MIRA INFORM REPORT

Report Date :

11.07.2014

IDENTIFICATION DETAILS

Name :	TRAU BROS NV
Registered Office :	Hoveniersstraat 53 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	06.10.1992
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	06

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Belgium	A1	A1

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 2011 Belgian GDP grew by 1.8%, the unemployment rate decreased slightly to 7.2% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. 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 and address

Business number 448349341

Company name TRAU BROS NV

Address HOVENIERSSTRAAT

53

2018 ANTWERPEN

Number of staff 6

Date of establishment 06/10/1992

Telephone number 032313049

Fax number 032335766

COMMENTARY

The business was established over 21 years ago.

The business has 5 employees.

The business has been at the address for over 10 years.

A 22% growth in Total Assets occurred during the latest trading period.

Pre-tax profits decreased by 46% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 66% during the latest trading period.

ACCOUNT

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	137,024,911	231,766	15,807,038	11,339,544
31/12/2011	154,171,568	434,823	15,883,531	11,358,319
31/12/2010	110,692,117	374,200	14,959,002	11,046,483

ACCOUNT

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	72,732,465	6	10,231,650	277,885
31/12/2011	59,421,140	5	10,434,150	490,121
31/12/2010	54,634,601	6	10,103,400	428,815

Payment expectations

Past payments Payment expectation days 34.04

Industry average payment

expectation days 167.34 Industry average day sales

outstanding 121.35

Day sales outstanding 116.99

Payment expectations

Past payments		Payment expectation days	34.04
Industry average payment	167.34	Industry average day sales	121.35
expectation days		outstanding
Day sales outstanding	116.99
Court data summary
BANKRUPTCY DETAILS
Court action type	no

COMPANY INFORMATION

Business number	448349341	Company name	TRAU BROS NV
Fax number	032335766	Date founded	06/10/1992
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0448.349.341
Belgian Bullettin of Acts Publications	moniteur belge

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	4
Part-time Employees	4
Total Fte Employees	7
Number of hours worked
Full-time Employees	6,863
Part-time Employees	4,262
Total	11,125
Personnel Charges
Full-time Employees	147,615
Part-time Employees	92,258
Total	239,872
Benefits In Addition To Wages	-
During the previous reporting year

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	4	4	7
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-
Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	4	1	5
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	-	3	2
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	2	-	2
Blue collar worker	-	-	-
Other	2	4	5
Temporary personnel		Total
Average number of temporary staff		-
Actual working hours		-
Cost of temporary staff		-
New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	1	-	1
Leavers	-	-	-

Personel nsso

Code	-
Description	FROM 5 TO 9 EMPLOYEES
Joint Industrial Committee (JIC)
JIC Code	218
Description	Additional national joint committee for the employees
category
Significant Events
Event Date	21/12/2011
Event Description
Event Details	De buitengewone algemene vergadering heet besloten om alle bestaande aandelen aan toonder, om te zetten in aandelen op naam of in gedematerialiseerde aandelen.

Profit and loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	137,024,911	-11.12	154,171,568	39.28	110,692,117	46,632,531	193
Total operating expenses	135,311,070	-11.22	152,411,036	39.46	109,286,058	46,240,618	192
Operating result	1,713,841	-2.65	1,760,532	25.21	1,406,059	147,817	1059
Total financial income	5,358	116	2,476	13.16	2,188	97,084	-94.48
Total financial expenses	1,487,433	11.99	1,328,184	28.45	1,034,046	203,915	629
Results on ordinary operations before taxation	231,766	-46.70	434,823	16.20	374,200	32,736	607
Taxation	-	-	-	-	-	20,918	-
Results on ordinary operations after taxation	231,766	-46.70	434,823	16.20	374,200	17,844	1198
Extraordinary items	0	-	0	-	0	-4,553	0
Other appropriations	0	-	0	-	0	-	-
Net result	231,766	-46.70	434,823	16.20	374,200	13,309	1641
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	136,603	8.87	125,476	-	-	114,302	19.51
Employee costs	239,872	-3.85	249,467	19.46	208,835	126,646	89.40
Wages and salary	192,739	-3.91	200,578	18.09	169,858	106,139	81.59
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	42,852	-3.22	44,280	26.28	35,066	26,753	60.18
Other employee costs	4,282	-7.09	4,609	17.82	3,912	4,402	-2.73
Amortization and depreciation	46,119	-16.60	55,298	1.25	54,615	17,955	156
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Balancesheet

