MIRA INFORM REPORT

Report Date :

05.06.2014

IDENTIFICATION DETAILS

Name :	AVNINA GEMS BVBA

Registered Office :	Pelikaanstraat 62, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.03.2013

Date of Incorporation :	19.12.2002

Com. Reg. No.:	479202566

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
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

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	479202566
Company name	AVNINA GEMS BVBA
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	0
Date of establishment	19/12/2002
Telephone number	032316373
Fax number	032316373

ACCOUNTS

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/03/2013	84,592,745	201,795	991,330	991,516
31/03/2012	53,087,919	16,286	855,821	855,969
31/03/2011	39,700,100	60,048	843,256	836,723

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/03/2013	42,996,642	0	698,219	135,547
31/03/2012	24,672,844	0	698,219	19,246
31/03/2011	18,831,305	0	698,219	49,818

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Past payments

Payment expectation days 168.85

Industry average payment expectation days 165.08

Industry average day sales outstanding 126.18

Day sales outstanding 135.74

Court data summary

BANKRUPTCY DETAILS

Court action type no

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year
ended 31-03-2013
Full-time Employees	-
Part-time Employees	1
Total Fte Employees	0

Number of hours worked
Full-time Employees	-
Part-time Employees	630
Total	630

Personnel Charges
Full-time Employees	-
Part-time Employees	10,354
Total	10,354
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	0
Actual working hours	705
Personnel Charges	9,488
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	-	1	0
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-

Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondary education	-	1	0
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondary education	-	-	-
Higher education (non university)	-	-	-
Higher education (university)	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	-	1	0
Blue collar worker	-	-	-
Other	-	-	-

Personnel

(NSSO classification)

Description FROM 1 TO 4 EMPLOYEES

COMPANY ACCOUNTS

Comparison Mode

· Average Median Export accounts to CSV File

Profit & Loss

Annual accounts	31-03-2013		31-03-2012	%	31-03-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	84,592,745	59.34	53,087,919	33.72	39,700,100	59,992,759	41.00
Total operating expenses	84,159,464	59.19	52,868,034	33.95	39,467,429	59,338,007	41.83
Operating result	433,281	97.05	219,885	-5.50	232,672	390,158	11.05
Total financial income	272	-67.18	828	358	181	174,548	-99
Total financial expenses	231,758	13.37	204,427	1 8.30	172,804	455,592	-49.13
Results on ordinary operations before taxation	201,795	1139	16,286	-72.88	60,048	94,924	112
Taxation	66,287	1058	5,720	-72.17	20,557	24,337	172
Results on ordinary operations after taxation	135,508	1182	10,566	-73.25	39,491	75,319	79.91
Extraordinary items	0	-100	2,000	-	0	2,151	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result OTHER INFORMATION	135,508	978	12,566	-68.18	39,491	77,470	74.92
Gross Operating Margin	-	-	-	-	-	83,927	-
Dividends	-	-	-	-	-	388,557	-
Director remuneration	-	-	-	-	3,710	115,450	-
Employee costs	10,354	9.13	9,488	136	4,020	151,953	-93.19
Wages and salary	9,052	4.59	8,655	133	3,703	128,033	-92.93
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	1,137	56.64	726	380	151	32,404	-96.49
Other employee costs	165	53.87	107	-35.30	166	3,886	-95.76
Amortization and depreciation	39	-99	6,680	-35.31	10,326	28,397	-99

