MIRA INFORM REPORT

Report Date :

22.09.2014

IDENTIFICATION DETAILS

Name :	STAR DIAMOND GROUP NV

Registered Office :	Pelikaanstraat 78, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	01.01.1968

Com. Reg. No.:	404990143

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Preparation of Diamonds

No. of Employees :	8

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 :	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

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 summary

Business number	404990143
Company name	STAR DIAMOND GROUP NV
Address	PELIKAANSTRAAT 78
	2018 ANTWERPEN
Number of staff	8
Date of establishment	01/01/1968
Telephone number	032139696
Fax number	032340284

Commentary

The business was established over 45 years ago.

The business has 10 employees.

The business is part of a group.

The business has been at the address for over 18 years.

Operating Result in the latest trading period decreased 22% on the previous trading period.

The business saw an increase in their Cash Balance of 24% during the latest trading period

Account

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	97,753,961	265,292	14,412,332	25,869,937
31/12/2011	96,727,859	301,633	15,515,146	27,177,987
31/12/2010	67,589,785	2,172,176	14,742,343	26,010,204

Account

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	52,241,640	8	11,368,500	302,754
31/12/2011	45,098,603	7	11,593,500	351,601
31/12/2010	30,753,351	6	11,226,000	2,202,624

Payment expectations

Past payments		Payment expectation days	8.62
Industry average payment expectation days	94.33	Industry average day sales outstanding	116.82
Day sales outstanding	68.55
Court data summary
BANKRUPTCY DETAILS
Court action type	no

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year

ended 31-12-2012

Full-time Employees 5

Part-time Employees 5

Total Fte Employees 8

Number of hours worked

Full-time Employees 9,373

Part-time Employees 5,359

Total 14,732

Personnel Charges

Full-time Employees 271,957

Part-time Employees 155,492

Total 427,450

Benefits In Addition To Wages -

During the previous reporting year

Average number employees in Fte 7

Actual working hours 11,706

Personnel Charges 345,530

Benefits In Addition To Wages –

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	5	5	8
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-

■	Gender and Education Level
	Men	Full-Time	Part-Time	Total Fte
	Primary education	-	-	-
	Secondairy education	1	-	1
	Higher education (non university)	2	1	2
	Higher education (university)	-	-	-
	Women	Full-Time	Part-Time	Total Fte
	Primary education	-	-	-
	Secondairy education	-	1	1
	Higher education (non university)	2	3	4
	Higher education (university)	-	-	-


	Working Category	Full-Time	Part-Time	Total Fte
	Management	-	-	-
	White collar worker	5	4	8
	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	-	1


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

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

Significant Events

Event Date 22/05/2012

Event Description re-appointment of director(s)

Event Details Commentaar 22-05-2012: Herbenoemd als bestuurders voor een periode van 6 jaar : Roth Marc en Diafin Holding NV. Herbenoemd als gedelegeerd bestuurder : Roth Marc

Company accounts

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	97,753,961		1.06			96,727,859	43.11		67,589,785		28,186,590		246
Total operating expenses	96,830,783		1.35			95,538,523	47.01		64,989,517		27,937,801		246
Operating result	923,178		-22.38			1,189,336	-54.26		2,600,268		74,050		1146
Total financial income	18,644		379			3,885	4314		88		68,594		-72.82
Total financial expenses	676,530		-24.12			891,587	108		428,179		113,195		497
Results on ordinary operations before taxation	265,292		-12.05			301,633	-86.11		2,172,176		21,725		1121
Taxation	2,374		-79.26			11,444	-84.70		74,788		20,860		-88.62
Results on ordinary operations after taxation	262,918		-9.40			290,189	-86.16		2,097,388		7,883		3235
Extraordinary items	0		-0				-0				3,236		-100
Other appropriations	1		0			1	-0				-		-
Net result	262,919		-9.40			290,190	-86.16		2,097,388		11,126		2263
OTHER INFORMATION
Gross Operating Margin	-		-			-	-		-		80,583		-
Dividends	1,064,624		-			-	-		-		239,722		344
Director remuneration		219,140		-7.73	237,510			-		-	204,292	7.27
Employee costs		427,450		21.31	352,368			26.27		279,062	337,891	26.51
Wages and salary		339,366		17.89	287,877			30.87		219,971	252,981	34.15
Employee pension costs		-		-	-			-		-	1,905	-
Social security contributions		83,694		41.00	59,357			9.64		54,137	96,786	-13.53
Other employee costs		4,390		-14.51	5,135			3.65		4,954	7,190	-38.94
Amortization and depreciation		39,835		-35.13	61,411			-41.64		105,236	30,833	29.20

