MIRA INFORM REPORT

Report Date :

04.09.2014

IDENTIFICATION DETAILS

Name :	MY DEAR DIAMONDS BVBA

Registered Office :	Pelikaanstraat 62, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

Date of Incorporation :	22.02.2005

Com. Reg. No.:	872381178

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 :

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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Belgium

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 summary

Business number 872381178

Company name MY DEAR DIAMONDS BVBA

Address PELIKAANSTRAAT 62

2018 ANTWERPEN

Number of staff 0

Date of establishment 22/02/2005

Telephone number 032253676

Commentary

The business was established over 9 years ago.

No employees are recorded for this business.

The business has been at the address for over 6 years.

Operating Result in the latest trading period increased 147% on the previous trading period.

Net Worth increased by 29% during the latest trading period.

Pre-tax profits increased by 189% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 25% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2013		20,315	75,268	799,234
31/12/2012		7,027	58,174	810,635
31/12/2011		20,191	53,795	40,175

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2013	3,282,406	0	18,600	22,061
31/12/2012	3,572,542	0	18,600	13,336
31/12/2011	3,422,625	0	18,600	25,041

Payment expectations

Past payments

Payment expectation days -

Industry average payment

expectation days 27.73

Day sales outstanding -

Profit & loss

Annual accounts	31-12.2013	%	31-12.2012	%	31-12.2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	49,003,147	-
Total operating expenses	-	-	-	-	-	48,545,712	-
Operating result	26,545	147	10,722	-54.31	23,465	147,736	-82.03
Total financial income	175	249	50	327	12	66,474	-99
Total financial expenses	6,405	71.06	3,744	13.98	3.285	157,926	-95.94
Results on ordinary operations before taxation	20,315	189	7,027	-65.20	20.191	49,312	-58.80
Taxation	6,417	142	2,649	-33.95	4.010	19,991	-67.90
Results on ordinary operations after taxation	13,899	217	4,379	-72.94	16,181	34,671	-59.91
Extraordinary items	3,196	-	0	-	0	2,587	23.52
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	17,094	290	4,379	-72.94	16,181	37,570	-54.50
			other information

Gross Operating Margin	34,288	15.55	29,672	-15.81	35,245	43,323	-20.86
Dividends	-	-	-	-	-	216,234	-
Director remuneration	-	-	-	-	-	153,552	-
Employee costs	-	-	-	-	-	159,116	-
Wages and salary	-	-	-	-	-	139,775	-
Employee pension costs	-	-	-	-	-	1,459	-
Social security contributions	-	-	-	-	-	35,700	-
Other employee costs	0	-	0	-	0	3,399	-100
Amortization and depreciation	4,967	-44.56	8,958	1.11	8,860	18,686	-73.42

