MIRA INFORM REPORT

Report No. :	307429
Report Date :	11.02.2015

IDENTIFICATION DETAILS

Name :	DHARMA DIAMONDS BVBA
Registered Office :	Hoveniersstraat 12-Bus 13, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	31.03.2006
Com. Reg. No.:	880557981
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management.]

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Belgium	a2	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 & address

Business number 880557981

Branch Unit Number 2152996558

Company name DHARMA DIAMONDS BVBA

Address HOVENIERSSTRAAT 12-BUS 13

2018 ANTWERPEN

Number of staff 0

Date of establishment 31/03/2006

Telephone number 0483421931

Commentary

The business was established over 8 years ago.
No employees are recorded for this business.
The business has been at the address for over 8 years
A 34% decline in Total Assets occurred during the latest trading period.
The business saw a decrease in their Cash Balance of 57% during the latest trading period.

Accounts

DATE OF LATEST

ACCOUNTS PROFIT BEFORE TAX NET WORTH WORKING CAPITAL

31/12/2013 5,265 82,171 81,587

31/12/2012 5,594 77,597 76,517

31/12/2011 25,292 72,756 72,404

Accounts

DATE OF LATEST

ACCOUNTS BALANCE TOTAL NUMBER OF EMPLOYEES CAPITAL CASHFLOW

31/12/2013 778,769 0 18,600 5,070

31/12/2012 1,187,052 0 18,600 5,107

31/12/2011 950,958 0 18,600 17,441

Payment expectations

Industry average payment expectation days 123.77

Industry average day sales outstanding 140.64

Company information

Business number	880557981	Company name	DHARMA DIAMONDS BVBA
Fax number		Date founded	31/03/2006
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	Wholesaler of diamonds and other precious stones	VAT Number	BE.0880.557.981
Belgian Bullettin of Acts Publications	moniteur belge

Company accounts

Balance Sheets

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	%	31-12-2010	%	31-12-2009
Weeks	52		52		52		52		52
Currency	EUR		EUR		EUR		EUR		EUR
Assets
Total fixed assets	584	-45.97	1,080	206	352	-34.71	539	645	72
Tangible fixed assets	584	-45.97	1,080	206	352	-34.71	539	645	72
Plant & machinery	-	-	165	-53.12	352	-34.71	539	645	72
Furniture & Vehicles	584	-36.22	915	-	-	-	-	-	-
Total current assets	778,186	-34.38	1,185,972	24.76	950,606	14.07	833,332	26.46	658,980
Inventories	431,143	-29.52	611,725	-6.32	652,964	102	322,109	-3.01	332,116
Other stocks	431,143	-29.52	611,725	-6.32	652,964	102	322,109	-3.01	332,116
Trade debtors	307,337	-36.76	485,962	137	204,986	-44.33	368,241	41.73	259,818
Other amounts receivable	1,404	-15.74	1,666	-91.88	20,512	1482	1,296	-12.33	1,479
Cash	36,863	-57.37	86,464	22.01	70,869	-49.98	141,686	116	65,568
Miscellaneous current assets	1,439	822	156	-87.76	1,274	-	0	-	0
Total Assets	778,769	-34.39	1,187,052	24.83	950,958	14.04	833,871	26.53	659,052
Liabilities
Total shareholders equity	82,171	5.89	77,597	6.65	72,756	31.09	55,502	32.95	41,747
Issued share capital	18,600	0	18,600	0	18,600	0	18,600	0	18,600
Reserves	63,571	7.75	58,997	8.94	54,156	46.76	36,902	59.42	23,147
Creditors	696,599	-37.21	1109,455	26.33	878,202	12.83	778,370	26.09	617,305
Trade creditors	550,365	-42.74	961,167	37.16	700,771	15.30	607,770	31.84	460,981
Amounts Payable for Taxes, Remuneration & Social Security	5,677	437	1,057	-87.35	8,357	31.14	6,372	70.38	3,740
Miscellaneous current liabilities	140,558	-4.53	147,231	-12.92	169,074	2.95	164,228	7.63	152,584
Total current liabilities	696,599	-37.21	1109,455	26.33	878,202	12.83	778,370	26.09	617,305
Total Liabilities	778,769	-34.39	1187,052	24.83	950,958	14.04	833,871	26.53	659,052

