MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	ARJAV DIAMONDS NV

Registered Office :	Schupstraat 18, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	22.07.1981

Com. Reg. No.:	421848545

Legal Form :	Public Limited Liability Company

Line of Business :	Wholesale of Watches and Jewellery.

No of Employees :	9

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 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 421848545

Company name ARJAV DIAMONDS NV

Address SCHUPSTRAAT 18

2018 ANTWERPEN

Number of staff 9

Date of establishment 22/07/1981

Telephone number 032338090

Fax number 032261321

Commentary

The business was established over 33 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 2 years.

Operating Result in the latest trading period decreased 61% on the previous trading period.

Net Worth decreased by 24% during the latest trading period.

Pre-tax profits decreased by 9167% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 75% during the latest trading period.

Turnover in the latest trading period increased 21% on the previous trading period.

ACCOUNTS

date of latest accounts	turnover	profit before tax	net worth	working capital
31/12/2012	882,330,871	-54,839,353	77,605,662	2,908,682
31/12/2011	724,050,707	604,762	102,342,866	117,883,760
31/12/2010	826,021,237	985,207	131,910,265	702,446,224

ACCOUNTS

date of latest accounts	balance total	number of employees	capital	cash flow
31/12/2012	657,089,429	9	65,178,173	-54,757,447
31/12/2011	543,372,695	8	50,376,210	432,074
31/12/2010	642,384,303	9	65,178,173	643,858

Payment Expectations
Past payments		Payment expectation days	4.50
Industry average payment expectation days	262.42	Industry average day sales outstanding	305.20
Day sales outstanding	175.38
COURT DATA SUMMARY
BANKRUPTCY DETAILS
Court action type	no

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	882,330,871		21.86		724,050,707		-12.34		826,021,237		39,894,740	2111
Total operating expenses	876,750,349		23.54		709,686,565		-12.11		807,479,710		39,518,224	2118
Operating result	5,580,522		-61.15		14,364,142		-22.53		18,541,527		109,934	4976
Total financial income	53,977		-90.12		546,535		-1.31		553,796		66,602	-18.96
Total financial expenses	60,473,852		322		14,305,915		-21.01		18,110,116		249,921	24097
Results on ordinary operations before taxation	-54,839,353		-9167		604,762		-38.62		985,207		-76,965	-71152
Taxation	-30,905		-112		246,236		-39.54		407,267		15,488	-299
Results on ordinary operations after taxation	-54,808,448		-15387		358,526		-37.96		577,940		87,162	-62781
Extraordinary items	0		-100		30,896		-		0		-22,183	0
Other appropriations	0		-		0		-		0		-	-
Net result	-54,808,448		-14174		389,422		-32.62		577,940		-109,272	-50057
OTHER INFORMATION
Gross Operating Margin		-		-		-	-	-		64,565		-
Dividends		-		-		-	-	-		137,637		-
Director remuneration		-		-		214,702	-	-		114,347		-
Employee costs		584,302		34.63		433,995	-14.20	505,837		211,397		176
Wages and salary		-		-		324,354	-	-		163,372		-
Employee pension costs		-		-		-	-	-		3,154		-
Social security contributions		-		-		93,111	-	-		44,103		-
Other employee costs		0		-100		16,530	-	0		5,990		-100
Amortization and depreciation		51,001		19.57		42,652	-35.30	65,918		22,782		123

