MIRA INFORM REPORT

Report Date :

01.10.2014

IDENTIFICATION DETAILS

Name :	STARGEMS BVBA
Registered Office :	Hoveniersstraat 30 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	02.02.1990
Com. Reg. No.:	440106618
Legal Form :	Private Limited Company
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 :	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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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 440106618

Company name STARGEMS BVBA

Address HOVENIERSSTRAAT

30 2018 ANTWERPEN

Number of staff 0

Date of establishment 02/02/1990

Telephone number 032336804

Fax number 032334450

Commentary

The business was established over 24 years ago.

The business has 1 employees.

The business has been at the address for over 13 years.

Pre-tax profits increased by 22% compared to the previous trading period.

The business saw an increase in their Cash Balance of 733% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	110,128,634	340,529	15,437,528	15,379,290
31/12/2011	133,701,499	277,222	12,919,513	12,855,049
31/12/2010	59,983,631	193,184	6,168,531	6,797,569

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	54,239,567	0	14,394,864	359,943
31/12/2011	45,988,824	0	11,993,092	300,443
31/12/2010	27,942,479	0	5,682,670	193,043

Payment expectations

Payment expectations
Past payments		Payment expectation days	30.64
Industry average payment	164.26	Industry average day sales	120.92
expectation days		outstanding
Day sales outstanding	148.63
Court data summary
BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Company information

Business number	440106618	Company name	STARGEMS BVBA
Fax number	032334450	Date founded	02/02/1990
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.0440.106.618
Belgian Bullettin of Acts Publications	moniteur belge
Contractor details			Check Article 30 Bis
Registered contractor number	-
Contractor description	-
Date struck off register

Significant Events

Event Date	31/12/2013
Event Description
Event Details	De 1501 nieuwe aandelen worden toegekend aan de vennootschap Stargems Holding Limited.

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	110,128,634	-17.63	133,701,499	122	59,983,631	46,612,575	136
Total operating expenses	108,764,507	-17.84	132,380,062	123	59,261,757	46,221,128	135
Operating result	1,364,127	3.23	1,321,437	83.06	721,874	147,887	822
Total financial income	101,331	-94.98	2,017,653	696	253,409	97,526	3.90
Total financial expenses	1,124,929	-63.26	3,061,868	291	782,098	204,266	450
Results on ordinary operations before taxation	340,529	22.84	277,222	43.50	193,184	33,065	929
Taxation	-	-	-	-	8,310	20,877	-
Results on ordinary operations after taxation	340,529	22.84	277,222	49.95	184,874	18,249	1766
Extraordinary items	0	-	0	-100	1,187	-4,342	0
Other appropriations	0	-	0	-	0	-	-
Net result	340,529	22.84	277,222	49.00	186,061	13,926	2345
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	112,544	-
Employee costs	-	-	-	-	-	126,172	-
Wages and salary	-	-	-	-	-	105,771	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	-	-	-	26,708	-
Other employee costs	0	-	0	-	0	4,361	-100
Amortization and depreciation	19,414	-16.39	23,221	232	6,982	17,886	8.54
back to top

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	1,577	-100
Tangible fixed assets	141,363	24.83	188,063	26.63	148,511	184,763	23.49
Land & building	79,665	27.41	109,747	28.20	85,603	362,988	78.05
Plant & machinery	12,796	-2.91	13,180	903	1,313	22,646	43.50
Furniture & Vehicles	48,901	24.92	65,136	5.75	61,594	17,300 5,364	182
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	1	-	0	-100	1	7,619	-99
Financial fixed assets	-	-	-	-	-	306,761	-
Total fixed assets	141,363	24.83	188,063	26.63	148,511	396,027	64.30
Inventories	7,100,547	-8.99	7,801,675	202	2,579,861	3,105,555	128
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,394	-100
Finished goods	7,100,547	-8.99	7,801,675	202	2,579,861	1,991,166	256
Other stocks	0	-	0	-	0	570,732	-100
Trade debtors	44,846,203	19.45	37,543,718	49.96	25,035,009	4,248,295	955
Cash	1,896,348	733	227,571	197	76,598	225,847	739
other amounts receivable	251,175	10.26	227,797	132	97,937	187,129	34.23
Miscellaneous current assets	3,931	-	0	-100	4,563	17,998	78.16
Total current assets	54,098,204	18.12	45,800,761	64.79	27,793,968	7,304,875	640
Total Assets	54,239,567	17.94	45,988,824	64.58	27,942,479	7,668,456 1,451,744	607
CURRENT LIABILITIES
Trade creditors	9,129,383	13.32	8,056,332	285	2,087,698	3,137,713	190
Short term group loans	-	-	-	-	-	-	-
Financial debts	29,280,042	24.05	23,603,670	40.26	16,828,916	4,243,670 187,578	589
Current portion of long term debt	11,710	18.82	14,425	36.51	10,567	110,204 15,373	89.37
Amounts Payable for Taxes, Remuneration & Social Security	8,285	96.09	4,225	-9.84	4,686	9,727 -	75.61
Miscellaneous current liabilities	289,494	77.15	1,267,060	38.63	2,064,532	-2.37	- -
Total current liabilities	38,718,914	17.52	32,945,712	56.91	20,996,399	5,430,989	612
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	13,919	36.46	21,906	-	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,178 0	-100
Other long term liabilities	83,125	24.21	109,680	85.49	755,644	128,413	35.27
Total long term debts	83,125	32.75	123,599	84.10	777,550	558,087	85.11
SHAREHOLDERS EQUITY
Issued share capital	14,394,864	20.03	11,993,092	111	5,682,670	944,106	1424

