MIRA INFORM REPORT

Report Date :

12.05.2014

IDENTIFICATION DETAILS

Name :	CHIRAG DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	17.10.1991
Com. Reg. No.:	445449239
Legal Form :	Private Limited Company
Line of business :	Wholesaler of diamonds and other precious stones
No. of Employees :	01

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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	A1	A1

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 445449239

Company name CHIRAG DIAMONDS BVBA

Address HOVENIERSSTRAAT 2

2018 ANTWERPEN

Number of staff 1 (31.12.2012)

Date of establishment 17/10/1991

Telephone number 032341996

Fax number 032329370

Commentary

The business was established over 22 years ago.

The business has 1 employees.

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

Operating Result in the latest trading period decreased 28% on the previous trading period.

Pre-tax profits decreased by 45% compared to the previous trading period.

The business saw an increase in their Cash Balance of 10897% during the latest trading period.

Turnover in the latest trading period decreased 42% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	44,164,246	127,513	3,457,386	5,709,303
31/12/2011	76,937,770	235,355	3,388,942	6,353,149
31/12/2010	25,125,448	27,613	3,251,049	4,931,686

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	18,377,698	1	18,592	110,005
31/12/2011	22,581,926	1	18,592	184,967
31/12/2010	13,209,379	1	18,592	38,899

Payment expectations
Past payments		Payment expectation days	47.78
Industry average payment	165.12	Industry average day sales	126.94
expectation days		outstanding
Day sales outstanding	105.65
Court data summary
BANKRUPTCY DETAILS
Court action type	no

Company information

Business number	445449239	Company name	CHIRAG DIAMONDS BVBA
Fax number	032329370	Date founded	17/10/1991
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT
Activity description	Wholesaler of diamonds and other precious stones	VAT Number	BE.0445.449.239
Belgian Bullettin of Acts Publications	moniteur belge

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	1
Part-time Employees	-
Total Fte Employees	1
Number of hours worked
Full-time Employees	1,687
Part-time Employees	-
Total	1,687
Personnel Charges
Full-time Employees	38,537
Part-time Employees	-
Total	38,537
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	1
Actual working hours	1,733
Personnel Charges	36,055
Benefits In Addition To Wages	-

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		-
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	44,164,246	-42.60	76,937,770	206	25,125,448	46,485,458	-4.99
Total operating expenses	43,667,367	-42.73	76,242,108	205	24,946,719	46,114,879	-5.31
Operating result	496,879	-28.57	695,662	289	178,729	140,644	253
Total financial income	1,745,426	-60.17	4,382,706	170	1,618,249	97,700	1686
Total financial expenses	2,114,792	-56.33	4,843,013	173	1,769,364	205,052	931
Results on ordinary operations before taxation	127,513	-45.82	235,355	752	27,613	25,212	405
Taxation	30,639	-52.86	65,000	1200	5,000	20,811	47.23
Results on ordinary operations after taxation	96,874	-43.13	170,355	653	22,613	10,416	830
Extraordinary items	0	-	0	-100	668	-3,982	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	96,874	-43.13	170,355	631	23,281	6,453	1401
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	90,000	112,544	-
Employee costs	38,537	5.16	36,646	4.29	35,140	126,172	-69.46
Wages and salary	30,839	4.76	29,437	3.78	28,366	105,771	-70.84
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	7,008	5.90	6,618	5.42	6,277	26,708	-73.76
Other employee costs	690	16.75	591	19.16	496	4,356	-84.15
Amortization and depreciation	13,132	-10.13	14,612	-6.44	15,618	17,866	-26.50