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	4,064	-100
Tangible fixed assets	1,523,399	25.81	1,210,878	-24.88	1,611,998	200,230	660
Land & building	1,305,524	27.68	1,022,511	-23.72	1,340,385	383,352	240
Plant & machinery	187,576	16.46	161,058	-31.37	234,674	24,457	666
Furniture & Vehicles	30,299	10.95	27,308	-26.07	36,939	20,516 7,952	47.68
Leasing & Other Similar Rights	-	-	-	-		183,061 16,808	-
Other tangible assets	0	-100	1	-	0	7,966	-100
Financial fixed assets	73,326,081	65.49	44,307,328	-22.71	57,326,081	582,792	12481
Total fixed assets	74,849,480	64.44	45,518,206	-22.77	58,938,079	557,725	13320
Inventories	150,083,921	-14.12	174,756,599	-25.66	235,073,078	1,946,082	7612
Raw materials & consumables	-	-	-	-		5,256,220
Work in progress	0	-	0	-	0	353	-100
Finished goods	150,083,921	-14.12	174,756,599	-25.66	235,073,078	1,188,004	12533
Other stocks	0	-	0	-	0	302,354	-100
Trade debtors	423,942,679	45.99	290,391,312	-4.17	303,014,811	2,663,124	15818
Cash	7,820,135	-75.97	32,546,748	40.43	23,176,329	181,752	4202
Other Amounts Receivable	275,307	142	113,524	-99	22,120,465	393,107	-29.97
Miscellaneous current assets	117,907	154	46,306	-24.76	61,541	57,353	105
Total current assets	582,239,949	16.95	497,854,489	-14.67	583,446,224	4,826,664	11962
Total Assets	657,089,429	20.93	543,372,695	-15.41	642,384,303	5,333,904 318,980	12219

CURRENT LIABILITIES

Trade creditors		10,810,255		-76.00	45,043,827	6.54	42,277,751	1,351,701	699
Short term group loans		-		-	-	-	-	-	-
Financial debts		409,309,442		23.47	331,517,683	-3.50	343,536,317	5,045,834 37,143	8011
Current portion of long term debt		-		-	-	-	-	101,629 17,291	-
Amounts Payable for Taxes, Remuneration & Social Security		82,141		-86.34	601,195	-20.56	756,760	10,805 -	108
Miscellaneous current liabilities		159,129,429		5566	2,808,024	0.56	-505,570,828 :	32968	--
Total current liabilities		579,331,267		52.47	379,970,729	319	-119,000,000	3,637,322	15827
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-		-		-	-	-	-	--
Other long term loans		152,500		-99	61,059,100	-48.69	119,000,000	-84.13	--
Deffered taxes		-		-	-	-	-	41,956 23,311	-
Provisions for Liabilities & Charges		0		-	0	-	0	15,081 0	-100
Other long term liabilities		0		-	0	-100	510,474,038	267,386	-100
Total long term debts		152,500		-99	61,059,100	-90.30	629,474,038	661,492	-76.95
SHAREHOLDERS EQUITY
Issued share capital		65,178,173		29.38	50,376,210	-22.71	65,178,173	677,353	9522
Share premium account		-		-	-	-	-	255,692	-
Reserves		12,427,489		-76.09	51,966,656	-22.13	66,732,092	321,999	3759
Revaluation reserve		-		-	-	-	-	526,518	-
Total shareholders equity		77,605,662		-24.17	102,342,866	-22.41	131,910,265	1,016,108	7537
Working capital		2,908,682		-97.53	117,883,760	-83.22	702,446,224	1,189,342	144
Cashflow		-54,757,447		-12773	432,074	-32.89	643,858	-90,665	-60295
Net worth		77,605,662		-24.17	102,342,866	-22.41	131,910,265	1,012,044	7568

RATIO ANALYSIS

ANNUAL ACCOUNTS	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	-6.22	-7875	0.08	-33.33	0.12	-125,00	4.98
Return on capital employed	-70.53	-19162	0.37	184	0.13	334,00	-121
Return on total assets employed	-8.35	-7690	0.11	-26.67	0.15	-11,00	75.91
Return on net assets employed	-70.66	-12076	0.59	-21.33	0.75	336,00	-121
Sales / net working capital	303.34	4840	6.14	420	1.18	1,00	-99
Stock turnover ratio	17.01	-29.54	24.14	-15.18	28.46	647,00	-97.37
Debtor days	175.38	19.80	146.39	9.33	133.90	305,20	-42.54
Creditor days	4.50	-80.58	23.17	21.25	19.11	262,42	-98.29
SHORT TERM STABILITY
Current ratio	1.01	-22.90	1.31	26.73	-4.90	66,00	-98.83
Liquidity ratio / acid ratio	0.75	-11.76	0.85	29.01	-2.93	59,00	-98.73
Current debt ratio	7.47	101	3.71	412	-0.90	86,00	-91.31
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	527.62	37.55	383.59	9.40	350.64	261,00	102
Equity in percentage	11.81	-37.28	18.83	-8.28	20.53	-1.229,00	0.96
Total debt ratio	7.47	73.32	4.31	11.37	3.87	86,00	-91.31

