MIRA INFORM REPORT

Report Date :

28.11.2014

IDENTIFICATION DETAILS

Name :	PANNADIAM BVBA
Registered Office :	Hoveniersstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	01.12.1986
Com. Reg. No.:	429946560
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	Not Available

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Belgium	A1	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	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 429946560

Company name PANNADIAM BVBA

Address HOVENIERSSTRAAT 2

2018 ANTWERPEN

Number of staff 0

Date of establishment 01/12/1986

Telephone number 032264774

Fax number 032133183

Commentary

The business was established over 28 years ago. The business has 1 employees.

The business has been at the address for over 15 years.

A 100% growth in Total Assets occurred during the latest trading period.

Pre-tax profits increased by 369% compared to the previous trading period.

The business saw an increase in their Cash Balance of 1010% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS TURNOVER	PROFIT BEFORE TAX NET WORTH	WORKING CAPITAL
31/12/2013	19,292 156,979	5,135,741
31/12/2012	4,111 140,282	2,311,175
31/12/2011	2,938 136,640	126,756

Accounts

DATE OF LATEST ACCOUNTS BALANCE TOTAL	NUMBER OF EMPLOYEES CAPITAL	CASHFLOW
31/12/2013 7,079,959	0 18,600	18,452
31/12/2012 3,536,015	0 18,600	5,397
31/12/2011 1,641,592	0 18,600	7,509

Payment expectations

Past payments	Payment expectation days	-
Industry average payment expectation days 124.33	Industry average day sales outstanding	141.60

Company information

Business number	429946560	Company name	PANNADIAM BVBA
Fax number	032133183	Date founded	01/12/1986
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2013
Activity code	46761	Liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0429.946.560 Check VAT number
Belgian Bullettin of Acts Publications	moniteur belge

Profit & loss

Annual accounts		31-122013		%		31-122012	%			31-122011	Industry average 2013			%
Weeks		52				52				52
Currency		EUR				EUR				EUR
Turnover		-		-		-	-			-	54,152,539			-
Total operating expenses		-		-		-	-			-	53,700,067			-
Operating result		22,701		1502		-1,511	-536			346	149,666			-84.83
Total financial income		200		-97.28		7,357	45.65			5,051	83,078			-99
Total financial expenses		3,610		108		1,735	-29.44			2,459	191,336			-98.11
Results on ordinary operations before taxation		19,292		369		4,111	39.93			2,938	34,873			-44.68
^Taxation		5,062		979		469	-61.93			1,232	21,734			-76.71
	Results on ordinary operations after taxation	14,230	290		3,642			113	1,706			18,920	-24.79
	Extraordinary items	2,467	-		0			-100	4,307			5,359	-53.97
	Other appropriations	0.00	-		0			-	0			-	-
	Net result	16,697	358		3,642			-39.43	6,013			24,413	-31.61
	Gross Operating Margin	26,905	1217		2,042			-37.76	3,281			33,365	-19.36
	Dividends	-	-		-			-	-			234,766	-
	Director remuneration	-	-		-			-	-			126,036	-
	Employee costs	-	-		-			-	-			139,048	-
	Wages and salary	-	-		-			-	-			119,968	-
	Employee pension costs	-	-		-			-	-			23,129	-
	Social security contributions	-	-		-			-	-			29,614	-
	Other employee costs	0	-		0			-	0			3,975	-100
	Amortization and depreciation	1,755	0.02		1,755			17.31	1,496			17,896	-90.19

balance sheet

Annual accounts	31-122013	%	31-122012	%	31-122011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,297	-100
Tangible fixed assets	3,770	-31.77	5,526	-24.10	7,281	189,680	-98.01
Land & building	-	-	-	-	-	369,885	-
Plant & machinery	-	-	-	-	-	26,893	-
Furniture & Vehicles	3,770	-31.77	5,526	-24.10	7,281	15,771 4,585	-76.09
Leasing & Other Similar Rights	-	-	-	-	-	107,517 34,551	-
Other tangible assets	0	-	0	-	0	9,048	-100
Financial fixed assets	2,603	0.00	2,603	0	2,603	179,439	-98.55
Total fixed assets	6,373	-21.59	8,128	-17.77	9,884	299,919	-97.88
Inventories	3,430,587	49.08	2,301,237	267	626,835	2,925,620	17.26
Raw materials & consumables	-	-	-	-	-	6,545,857	-
Work in progress	0	-	0	-	0	1,122	-100
Finished goods	0	-	0	-	0	1,941,660	-100
Other stocks	3,430,587	49.08	2,301,237	267	626,835	452,415	658
Trade debtors	3,568,067	219	1,118,099	22.62	911,837	4,237,665	-15.80
Cash	73,033	1010	6,578	-47.26	12,472	455,744,554	-99
other amounts receivable	1,458	-98.56	101,551	29.74	78,271	181,620	-99
Miscellaneous current assets	441	4.45	422	-81.60	2,294	-448,706,207	0.00
Total current assets	7,073,586	100	3,527,887	116	1,631,708	7,125,179	-0.72
Total Assets	7,079,959	100	3,536,015	115	1,641,592	7,392,123 1,293,260	-4.22

