MIRA INFORM REPORT

Report No. :	304165
Report Date :	27.01.2015

IDENTIFICATION DETAILS

Name :	BARSAMIAN DIAMONDS NV

Registered Office :	Pelikaanstraat 62, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

Date of Incorporation :	01.02.1961

Com. Reg. No.:	404932537

Legal Form :	Public Limited Liability

Line of Business :	Wholesale of diamonds and other precious stones.

No. of Employee :	11

RATING & COMMENTS

MIRA’s Rating :

RATING

STATUS

PROPOSED CREDIT LINE

41-55

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 name

BARSAMIAN DIAMONDS NV

Company summary

Business number	404932537
Branche Unit Number	2004462141
Company name	BARSAMIAN DIAMONDS NV
Address	PELIKAANSTRAAT 62
	2018 ANTWERPEN
Number of staff	11
Date of establishment	01/02/1961
Telephone number	033452324
Fax number	032342668

Ultimate holding company

Safe number

Company name

Company Number

COMMENTARY

The business was established over 51 years ago. The business has 11 employees.

The business has been at the address for over 32 years. The credit rating for this business has increased from 97 to 99. The credit limit for this business has increased from €1500000 to €1550000. Operating Result in the latest trading period increased 53% on the previous trading period.

ACCOUNTS

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	65,431,748	172,606	11,972,029	11,656,625
31/12/2012	72,257,777	-5,060	11,848,536	11,533,654
31/12/2011	74,862,062	335,020	11,841,575	11,529,046
Accounts
DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	38,716,753	11	11,000,000	207,993
31/12/2012	39,200,910	12	11,000,000	95,875
31/12/2011	37,954,661	14	11,000,000	248,341

PAYMENT EXPECTATIONS

Past payments		Payment expectation days	73.58
Industry average payment	124.07	Industry average day sales	140.43
expectation days		outstanding
Day sales outstanding	86.35

COURT DATA SUMMARY

BANKRUPTCY DETAILS

Court action type no

PROTESTED BILLS

Bill amount -

NSSO DETAILS

Date of summons -

CONTRACTOR DETAILS

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	28/05/2008
Event Description	re-appointment of director(s)
Event Details	Commentaar 28-05-2008: Herbenoeming van de volgende bestuurders voor een periode van 6 jaar Philippe Barsamian (tevens gedelegeerd bestuurder), Marco Croze en Christian Vrouyr.

Event Date	28/07/2010
Event Description
Event Details	De aandelen van de vennootschap, die voordien aan toonder waren, worden omgezet in aandelen op naam.

Company accounts

Assets
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
Total fixed assets	349,134			-15.55		413,434		-15.53			489,459					-7.48			529,029			145	215,437
Intangible fixed assets	0			-		0		-			0					-			0			-	0
Tangible fixed assets	332,953			-16.19		397,253		-16.21			474,078					-7.70			513,648			151	203,990
Land & building	-			-		-		-			-					-			-			-	-
Plant & machinery	26,777			19.10		22,482		28.24			17,531					23.70			14,173			117	6,522
Furniture & Vehicles	113,360			-20.23		142,100		31.28			108,242					-23.39			141,289			160	54,282
Leasing & Other Similar Rights	-			-		-		-			77,050					11.20			69,288			-32.97	103,361
Other tangible assets	192,816			-17.13		232,670		-14.22			271,254					-6.11			288,898			625	39,825
Financial fixed assets	16,181			0		16,181		5.20			15,381					0.00			15,381			34.37	11,447
Total current assets	38,367,619			-1.08		38,787,476		3.53			37,465,202					3.05			36,354,795			23.27	29,491,513
Inventories	22,556,269			22.23		18,454,259		29.85			14,211,763					-21.92			18,200,962			24.38	14,632,971
Raw materials & consumables	-			-		-		-			-					-			-			-	-
Work in progress	0			-		0		-			0					-			0			-	0
Finished goods	22,556,269			22.23		18,454,259		29.85			14,211,763					-21.92			18,200,962			24.38	14,632,971
Other stocks	0			-		0		-			0					-			0			-	0
Trade debtors		15,480,119			-22.27		19,916,366			-13.07		22,909,892		34.28				17,061,322			15.00		14,836,354
Other amounts receivable		6,780			-87.67		55,000			-		-		-				22,288			155		8,717
Cash		309,251			-14.30		360,869			5.45		342,220		-68.02				1,070,223			58001		1,842
Miscellaneous current assets		15,200			1449		981			-26.04		1,327		-				0			-100		11,629
Total Assets		38,716,753			-1.24		39,200,910			3.28		37,954,661		2.90				36,883,824			24.16		29,706,950

