MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	VARUNDIAM BVBA

Registered Office :	Hoveniersstraat 2, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	28.06.1988

Com. Reg. No.:	434488239

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	434488239
Company name	VARUNDIAM BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Number of staff	1
Date of establishment	28/06/1988
Telephone number	032342469
Fax number	032325394

Commentary

The business was established over 26 years ago.

The business has 1 employees.

The business has been at the address for over 16 years.

Operating Result in the latest trading period decreased 185% on the previous trading period.

A 29% decline in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 62% during the latest trading period.

Accounts

DATE OF LATEST

ACCOUNTS TURNOVER PROFIT BEFORE TAX NET WORTH WORKING CAPITAL

31/12/2012 49,173 1,190,213 1,203,686

31/12/2011 44,698 1,181,566 1,226,378

31/12/2010 32,002 1,175,867 1,224,229

Accounts

DATE OF LATEST

ACCOUNTS BALANCE TOTAL NUMBER OF EMPLOYEES CAPITAL CASHFLOW

31/12/2012 2,121,049 0 18,592 69,182

31/12/2011 3,014,448 0 18,592 56,628

31/12/2010 3,092,286 0 18,592 43,933

Payment expectations

Past payments Payment expectation days -

Industry average payment

expectation days 164.62

Industry average day sales

Outstanding 125.68

Day sales outstanding –

Court data summary

BANKRUPTCY DETAILS

Court action type no

PROTESTED BILLS

Bill amount -

NSSO DETAILS

Date of summons –

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year
ended 31-12-2012
Full-time Employees	-
Part-time Employees	1
Total Fte Employees	1

Number of hours worked
Full-time Employees	-
Part-time Employees	1,097
Total	1,097

Personnel Charges
Full-time Employees	-
Part-time Employees	23,898
Total	23,898
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	1
Actual working hours	1,099
Personnel Charges	23,124
Benefits In Addition To Wages	-

				K
Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	-	1	1
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	-	-	-
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	-	1	1
Higher education (non university)	-	-	-
Higher education (university)	-	-	-


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


Temporary personnel		Total		\.
Average number of temporary staff		-
Actual working hours		-
Cost of temporary staff		-
				J

New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	-	-	-
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	-	-	-	-	-	46,485,458	-
Total operating expenses	-	-	-	-	-	46,114,879	-
Operating result	-51,513	-185	60,585	-54.33	1 32,657	140,820	-136
Total financial income	340,882	-5.39	360,314	97.87	1 82,099	98,771	245
Total financial expenses	240,195	-36.15	376,201	33.05	282,753	206,101	16.54
Results on ordinary operations before taxation	49,173	10.01	44,698	39.67	32,002	25,231	94.89
Taxation	1,026	-	-	-	1,725	20,807	-95.07
Results on ordinary operations after taxation	48,147	7.72	44,698	47.63	30,277	10,456	360
Extraordinary items	500	-	0	-100	1,500	-3,965	12.61
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result OTHER INFORMATION	48,647	8.83	44,698	40.66	31,777	6,510	647
Gross Operating Margin	-3,785	-103	97,782	-42.34	169,574	56,746	-106
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	112,544	-
Employee costs	23,898	3.35	23,124	3.28	22,389	125,946	-81.02
Wages and salary	19,486	4.55	18,638	2.49	18,185	1 05,550	-81.54
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	4,125	4.61	3,943	3.89	3,795	26,656	-84.53
Other employee costs	288	-47.09	544	32.83	409	4,340	-93.37
Amortization and depreciation	20,535	72.14	11,929	-1.86	12,156	17,811	15.29