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	7,424	-100
Tangible fixed assets	174,533	-12.61	199,713	-8.67	218,664	183,105	-4.68
Land & building	-	-	-	-	21,070	360,625	-
Plant & machinery	5,424	58.64	3,419	-8.04	3,718	66,422	-91.83
Furniture & Vehicles	92,479	-17.84	112,554	4.82	107,376	19,444 10,383	375
Leasing & Other Similar Rights	-	-	-	-	-	19,808 20,160	-
Other tangible assets	76,630	-8.49	83,740	-3.19	86,500	15,020	410
Financial fixed assets	1,627	11.29	1,462	3.32	1,415	56,333	-97.11
Total fixed assets	176,160	-12.43	201,174	-8.59	220,079	221,410	-20.44
Inventories	32,779,314	19.92	27,334,214	32.18	20,679,560	3,897,737	740
Raw materials & consumables	-	-	-	-	-	338,110	-
Work in progress	0	-	0	-	0	3,859	-100
Finished goods	32,779,314	19.92	27,334,214	32.18	20,679,560	1,621,641	1921
Other stocks	0	-	0	-	0	1, 136,667	-100
Trade debtors	18,360,187	9.80	16,722,043	145	6,822,280	2,272,461	707
Cash	672,396	24.52	539,997	-51.99	1,124,795	160,622	318
other amounts receivable	253,180	-11.39	285,712	-84.92	1,895,217	80,151	215
Miscellaneous current assets	403	-97.39	15,463	35.40	11,420	33,710	-98.80
Total current assets	52,065,480	15.97	44,897,429	47.04	30,533,272	5,309,426	880
Total Assets	52,241,640	15.84	45,098,603	46.65	30,753,351	5,557,949 463,293	839

Current liabilities

Trade creditors	2,286,128	63.38	1,399,257	-18.39	1,714,593	1,955,358	16.92
Short term group loans	-	-	-	-	-	-	-
Financial debts	22,737,935	40.18	16,220,828	515	2,635,931	4,234,135 85,925	437
Current portion of long term debt	-	-	-	-	-	131,193 21,122	-
Amounts Payable for Taxes, Remuneration & Social Security	52,040	26.36	41,184	-61.64	107,361	13,720 -	16.00
Miscellaneous current liabilities	1,119,440	1824	58,173	-10.75	65,183	361	- -
Total current liabilities	26,195,543	47.84	17,719,442	291	4,523,068	3,742,351	599
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	11,633,765	-1.94	11,864,015	3.27	11,487,940	741	- -
Deffered taxes	-	-	-	-	-	4,048 4,048	-
Provisions for Liabilities & Charges	0	-	0	-	0	11,501 0	-100
Other long term liabilities	0	-	0	-	0	81,984	-100
Total long term debts SHAREHOLDERS EQUITY	11,633,765	-1.94	11,864,015	3.27	11,487,940	545,515	2032
Issued share capital	11,368,500	-1.94	11,593,500	3.27	11,226,000	599,783	1795
Share premium account	-	-	-	-	-	185,110	-
Reserves	3,043,832	-22.38	3,921,646	11.53	3,516,343	595,955	410
Revaluation reserve	-	-	-	-	-	506,674	-
Total shareholders equity	14,412,332	-7.11	15,515,146	5.24	14,742,343	1,218,139	1083
Working capital	25,869,937	-4.81	27,177,987	4.49	26,01 0,204	1,567,075	1550
Cashflow	302,754	-13.89	351,601	-84.04	2,202,624	37,348	710
Net worth	14,412,332	-7.11	15,515,146	5.24	14,742,343	1,210,716	1090