Liabilities
Total shareholders equity		11,972,029			1.04		11,848,536			0.06		11,841,575		1.34				11,685,311			1.05		11,563,688
Issued share capital		11,000,000			0		11,000,000			0		11,000,000		0				11,000,000			0		11,000,000
Share premium account		-			-		-			-		-		-				-			-		-
Revaluation reserve		-			-		-			-		-		-				-			-		-
Reserves		972,029			14.55		848,536			0.83		841,575		22.80				685,311			21.58		563,688
Provisions for Liabilities & Charges		0			-		0			-		0		-				0			-		0
Deffered taxes		-			-		-			-		-		-				-			-		-
Creditors		26,744,724			-2.22		27,352,374			4.75		26,113,086		3.63				25,198,513			38.89		18,143,262
Other long term loans		33,730			-65.77		98,552			-44.30		176,930		-23.45				231,132			668		30,073
Long term group loans		-			-		-			-		-		-				-			-		-
Other long term liabilities		0			-		0			-		0		-				0			-		0
Total long term debts		33,730			-65.77		98,552			-44.30		176,930		-23.45				231,132			668		30,073
Current portion of long term debt		64,822			5.48		61,456			-21.59		78,376		8.42				72,288			123		32,291
Financial debts		13,315,509			11.00		11,996,225			12.43		10,669,499		11.77				9,545,932			38.55		6,889,752
Trade creditors		13,035,090			-11.58		14,742,165			-0.29		14,785,576		-1.49				15,009,077			36.79		10,972,033
Amounts Payable for Taxes,		103,866			0.66		103,182			-40.45		173,271		66.39				104,133			5.55		98,655
Remuneration & Social Security
Miscellaneous current liabilities			191,706		-45.35		350,794		52.90				229,433		-2.76		235,951			95.88			120,458
Total current liabilities			26,710,994		-1.99		27,253,822		5.08				25,936,156		3.88		24,967,381			37.84			18,113,189
Total Liabilities			38,716,753		-1.24		39,200,910		3.28				37,954,661		2.90		36,883,824			24.16			29,706,950

Ratio Analysis
TRADING PERFORMANCE
Profit Before Tax	0.26	2600	-0.01	-102	0.45	60.71	0.28	21.74	0.23
Return on capital employed	1.44	3600	-0.04	-101	2.79	91.10	1.46	53.68	0.95
Return on total assets employed	0.45	4500	-0.01	-101	0.88	87.23	0.47	27.03	0.37
Return on net assets employed	1.44	3600	-0.04	-101	2.83	89.93	1.49	56.84	0.95
Sales / net working capital	5.61	-10.38	6.26	-3.54	6.49	19.52	5.43	31.16	4.14
Stock turnover ratio	34.47	34.96	25.54	34.56	18.98	-35.49	29.42	-5.22	31.04

Creditor days			73.58		-1.88		74.99			2.87			72.90			-18.32			89.25						4.17	85.68
Debtor days			86.35		-14.17		100.60			-9.94			111.70			10.96			100.67						-12.35	114.86
SHORT TERM STABILITY
Current ratio			1.44		1.41		1.42			-1.39			1.44			-1.37			1.46						-10.43	1.63
Liquidity ratio / acid ratio			0.59		-21.33		0.75			-16.67			0.90			23.29			0.73						-10.98	0.82
Current debt ratio			2.23		-3.04		2.30			5.02			2.19			2.34			2.14						36.31	1.57
Liquidity ratio reprocessed			-		-		-			-			-			-			-						-	-
Cashflow			207,993		116		95,875			-61.39			248,341			21.86			203,789						37.01	148,735
Net worth			11,972,029		1.04		11,848,536			0.06			11,841,575			1.34			11,685,311						1.05	11,563,688
LONG TERM STABILITY
Gearing			112.05		9.21		102.60			11.21			92.26			9.46			84.29						40.20	60.12
Equity in percentage			30.92		2.28		30.23			-3.11			31.20			-1.52			31.68						-18.62	38.93
Total debt ratio			2.23		-3.46		2.31			4.52			2.21			2.31			2.16						37.58	1.57
Working capital			11,656,625		1.07		11,533,654			0.04			11,529,046			1.24			11,387,414						0.08	11,378,324
Profit & loss
Operating Income			65,435,642		-9.47		72,282,203			-3.46			74,872,146			21.02			61,867,598						31.22	47,148,507
Turnover			65,431,748		-9.45		72,257,777			-3.48			74,862,062			21.01			61,862,421						31.22	47,145,538
Total operating expenses			64,662,377		-9.89		71,757,449			-3.07			74,028,937			20.61			61,380,654						31.33	46,738,646
Gross Operating Margin			-		-		-			-			-			-			-						-	-
Operating Charges			64,666,271		-9.91		71,781,875			-3.05			74,039,021			20.61			61,385,831						31.33	46,741,615
Employee costs			506,689		-6.82		543,797			-1.30			550,983			3.49			532,417						-0.20	533,488
Wages and salary			395,060		-7.10		425,233			-2.30			435,246			4.07			418,231						1.93	410,325
Employee pension costs			-		-		-			-			-			-			-						-	-
Social security contributions			95,196		-11.40		107,449			5.36			101,986			-0.23			102,217						-8.07	111,190
Other employee costs			16,433		47.84		11,115			-19.17			13,752			14.90			11,968						-0.03	11,972
Director remuneration			220,271		58.17		139,262			10.30			126,256			0.92			125,105						-	-
Amortization and depreciation			84,501		-4.96		88,914			-3.44			92,077			12.06			82,166						29.02	63,683
Operating result			769,371		53.77		500,328			-39.95			833,125			72.93			481,767						18.40	406,892
Total financial income			98,992		0.99		98,020			30.12			75,330			-54.34			164,967						70.08	96,991
Total financial expenses			695,757		15.30		603,408			5.23			573,434			21.27			472,849						20.10	393,703
Results on ordinary operations			172,606		3411		-5,060			-101			335,020			92.67			173,884						57.82	110,180
before taxation
Extraordinary Income			-		-		-				-		1,066				-			-					-		461
Extraordinary Charges			-		-		44,069				196		14,854				-			-					-		-
Extraordinary items			0		0		-44,069				-219		-13,788				-			0					-100		461
Results for the Year Before Taxation			172,606		351		-49,129			-115			321,233			84.74						173,884			57.16		110,641
Other appropriations			-		-		-			-		-		-				-						-			-
Taxation			49,113		87.56		-56,090			-134		164,969		215				52,261						104			25,590
Results on ordinary operations			123,493		141		51,030			-69.99		170,051		39.82				121,623						43.78			84,590
after taxation
Net result		123,493		1674			6,961		-95.55				156,264		28.48								121,623		43.00				85,052
Profit (Loss) for the Year to be appropiated	123,493					1674		6,961			-95.55		156,264		28.48						121,623				43.00			85,052
Dividends