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	5,891	-	7,462	-	0	1,576	273
Tangible fixed assets	194,362	-4.20	202,882	-0.85	204,618	184,536	5.32
Land & building	181,043	-4.29	189,153	-4.11	197,263	362,988	50.12
Plant & machinery	8,328	1.89	8,174	127	3,593	22,615	63.17
Furniture & Vehicles	4,991	10.17	5,556	47.66	3,762	17,300 5,364	71.15
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,611	-100
Financial fixed assets	-	-	-	-	-	306,761	-
Total fixed assets	200,253	-4.80	210,344	2.80	204,618	395,576	49.38
Inventories	4,474,745	22.18	3,662,338	25.52	2,917,766	3,111,766	43.80
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,392	-100
Finished goods	4,474,745	22.18	3,662,338	25.52	2,917,766	2,000,677	123
Other stocks	0	-	0	-	0	570,162	-100
Trade debtors	12,783,139	31.52	18,668,082	100	9,330,571	4,249,443	200
Cash	886,865	10897	8,064	98.91	740,067	225,558	293
other amounts receivable	23,561	15.10	27,750	73.34	16,009	209,360	88.75
Miscellaneous current assets	9,136	70.84	5,348	1436	348	18,289	50.05
Total current assets	18,177,446	18.75	22,371,582	72.03	13,004,760	7,337,366	147
Total Assets	18,377,698	18.62	22,581,926	70.95	13,209,379	7,692,885 1,451,744	138
CURRENT LIABILITIES
Trade creditors	5,715,758	31.90	8,392,798	69.59	4,948,827	3,151,222	81.38
Short term group loans	-	-	-	-	-	-	-
Financial debts	6,593,763	11.73	7,470,121	145	3,048,399	4,297,815 189,666	53.42
Current portion of long term debt	21,777	-4.11	22,710	12.18	25,859	110,204 15,373	80.24
Amounts Payable for Taxes, Remuneration & Social Security	38,582	48.80	75,360	659	9,916	9,727 -	13.60
Miscellaneous current liabilities	98,263	71.06	57,443	43.34	40,074	-66.87	- -
Total current liabilities	12,468,143	22.16	16,018,433	98.42	8,073,074	5,468,297	128
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,446,278	22.76	3,167,090	67.99	1,885,256	119	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,174 0	-100
Other long term liabilities	0	-	0	-	0	128,284	-100
Total long term debts	2,446,278	22.76	3,167,090	67.99	1,885,256	563,937	333
SHAREHOLDERS EQUITY
Issued share capital	18,592	0	18,592	0	18,592	967,079	98.08
Share premium account	-	-	-	-	-	109,362	-
Reserves	3,444,685	1.98	3,377,812	4.50	3,232,457	657,910	423
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	3,463,277	1.97	3,396,404	4.47	3,251,049	1,654,570	109
Working capital	5,709,303	10.13	6,353,149	28.82	4,931,686	1,869,068	205
Cashflow	110,005	40.53	184,967	375	38,899	21,225	418
Net worth	3,457,386	2.02	3,388,942	4.24	3,251,049	1,651,328	109

ratio analysis

Annual accounts	31-12-2012	Change (%)	31-12-2011	Change (%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.29	-6.45	0.31	181	0.11	-29,00	1.00
Return on capital employed	2.16	-39.83	3.59	564	0.54	29,00	-92.55
Return on total assets employed	0.69	-33.65	1.04	395	0.21	-201,00	0.34
Return on net assets employed	3.68	-46.90	6.93	715	0.85	19,00	-80.63
Sales / net working capital	7.74	-36.09	12.11	137	5.09	44,00	-99
Stock turnover ratio	10.13	112	4.76	-59.00	11.61	116,00	-91.27
Debtor days	105.65	19.30	88.56	-34.67	135.55	143,00	-26.12
Creditor days	47.78	18.91	40.18	-44.51	72.41	125,00	-61.78
SHORT TERM STABILITY
Current ratio	1.46	4.29	1.40	-13.04	1.61	6,00	-83.78
Liquidity ratio / acid ratio	1.10	-5.98	1.17	-6.40	1.25	4,00	-72.50
Current debt ratio	3.60	-23.73	4.72	90.32	2.48	9,00	-60.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	261.65	-16.63	313.86	105	152.55	358,00	-26.91
Equity in percentage	18.85	25.25	15.05	-38.85	24.61	-3.198,00	0.59
Total debt ratio	4.31	-23.72	5.65	84.64	3.06	10,00	-56.90

Payment expectations
Payment expectation days	47.78
Day sales outstanding	105.65
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	165.12
Industry average day sales outstanding	126.94
Industry quartile analysis
Payment expectations
Company result	47.78
Lower	134.36
Median	84.93
Upper	45.55

Day sales outstanding
Company result	105.65
Lower	112.48
Median	58.70
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	445449239
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

Director details

Current Director Details

Name	VIRENDRA DAHYABHAI DHAMELIA
Position	Principal Manager
Start Date	01/01/2011
Street	45 EUGENIO PACELLILAAN EDEGEM
Post code	2650
Country	Belgium
Name	MOHANLAL DHAMELIA
Position	Principal Manager
Start Date	22/11/2007
Street	45 EUGENIO PACELLILAAN EDEGEM
Post code	2650
Country	Belgium

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.60.05
UK Pound	1	Rs.101.65
Euro	1	Rs.83.08

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.