Ration analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.27	-12.90	0.31	-90.34	3.21	-4,00	6.75
Return on capital employed	1.02	-7.27	1.10	-86.71	8.28	24,00	-95.75
Return on total assets employed	0.51	-23.88	0.67	-90.51	7.06	-74,00	0.69
Return on net assets employed	1.84	-5.15	1.94	-86.83	14.73	42,00	-95.62
Sales / net working capital	3.78	6.18	3.56	36.92	2.60	41,00	-99
Stock turnover ratio	33.53	18.65	28.26	-7.65	30.60	56,00	-40.12
Debtor days	68.55	8.64	63.10	71.28	36.84	116,82	-41.32
Creditor days SHORT TERM STABILITY	8.62	61.12	5.35	-44.44	9.63	94,33	-90.86
Current ratio	1.99	-21.34	2.53	-62.52	6.75	274,00	99.00
Liquidity ratio / acid ratio	0.74	-25.25	0.99	-54.59	2.18	274,00	-99
Current debt ratio	1.82	59.65	1.14	267	0.31	1,00	82.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	238.49	31.75	181.02	88.96	95.80	174,00	37.06
Equity in percentage	27.59	-19.80	34.40	-28.24	47.94	-539,00	5.12
Total debt ratio	2.62	37.17	1.91	75.23	1.09	1,00	162

Industry comparison

Activity code 32121

Activity description Preparation of diamonds

Payment expectations

Payment expectation days 8.62

Day sales outstanding 68.55

Industry comparison

Activity code 32121

Activity description Preparation of diamonds

Industry average payment

expectation days

94.33

Industry average day sales

outstanding

116.82

Industry quartile analysis

Payment expectations

Company result 8.62

Lower 130.12

Median 71.68

Upper 38.52

Day sales outstanding

Company result 68.55

Lower 108.80

Median 58.97

Upper 20.53

Shareholder Details

Summary

Group - Number of Companies 4

Linkages - Number of Companies 0

Number of Countries 0

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Summary

Group - Number of Companies 4

Linkages - Number of Companies 0

Number of Countries 0

Summons

there is no data for this company

Protested Bills

there is no data for this company

Current director details

Name DIAFIN HOLDING NV

Position Director

Start Date 23/05/2006

Date of birth 24/06/1988

Street 78 PELIKAANSTRAAT ANTWERPEN

Post code 2018

Country Belgium

Position Legal Representative

Start Date 23/05/2006

Date of birth 24/06/1988

Street 78 PELIKAANSTRAAT ANTWERPEN

Post code 2018

Country Belgium

Name MARC ROTH

Position Director

Start Date 20/12/2012

Street

Post code

Country Israël

Name GUIDO FR X NIEUWENHUIZEN

Position Director

Start Date 23/05/2006

Street

Post code

Country The Netherlands

Former director details

Name JACKY ROTH

Position Director

Start Date 23/05/2006

End Date Unknown date

Street 5 KASTANJELAAN ANTWERPEN

Post code 2020

Country Belgium

Name MARC ROTH

Position Managing Director

Start Date 20/12/2012

End Date 24/04/2014

Street

Post code

Country Israël

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.60.80
UK Pound	1	Rs.100.06
Euro	1	Rs.78.46

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%)

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.

MIRA INFORM REPORT

Company summary

Commentary

Account

Payment expectations

Company information

Social Balance Sheet Details

Joint Industrial Committee (JIC)

Company accounts

Balance sheet

Industry comparison

Payment expectations

Day sales outstanding

Shareholder Details

Summary

Current director details

Former director details

Unit