CURRENT LIABILITIES

	Trade creditors	1,488,662	133	636,998	-30.63	918,243	2,895,970	-48.60
Short term group loans - - - - -
	Financial debts	-	-	-	-	-	4,381,895 147,756	-
	Current portion of long term debt	-	-	-	-	-	81,130 14,053	-
	Amounts Payable for Taxes, Remuneration & Social Security	5,692	30.85	4,350	363	939	8,507 -	-82.01
	Miscellaneous current liabilities	443,491	-22.92	575,364	-1.78	585,770	83.61	--
	Total current liabilities	1,937,845	59.27	1,216,712	-19.15	1,504,952	5,067,698	-61.76
	Long term group loans	-	-	-	-	-	-	--
	Other long term loans	4,985,135	128	2,179,021	-	-	325	--
	Deffered taxes	-	-	-	-	-	46,266 28,377	-
	Provisions for Liabilities & Charges	0	-	0	-	0	3,919 0	-100
	Other long term liabilities	0	-	0	-	0	243,046	-100
	Total long term debts	4,985,135	128	2,179,021		0	679,230	633
	Issued share capital	18,600	0	18,600	0	18,600	962,001	-98.07
	Share premium account	-	-	-	-	-	124,160	-
	Reserves	138,379	13.72	121,682	3.09	118,040	652,703	-78.80
	Revaluation reserve	-	-	-	-	-	881,530	-
	Total shareholders equity	156,979	11.90	140,282	2.67	136,640	1,637,331	-90.41
	Working capital	5,135,741	122	2,311,175	1723	126,756	2,057,482	149
	Cashflow	18,452	241	5,397	-28.13	7,509	38,939	-52.61
	Net worth	156,979	11.90	140,282	2.67	136,640	1,636,034	-90.40

ratio analysis

Annual accounts	31-12-2013	change(%)	31-12-2012	change(%)	31-12-2011	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	-	-	-	-	-	-7,00	-
Return on capital employed	0.38	111	0.18	-91.63	2.15	-7,00	5.43
Return on total assets employed	0.27	125	0.12	-33.33	0.18	-8,00	3.38
Return on net assets employed	12.29	319	2.93	36.28	2.15	-6,00	204
Sales / net working capital	-	-	-	-	-	131,00	-
Stock turnover ratio	-	-	-	-	-	77,00	-
Debtor days	-	-	-	-	-	141,60	-
Creditor days	-	-	-	-	-	124,33	-
SHORT TERM STABILITY
Current ratio	3.65	25.86	2.90	168	1.08	4,00	-63.50
Liquidity ratio / acid ratio	1.88	86.14	1.01	50.75	0.67	3,00	-37.33
Current debt ratio	12.34	42.33	8.67	-21.25	11.01	10,00	23.40
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	3175.67	104	1553.31	-	-	229,00	1286
Equity in percentage	2.22	-44.08	3.97	-52.28	8.32	-210,00	1.06
Total debt ratio	44.10	82.16	24.21	119	11.01	11,00	300

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry quartile analysis

Payment expectations

Company result -

Lower 122.66

Median 75.64

Upper 46.73

Day sales outstanding

Company result -

Lower 102.33

Median 54.51

Upper 24.07

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Summons

there is no data for this company

Protested Bills

there is no data for this company

Bankruptcy and other legal events

there is no data for this company

Director details

Current director details

Name CHARTURBHAI THESIA

Position Principal Manager

Start Date 19/08/2010

Street 31 VAN EYCKLEI ANTWERPEN

Post code 2018

Country Belgium

Former director details

Name NAGJIBHAI THESIA

Position Principal Manager

Start Date 23/08/1997

End Date Unknown date

Street 31 VAN EYCKLEI ANTWERPEN

Post code 2018

Country Belgium

Name THESIA NAGJISHAI

Position Principal Manager

Start Date 23/05/1997

End Date Unknown date

Street 31 VAN EYCKLEI ANTWERPEN

Post code 2018

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.61.87
UK Pound	1	Rs.97.69
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIS

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.