MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	IGC GROUP NV
Registered Office :	Hoveniersstraat 2, Box 248 (Room 708) 2018 Antwerp - Belgium
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	04.11.1978
Com. Reg. No.:	418800864
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesaler of diamonds and other precious stones Subject product ranges includes: · Custom-made Shapes · EXIRE® · Fancy Shapes · Single Cuts (8/8) · Brilliant Cuts (Rounds)
No of Employees :	33 (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	a1	a1

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 418800864

Branch Unit Number 2015517369

Company name IGC GROUP NV

Address Hoveniersstraat 2, Box 248

(room 708) 2018 Antwerp - Belgium

Number of staff 33 (31.12.2013)

Date of establishment 04/11/1978

Telephone number 032034567

Fax number 032311634

Commentary

The business was established over 36 years ago.
The business has 33 employees.
The business has been at the address for over 16 years.
Operating Result in the latest trading period increased 27% on the previous trading period.
Net Worth increased by 129% during the latest trading period.
Pre-tax profits increased by 23% compared to the previous trading period.
The business saw an increase in their Cash Balance of 249% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX NET WORTH	WORKING CAPITAL
31/12/2013	183,800,220	1,334,641 54,989,514	53,762,127
31/12/2012	203,992,280	1,077,124 23,910,337	27,423,272
31/12/2011	237,685,512	3,035,425 22,868,972	27,032,684

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES CAPITAL		CASHFLOW
31/12/2013	96,889,820	33	42,320,321	1,284,618
31/12/2012	90,307,616	32	11,279,155	1,293,790
31/12/2011	79,695,473	29	11,279,155	2,603,012

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Industry average payment expectation days	123.77	Payment expectation days	40.04
Day sales outstanding	71.18	Industry average day sales outstanding	140.64

Company information

Business number	418800864	Company name	IGC GROUP NV
Fax number	032311634	Date founded	04/11/1978
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	Wholesaler of diamonds and other precious stones	VAT Number	BE.0418.800.864 Check VAT number
Product Details	· Custom-made Shapes · EXIRE® · Fancy Shapes · Single Cuts (8/8) · Brilliant Cuts (Rounds)
Belgian Bullettin of Acts Publications	moniteur belge

Joint Industrial Committee (JIC)
JIC Code	218
Description	Additional national joint committee for the employees

JIC Code	324
Description	Joint committee for the industry and the trade in diamant

Significant Events
Event Date	09/12/2013
Event Details	Toekenning van 1482888 nieuwe aandelen aan comparant 1.

Company accounts

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
Assets
Total fixed assets	3,413,982	-6.10	3,635,944	-5.46	3,845,806	-46.63	7,205,789	-1.22		7,294,980
Intangible fixed assets	3,318	-77.41	14,690	-62.98	39,675	-42.15	68,586	-41.38		116,993
Tangible fixed assets	2,298,107	-8.39	2,508,697	-6.86	2,693,575	-10.72	3,017,127	-7.87		3,274,756
Land & building	271,570	-5.94	288,708	-5.76	306,341	-5.44	323,974	-5.16		341,608
Plant & machinery	22,347	-1.34	22,651	0.61	22,515	-44.23	40,371	-25.45		54,154
Furniture & Vehicles	53,589	3.70	51,678	115	23,998	-79.49	117,002	-21.03		148,154
Other tangible assets	1,950,600	-9.09	2,145,661	-8.33	2,340,721	-7.69	2,535,781	-7.14		2,730,841
Financial fixed assets	1,112,557	0	1,112,557	0	1,112,557	-73.00	4,120,076	5.56		3,903,231
Total Current assets	93,475,838	7.85	86,671,673	14.27	75,849,667	4.87	72,326,544	4.43		69,260,405
Inventories	48,180,119	-5.59	51,031,765	31.97	38,669,283	7.50	35,973,082	10.28		32,619,846
Finished goods	48,180,119	-5.59	510,31,765	31.97	38,669,283	7.50	35,973,082	10.28		32,619,846
Trade debtors	35,844,030	15.80	30,952,909	-7.58	33,491,732	4.91	31,923,607	40.41		22,735,684
Other amounts receivable	4,135,179	42.06	2,910,852	37.36	2,119,128	46.96	1,441,945	66.03		868,462
Cash	4,807,455	249	1,374,023	13.38	1,211,927	-51.39	2,493,199	-79.95		12,433,350
Miscellaneous current assets	509,056	26.59	402,124	12.45	357,597	-22.72	494,711	-17.97		603,064
Total Assets	96,889,820	7.29	90,307,616	13.32	79,695,473	0.21	79,532,333	3.89		76,555,385
Liabilities
Total shareholders equity	54,992,832	129	23,925,027	4.44	22,908,647	11.26	20,589,935		3.39	19,914,305
Issued share capital	42,320,321	275	11,279,155	0	11,279,155	0	11,279,155		0	11,279,155
Share premium account	-	-	40,977	0	40,977	0	40,977		0	40,977
Reserves	12,672,511	0.54	12,604,895	8.77	11,588,515	25.01	9,269,803		7.86	8,594,173
Provisions for Liabilities & Charges	0	-	0	-	0	-	0		-	0
Creditors	41,896,988	-36.89	66,382,590	16.90	56,786,826	-3.66	58,942,398		4.06	56,641,080
Other long term loans	667,351	-26.35	906,110	-20.52	1,139,978	-13.80	1,322,545		-7.08	1,423,301
Other long term liabilities	1,515,926	-75.66	6,228,080	-8.81	6,829,866	-30.44	9,818,411		-0.66	9,884,018
Total long term debts	2,183,277	-69.40	7,134,189	-10.49	7,969,843	-28.46	11,140,956		-1.47	11,307,320
Current portion of long term debt	205,370	-3.68	213,227	-1.81	217,159	2.62	211,624		7.79	196,331
Financial debts	18,998,723	12.11	16,946,037	3.37	16,392,822	-17.85	19,954,406		53.89	12,966,618
Trade creditors	19,932,407	-52.18	41,682,883	31.13	31,787,460	17.89	26,963,361		-15.03	31,731,633
Amounts Payable for Taxes, Remuneration & Social Security	309,719	105	150,428	-34.24	228,754	59.63	143,306		-8.69	156,951
Miscellaneous current liabilities	267,492	4.56	255,825	34.09	190,788	-63.92	528,745		87.35	282,227
Total current liabilities	39,713,711	-32.97	59,248,400	21.37	48,816,982	2.12	47,801,442		5.44	45,333,760
Total Liabilities	96,889,820	7.29	90,307,616	13.32	79,695,473	0.21	79,532,333		3.89	76,555,385