balance sheet

Annual accounts	31-12.2013	%	31-12.2012	%	31-12.2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,451	-100
Tangible fixed assets	1,145	-79.03	5,459	-59.92	13,620	191,931	-99
Land & building	-	-	-	-	-	372,320	-
Plant & machinery	915	-12.71	1,048	-21.63	1,337	32,127	-97.15
Furniture & Vehicles	230	-94.79	4,411	-64.09	12,283	15,630 4,234	-98.53
Leasing & Other Similar Rights	-	-	-	-	-	42,007 20,215	-
Other tangible assets	0	-	0	-	0	11,389	-100
Financial fixed assets	-	-	-	-	-	42,503	-
Total fixed assets	1,145	-79.03	5,459	-59.92	13,620	207,089	-99
Inventories	1,342,613	-12.59	1,536,061	102	756,852	2,620,799	-48.77
Raw materials & consumables	-	-	-	-	-	113,995	-
Work in progress	0	-	0	-	0	1,907	-100
Finished goods	0	-	0	-	0	1,693,997	-100
Other stocks	1,342,613	-12.59	1,536,061	102	756,852	460,244	191
Trade debtors	1,728,220	-2.14	1,766,077	-27.02	2,419,999	4,215,766	-59.01
Cash	189,250	-25.85	255,221	13.67	224,528	775,604,445	-99
other amounts receivable	9,387	110	4,460	115	2,066	157,234	-94.03
Miscellaneous current assets	11,791	123	5,264	-5.33	5,561	-762,729,894	0.00
Total current assets	3,281,261	-8.01	3,567,083	4.64	3,409,005	6,781,048	-51.61
Total Assets	3,282,406	-8.12	3,572,542	4.38	3,422,625	6,971,909 1,165,529	-52.92
			current liabilities
Trade creditors	2,214,498	-0.14	2,217,598	9.26	2,029,651	2,790,773	-20.65
Short term group loans	-	-	-	-	-	-	-
Financial debts	-	-	5,005	-62.23	13,252	3,912,602 113,934	-
Current portion of long term debt	-	-	-	-	-	103,973 13,806	-
Amounts Payable for Taxes, Remuneration & Social Security	10,009	133	4,280	-73.22	15,982	8,047	-68.59
Miscellaneous current liabilities	257,521	-51.37	529,566	-59.57	1,309,945	-20.37	--
Total current liabilities	2,482,027	-9.96	2,756,448	-18.18	3,368,830	4,854,509	-48.87
			Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	--
Other long term loans	725,111	-4.33	757,920	-	-	-47.04	--
Deffered taxes	-	-	-	-	-	47,059 41,554	-
Provisions for Liabilities & Charges	0	-	0	-	0	5,657 0	-100
Other long term liabilities	0	-	0	-	0	102,495	-100
Total long term debts	725,111	-4.33	757,920	-	0	621,217	16.72
			shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	923,679	-97.99
Share premium account	-	-	-	-	-	146,653	-
Reserves	56,668	43.20	39,574	12.44	35,195	530,717	-89.32
Revaluation reserve	-	-	-	-	-	1,100,228	-
Total shareholders equity	75,268	29.38	58,174	8.14	53,795	1,483,577	-94.93
Working capital	799,234	-1.41	810,635	1917	40,175	1,926,539	-58.51
Cashflow	22,061	65.42	13,336	-46.74	25,041	52,979	-58.36
Net worth	75,268	29.38	58,174	8.14	53,795	1,482,126	-94.92

ratio analysis

Annual accounts	31-12-2013	change(%)	31-12-2012	change(%)	31-12-2011	average 2013	%
		Trading performance
Profit Before Tax	-	-	-	-	-	-5,00	-
Return on capital employed	2.54	195	0.86	-97.71	37.53	8,00	-68.25
Return on total assets employed	0.62	210	0.20	-66.10	0.59	-2,00	31.00
Return on net assets employed	26.99	123	12.08	-67.81	37.53	4,00	574
Sales / net working capital	-	-	-	-	-	212,00	-
Stock turnover ratio	-	-	-	-	-	54,00	-
Debtor days	-	-	-	-	-	143,72	-
Creditor days	-	-	-	-	-	127,73	-
		short term stability
Current ratio	1.32	2.33	1.29	27.72	1.01	4,00	-91.75
Liquidity ratio / acid ratio	0.78	5.41	0.74	-6.33	0.79	3,00	-74.00
Current debt ratio	32.98	-30.39	47.38	-24.34	62.62	16,00	106
Liquidity ratio reprocessed	_- _-	-	-	-	-	-	-
		long term stability
Gearing	963.37	-26.54	1311.46	5222	24.64	254,00	279
Equity in percentage	2.29	40.49	1.63	3.82	1.57	-318,00	0.72
Total debt ratio	42.61	-29.47	60.41	-3.53	62.62	18,00	136

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry quartile analysis

Payment expectations

Company result -

Lower 127.33

Median 76.39

Upper 46.32

Day sales outstanding

Company result -

Lower 104.06

Median 55.15

Upper 25.71

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

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 YASH BIRENDRAKUMAR BOTHRA

Position Principal Manager

Start Date 31/08/2010

Street 11 QUINTEN MATSIJSLEI 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.60.54
UK Pound	1	Rs.99.73
Euro	1	Rs.79.54

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	SMN

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.

Business number	872381178	Company name	MY DEAR DIAMONDS BVBA
Fax number	-	Date founded	22/02/2005

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.0872.381.178