MIRA INFORM REPORT

Report Date :

24.12.2014

IDENTIFICATION DETAILS

Name :	RATNA GEMS BVBA

Registered Office :	Belgielei 143, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	09.12.2005

Com. Reg. No.:	878255024

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
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

Status :	Moderate
Payment Behaviour :	Slow
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	878255024
Company name	RATNA GEMS BVBA
Address	BELGIELEI 143
	2018 ANTWERPEN
Number of staff	0
Date of establishment	09/12/2005
Telephone number	032189273

Commentary

The business was established over 8 years ago.
No employees are recorded for this business.
The business has been at the address for over 2 years.
Operating Result in the latest trading period decreased 88% on the previous trading period.
A 266% growth in Total Assets occurred during the latest trading period.
The business saw a decrease in their Cash Balance of 60% during the latest trading period.
Net Worth is a negative amount during the latest trading period.
Working Capital is a negative amount during the latest trading period.

Accounts

DATE OF LATEST PROFIT BEFORE TAX NET WORTH WORKING CAPITAL

31/12/2012 8,068 -12,453 -13,895

31/12/2011 -77,912 -9,525 -9,665

31/12/2010 -24,853 68,387 67,949

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	3,980,455	0	18,600	-2,076
31/12/2011	1,086,884	0	18,600	-77,613
31/12/2010	1,025,283	0	18,600	34,446

Payment expectations

Industry average payment expectation days 133.33

Industry average day sales outstanding 134.28

Court data summary

BANKRUPTCY DETAILS

Court action type no

COMPANY ACCOUNTS

Comparison Mode

· Average Median Export accounts to CSV File

Profit & Loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	39,008,085	-
Total operating expenses	-	-	-	-	-	38,711,672	-
Operating result	8,480	-88.77	75,537	307	-24,530	113,729	-92.54
Total financial income	43,103	-	-	-	3,460	77,119	-44.11
Total financial expenses	43,516	-71.64	153,449	3956	3,783	170,761	-74.52
Results on ordinary operations before taxation	8,068	10.36	-77,912	-213	-24,853	12,790	-36.92
Taxation	10,996	-	-	-	-	17,310	-36.48
Results on ordinary operations after taxation	-2,928	3.76	-77,912	-213	-24,853	837	-449
Extraordinary items	0	-	0	-100	59,000	-4,270	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	-2,928	3.76	-77,912	-328	34,147	-3,414	85.76
Other Information
Gross Operating Margin	10,355	-86.66	77,646	337	-22,977	52,612	-80.32
Dividends	-	-	-	-	-	232,868	-
Director remuneration	-	-	-	-	-	109,924	-
Employee costs	-	-	-	-	-	127,679	-
Wages and salary	-	-	-	-	-	109,797	-
Employee pension costs	-	-	-	-	-	14,009	-
Social security contributions	-	-	-	-	-	27,300	-
Other employee costs	0	-	0	-	0	4,528	-100
Amortization and depreciation	851	185	298	0	298	17,414	-95.11