ratio analysis

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
TRADING PERFORMANCE
Profit Before Tax	0.73	37.74	0.53	-58.59	1.28	146	0.52	23.81	0.42
Return on capital employed	2.33	-32.85	3.47	-64.70	9.83	374	2.07	88.18	1.10
Return on total assets employed	1.38	15.97	1.19	-68.77	3.81	359	0.83	84.44	0.45
Return on net assets employed	2.43	-46.00	4.50	-66.04	13.25	314	3.20	86.05	1.72
Sales / net working capital	3.42	-54.03	7.44	-15.36	8.79	70.68	5.15	50.58	3.42
Stock turnover ratio	26.21	4.76	25.02	53.78	16.27	-42.87	28.48	-28.57	39.87
Creditor days	40.04	-46.76	75.20	51.55	49.62	-36.91	78.65	-44.81	142.51
Debtor days	71.18	28.53	55.38	7.68	51.43	-44.25	92.25	-9.05	101.43
SHORT TERM STABILITY
Current ratio	2.35	60.96	1.46	-5.81	1.55	2.65	1.51	-1.31	1.53
Liquidity ratio / acid ratio	1.14	90.0	0.60	-21.05	0.76	0	0.76	-6.17	0.81
Current debt ratio	0.72	-70.97 2.48		16.43	2.13	-8.19	2.32	1.75	2.28
Cashflow	1,284,618	-0.71	1,293,790	-50.30	2,603,012	154	1,023,766	39.33	734,779
Net worth	54,989,514 129		23,910,337	4.55	22,868,972	11.44	20,521,349	3.66	19,797,313
LONG TERM STABILITY
Gearing	36.13	-52.15 75.51		-2.54	77.48	-25.76	104.36	42.47	73.25
Equity in percentage	56.76	114	26.50	-7.86	28.76	11.00	25.91	-0.54	26.05
Total debt ratio	0.76	-72.56 2.77		11.69	2.48	-13.29	2.86	0.70	2.84
Working capital	53,762,127 96.05		27,423,272	1.44	27,032,684	10.22	24,525,102	2.50	23,926,645

