MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	TARANA GEMS BVBA

Registered Office :	Hoveniersstraat, 53, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	26.09.1990

Com. Reg. No.:	441666734

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	1

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
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 441666734

Company name TARANA GEMS BVBA

Address HOVENIERSSTRAAT

2018 ANTWERPEN

Number of staff 1

Date of establishment 26/09/1990

Telephone number 032325141

Fax number 032337088

Commentary

The business was established over 23 years ago.

The business has 1 employees.

The business has been at the address for over 9 months.

The business has changed address 1 times in the last year.

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

The business saw a decrease in their Cash Balance of 96% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	7,165,867	16,510	359,068	1,082,291
31/12/2011	9,043,583	31,089	342,419	686,648
31/12/2010		14,470	320,200	667,192

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	4,354,501	0	281,146	31,252
31/12/2011	4,295,305	0	281,146	45,152
31/12/2010	3,665,501	0	281,146	32,412

Payment expectations

Past payments Payment expectation days 90.52

Industry average payment

expectation days 164.62

Day sales outstanding 116.81

Industry average day sales

outstanding 125.64

Court data summary

Bankruptcy details

Court action type no

Protested bills

Bill amount -

NSSO details

Date of summons -

Profit & loss

Industry

Annual accounts 31-12-2012 % 31-12-2011 % 31-12-2010 average

2012 %

Weeks 52 52 52

Currency EUR EUR EUR

Turnover 7,165,867 -20.76 9,043,583 - - 46,485,458 -84.58

Total operating expenses 7,002,729 -21.19 8,885,658 - - 46,114,879 -84.81

Operating result 163,138 3.30 157,925 13.67 138,938 140,970 15.73

Total financial income 2,949 8614 34 303 8 98,884 -97.02

Total financial expenses 149,577 17.90 126,869 1.92 124,476 206,312 -27.50

Results on ordinary operations

Before taxation 16,510 -46.89 31,089 114 14,470 25,266 -34.66

Taxation -139 -101 8,869 69.91 5,220 20,807 -100

Results on ordinary operations

After taxation 16,649 -25.07 22,220 140 9,250 10,475 58.94

Extraordinary items 0 - 0 - 0 -3,969 0

Other appropriations 0 - 0.00 - 0.00 - -

Net result 16,649 -25.07 22,220 140 9,250 6,525 155

other information

Gross Operating Margin - - - - 164,652 56,835 -

Dividends - - - - - 172,177 -

Director remuneration - - - - - 112,544 -

Employee costs 451 -51.03 921 85.32 497 125,946 -99

Wages and salary - - - - - 105,550 -

Employee pension costs - - - - - 14,428 -

Social security contributions - - - - - 26,656 -

Other employee costs 451 -51.03 921 85.32 497 4,344 -89.62

Amortization and

depreciation 14,603 -36.32 22,932 -0.99 23,162 17,811 -18.01

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	59,688	-19.07	73,755	-23.30	96,158	184,117	-67.58
Land & building	52,186	-3.64	54,158	-3.51	56,130	362,988	-85.62
Plant & machinery	6,792	-57.34	15,920	-47.94	30,578	22,615	-69.97
Furniture & Vehicles	711	-80.66	3,677	-61.09	9,450	17,295 5,364	-95.89
Leasing& Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	-1	-	0	-	0	7,588	-100
Financial fixed assets	5,583	0.01	5,583	0	5,583	306,282	-98.18
Total fixed assets	65,271	-17.73	79,338	-22.02	101,741	394,259	-83.44
Inventories	1,950,299	-10.43	2,177,372	19.83	1,816,982	3,102,024	-37.13
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,384	-100
Finished goods	1,950,299	-10.43	2,177,372	-	0	1,994,651	-2.22
Other stocks	0	-	0	-100	1,816,982	569,553	-100
Trade debtors	2,293,290	14.79	1,997,844	16.57	1,713,863	4,239,087	-45.90
Cash	665	-96.11	17,105	476	2,967	227,241	-99