Balance Sheet

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	785	-100
Tangible fixed assets	1,442	932	140	-68.12	438	183,340	-99
Land & building	-	-	-	-	-	365,443	-
Plant & machinery	1,442	932	140	-68.12	438	24,183	-94.04
Furniture & Vehicles	-	-	-	-	-	15,972 4,900	-
Leasing & Other Similar Rights	-	-	-	-	-	133,370 25,719	-
Other tangible assets	0	-	0	-	0	10,762	-100
Financial fixed assets	-	-	-	-	-	243,218	-
Total fixed assets	1,442	932	140	-68.12	438	342,037	-99
Inventories	88,480	-52.72	187,135	603562	31	2,720,865	-96.75
Raw materials & consumables	-	-	-	-	-	8,019,782	-
Work in progress	0	-	0	-	0	2,578	-100
Finished goods	0	-	0	-	0	1,754,739	-100
Other stocks	88,480	-52.72	187,135	603562	31	462,100	-80.85
Trade debtors	3,887,124	336	891,043	16.38	765,648	3,504,409	10.92
Cash	2,718	-60.89	6,950	-97.30	257,562	195,665	-98.61
other amounts receivable	691	-57.28	1,616	0.81	1,603	211,410	-99
Miscellaneous current assets	0	-	0	-	0	15,474	-100
Total current assets	3,979,013	266	1,086,744	6.04	1,024,845	6,186,515	-35.68
Total Assets	3,980,455	266	1,086,884	6.01	1,025,283	6,488,804 1,214,410	-38.66
CURRENT LIABILITIES
Trade creditors	3,767,241	328	879,183	18.91	739,349	2,723,248	38.34
Financial debts	2,296	-	-	-	-	3,414,224 131,683	-99
Current portion of long term debt	-	-	-	-	-	103,745 14,017	-
Amounts Payable for Taxes, Remuneration & Social Security	1,866	0.75	1,852	-	-	8,441 -	-93.90
Miscellaneous current liabilities	221,504	2.85	215,374	-1.00	217,548	-27.00	--
Total current liabilities	3,992,907	264	1,096,409	14.58	956,897	4,599,293	-13.18
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	--
Other long term loans	-	-	-	-	-	-	--
Deffered taxes	-	-	-	-	-	40,179 31,040	-
Provisions for Liabilities & Charges	0	-	0	-	0	4,046 0	-100
Other long term liabilities	0	-	0	-	0	83,204	-100
Total long term debts	0	-	0	-	0	474,050	-100
SHAREHOLDERS EQUITY
Issued share capital	18,600	0	18,600	0	18,600	875,705	-97.88
Share premium account	-	-	-	-	-	89,810	-
Reserves	-31,053	-10.41	-28,125	-156	49,787	508,517	-106
Revaluation reserve	-	-	-	-	-	929,721	-
Total shareholders equity	-12,453	-30.74	-9,525	-113	68,387	1,409,946	-100
Working capital	-13,895	-43.77	-9,665	-114	67,949	1,587,222	-100
Cashflow	-2,076	2.68	-77,613	-325	34,446	10,710	-119
Net worth	-12,453	-30.74	-9,525	-113	68,387	1,407,631	-100

Ratio Analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012
TRADING PERFORMANCE
Profit Before Tax	-	-	-	-	-	-10,00	-
Return on capital employed	-64.79	-107	817.98	2250	-36.34	40,00	-261
Return on total assets employed	0.20	2.79	-7.17	-196	-2.42	-300,00	0.07
Return on net assets employed	-64.79	-107	817.98	2250	-36.34	28,00	-331
Sales / net working capital	-	-	-	-	-	63,00	-
Stock turnover ratio	-	-	-	-	-	91,00	-
Debtor days	-	-	-	-	-	151,00	-
Creditor days	-	-	-	-	-	198,00	-
SHORT TERM STABILITY
Current ratio	1	1.01	0.99	-7.48	1.07	6,00	-90.0
Liquidity ratio / acid ratio	0.97	18.29	0.82	-23.36	1.07	4,00	-75.75
Current debt ratio	-320.64	-178	-115. 11	-922	13.99	10,00	-3306
Liquidity ratio reprocessed		-	-	-	-	-	-
LONG TERM STABILITY
Gearing	-18.44	-	-	-	-	262,00	-107
Equity in percentage	-0.31	35.23	-0.88	-113	6.67	-3.452,00	0.01
Total debt ratio	-320.64	-178	-11 5. 11	-922	13.99	11,00	-3014

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment expectation days	133.33
Industry average day sales outstanding	134.28

Industry quartile analysis

Payment expectations

Lower	127.94
Median	79.51
Upper	46.56

Day Sales Outstanding
Company result -
Lower	109.87
Median	56.46
Upper	27.62

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business Number 878255024

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Court 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.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Report Prepared by :

TPT

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.

Business number	878255024	Company name	RATNA GEMS BVBA
Fax number		Date founded	09/12/2005
Company status	active	Company type	Private Limited Company
			(BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	Liable for VAT	yes
Activity description	Wholesaler of diamonds	VAT Number	BE.0878.255.024 Check
	and other precious stones		VAT number
Belgian Bullettin of Acts	moniteur belge
Publications