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	183,815,508	-9.90	204,010,815	-14.18	237,731,642	88.15	126,349,280	54.36	81,854,660
Turnover	183,800,220	-9.90	203,992,280	-14.18	237,685,512	88.17	126,311,018	54.38	81,818,956
Total operating expenses	181,679,024	-10.21	202,328,390	-13.46	233,808,585	86.86	125,125,442	53.96	81,271,990
Operating Charges	181,694,311	-10.21	202,346,925	-13.47	233,854,715	86.84	125,163,704	53.94	81,307,694
Employee costs	1,517,181	10.13	1,377,646	-0.62	1,386,283	8.63	1,276,125	-18.03	1,556,842
Wages and salary	1,111,844	10.87	1,002,834	-2.95	1,033,368	11.83	924,040	-21.39	1,175,426
Social security contributions	304,857	12.35	271,342	-6.57	290,426	-4.37	303,682	-11.37	342,627
Other employee costs	100,480	-2.89	103,470	65.58	62,488	29.10	48,403	24.79	38,788
Director remuneration	1,126,000	209	364,000	0	364,000	0	364,000	-14.15	424,000
Amortization and	256,812	-7.43	277,410	-2.42	284,301	-18.34	348,136	-7.09	374,711
Operating result	2,121,196	27.48	1,663,890	-57.08	3,876,927	227	1,185,576	116	546,966
Total financial income	298,828	30.26	229,410	-14.51	268,346	13.34	236,768	-60.67	601,979
Total financial expenses	1,085,383	32.98	816,175	-26.46	1,109,848	45.26	764,048	-5.24	806,277
Results on ordinary	1,334,641	23.91	1,077,124	-64.51	3,035,425	361	658,296	92.11	342,668
operations before taxation
Extraordinary Income	-	-	-	-	-	-	10,878	-2.50	11,157
Extraordinary Charges	-	-	-	-	7,583	-59.11	18,545	-	-
Extraordinary items	0	-	0	0	-7,583	98.91	-7,666	-168	11,157
Results for the Year Before	1,334,641	23.91	1,077,124	-64.43	3,027,842	365	650,630	83.88	353,825
Other appropriations	-	-	-	-	-	-	-	-	-
Taxation	306,836	405	60,745	-91.43	709,130	2836	-25,000	-300	-6,243
Results on ordinary Operations after taxation	1,027,805	1.12	1,016,380	-56.31	2,326,294	240	683,296	95.84	348,911
Net result	1,027,805	1.12	1,016,380	-56.17	2,318,712	243	675,630	87.64	360.068
Profit (Loss) for the Year to be appropiated	1,027,805	1.12	1,016,380	-56.17	2,318,712	243	675,630	87.64	360.068

Social Balance Sheet Details

Social Balance Sheet Details
Social Balance Sheet	Total
During the reporting year ended 31-12-2013
Full-time Employees	26
Part-time Employees	9
Total Fte Employees	33
Number of hours worked
Full-time Employees	43,305
Part-time Employees	11,116
Total	54,421
Personnel Charges
Full-time Employees	1,233,955
Part-time Employees	283,226
Total	1,517,181
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	31
Actual working hours	50,924
Personnel Charges	1,377,646
Benefits In Addition To Wages	-

Type of Contract	Full- Time	Part-Time	Total Fte
Unlimited Duration Contracts	25	11	33
Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Secondary education	4	-	4
Higher education (non university)	5	-	5
Higher education (university)	4	-	4
Women	Full-Time	Part-Time	Total Fte
Secondary education	6	11	14
Higher education (non university)	6	-	6
Working Category	Full-Time	Part-Time	Total Fte
White collar worker	24	10	32
Blue collar worker	1	1	2

Temporary personnel	Total
Average number of temporary staff	0
Actual working hours	302
Cost of temporary staff	8,967
New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	2	1	3
Leavers	1	1

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	4	3
Number of training hours	104	86
Net costs for enterprise	5,909	2,458

Total of less formal and informal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	11	19
Number of training hours	512	646
Net costs for enterprise	17,014	14,732

Payment expectations

Payment expectation days 40.04

Day sales outstanding 71.18

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 123.77

Industry average day sales

Outstanding 140.64

Industry quartile analysis

Payment expectations

Company result 40.04

Lower 122.25

Median 75

Upper 46.13

Day sales outstanding

Company result 71.18

Lower 102.58

Median 54.08

Upper 24.07

Minority shareholders

Company name

ENOGEMS SA

Minority Interests

Business

Number Company name % Date of accounts

886078073 Enolease BVBA 7.93 31/12/2013

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 JACQUES CLAES

Position Managing Director

Start Date 25/07/2014

Street 30 PRINSSTRAAT ANTWERPEN

Post code 2000

Country Belgium

Position Director

Start Date 26/09/2005

Street 30 PRINSSTRAAT ANTWERPEN

Post code 2000

Country Belgium

Name JULIANUS CLAES

Position Managing Director

Start Date 26/09/2005

Date of birth 28/06/1955

Street 56 HOEVENSTRAAT WOMMELGEM

Post code 2160

Country Belgium

Position Director

Start Date 26/09/2005

Date of birth 28/06/1955

Street 56 HOEVENSTRAAT WOMMELGEM

Post code 2160

Country Belgium

Name LUC LUCIEN CLAES

Position Director

Start Date 26/09/2005

Date of birth 23/03/1957

Street 41 ALFREDLEI BRASSCHAAT

Post code 2930

Country Belgium

Former director details

Name LUC LUCIEN CLAES

Position Managing Director

Start Date 26/09/2005

End Date 25/09/2011

Date of birth 23/03/1957

Street 41 ALFREDLEI BRASSCHAAT

Post code 2930

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.63.58
UK Pound	1	Rs.99.98
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	ras
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.