MIRA INFORM REPORT

Report Date :

17.05.2014

IDENTIFICATION DETAILS

Name :	DALI DIAMOND COMPANY NV
Registered Office :	Hoveniersstraat 51 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	23.12.1961
Com. Reg. No.:	404942732
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees	08

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
Moderate Low Risk	B1
Moderate Risk	B2
Moderate 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 name and address

Business number 404942732

Company name DALI DIAMOND COMPANY NV

Address HOVENIERSSTRAAT 51

2018 ANTWERPEN

Number of staff 8

Date of establishment 23/12/1961

Telephone number 032138181

Fax number 032342615

Commentary

The business was established over 52 years ago.

The business has 5 employees.

The business is part of a group.

This business has a foreign parent business.

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

Operating Result in the latest trading period increased 64% on the previous trading period.

A 22% growth in Total Assets occurred during the latest trading period.

Pre-tax profits decreased by 38% compared to the previous trading period.

The business saw an increase in their Cash Balance of 88% during the latest trading period.

Turnover in the latest trading period increased 25% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	197,235,603	128,536	17,578,866	27,574,528
31/12/2011	157,004,559	209,300	17,803,576	27,954,309
31/12/2010	152,806,764	-6,629	17,112,063	27,013,898

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	95,100,492	8	62,985	187,707
31/12/2011	77,404,630	8	64,232	198,731
31/12/2010	53,490,708	10	62,196	307,479

Payment expectations

Past payments		Payment expectation days 29.84
Industry average payment expectation days	164.26	Industry average day sales 120.92 outstanding
Day sales outstanding	96.38
Court data summary
BANKRUPTCY DETAILS
Court action type	no

Company information

Business number	404942732	Company name	DALI DIAMOND COMPANY NV
Fax number	032342615	Date founded	23/12/1961
Company status	active	Company type	Public Limited Liability Company (BE)
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.0404.942.732

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	7
Part-time Employees	3
Total Fte Employees	9
Number of hours worked
Full-time Employees	11,088
Part-time Employees	1,587
Total	12,675
Personnel Charges
Full-time Employees	230,337
Part-time Employees	25,752
Total	256,088
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	9
Actual working hours	13,625
Personnel Charges	278,243
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	7	3	9
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	1	1	2
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	5	2	6
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	2	-	2
Blue collar worker	5	3	7
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 5 TO 9 EMPLOYEES
Joint Industrial Committee (JIC)
Significant Events
Event Date	20/12/2013
Event Description
Event Details	De 55 shares after the capital increase will be split into 100 shares for 1 share, so that capital is now represented by 5,500 shares.

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	197,235,603	25.62	157,004,559	2.75	152,806,764	46,612,575	323
Total operating expenses	195,988,093	25.44	156,246,544	2.58	152,309,408	46,221,128	324
Operating result	1,247,510	64.58	758,015	52.41	497,356	148,165	741
Total financial income	50,295	12.55	57,511	18.12	70,238	97,631	48.48
Total financial expenses	1,169,269	92.88	606,226	5.57	574,223	204,468	471
Results on ordinary operations before taxation	128,536	38.59	209,300	3157	-6,629	33,229	286
Taxation	105,353	33.32	79,020	27.78	109,415	20,877	404
Results on ordinary operations after taxation	23,183	82.21	130,280	112	-116,044	18,398	26.01
Extraordinary items	97,629	9260	1,043	-99	367,472	-4,346	2246
Other appropriations	0	-	0	-	0	-	-
Net result	120,812	-8.00	131,323	47.77	251,428	14,071	758
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	104,419	11.07	94,012	-	-	112,544	-7.22
Employee costs	256,088	-9.75	283,750	7.94	262,872	126,172	102
Wages and salary	196,002	-8.67	214,602	3.54	207,270	105,771	85.31
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	41,568	-6.30	44,361	14.13	38,870	26,708	55.64
Other employee costs	18,519	25.29	24,787	48.14	16,732	4,365	324
Amortization and depreciation	66,895	-0.76	67,408	20.26	56,051	17,886	274
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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	1,579	-100
Tangible fixed assets	634,269	-7.62	686,599	14.96	597,257	184,763	243
Land & building	-	-	-	-	-	362,988	-
Plant & machinery	567,290	-8.52	620,131	7.69	575,844	22,646	2405
Furniture & Vehicles	66,979	0.77	66,468	210	21,413	17,300 5,364	287
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,627	-100
Financial fixed assets	1,517,094	-1.93	1,546,932	3.29	1,497,697	306,761	394
Total fixed assets	2,151,363	-3.68	2,233,530	6.61	2,094,954	396,027	443
Inventories	40,493,453	5.80	38,274,542	173	13,995,304	3,105,555	1203
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,396	-100
Finished goods	40,493,453	5.80	38,274,542	173	13,995,304	1,993,175	1931
Other stocks	0	-	0	-	0	571,308	-100
Trade debtors	52,082,983	42.31	36,598,434	-1.95	37,326,314	4,252,582	1124
Cash	242,730	88.94	128,466	411	25,122	225,847	7.48
other amounts receivable	46,032	24.22	60,746	61.40	37,638	187,318	75.43
Miscellaneous current assets	83,931	22.94	108,912	857	11,376	18,016	365
Total current assets	92,949,129	23.65	75,171,100	46.26	51,395,754	7,312,246	1171
Total Assets	95,100,492	22.86	77,404,630	44.71	53,490,708	7,668,456 1,451,744	1140
CURRENT LIABILITIES
Trade creditors	16,021,707	40.53	26,939,828	66.95	16,136,269	3,140,893	410
Short term group loans	-	-	-	-	-	-	-
Financial debts	48,989,243	146	19,861,588	152	7,872,059	4,252,492 189,481	1052
Current portion of long term debt	-	-	-	-	-	110,204 15,373	-
Amounts Payable for Taxes, Remuneration & Social Security	139,814	42.52	243,256	21.43	200,331	9,727 -	311
Miscellaneous current liabilities	223,837	30.05	172,119	-0.62	173,197	-24.59	- -
Total current liabilities	65,374,601	38.46	47,216,791	93.66	24,381,856	5,436,355	1102
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	12,147,025	-1.92	12,384,263	3.23	11,996,790	1003	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,181 0	-100
Other long term liabilities	0	-	0	0	-1	128,543	-100
Total long term debts	12,147,025	-1.92	12,384,263	3.23	11,996,789	558,650	2074
SHAREHOLDERS EQUITY
Issued share capital	62,985	-1.94	64,232	3.27	62,196	945,040	93.34
Share premium account	-	-	-	-	-	109,362	-
Reserves	17,515,881	-1.26	17,739,344	4.04	17,049,867	692,702	2428

Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	17,578,866	-1.26	17,803,576	4.04	17,112,063	1,667,396	954
Working capital	27,574,528	-1.36	27,954,309	3.48	27,013,898	1,875,891	1369
Cashflow	187,707	-5.55	198,731	35.37	307,479	28,871	550
Net worth	17,578,866	-1.26	17,803,576	4.04	17,112,063	1,664,134	956
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ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.07	-46.15	0.13	-	0	-25,00	0.28
Return on capital employed	0.43	-37.68	0.69	3450	-0.02	29,00	-98.52
Return on total assets employed	0.14	-48.15	0.27	2700	-0.01	-201,00	0.07
Return on net assets employed	0.73	-38.14	1.18	2950	-0.04	19,00	-96.16
Sales / net working capital	7.15	27.22	5.62	-0.71	5.66	44,00	-99
Stock turnover ratio	20.53	-15.79	24.38	166	9.16	110,00	-81.34
Debtor days	96.38	13.28	85.08	-4.58	89.16	134,00	-28.07
Creditor days	29.84	-52.58	62.93	62.74	38.67	123,00	-75.74
SHORT TERM STABILITY
Current ratio	1.42	-10.69	1.59	-24.64	2.11	6,00	-84.22
Liquidity ratio / acid ratio	0.80	2.56	0.78	-49.02	1.53	4,00	-80.00
Current debt ratio	3.72	40.38	2.65	86.62	1.42	9,00	-58.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	347.78	92.02	181.12	55.99	116.11	359,00	-3.13
Equity in percentage	18.48	-19.65	23	-28.10	31.99	-3.205,00	0.58
Total debt ratio	4.41	31.64	3.35	57.28	2.13	11,00	-59.91

Amount	-
Details	-
Payment expectations
Payment expectation days	29.84
Day sales outstanding	96.38

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	164.26
Industry average day sales outstanding	120.92
Industry quartile analysis
Payment expectations
Company result	29.84
Lower	134.13
Median	83.75
Upper	45.33

Day sales outstanding
Company result	96.38
Lower	112.48
Median	58.70
Upper	27.62

Shareholder Details

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-
NSSO details
Business number	404942732
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-
Bankruptcy details

Bankruptcy details

There is no bankruptcy data against this company

Court Data

there is no data for this company

Current director details

Name	ISIDORE MORSEL
Position	Managing Director
Start Date	31/10/2006
Date of birth	29/01/1962
Street	251 MECHELSESTEENWEG ANTWERPEN
Post code	2018
Country	Belgium
Name	ISIDORE MORSEL
Position	Director
Start Date	02/01/2013
Date of birth	29/01/1962
Street	251 MECHELSESTEENWEG ANTWERPEN
Post code	2018
Country	Belgium
Name	JACQUES ALEXANDRE MORSEL
Position	Director
Start Date	01/01/2006
Street	8 GOUNODSTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	CHARLES HOLLANDER
Position	Director
Start Date	31/10/2006
Street	2 ROBERT BOSSAERTSSTRAAT ANTWERPEN
Post code	2600
Country	Belgium
Name	CHARLES MORSEL
Position	Director
Start Date	16/10/2007
Street	2 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	THEO VAN HERCK BEDRIJFSREVISOR BVBA
Position	Commissioner
Start Date	11/04/2011
Date of birth	20/03/1991
Street	645 HERENTALSEBAAN WOMMELGEM
Post code	2160
Country	Belgium
Name	ISIDORE MORSEL
Position	Director
Start Date	28/05/1987
Street
Post code Country
Name	ISIDORE MORSEL
Position	Managing Director
Start Date	02/01/2001
Street
Post code
Country
Name	CHARLES HOLLANDER
Position	Director
Start Date	01/04/1977

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.58.86
UK Pound	1	Rs.98.82
Euro	1	Rs.80.71

INFORMATION DETAILS

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