MIRA INFORM REPORT

Report Date :

16.07.2014

IDENTIFICATION DETAILS

Name :	B.S. GEMS BVBA

Registered Office :	Hoveniersstraat 30 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	16.09.1996

Com. Reg. No.:	458912245

Legal Form :	Private Limited Company

Line of Business :	Wholesale of watches and jewellery

No. of Employees	Not Available

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Belgium

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 name and address

Business number	458912245
Company name	B.S. GEMS BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	0
Date of establishment	16/09/1996
Telephone number	032250029
Fax number	032260945

Commentary

The business was established over 17 years ago.
No employees are recorded for this business.
The business has been at the address for over 17 years.
Net Worth increased by 21% during the latest trading period.
Pre-tax profits increased by 49% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 92% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	20,419	88,635	85,496
31/12/2011	13,658	72,886	70,514
31/12/2010	14,309	62,118	60,042

Accounts

DATE OF LATEST ACCOUNTS BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012 7,248,186	0	18,600	16,264
31/12/2011 6,770,860	0	18,600	11,032
31/12/2010 6,158,912	0	18,600	11,235

Payment expectations
Past payments		Payment expectation days	-
Industry average payment expectation days	243.94	Industry average day sales outstanding	289.99
Day sales outstanding -

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	-	-	-	-	-	41,808,210	-
Total operating expenses	-	-	-	-	-	41,420,610	-
Operating result	25,114	20.30	20,876	-4.83	21,936	113,073	-77.79
Total financial income	1	-	-	-	0	77,295	-99
Total financial expenses	4,695	-34.95	7,218	-5.36	7,627	261,321	-98.20
Results on ordinary operations before taxation	20,419	49.51	13,658	-4.55	14,309	-76,711	26.62
Taxation	4,670	61.60	2,890	-9.05	3,178	14,515	-67.82
Results on ordinary operations after taxation	15,749	46.26	10,768	-3.27	11,132	-86,236	18.26
Extraordinary items	0	-	0	-	0	-21,518	0
Other appropriations	0.00	-	0	-	0.00	-	-
Net result	15,749	46.26	10,768	-3.27	11,132	-107,687	14.62
Gross Operating Margin	26,975	20.61	22,365	-4.41	23,396	61,204	-55.93
Dividends	-	-	-	-	-	140,677	-
Director remuneration	-	-	-	-	-	112,083	-
Employee costs	-	-	-	-	-	182,534	-
Wages and salary	-	-	-	-	-	143,248	-
Employee pension costs	-	-	-	-	-	2,718	-
Social security contributions	-	-	-	-	-	37,888	-
Other employee costs	0	-	0	-	0	4,776	-100
Amortization and depreciation	515	95.22	264	156	103	23,190	-97.78

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	2,447	-100
Tangible fixed assets	1,652	86.42	886	50.53	589	202,138	-99
Land & building	-	-	-	-	-	379,301	-
Plant & machinery	1,652	86.42	886	50.53	589	25,520	-93.53
Furniture & Vehicles	-	-	-	-	-	20,970 8,314	-
Leasing & Other Similar Rights	-	-	-	-	-	160,634 21,189	-
Other tangible assets	0	-	0	-	0	9,814	-100
Financial fixed assets	1,487	0.02	1,487	-0.02	1,487	566,926	-99
Total fixed assets	3,139	32.28	2,373	14.31	2,076	551,048	-99
Inventories	3,500,144	-10.51	3,911,379	204	1,282,661	1,971,497	77.54
Raw materials & consumables	-	-	-	-	-	3,478,150	-
Work in progress	0	-	0	-	0	344	-100
Finished goods	0	-	0	-	0	1,254,191	-100
Other stocks	3,500,144	-10.51	3,911,379	204	1,282,661	288,924	1111
Trade debtors	3,723,301	43.98	2,586,027	-46.34	4,819,709	2,842,790	30.97
Cash	20,476	-92.05	257,494	532	40,693	189,741	-89.21
other amounts receivable	1,125	-91.72	13,587	-1.35	13,773	379,515	-99
Miscellaneous current assets	0	-	0	-	0	54,320	-100
Total current assets	7,245,047	7.04	6,768,487	9.93	6,156,836	5,027,721	44.10
Total Assets	7,248,186	7.05	6,770,860	9.94	6,158,912	5,530,046 327,621	31.07

CURRENT LIABILITIES

Trade creditors	6,470,950	9.64	5,902,112	9.86	5,372,355	1,420,396	355
Short term group loans - - - - - - -
Financial debts	-	-	82,529	208	26,721	5,415,345 37,030	-
Current portion of long term debt	-	-	-	-	-	81,515 16,872	-
Amounts Payable for Taxes, Remuneration & Social Security	4,853	58.45	3,063	-68.32	9,670	11,230 -	-85.44
Miscellaneous current liabilities	683,747	-3.73	710,269	3.23	688,048	42.91	--
Total current liabilities	7,159,550	6.89	6,697,973	9.86	6,096,794	3,801,686	88.33
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	--
Other long term loans	-	-	-	-	-	-	--
Deffered taxes	-	-	-	-	-	45,597 29,464	-
Provisions for Liabilities & Charges	0	-	0	-	0	14,757 0	-100
Other long term liabilities	0	-100	1	-	0	281,474	-100
Total long term debts	0	-100	1	-	0	692,541	-100
SHAREHOLDERS EQUITY

Issued share capital	18,600	0	18,600	0	18,600	697,465	-97.33
Share premium account	-	-	-	-	-	255,692	-
Reserves	70,035	29.01	54,286	24.74	43,518	303,020	-76.89
Revaluation reserve	-	-	-	-	-	517,619	-
Total shareholders equity	88,635	21.61	72,886	17.33	62,118	1,016,618	-91.28
Working capital	85,496	21.25	70,514	17.44	60,042	1,226,035	-93.03
Cashflow	16,264	47.43	11,032	-1.80	11,235	-88,684	18.34
Net worth	88,635	21.61	72,886	17.33	62,118	1,014,171	-91.26

Industry comparison
Activity code	46480
Activity description	Wholesale of watches and jewellery
industry average credit	61.07
rating
Industry average credit	7967.53
limit

Payment Information

Activity code	46480
Activity description	Wholesale of watches and jewellery
Industry average payment expectation days	243.94
Industry average day sales outstanding	289.99

Company result -
Lower	123.57
Median	57.54
Upper	18.75

Day sales outstanding

Company result -

Lower 112.17

Median 54.98

Upper 22.40

Shareholder Details

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Forename	Bankim	Middle name	-
Surname	Shah
SHAREHOLDER DETAILS
Start date	16/09/1996	End date	-
Percentage owned	-
SHAREHOLDER ADDRESS
Street name	Belgielei	House number	102
Minor town	-	Postal town	Antwerpen
Post code	2000	Country	Belgium

SHAREHOLDER NAME

Forename Nirajkumar Middle name -

Surname DESAI

SHAREHOLDER DETAILS

Start date 16/09/1996 End date -

Percentage owned -

SHAREHOLDER ADDRESS

Street name Belgiëlei House number 106

Minor town - Postal town Antwerpen

Post code 2018 Country Belgium

NSSO details

Business number 458912245

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.60.22
UK Pound	1	Rs.102.79
Euro	1	Rs.81.95

INFORMATION DETAILS

Analysis Done by :	SUM

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%)

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 and address

Commentary

Accounts

Accounts

Payment expectations

Company information

Profit & loss

balance sheet

CURRENT LIABILITIES

Industry comparison

Payment Information

Shareholder Details

Individual Shareholders

NSSO details

Bankruptcy Data

Unit