Balance Sheet

Accual Accounts 31.03.2013 % 31.03.2012 % 31.03.2011 Industry

Average 2013 %

Weeks 52 52 52

Currency EUR EUR EUR

Intangible fixed assets 0 - 0 - 0 999 -100

Tangible fixed assets 0 -99 39 -99 6,719 310,438 -99

Land & building - - - - - 611,038 -

Plant & machinery - - 39 -62.39 103 46,490 -

Furniture & Vehicles 0 0 0 -99 6,616 18,105 6,732 -99

Leasing & Other Similar Rights - - - - - 153,494 20,215 -

Other tangible assets 0 - 0 - 0 5,350 -100

Financial fixed assets - - - - - 39,280 -

Total fixed assets 0 -99 39 -99 6,719 318,624 -99

Inventories 11,243,351 -11.44 12,695,117 140 5,285,840 6,619,878 69.84

Raw materials & consumables - - - - - - -

Work in progress 0 - 0 - 0 9,764 -100

Finished goods 11,243,351 -11.44 12,695,117 140 5,285,840 5,205,846 115

Other stocks 0 - 0 - 0 484,841 -100

Trade debtors 31,458,567 164 11,875,181 -11.94 13,485,905 11,725,614 168

Cash 283,870 186 99,147 198 33,268 577,386 -50.84

other amounts receivable 9,371 409 1,840 13.12 1,627 320,379 -97.07

Miscellaneous current assets 1,482 -2.55 1,521 -91.53 17,946 42,539 -96.52

Total current assets 42,996,642 74.27 24,672,806 31.07 18,824,587 18,361,023 134

Total Assets 42,996,642 74.27 24,672,844 31.02 18,831,305 18,650,145

3,833,367 130

Current Liabilities

Trade creditors	38,932,812	85.99	20,933,219	37.13	15,265,160	7,161,415	443
Short term group loans	-	-	-	-	-	-	-
Financial debts	1,572,923	4.36	1,507,243	7.07	1,407,757	1 0,499,105 596,572	-85.02
Current portion of long term debt	-	-	-	-	4,619	58,973 14,016	-
Amounts Payable for Taxes, Remuneration & Social Security	70,023	728	8,450	-63.58	23,205	13,587 -	76.71
Miscellaneous current liabilities	1,429,368	4.49	1,367,925	6.28	1,287,123	130	- -
Total current liabilities	42,005,126	76.37	23,816,837	32.41	17,987,864	13,368,534	214
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	0 0	-
Provisions for Liabilities & Charges	0	-	0	-	0	2,986 0	-100
Other long term liabilities	186	0	186	0	186	181,478	-99
Total long term debts SHAREHOLDERS EQUITY	186	0	186	0	186	1,689,697	-99
Issued share capital	698,219	0	698,219	0	698,219	2,634,411	-73.50
Share premium account	-	-	-	-	-	273,462	-
Reserves	293,111	85.98	157,602	8.66	145,037	854,993	-65.72
Revaluation reserve	-	-	-	-	-	1,662,858	-
Total shareholders equity	991,330	15.83	855,821	1.49	843,256	3,591,913	-72.40
Working capital	991,516	15.84	855,969	2.30	836,723	4,992,488	-80.14
Cashflow	135,547	604	19,246	-61.37	49,818	1 01,660	33.33
Net worth	991,330	15.83	855,821	1.49	843,256	3,590,914	-72.39

Ratio Analysis

Annual accounts	31-03-2013	change(%)	31-03-2012	change(%)	31-03-2011	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	0.24	700	0.03	-80.0	0.15	11,00	-97.82
Return on capital employed	20.35	971	1.90	-73.31	7.12	-4,00	508
Return on total assets employed	0.47	571	0.07	-78.12	0.32	-12,00	3.92
Return on net assets employed	20.36	971	1.90	-73.31	7.12	8,00	154
Sales / net working capital	85.32	37.57	62.02	30.71	47.45	31,00	-99
Stock turnover ratio	13.29	-44.42	23.91	79.64	13.31	22,00	-39.59
Debtor days	135.74	66.25	81.65	-34.15	123.99	165,00	-17.73
Creditor days SHORT TERM STABILITY	168.85	16.84	144.52	2.37	141.17	91,00	85.55
Current ratio	1.02	-1.92	1.04	-0.95	1.05	9,00	-94.33
Liquidity ratio / acid ratio	0.76	52.00	0.50	-33.33	0.75	5,00	-84.80
Current debt ratio	42.37	52.25	27.83	30.47	21.33	18,00	135
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	158.67	-9.91	176.12	5.15	167.49	281,00	-43.53
Equity in percentage	2.31	-33.43	3.47	-22.54	4.48	-7,00	33.00
Total debt ratio	42.37	52.25	27.83	30.47	21.33	19,00	123

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones

Payment Information

Payment expectations
Payment expectation days	168.85
Day sales outstanding	135.74

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment expectation days	165.08
Industry average day sales outstanding	126.18

Industry quartile analysis

Payment expectations
Company result	168.85
Lower	134.13
Median	84.93
Upper	45.55

Day sales outstanding
Company result	135.74
Lower	110.17
Median	59.01
Upper	28.11

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Court data

NSSO details

Business number 479202566

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.59.34
UK Pound	1	Rs.99.18
Euro	1	Rs.80.76

INFORMATION DETAILS

Analysis Done by :	SUB

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%)

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 summary

ACCOUNTS

TRENDS

Payment expectations

Court data summary

Company information

Social Balance Sheet Details

Personnel

COMPANY ACCOUNTS

Industry comparison

Payment Information

Industry comparison

Industry quartile analysis

Group Structure

Minority Shareholders

Minority Interests

Court data

Bankruptcy details

Bankruptcy Data

Unit