Profit & loss

	31-12-2013	%	31-12-2012	%	31-12-2011	%	31-12-2010	%	31-12-2009
Gross Operating Margin	7,330	-21.16	9,297	-67.22	28,364	29.49	21,905	52.56	14,358
Amortization and depreciation	496	86.52	266	42.25	187	98.18	94	-47.09	178
Operating result	5,549	-19.77	6,917	-73.45	26,051	26.53	20,588	53.31	13,430
Total financial income	295	-	-	---	2	153	1	75.56	0
Total financial expenses	579	-56.18	1,322	73.72	761	63.86	464	-66.25	1,376
Results on ordinary operations before taxation	5,265	-5.89	5,594	-77.88	25,292	25.68	20,125	66.95	12,054
Results for the Year Before Taxation	5,265	-5.89	5,594	-77.88	25,292	25.68	20,125	66.95	12,054
Taxation	691	-8.19	753	-90.63	8,038	26.19	6,370	14.58	5,560
Results on ordinary operations after taxation	4,573	-5.53	4,841	71.94	17,254	25.44	13,755	111	6,495
Net result	4,573	-5.53	4,841	71.94	17,254	25.44	13,755	111	6,495
Profit (Loss) for the Year to be appropriated	4,573	-5.53	4,841	71.94	17,254	25.44	13,755	111	6,495

Ratio Analysis

	31.12.2013	%	31.12.2012	%	31.12.2011	%	31.12.2010	%	31.12.2009
TRADING PERFORMANCE
Return on capital employed	6.41	-11.10	7.21	-79.26	34.76	-4.14	36.26	25.60	28.87
Return on total assets employed	0.68	44.68	0.47	-82.33	2.66	10.37	2.41	31.69	1.83
Return on net assets employed	6.41	-11.10	7.21	-79.26	34.76	-4.14	36.26	25.60	28.87
SHORT TERM STABILITY
Current ratio	1.12	4.67	1.07	-0.93	1.08	0.93	1.07	0	1.07
Liquidity ratio / acid ratio	0.50	-3.85	0.52	52.94	0.34	-48.48	0.66	24.53	0.53
Current debt ratio	8.48	-40.70	14.30	18.48	12.07	-13.91	14.02	-5.21	14.79
Cashflow	5,070	-0.73	5,107	-70.72	17,441	25.94	13,849	107	6,673
Net worth	82,171	5.89	77,597	6.65	72,756	31.09	55,502	32.95	41,747
LONG TERM STABILITY
Equity in percentage	10.55	61.31	6.54	-14.51	7.65	14.86	6.66	5.21	6.33
Total debt ratio	8.48	-40.70	14.30	18.48	12.07	-13.91	14.02	-5.21	14.79
Working Capital	81,587	6.63	76,517	5.68	72,404	31.73	54,962	31.88	41,675

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones
Industry average payment	123.77
expectation days
Industry average day sales	140.64
outstanding

Industry quartile analysis

Payment expectations

Lower 122.25

Median 75

Upper 46.13

Day sales outstanding

Lower 102.58

Median 54.08

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 MANISHKUMAR MANGALDAS DOSHI

Position Principal Manager

Start Date 01/11/2011

Street 11 QUINTEN MATSIJSLEI ANTWERPEN

Post code 2018

Country Belgium

Former director details

Name UDAYAN KIRITILAL SHETH

Position Principal Manager

Start Date 31/03/2006

End Date 17/10/2011

Street 35 BELGIËLEI 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.61.96
UK Pound	1	Rs.94.41
Euro	1	Rs.70.20

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ANK

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.