MIRA INFORM REPORT

Report Date :

12.05.2014

IDENTIFICATION DETAILS

Name :	GEMASIA BVBA
Registered Office :	Hoveniersstraat 53 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	12.06.1991
Com. Reg. No.:	444382041
Legal Form :	Private Limited Company
Line of Business :	Wholesale of diamonds and precious stones
No. of Employees :	06

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 :	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	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 2011 Belgian GDP grew by 1.8%, the unemployment rate decreased slightly to 7.2% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. 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

REGISTERED NAME & COMPANY SUMMARY

Business number	444382041
Company name	GEMASIA BVBA
Address	HOVENIERSSTRAAT 53
	2018 ANTWERPEN
Number of staff	6
Date of establishment	12/06/1991
Telephone number	032326731
Fax number	032326731

DIRECTORS/MANAGEMENT

Current director details

Name	SAMIR ZAVERI
Position	Principal Manager
Start Date	19/12/2001
Street	33 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HARSHAD JAYANTILAL SHAH
Position	Principal Manager
Start Date	01/10/2010
Street	147 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	SUBODCHANDRA SHAH
Position	Principal Manager
Start Date	16/07/1998
End Date	09/06/1998
Street	31 DENNENLAAN ANTWERPEN
Post code	2610
Country	Belgium

NEGATIVE INFORMATION

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	05/09/2011

Business number	444382041	Company name	GEMASIA BVBA
Fax number	032326731	Date founded	12/06/1991
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	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0444.382.041
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details Check Article 30 Bis

Registered contractor number	-
Contractor description	-
Date struck off register

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	444382041
Name of defendant	GEMASIA
Legal form of defendant	Private limited liability company
Date of summons	01/02/2005
Labour court	ANTWERPEN

Bankruptcy details

There is no bankruptcy data against this company

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	32.04
Industry average payment expectation days	166.66	Industry average day sales outstanding	117.92
Day sales outstanding	73.55

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average credit rating	64.48
Industry average credit limit	140177.31

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	32.04
Day sales outstanding	73.55

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	166.66
Industry average day sales outstanding	117.92

Industry quartile analysis

Payment expectations
Company result	32.04
Lower	134.36
Median	84.62
Upper	44.80

Day sales outstanding
Company result	73.55
Lower	112.48
Median	59.01
Upper	28.58

FINANCIAL INFORMATION

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	203,077,100	253,696	3,971,557	10,025,003
31/12/2011	267,161,693	328,854	3,801,978	9,795,776
31/12/2010	181,299,754	261,594	3,586,277	9,346,556

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	49,675,316	6	3,100,000	219,850
31/12/2011	47,903,269	5	3,100,000	276,555
31/12/2010	51,428,946	5	3,100,000	229,065

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	5
Part-time Employees	1
Total Fte Employees	6
Number of hours worked
Full-time Employees	9,029
Part-time Employees	495
Total	9,524
Personnel Charges
Full-time Employees	202,840
Part-time Employees	11,120
Total	213,960
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	6
Actual working hours	9,436
Personnel Charges	208,509
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	6	-	6
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-

Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	1	-	1
Secondairy education	2	-	2
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	1	-	1
Higher education (non university)	2	-	2
Higher education (university)	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	5	-	5
Blue collar worker	1	-	1
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	1	-	1
Leavers	-	1	0

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of less formal and informal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of initial training initiatives at the expense of the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-

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	203,077,100	-23.99	267,161,693	47.36	181,299,754	46,267,848	338
Total operating expenses	201,751,524	-24.11	265,831,764	47.60	180,098,422	45,870,796	339
Operating result	1,325,576	-0.33	1,329,929	10.70	1,201,332	149,616	785
Total financial income	15,366	56.29	9,832	76.96	5,556	98,980	-84.48
Total financial expenses	1,087,246	7.55	1,010,907	6.94	945,294	206,568	426
Results on ordinary operations before taxation	253,696	-22.85	328,854	25.71	261,594	33,221	663
Taxation	84,117	-25.66	113,153	27.73	88,590	21,020	300
Results on ordinary operations after taxation	169,579	-21.38	215,701	24.68	173,004	18,270	828
Extraordinary items	0	-	0	-	0	-4,694	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	169,579	-21.38	215,701	24.68	173,004	13,593	1147
other information
Dividends	-	-	-	-	-	172,177	-
Director remuneration	236,659	47.63	160,302	25.23	128,002	114,096	107
Employee costs	213,960	2.61	208,509	6.83	195,174	128,844	66.06
Wages and salary	169,305	3.53	163,537	7.79	151,724	107,570	57.39
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	40,361	1.21	39,879	6.43	37,469	27,113	48.86
Other employee costs	4,294	-15.70	5,093	-14.84	5,981	4,487	-4.31
Amortization and depreciation	50,271	-17.39	60,855	8.55	56,061	17,612	185