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	1,570	-100
Tangible fixed assets	170,989	13.88	150,145	-6.61		160,775	184,117	-7.13
Land & building	120,796	-2.38	123,747	-2.33		126,698	362,988	-66.72
Plant & machinery	1,932	14.68	1,684	37.04		1,229	22,615	-91.46
Furniture & Vehicles	48,261	95.29	24,713	-24.76		32,848	17,295 5,364	179
Leasing & Other Similar Rights	-	-	-	-		-	142,153 32,369	-
Other tangible assets	0	-	0	-		0	7,581	-100
Financial fixed assets	7,200	-	-	-		-	306,282	-97.65
Total fixed assets	178,189	18.68	150,145	-6.61		160,775	394,259	-54.80
Inventories	1,171,627	-28.57	1,640,173	33.03		1,232,973	3,098,414	-62.19
Raw materials & consumables	-	-	-	-		-	7,209,884	-
Work in progress	0	-	0	-		0	2,382	-100
Finished goods	0	-	0	-		0	1,992,650	-100
Other stocks	1,171,627	-28.57	1,640,173	33.03		1,232,973	569,029	105
Trade debtors	585,736	-47.61	1,118,021	-27.78		1,548,097	4,234,849	-86.17
Cash	144,884	62.00	89,432	-39.26		147,235	227,014	-36.18
other amounts receivable	39,472	136	16,677	420		3,206	208,818	-81.10
Miscellaneous current assets	1,142	-	0	-		0	18,217	-93.73
Total current assets	1,942,860	-32.17	2,864,303	-2.29		2,931,511	7,314,172	-73.44
Total Assets	2,121,049	-29.64	3,014,448	-2.52		3,092,286	7,668,273 1,451,744	-72.34
CURRENT LIABILITIES
Trade creditors	494,149	-66.47	1,473,704		-8.35	1,607,977	3,141,505		-84.27
Short term group loans	-	-	-		-	-	-		-
Financial debts	171,816	72.03	99,874		115	46,452	4,280,807 189,666		-95.99
Current portion of long term debt	26,925	46.25	18,411		9.00	16,891	110,204 15,373		-75.57
Amounts Payable for Taxes, Remuneration & Social Security	5,796	-16.42	6,935		39.77	4,962	9,727 -		-82.95
Miscellaneous current liabilities	40,487	3.81	39,000		25.81	31,000	-86.39		- -
Total current liabilities	739,174	-54.87	1,637,925		-4.06	1,707,282	5,452,181		-86.44
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-		-	-	-		- -
Other long term loans	191,662	-1.69	194,957		-6.78	209,137	-82.80		- -
Deffered taxes	-	-	-		-	-	37,626 26,358		-
Provisions for Liabilities & Charges	0	-	0		-	0	3,162 0		-100
Other long term liabilities	0	-	0		-	0	127,769		-100
Total long term debts	191,662	-1.69	194,957		-6.78	209,137	561,675		-65.88
SHAREHOLDERS EQUITY
Issued share capital	18,592	0	18,592		0	18,592	966,465		-98.08
Share premium account	-	-	-		-	-	109,362		-
Reserves	1,171,621	0.74	1,162,974		0.49	1,157,275	652,459		79.57
Revaluation reserve	-	-	-		-	-	939,206		-
Total shareholders equity	1,190,213	0.73	1,181,566		0.48	1,175,867	1,648,380		-27.79
Working capital	1,203,686	-1.85	1,226,378		0.18	1,224,229	1,861,991		-35.35
Cashflow	69,182	22.17	56,628		28.89	43,933	21,230		225
Net worth	1,190,213	0.73	1,181,566		0.48	1,175,867	1,645,157		-27.65

ratio analysis

Annual accounts	31-12-2012	Change (%)	31-12-2011	Change (%)	31-12-2010	Industry average 2012
TRADING PERFORMANCE
Profit Before Tax	-	-	-	-	-	-29,00	-
Return on capital employed	3.56	9.54	3.25	40.69	2.31	29,00	-87.72
Return on total assets employed	2.32	56.76	1.48	43.69	1.03	-200,00	1.16
Return on net assets employed	4.13	9.26	3.78	38.97	2.72	19,00	-78.26
Sales / net working capital	-	-	-	-	-	44,00	-
Stock turnover ratio	-	-	-	-	-	116,00	-
Debtor days	-	-	-	-	-	143,00	-
Creditor days SHORT TERM STABILITY						125,00
Current ratio	2.63	50.29	1.75	1.74	1.72	6,00	-70.78
Liquidity ratio / acid ratio	1.04	38.67	0.75	-24.24	0.99	4,00	-74.00
Current debt ratio	0.62	-55.40	1.39	-4.14	1.45	9,00	-93.11
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	32.80	23.73	26.51	14.42	23.17	357,00	-90.81
Equity in percentage	56.11	43.14	39.20	3.08	38.03	-3.185,00	1.76
Total debt ratio	0.78	-49.68	1.55	-4.91	1.63	11,00	-92.91

PAYMENT information

Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment	164.62
expectation days
Industry average day sales	125.68
outstanding
Industry quartile analysis
Payment expectations
Company result	-
Lower	134.13
Median	84.62
Upper	45.33

Day sales outstanding

Company result -

Lower 110.17

Median 58.70

Upper 28.58

Shareholder Details

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 434488239

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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Analysis Done by :	DIV

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%)

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