MIRA INFORM REPORT

Report Date :

07.06.2014

IDENTIFICATION DETAILS

Name :	WAHL DIAMONDS BVBA

Registered Office :	Hoveniersstraat 2-B, 213, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	08.11.1982

Com. Reg. No.:	423167250

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	2

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 :	--

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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 423167250

Company name WAHL DIAMONDS BVBA

Address HOVENIERSSTRAAT 2-B

213

2018 ANTWERPEN

Number of staff 2

Date of establishment 08/11/1982

Telephone number 032323568

Fax number 032317647

Ultimate holding company

Company name Company Number

Wahl Salik Holding NV 472420385

Commentary

The business was established over 31 years ago.

The business has 1 employees.

Number of employees in the latest trading period increased 100% on the previous trading period.

The business is part of a group.

The business has been at the address for over 26 years.

Operating Result in the latest trading period increased 48% on the previous trading period.

The business saw a decrease in their Cash Balance of 90% during the latest trading period.

Turnover in the latest trading period decreased 39% on the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	16,341,086	28,242	679,402	1,188,400
31/12/2011	26,860,178	25,052	656,658	1,244,385
31/12/2010	17,475,325	29,744	689,420	1,363,951

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	5,964,419	2	50,000	50,957
31/12/2011	5,783,267	1	50,000	26,394
31/12/2010	6,357,184	1	50,000	50,597

Payment expectations

Past payments Payment expectation days 61.27

Industry average payment

expectation days 165.08

Industry average day sales

Outstanding 126.18

Day sales outstanding 96.36

Court data summary

Bankruptcy details

Court action type no

Protested bills

Bill amount -

NSSO details

Date of summons 05/10/2009

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year

ended 31-12-2012

Full-time Employees -

Part-time Employees 3

Total Fte Employees 2

Number of hours worked

Full-time Employees -

Part-time Employees 3,171

Total 3,171

Personnel Charges

Full-time Employees -

Part-time Employees 61,167

Total 61,167

Benefits In Addition To Wages -

During the previous reporting year

Average number employees in Fte 2

Actual working hours 3,047

Personnel Charges 59,181

Benefits In Addition To Wages -

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration

Contracts - 4 2

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 - 2 1

Higher education (non

university) - - -

Higher education

(university) - - -

Women Full-Time Part-Time Total Fte

Primary education - - -

Secondairy education - 2 1

Higher education (non

university) - - -

Higher education

(university) - - -

Working Category Full-Time Part-Time Total Fte

Management - - -

White collar worker - 3 2

Blue collar worker - - -

Other - 1 1

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 - - -

Personnel (NSSO classification)

Code -

Description FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code 218

Description Additional national joint committee for the employees

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		16,341,086	-39.16		26,860,178	53.70		17,475,325	46,485,458	-64.85
Total operating expenses		16,189,446	-39.50		26,758,401	54.66		17,300,973	46,114,879	-64.89
Operating result		151,640	48.99		101,777	-41.63 174,352			140,970	7.57
Total financial income		554,020	-48.11		1,067,782	10.93		962,615	98,884	460
Total financial expenses		677,418	-40.81		1,144,507	3.37		1,107,223	206,312	228
Results on ordinary operations before taxation	28,242		12.74	25,052			-15.78 29,744		25,266	11.78
Taxation	5,498		-76.24 23,144				605 3,278		20,807	-73.58
Results on ordinary operations after taxation	22,744		1091	1,908			-92.79 26,466		10,475	117
Extraordinary items	0		-	0			-0		-3,969	0
Other appropriations	0.00		-	0.00			- 0.00		-	-
Net result	22,744		1091	1,908			-92.79 26,466		6,525	248
	other information
Gross Operating Margin	-		-	-			--		56,835	-
Dividends	-		-	-			--		172,177	-
Director remuneration	-		-	-			--		112,544	-
Employee costs	61,167		3.35	59,181			-25.25 79,176		125,946	-51.43
Wages and salary	54,614		5.54	51,747			-23.30 67,464		105,550	-48.26
Employee pension costs	-		-	-			--		14,428	-
Social security contributions	6,750		11.97	6,029			-40.38 10,111		26,656	-74.68
Other employee costs	-198		-114	1,405			-12.22 1,601		4,344	-104
Amortization and depreciation	28,213		15.22	24,486			1.47 24,131		17,811	58.40

