445	3876	640	4,340	166
Amortization and depreciation	162,264	-41.46 277,201	1113	22,849	17,811	811

Balance Sheet

Annual accounts	31-12-2012 %		31-12-2011 %		30-06-2010	average	%
						2012
Weeks	52		78		52
Currency	EUR		EUR		EUR
Intangible fixed assets	809	-	0	-	654	1,570	-48.47
Tangible fixed assets	1,520,884	605	215,668	946	20,599	184,117	726
Land & building	-	-	-	-	-	362,988	-
Plant & machinery	49,621	-76.99	215,668	1607	12,629	22,615	119
Furniture & Vehicles	-	-	-	-	332	17,295 5,364	-
Leasing & Other Similar Rights	-	-	-	-	578	142,153 32,369	-
Other tangible assets	1,471,263	-	0	-100	7,061	7,581	19307
Financial fixed assets	9,506	0.37	9,471	0.76	9,400	306,282	-96.90
Total fixed assets	1,531,200	580	225,140	634	30,653	394,259	288
Inventories	7,910,633	717	967,611	-	-	3,098,414	155
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,382	-100
Finished goods	7,910,633	717	967,611	-	0	1,992,650	296
Other stocks	0	-	0	-	0	569,029	-100
Trade debtors	4,994	-	0	-100	4,424	4,234,849	-99
Cash	780,621	-56.68	1,801,804	182	638,453	227,014	243
other amounts receivable	109,632	68.73	64,975	2718	2,306	208,818	-47.50
Miscellaneous current assets	48,753	701	6,085	1014	546	18,217	167
Total current assets	8,854,633	211	2,840,475	339	645,729	7,314,172	21.06
Total Assets	10,385,833 238		3,065,615	353	676,382	7,668,273 1,451,744	35.44
Current liabilities

Trade creditors	434,306 540	67,845	1127 5,525		3,141,505	-86.18
Financial debts	-	86	-	-	4,280,807 189,666	-
Current portion of long term debt	-	--	-	510	110,204 15,373	-
Amounts Payable for Taxes, Remuneration & Social Security	40,626 -91.56	481,631	614	67,406	9,727 -	19.53
Miscellaneous current liabilities	8,328,024 568	1,246,335	558	189,284	2699	- -
Total current liabilities	8,802,956 390	1,795,897	583	262,724	5,452,181	61.46
Long term debts and liabilities
Long term group loans	-	--	-	-	-	- -
Other long term loans	-	--	-	-	-	- -
Deffered taxes	-	--	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-0	-	0	3,162 0	-100
Other long term liabilities	1	100 -1	-	0	127,769	-99
Total long term debts	1	100 -1	-	0	561,675	-99
Shareholders Equity
Issued share capital	300,901 -1.94	306,857	2.29	300,000	966,465	-68.87
Share premium account	-	--	-	-	109,362	-
Reserves	1,281,975 33.14	962,862	747	113,657	652,459	96.48
Revaluation reserve	-	--	-	-	939,206	-
Total shareholders equity	1,582,876 24.66	1,269,719	206	413,657	1,648,380	-3.97
Working capital	51,677 -95.05	1,044,578	172	383,005	1,861,991	-97.22
Cashflow	500,064 -55.30	1,118,658	758	130,367	21,230	2255
Net worth	1,582,067 24.60	1,269,719	207	413,003	1,645,157	-3.83

Ratio Anaylsis

Annual Accounts	31-12-2012	Change (%)	31-12-2011	change (%)	30-06-2010	Industry Average	%
Profit Before Tax	0.33	-25.00	0.44	-	-	-29,00	1.14
Return on capital employed	31.66	-68.90	101.81	156	39.70	29,00	9.17
Return on total assets employed	4.83	-88.55	42.17	73.68	24.28	-200,00	2.42
Return on net assets employed	31.66	-68.90	101.81	156	39.70	19,00	66.63
Sales / net working capital	2927.73	938	281.92	-	-	44,00	-99
Stock turnover ratio	5.23	1484	0.33	-	-	116,00	-95.49
Debtor days	0.01	-	-	-	-	143,00	-99
Creditor days	1.05	1212	0.08	-	-	125,00	-99
short term stability
Current ratio	1.01	-36.08	1.58	-35.77	2.46	6,00	-88.78
Liquidity ratio / acid ratio	0.11	-89.42	1.04	-57.72	2.46	4,00	-97.25
Current debt ratio	5.56	294	1.41	120	0.64	9,00	-38.22
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	-	-	0.01	-91.67	0.12	357,00	-
Equity in percentage	15.24	-63.21	41.42	-32.34	61.22	-3.185,00	0.48
Total debt ratio	5.56	294	1.41	120	0.64	11,00	-49.45

Payment expectations

Payment expectation days 1.05

Day sales outstanding 0.01

Industry comparison

Activity code 46761

Activity description Wholesaler of diamonds and other precious stones

Industry average payment expectation days 164.62

Industry average day sales outstanding 125.68

Industry quartile analysis

Payment expectations

Company result 1.05

Lower 134.13

Median 84.62

Upper 45.33

Day sales outstanding

Company result 0.01

Lower 110.17

Median 58.70

Upper 28.58

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Group Structure

Company name Number Latest financials

- KIMBERLY DIAMOND COMPANY NL

- - GEM DIAMONDS MARKETING SERVICES BVBA 878452091 31-12-2012

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 878452091

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

there is no data for this company

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 :	DIV
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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