Social Balance Sheet Details

Social Balance Sheet Details
Social Balance Sheet		Total
During the reporting year
ended 31-12-2013
Full-time Employees		11
Part-time Employees		1
Total Fte Employees		11
Number of hours worked
Full-time Employees		19,459
Part-time Employees		600
Total		20,059
Personnel Charges
Full-time Employees		491,533
Part-time Employees		15,156
Total		506,689
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		13
Actual working hours		21,434
Personnel Charges		543,797
Benefits In Addition To Wages		-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration	11	1	11
Contracts
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	4	-	4
university)
Higher education	-	-	-
(university)
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	5	-	5
Higher education (non	1	1	1
university)
Higher education	-	-	-
(university)

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	11	1	11
Blue collar worker	-	-	-
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	-	-	-
Leavers	1	-	1

Total of formal continuing vocational training initiatives
for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	455	445
Total of less formal and informal continuing vocational
training initiatives for workers paid by the employer	Male	Female
Number of employees	5	7
Number of training hours	-	-
Net costs for enterprise	2,933	2,019
Total of initial training initiatives at the expense of the
employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-

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 Information

SUSPENSION OF PAYMENTS / MORATORIUM HISTORY
Amount	-
Details	-

Payment expectations
Payment expectation days	73.58
Day sales outstanding	86.35

INDUSTRY COMPARISON

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment	124.07
expectation days
Industry average day sales	140.43
outstanding

INDUSTRY QUARTILE ANALYSIS
Payment expectations
Company result	73.58
Lower	121.21
Median	74.61
Upper	45.81

Day sales outstanding
Company result	86.35
Lower	101.92
Median	54.07
Upper	24.07

Director details

CURRENT DIRECTOR DETAILS

Name	PHILIPPE HRAND CARLO BARSAMIAN
Position	Chairman of the Board
Start Date	20/12/2002
Date of birth	14/05/1952
Street	42 RUE DES TEMPLIERS WAVER
Post code	1301
Country	Belgium

Position	Managing Director
Start Date	28/05/2008
Date of birth	14/05/1952
Street	42 RUE DES TEMPLIERS WAVER
Post code	1301
Country	Belgium

Position	Director
Start Date	13/01/2003
Date of birth	14/05/1952
Street	42 RUE DES TEMPLIERS WAVER
Post code	1301
Country	Belgium

Name	CENJAL HOLDING BELGIUM NV
Position	Legal Representative
Start Date	28/05/2008
Date of birth	25/02/2002
Street	62 PELIKAANSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

FORMER DIRECTOR DETAILS
Name	CENJAL HOLDING BELGIUM NV
Position	Director
Start Date	28/05/2008
End Date	28/05/2014
Date of birth	25/02/2002
Street	62 PELIKAANSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	NICOLAS VAHRAM BARSAMIAN
Position	Director
Start Date	01/10/2012
End Date	28/05/2014
Street	38 DUPONTSTRAAT BRUSSEL
Post code	1200
Country	Belgium

Name	ALEXANDRE PATRICK BARSAMIAN
Position	Director
Start Date	01/10/2012
End Date	28/05/2014
Street	68 RUE D'ANGOUSSART WAVER
Post code	1301
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. 61.50
UK Pound	1	Rs. 92.16
Euro	1	Rs. 69.62

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	ASH

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.