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	1,570	-100
Tangible fixed assets	987,702	-6.32	1,054,283	3.87	1,014,988	184,414	435
Land & building	933,622	-3.09	963,437	1.89	945,520	359,608	159
Plant & machinery	31,802	30.81	45,962	228	14,000	22,793	39.53
Furniture & Vehicles	22,278	50.37	44,884	19.08	55,467	17,438 5,418	27.76
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-100	1	7,711	-100
Financial fixed assets	11,151,177	47.22	7,574,636	7.11	7,071,974	294,763	3683
Total fixed assets	12,138,880	40.68	8,628,919	6.70	8,086,962	387,230	3034
Inventories	14,460,459	-2.75	14,868,899	2.39	14,521,149	3,092,433	367
Raw materials & consumables	2,551,667	-4.94	2,684,381	6.57	2,519,002	7,209,884	64.61
Work in progress	0	-	0	-	0	2,426	-100
Finished goods	11,908,792	-2.26	12,184,517	1.52	12,002,147	1,981,611	500
Other stocks	0	-100	1	-	0	574,617	-100
Trade debtors	43,919,216	31.57	33,380,393	6.40	31,371,578	4,172,397	952
Cash	470,537	66.16	1,390,602	123	621,821	226,713	107
other amounts receivable	7,226	36.52	11,384	7.02	10,637	184,589	96.09
Miscellaneous current assets	1,736,147	52.17	1,140,943	4981	22,454	17,803	9651
Total current assets	60,593,585	19.30	50,792,221	9.12	46,547,639	7,222,269	738
Total Assets	72,732,465	22.40	59,421,140	8.76	54,634,601	7,577,514 1,453,566	859
CURRENT LIABILITIES
Trade creditors	12,618,647	63.58	7,714,166	43.00	13,534,346	3,066,773	311
Short term group loans	-	-	-	-	-	-	-
Financial debts	36,080,827	15.47	31,247,199	44.77	21,583,301	4,242,556 192,320	750
Current portion of long term debt	167,260	3.98	160,862	-7.62	174,134	108,079 15,346	54.76
Amounts Payable for Taxes, Remuneration & Social Security	60,323	52.59	39,534	84.63	21,412	9,423 -	77.93
Miscellaneous current liabilities	326,984	20.15	272,141	44.78	187,963	9.13	- -
Total current liabilities	49,254,041	24.90	39,433,902	11.08	35,501,156	5,360,460	818
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	850,286	15.99	1,012,107	14.29	1,180,843	-22.67	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,220 0	-100
Other long term liabilities	6,821,100	120	3,091,600	3.27	2,993,600	129,765	5156
Total long term debts	7,671,386	86.94	4,103,707	-1.69	4,174,443	562,577	1263
SHAREHOLDERS EQUITY
Issued share capital	10,231,650	-1.94	10,434,150	3.27	10,103,400	911,094	1023

Reserves	2,540,105	7.90	2,354,025	26.67	1,858,365	699,735	263
Revaluation reserve	3,035,283	-1.94	3,095,356	3.27	2,997,237	968,672	213
Total shareholders equity	15,807,038	-0.48	15,883,531	6.18	14,959,002	1,640,673	863
Working capital	11,339,544	-0.17	11,358,319	2.82	11,046,483	1,861,809	509
Cashflow	277,885	43.30	490,121	14.30	428,815	28,110	888
Net worth	15,807,038	-0.48	15,883,531	6.18	14,959,002	1,637,427	865
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ratio

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.17	-39.29	0.28	-17.65	0.34	-26,00	0.65
Return on capital employed	0.99	-54.59	2.18	11.22	1.96	29,00	-96.59
Return on total assets employed	0.32	-56.16	0.73	7.35	0.68	-203,00	0.16
Return on net assets employed	1.47	-46.35	2.74	9.60	2.50	19,00	-92.26
Sales / net working capital	12.08	-10.98	13.57	35.43	10.02	45,00	-99
Stock turnover ratio	10.55	9.44	9.64	-26.52	13.12	111,00	-90.50
Debtor days	116.99	48.03	79.03	-23.61	103.45	133,00	-12.04
Creditor days	34.04	84.30	18.47	-59.14	45.20	122,00	-72.10
SHORT TERM STABILITY
Current ratio	1.23	-4.65	1.29	-1.53	1.31	7,00	-86.33
Liquidity ratio / acid ratio	0.94	3.30	0.91	1.11	0.90	4,00	-76.50
Current debt ratio	3.12	25.81	2.48	4.64	2.37	9,00	-65.33
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	234.70	14.99	204.11	33.11	153.34	363,00	-35.34
Equity in percentage	21.73	-18.71	26.73	-2.37	27.38	-3.247,00	0.67
Total debt ratio	3.60	31.39	2.74	3.40	2.65	11,00	-67.27

Summary

Amount	-
Details	-
Payment expectations
Payment expectation days	34.04
Day sales outstanding	116.99
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	167.34
Industry average day sales outstanding	121.35
Industry quartile analysis
Payment expectations
Company result	34.04
Lower	134.58
Median	84.93
Upper	45.17

Day sales outstanding
Company result	116.99
Lower	112.48
Median	58.70
Upper	28.11

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

No group structure for this company.

Minority

No minority shareholders found

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details Mandates in other companies
Name	Edu NV
Business number	463281797
Position	Legal Representative
Start Date	17/02/2011
Name	Edu NV
Business number	463281797
Position	Director
Start Date	17/02/2011
End Date	30/11/2016
Name	Fashion Principles NV
Business number	525646265
Position	Legal Representative
Start Date	28/03/2013
Name	Fashion Principles NV

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.59.88
UK Pound	1	Rs.102.59
Euro	1	Rs.81.69

INFORMATION DETAILS

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.