other amounts receivable	29,060	231	8,756	-53.27	18,740	209,025	-86.10
Miscellaneous current assets	15,916	6.89	14,890	32.84	11,209	18,235	-12.72
Total current assets	4,289,230	1.74	4,215,968	18.30	3,563,760	7,321,447	-41.42
Total Assets	4,354,501	1.38	4,295,305	17.18	3,665,501	7,675,911 1,453,566	-43.27
current liabilities
Trade creditors	1,736,770	-11.39	1,960,058	44.10	1,360,231	3,144,774	-44.77
Short term group loans	-	-	-	-	-	-	-
Financial debts	1,428,873	-7.27	1,540,948	3.51	1,488,640	4,280,807 189,666	-66.62
Current portion of long term debt	6,676	-39.98	11,123	-42.72	19,419	110,204 15,373	-93.94
Amounts Payable for Taxes, Remuneration& Social Security	30,401	132	13,081	-24.84	17,404	9,740 -	-10.67
Miscellaneous current liabilities	4,219	2.64	4,110	-62.20	10,875	-98.58	- -
Total current liabilities	3,206,939	-9.13	3,529,320	21.84	2,896,568	5,457,561	-41.24
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	-
Other long term loans	635,324	137	267,521	-12.20	304,698	-42.97	-
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,165 0	-100
Other long term liabilities	153,170	-1.84	156,045	8.34	144,036	127,897	19.76
Total long term debts	788,494	86.16	423,566	-5.61	448,733	562,239	40.24
shareholders equity
Issued share capital	281,146	0.00	281,146	0	281,146	967,416	-70.94
Share premium account	-	-	-	-	-	109,362	-
Reserves	77,922	27.17	61,273	56.90	39,054	653,158	-88.07
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	359,068	4.86	342,419	6.94	320,200	1,650,062	-78.24
Working capital	1,082,291	57.62	686,648	2.92	667,192	1,863,886	-41.93
Cashflow	31,252	-30.78	45,152	39.31	32,412	21,260	47.00
Net worth	359,068	4.86	342,419	6.94	320,200	1,646,834	-78.20

ratio analysis

Annual accounts	31-12-2012	Change (%)	31-12-2011	Change (%)	31-12-2010	Industry Average 2012	%
Trading performance
Profit Before Tax	0.23	-32.35	0.34	-	-	-29,00	0.79
Return on capital employed	1.44	-64.53	4.06	115	1.88	29,00	-95.03
Return on total assets employed	0.38	-47.22	0.72	84.62	0.39	-200,00	0.19
Return on net assets employed	4.60	-49.34	9.08	100	4.52	19,00	-75.79
Sales / net working capital	6.62	-49.73	13.17	-	-	44,00	-99
Stock turnover ratio	27.22	13.04	24.08	-	-	116,00	-76.53
Debtor days	116.81	44.87	80.63	-	-	143,00	-18.31
Creditor days	90.52	12.43	80.51	-	-	125,00	-27.58
		short term stability
Current ratio	1.34	12.61	1.19	-3.25	1.23	6,00	-85.11
Liquidity ratio / acid ratio	0.73	25.86	0.58	-3.33	0.60	4,00	-81.75
Current debt ratio	8.93	-13.39	10.31	13.92	9.05	9,00	-0.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
		long term stability
Gearing	576.74	8.53	531.39	-6.14	566.13	357,00	61.55
Equity in percentage	8.25	3.51	7.97	-8.81	8.74	-3.189,00	0.26
Total debt ratio	11.13	-3.55	11.54	10.43	10.45	11,00	1.18

Payment expectations

Payment expectation days 90.52

Day sales outstanding 116.81

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 164.62

Industry average day sales

outstanding 125.64

Industry quartile analysis

Payment expectations

Company result 90.52

Lower 134.13

Median 84.93

Upper 45.40

Day sales outstanding

Company result 116.81

Lower 110.17

Median 59.01

Upper 28.09

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 441666734

Name of defendant -

Legal form of defendant -

Date of summons -

Labour court –

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.59.48
UK Pound	1	Rs.100.93
Euro	1	Rs.80.71

INFORMATION DETAILS

Analysis Done by :	RAS

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

Commentary

Payment expectations

Court data summary

Company information

Profit & loss

balance sheet

ratio analysis

Payment expectations

Industry comparison

Industry quartile analysis

NSSO details

Bankruptcy Data

Unit