MIRA INFORM REPORT

Report Date :

20.06.2014

IDENTIFICATION DETAILS

Name :	SOHAMDIAM BVBA

Registered Office :	Vaneycklei 23, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	05.10.1993

Com. Reg. No.:	451058314

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
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
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 451058314

Company name SOHAMDIAM BVBA

Address VANEYCKLEI 23

2018 ANTWERPEN

Number of staff 1

Date of establishment 05/10/1993

Telephone number 032885240

Commentary

The business was established over 20 years ago.

The business has 1 employees.

The business has been at the address for over 5 years.

A 30% decline in Total Assets occurred during the latest trading period.

Pre-tax profits decreased by 68% compared to the previous trading period.

Accounts

Date of latest accounts Turnover Profit Before Tax Net worth Working capital

31/12/2012 2,880 49,289 553,229

31/12/2011 9,254 46,757 599,222

31/12/2010 16,566 39,940 554,096

Accounts

Date of latest accounts Balance Total Number of Employees Capital Cash flow

31/12/2012 882,923 0 18,592 6,915

31/12/2011 1,266,356 0 18,592 11,200

31/12/2010 - 0 18,592 13,566

Payment expectations

Past payments Payment expectation days -

Industry average payment

expectation days 164.77

Day sales outstanding –

Industry average day sales

outstanding 125.70

Court data summary

Court action type no

Bankruptcy details

Protested bills

Bill amount -

NSSO details

Date of summons –

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 31,710 149 -21,189 -179 26,657 140,820 -77.48

Total financial income - - 61,158 - - 98,771 -

Total financial expenses 28,830 -6.14 30,716 204 10,091 206,101 -86.01

Results on ordinary operations before

Taxation 2,880 -68.88 9,254 -44.14 16,566 25,231 -88.59

Taxation 348 -85.71 2,437 -18.76 3,000 20,807 -98.33

Results on ordinary operations after 2,532 -62.86 6,816 -49.75 13,566 10,456 -75.79

Taxation

Extraordinary items 0 - 0 - 0 -3,965 0

Other appropriations 0.00 - 0.00 - 0 - -

Net result 2,532 -62.86 6,816 -49.75 13,566 6,510 -61.11

other information

Gross Operating Margin 37,467 251 -14,916 -153 27,764 56,746 -33.97

Dividends - - - - - 172,177 -

Director remuneration - - - - - 112,544 -

Employee costs - - - - - 125,946 -

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

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

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

Other employee costs 0 - 0 - 0 4,340 -100

Amortization and depreciation 4,383 0 4,383 - - 17,811 -75.39

Balance sheet

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

Average

2012

Intangible fixed assets 0 - 0 - 0 1,570 -100

Tangible fixed assets 13,150 -25.00 17,534 - - 184,117 -92.86

Land & building - - - - - 362,988 -

Plant & machinery - - - - - 22,615 -

Furniture & Vehicles 13,150 -25.00 17,534 - - 17,295 5,364 -23.96

Leasing & Other Similar Rights - - - - - 142,153 32,369 -

Other tangible assets 0 - 0 - 0 7,581 -100

Financial fixed assets - - - - - 306,282 -

Total fixed assets 13,150 -25.00 17,534 - - 394,259 -96.66

Inventories 129,284 975 12,022 -85.43 82,501 3,098,414 -95.83

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 129,284 975 12,022 -85.43 82,501 569,029 -77.28

Trade debtors 732,480 -40.50 1,230,977 19.13 1,033,339 4,234,849 -82.70

Cash 5,581 5.73 5,278 -75.91 21,909 227,014 -97.54

other amounts receivable 1,914 250 545 -75.89 2,262 208,818 -99

Miscellaneous current assets 513 - 0 - 0 18,217 -97.18

Total current assets 869,772 -30.35 1,248,822 9.54 1,140,011 7,314,172 -88.11

Total Assets 882,923 -30.28 1,266,356 11.08 1,140,011 7,668,273 -88.49

1,451,744

current liabilities

Trade creditors 100,927 -76.90 436,886 16.01 376,589 3,141,505 -96.79

Short term group loans - - - - - - -

Financial debts - - - - - 4,280,807 -

189,666

Current portion of long term debt 4,811 5.75 4,549 - - 110,204 15,373 -95.63

Amounts Payable for Taxes,

Remuneration & Social Security 1,000 -85.68 6,982 4.22 6,699 9,727- -97.06

Miscellaneous current liabilities 209,805 4.29 201,183 -0.71 202,627 -29.47 --

Total current liabilities 316,543 -51.27 649,601 10.87 585,915 5,452,181 -94.19

Long term debts and liabilities

Long term group loans - - - - - - --

Other long term loans 517,091 -9.28 569,999 10.86 514,156 -53.58 --

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 517,091 -9.28 569,999 10.86 514,156 561,675 -7.94

shareholders equity

Issued share capital 18,592 0 18,592 0.00 18,592 966,465 -98.08

Share premium account - - - - - 109,362 -

Reserves 30,697 8.99 28,165 31.93 21,348 652,459 -95.30

Revaluation reserve - - - - - 939,206 -

Total shareholders equity 49,289 5.41 46,757 17.07 39,940 1,648,380 -97.01

Working capital 553,229 -7.68 599,222 8.14 554,096 1,861,991 -70.29

Cashflow 6,915 -38.26 11,200 -17.44 13,566 21,230 -67.43

Net worth 49,289 5.41 46,757 17.07 39,940 1,645,157 -97.00

ratio analysis

Industry

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

(%) (%) 2012

Trading performance

Profit Before Tax - - - - - -29,00 -

Return on capital employed 0.51 -66.00 1.50 -49.83 2.99 29,00 -98.24

Return on total assets

employed 0.33 -54.79 0.73 -49.66 1.45 -200,00 -0.16

Return on net assets employed 5.84 -70.49 19.79 -52.29 41.48 19,00 -69.26

Sales / net working capital - - - - - 44,00 -

Stock turnover ratio - - - - - 116,00 -

Debtor days - - - - - 143,00 -

Creditor days - - - - - 125,00 -

short term stability

Current ratio 2.75 43.23 1.92 -1.54 1.95 6,00 -69.44

Liquidity ratio / acid ratio 2.34 23.16 1.90 5.56 1.80 4,00 -41.50

Current debt ratio 6.42 -53.78 13.89 -5.32 14.67 9,00 -28.67

Liquidity ratio reprocessed - - - - - - -

long term stability

Gearing 1058.87 -13.83 1228.80 -4.55 1287.32 357,00 196

Equity in percentage 5.58 51.22 3.69 5.43 3.50 -3.185,00 0.18

Total debt ratio 16.91 -35.16 26.08 -5.30 27.54 11,00 53.73

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 164.77

Industry average day sales

outstanding 125.70

Industry quartile analysis

Payment expectations

Company result -

Lower 133.74

Median 84.93

Upper 45.33

Day sales outstanding

Company result -

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

NSSO details

Business number 451058314

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.60.00
UK Pound	1	Rs.102.05
Euro	1	Rs.81.71

INFORMATION DETAILS

Analysis Done by :	SUM

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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