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	1,497	-100
Tangible fixed assets	565,865	-7.05	608,778	-0.79	613,617	179,878	214
Land & building	512,400	-4.99	539,322	-5.72	572,024	352,266	45.46
Plant & machinery	3,224	115	1,499	-65.97	4,405	22,362	-85.58
Furniture & Vehicles	50,241	-26.07	67,957	82.74	37,188	17,417 5,402	188
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,949	-100
Financial fixed assets	2,113	0	2,113	0	2,113	298,194	-99
Total fixed assets	567,978	-7.02	610,891	-0.79	615,730	384,869	47.58
Inventories	7,082,808	-57.37	16,613,243	10.20	15,075,928	3,082,856	129
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,502	-100
Finished goods	7,082,808	-57.37	16,613,243	10.20	15,075,928	1,959,515	261
Other stocks	0	-	0	-	0	581,425	-100
Trade debtors	40,920,675	34.93	30,326,852	-13.03	34,871,539	4,147,200	886
Cash	1,082,929	326	254,017	-46.37	473,654	224,243	382
other amounts receivable	13,000	-75.28	52,581	304	13,000	185,203	-92.98
Miscellaneous current assets	7,926	-82.65	45,685	-87.95	379,094	18,041	-56.07
Total current assets	49,107,338	3.84	47,292,377	-6.93	50,813,216	7,182,489	583
Total Assets	49,675,316	3.70	47,903,269	-6.86	51,428,946	7,535,790 1,449,923	559
current liabilities
Trade creditors	17,708,278	-3.75	18,397,517	-8.35	20,073,250	3,009,327	488
Short term group loans	-	-	-	-	-	-	-
Financial debts	20,694,413	11.28	18,597,071	4.75	17,753,129	4,255,040 189,666	386
Current portion of long term debt	9,787	-59.27	24,029	-67.98	75,049	109,218 14,984	-91.04
Amounts Payable for Taxes, Remuneration & Social Security	341,856	31.20	260,562	53.84	169,376	9,289 -	903
Miscellaneous current liabilities	328,000	50.86	217,422	-93.60	3,395,857	9.61	- -
Total current liabilities	39,082,335	4.23	37,496,601	-9.57	41,466,661	5,305,338	636
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	6,621,424	0.25	6,604,690	3.59	6,376,009	491	- -
Deffered taxes	-	-	-	-	-	35,141 24,730	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,248 0	-100
Other long term liabilities	0	-	0	-	0	133,880	-100
Total long term debts	6,621,424	0.25	6,604,690	3.59	6,376,009	571,515	1058
shareholders equity
Issued share capital	3,100,000	0	3,100,000	0	3,100,000	917,123	238
Share premium account	-	-	-	-	-	109,362	-
Reserves	871,557	24.16	701,978	44.36	486,277	699,807	24.54
Revaluation reserve	-	-	-	-	-	934,864	-
Total shareholders equity	3,971,557	4.46	3,801,978	6.01	3,586,277	1,644,789	141
Working capital	10,025,003	2.34	9,795,776	4.81	9,346,556	1,877,151	434
Cashflow	219,850	-20.50	276,555	20.73	229,065	28,105	682
Net worth	3,971,557	4.46	3,801,978	6.01	3,586,277	1,641,558	141

Ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.12	0	0.12	-14.29	0.14	-27,00	0.44
Return on capital employed	2.39	-24.37	3.16	20.15	2.63	31,00	-92.29
Return on total assets employed	0.51	-26.09	0.69	35.29	0.51	-214,00	0.24
Return on net assets employed	6.39	-26.13	8.65	18.66	7.29	21,00	-69.57
Sales / net working capital	20.26	-25.71	27.27	40.57	19.40	45,00	-99
Stock turnover ratio	3.49	-43.89	6.22	-25.24	8.32	116,00	-96.99
Debtor days	73.55	77.53	41.43	-40.98	70.20	138,00	-46.70
Creditor days	32.04	26.84	25.26	-37.91	40.68	126,00	-74.57
short term stability
Current ratio	1.26	0	1.26	2.44	1.23	7,00	-86.00
Liquidity ratio / acid ratio	1.08	31.71	0.82	-4.65	0.86	4,00	-73.00
Current debt ratio	9.84	-0.20	9.86	-14.71	11.56	9,00	9.33
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	688.03	3.70	663.49	-1.69	674.91	372,00	84.95
Equity in percentage	8	0.76	7.94	13.92	6.97	-3.350,00	0.24
Total debt ratio	11.51	-0.78	11.60	-13.04	13.34	11,00	4.64

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Personnel (NSSO classification)

Code	-
Description	FROM 5 TO 9 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Legal events

Legal event type	Social Security Summons
Legal event sub type
Event date	05/09/2011	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
3rd party address

NOTES & COMMENTS

Commentary

The business was established over 22 years ago.
The business has 5 employees.
The business has been at the address for over 11 years.
The credit rating for this business has increased from 84 to 86.
The credit limit for this business has increased from €3450000 to €3550000.
Pre-tax profits decreased by 22% compared to the previous trading period.
The business saw an increase in their Cash Balance of 326% during the latest trading period.
Turnover in the latest trading period decreased 23% on the previous trading period.

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.83.07

INFORMATION DETAILS

Report Prepared by :

PDT

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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