Industry comparison
Activity code	46480
Activity description	Wholesale of watches and jewellery
industry average credit rating	61.07
Industry average credit limit	7967.53

Payment Information

Payment expectations
Payment expectation days	4.50
Day sales outstanding	175.38
Industry comparison
Activity code	46480
Activity description	Wholesale of watches and jewellery
Industry average payment expectation days	262.42
Industry average day sales outstanding	305.20

Industry quartile analysis
Payment expectations
Company result	4.50
Lower	124.94
Median	58.09
Upper	18.49

Day sales outstanding
Company result	175.38
Lower	124.23
Median	56.46
Upper	21.27

SHAREHOLDER DETAILS

SUMMARY

Group - Number of Companies 3

Linkages - Number of Companies 1

Number of Countries 1

GROUP STRUCTURE

Company Name	Number	Latest Financials
Luminis Star NV	421848545	31.12.2012
Arjav Diamonds India Private Limited SOC. ETR. E ……	881553816	31.12.2013

MINORITY SHAREHOLDERS

No minority shareholders found

MINORITY INTEREST

Business Number

Company Name

Date of Accounts

887714306

Arjav Traders NV

31.12.2012

INDIVIDUAL SHAREHOLDERS

Shareholder Name
Forename	Arjav	Middle Name	--
Surname	Mehta	--	--
Shareholder Details
Start Date	28.10.2010	End Date	--

Percentage Owned	46.09%
SHAREHOLDER ADDRESS
Street name	Delia Faillelaan	House number	19
Minor town	-	Postal town	Antwerpen
Post code	2020	Country	Belgium

SHAREHOLDER NAME
Forename	Ashit	Middle name	-
Surname	Metha

SHAREHOLDER DETAILS
Start date	28/10/2010	End date	-
Percentage owned	49.50%

SHAREHOLDER ADDRESS
Street name	Delia Faillelaan	House number	19
Minor town	Wilrijk	Postal town	Antwerpen
Post code	2610	Country	Belgium

COURT DATA

There is no data for this company

DIRECTOR DETAILS

CURRENT DIRECTOR DETAILS

Name	ARJAV AKSHAY MEHTA
Position	Director
Start Date	01/04/2008
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	ARJAV AKSHAY MEHTA
Position	Managing Director
Start Date	01/04/2008
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	ASHIT VASANTIAL METHA
Position	Director
Start Date	08/10/2002
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ASHIT VASANTIAL METHA
Position	Managing Director
Start Date	06/11/2007
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2610
Country	Belgium

FORMER DIRECTOR DETAILS

Name	ANISH MEHTA
Position	Managing Director
Start Date	03/06/2008
End Date	03/06/2014
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2600
Country	Belgium

Name	MEETA ASHIT PARIKH
Position	Director
Start Date	17/09/1999
End Date	Unknown date
Street	19 DELLA FAILLELAAN ANTWERPEN
Post code	2000
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.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	SHG

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.

Personnel (NSSO classification)
Code
Description	FROM 5 TO 9 EMPLOYEES
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	03/06/2014
Event Description	re-appointment of director(s)
Event Details	Commentaar 03-06-2014: Wordt herbenoemd als bestuurder en gedelegeerd bestuurder voor 6 jaar: Ashit Mehta.

Business number	421848545	Company name	ARJAV DIAMONDS NV
Fax number	032261321	Date founded	22/07/1981
Company status	active	Company type	Public Limited Liability
			Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46480	Liable for VAT	Yes
Activity description	Wholesale of watches and jewellery	VAT Number	BE.0421.848.545 Check
Belgian Bullettin of Acts	moniteur beige
Publications