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		1,571		-100
	Tangible fixed assets	384,402		-1.62		390,734	-5.03	411,445		184,117		108
	Land & building	366,897		-5.78		389,410	-4.93	409,592		362,988		1.08
	Plant & machinery	6,733		8315		80	-50.0	160		22,615		-70.23
	Furniture & Vehicles	10,773		765		1,245	-26.47	1,693		17,295 5,364		-37.71
	Leasing & Other Similar Rights	-		-		-	-	-		142,153 32,369		-
	Other tangible assets	0		-		0	-	0		7,588		-100
	Financial fixed assets	-		-		-	-	-		306,282		-
	Total fixed assets	384,402		-1.62		390,734	-5.03	411,445		394,259		-2.50
	Inventories	1,080,349		26.38		854,838	8.81	785,655		3,102,024		-65.17
	Raw materials & consumables	-		-		-	-	-		7,209,884		-
	Work in progress	0		-		0	-	0		2,384		-100
	Finished goods	1,080,349		26.38		854,838	8.81	785,655		1,994,651		-45.84
	Other stocks	0		-		0	-	0		569,553		-100
	Trade debtors	4,314,141		3.87		4,153,447	-6.18	4,427,184		4,239,087		1.77
	Cash	12,606		-90.27 129,533			-70.66 441,430			227,241		-94.45
	other amounts receivable	172,922		-32.11		254,715	-12.61 291,470			209,025		-17.27
	Miscellaneous current assets	0		-		0	-	0		18,235		-100
	Total current assets	5,580,017		3.48		5,392,532	-9.30	5,945,738		7,321,447		-23.79
	Total Assets	5,964,419		3.13		5,783,267	-9.03	6,357,184		7,675,911 1,453,566		-22.30
	current liabilities
	Trade creditors	2,717,771		-21.26		3,451,606	15.77	2,981,374		3,144,774		-13.58
Short term grout) loans			-		--		-	-	-		-
Financial debts			1,582,763		163 600,000		-60.50	1,518,954	4,280,807 189,666		-63.03
Current portion of long term debt			68,661		0 68,661		12.33	61,124	110,204 15,373 -37.70
Amounts Payable for Taxes, Remuneration & Social Security			14,914		-46.51 27,881		145	11,372	9,740 -		-56.18
Miscellaneous current liabilities			7,509		-0		-100	8,964	-97.48		- -
Total current liabilities			4,391,617		5.87 4,148,148		-9.46	4,581,788	5,457,561		-19.53
			Long term		debts and liabilities
Long term group loans			-		--		-	-	-		- -
Other long term loans			893,235		-8.69 978,296		-9.90	1,085,810	-19.82		- -
Deffered taxes			-		--		-	-	37,626 26,358		-
Provisions for Liabilities & Charges			166		0 166		0	166	3,165 0		-94.76
Other long term liabilities			0		-0		-	0	127,897		-100
Total long term debts			893,401		-8.69 978,461		-9.90	1,085,976	562,239		58.90
			shareholders equity
Issued share capital			50,000		0 50,000		0	50,000	967,416		-94.83
Share premium account			-		--		-	-	109,362		-
Reserves			269,402		20.18 224,158		-4.38	234,420	653,158		-58.75
Revaluation reserve			360,000		-5.88 382,500		-5.56	405,000	939,206		-61.67
Total shareholders equity			679,402		3.46 656,658		-4.75	689,420	1,650,062		-58.83
Working capital			1,188,400		-4.50 1,244,385		-8.77	1,363,951	1,863,886		-36.24
Cashflow			50,957		93.06 26,394		-47.83	50,597	21,260		139
Net worth			679,402		3.46 656,658		-4.75	689,420	1,646,834		-58.74

ratio analysis

Annual accounts	31-12-2012	Change (%)	31-12-2011	Change (%)	31-12-2010	Industry Average 2012	%
Trading Performance
Profit Before Tax	0.17	88.89	0.09	-47.06	0.17	-29,00	0.59
Return on capital employed	1.80	17.65	1.53	-8.93	1.68	29,00	-93.79
Return on total assets employed	0.47	9.30	0.43	-8.51	0.47	-200,00	0.24
Return on net assets employed	4.16	8.90	3.82	-11.37	4.31	19,00	-78.11
Sales / net working capital	13.75	-36.31	21.59	68.54	12.81	44,00	-99
Stock turnover ratio	6.61	107	3.18	-29.33	4.50	116,00	-94.30
Debtor days	96.36	70.73	56.44	-38.96	92.47	143,00	-32.62
Creditor days	61.27	30.14	47.08	-25.15	62.90	125,00	-50.98
Short term stability
Current ratio	1.27	-2.31	1.30	0	1.30	6,00	-85.89
Liquidity ratio / acid ratio	1.02	-6.42	1.09	-3.54	1.13	4,00	-74.50
Current debt ratio	6.46	2.22	6.32	-4.96	6.65	9,00	-28.22
Liquidity ratio reprocessed	-	-	-	-	-	-	-
Long term stability
Gearing	374.54	49.33	250.81	-35.14	386.69	357,00	4.91
Equity in percentage	11.39	0.35	11.35	4.70	10.84	-3.189,00	0.36
Total debt ratio	7.78	-0.38	7.81	-4.99	8.22	11,00	-29.27

Payment expectations

Payment expectation days 61.27

Day sales outstanding 96.36

Industry comparison

Activity code 46761

Activity description Wholesale 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 61.27

Lower 134.13

Median 84.93

Upper 45.55

Day sales outstanding

Company result 96.36

Lower 110.17

Median 59.01

Upper 28.11

Group Structure

Company name Number Latest financials

- WAHL SALIK HOLDING NV 472420385 30-06-2013

- - UNITED GEMCUTTERS BVBA 416896595 31-12-2012

- - WAHL DIAMONDS BVBA 423167250 31-12-2012

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 423167250

Name of defendant WAHL DIAMONDS

Legal form of defendant Private limited liability company

Date of summons 07/09/2009

Labour court ANTWERPEN

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Legal events

Legal event type Social Security Summons

Legal event sub type

Event date 05/10/2009 Secondary event date

Court number Registry body identfier

Court type Employment Court Court name Antwerpen

3rd party name Rijksdienst voor Sociale Zekerheid

3rd party type Summoning Party

Legal event type Social Security Summons

Legal event sub type

Event date 07/09/2009 Secondary event date

Court number Registry body identfier

Court type Employment Court Court name Antwerpen

3rd party name Rijksdienst voor Sociale Zekerheid

3rd party type Summoning Party

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.59.20
UK Pound	1	Rs.99.52
Euro	1	Rs.80.83

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	NNA

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

Ultimate holding company

Commentary

Payment expectations

Company information

Social Balance Sheet Details

Personnel (NSSO classification)

Joint Industrial Committee (JIC)

Profit & loss

balance sheet

ratio analysis

Payment expectations

Industry comparison

Industry quartile analysis

Group Structure

Bankruptcy Data

Unit