Share premium account	^-	^-	^-	^-	^-	109,362	^-
Reserves	1,042,664	12.55	926,421	90.68	485,861	691,870	50.70
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	15,437,528	19.49	12,919,513	109	6,168,531	1,665,598	826
Working capital	15,379,290	19.64	12,855,049	89.11	6,797,569	1,873,885	720
Cashflow	359,943	19.80	300,443	55.64	193,043	28,711	1153
Net worth	15,437,528	19.49	12,919,513	109	6,168,531	1,662,342	828
back to top

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.31	47.62	0.21	-34.38	0.32	-25,00	1.24
Return on capital employed	2.19	2.82	2.13	-23.38	2.78	29,00	-92.45
Return on total assets employed	0.63	5.00	0.60	-13.04	0.69	-201,00	0.31
Return on net assets employed	2.21	2.79	2.15	-31.31	3.13	19,00	-88.37
Sales / net working capital	7.16	-31.15	10.40	17.91	8.82	44,00	-99
Stock turnover ratio	6.45	10.45	5.84	35.81	4.30	110,00	-94.14
Debtor days	148.63	45.02	102.49	-32.72	152.34	134,00	10.92
Creditor days	30.64	37.96	22.21	72.71	12.86	123,00	-75.09
SHORT TERM STABILITY
Current ratio	1.40	0.72	1.39	5.30	1.32	6,00	-84.44
Liquidity ratio / acid ratio	1.21	5.22	1.15	-4.17	1.20	4,00	-69.75
Current debt ratio	2.51	-1.57	2.55	-25.00	3.40	9,00	-72.11
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	189.74	3.73	182.92	-33.08	273.35	358,00	-47.00
Equity in percentage	28.46	1.32	28.09	27.22	22.08	-3.205,00	0.89
Total debt ratio	2.51	-1.95	2.56	-27.48	3.53	10,00	-74.90

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

Payment expectations

Amount	-
Details	-
Payment expectations
Payment expectation days	30.64
Day sales outstanding	148.63
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	30.64
Lower	134.13
Median	83.75
Upper	45.33

Day sales outstanding
Company result	148.63
Lower	112.48
Median	58.70
Upper	27.62

Shareholder Details

Group Structure

No group structure for this company.

Minority Interests

No minority interests found

Individual Shareholders

SHAREHOLDER NAME
Forename	Shailesh	Middle name	-
Surname	Javeri
SHAREHOLDER DETAILS
Start date	11/12/2009(estimated)	End date	-
Percentage owned	8.09%
SHAREHOLDER ADDRESS
Street name	Fazantenlaan	House number	24
Minor town	Wilrijk	Postal town	Antwerpen
Post code	2610	Country	Belgium
SHAREHOLDER NAME
Forename	Karan	Middle name	-
Surname	Javeri
SHAREHOLDER DETAILS
Start date	10/05/2011(estimated)	End date	-
Percentage owned	7.25%
SHAREHOLDER ADDRESS
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	United Arab Emirates

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-
NSSO details
Business number	440106618
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	SHAILESH JAVERI
Position	Principal Manager
Start Date	27/10/2010
Street	24 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium
Mandates in other companies
Name	Starchems In vereffening BVBA
Business number	478805460
Position	Principal Manager
Start Date	07/11/2002

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.61.61
UK Pound	1	Rs.100.28
Euro	1	Rs.78.21

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	SDA

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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