MIRA INFORM REPORT

Report No. :	310110
Report Date :	02.03.2015

IDENTIFICATION DETAILS

Name :	SRS DIAMONDS BVBA

Registered Office :	Schupstraat 1-/7 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

Date of Incorporation :	20.11.2012

Com. Reg. No.:	500940860

Legal Form :	Private Limited Company (BL/LX)

Line of Business :	Wholesale of Diamonds and Other Precious Stones.

No. of Employees :	NIL

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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	500940860
Company name	SRS DIAMONDS BVBA
Address	SCHUPSTRAAT1-/7
	2018 ANTWERPEN
Number of staff	0
Date of establishment	20/11/2012
Telephone number	032330827
Fax number	032332182

Commentary

The business has 1 employees.

The business has been at the address for over 21 months.

Accounts

Date of Latest Accounts	Turnover	Profit before Tax	Net Worth	Working Capital
31.12.2013	--	84,708	74,038	55,195

Date of Latest Accounts

Balance Total Number

Employees

Capital

Cash Flow

31.12.2013

6,928,145

18,600

60,203

Payment Expectations

Past payments

Payment expectation days -

Industry average payment

expectation days1 25.69

Industry average day sales

Outstanding 141.47

Day sales outstanding -

Company Accounts

PROFIT AND LOSS

Annual accounts	31-12-2013	%	%	Industry average 2013	%
Weeks	58			-
Currency	EUR			-
Turnover	-	-		- 55,616,217	-
Total operating expenses	-	-		- 55,155,858	-
Operating result	106,248	-		- 151,771	-29.99
Total financial income	964	-		- 64,311	-98.50
Total financial expenses	22,504	-		- 175,397	-87.17
Results on ordinary operations before taxation	84,708	-		- 36,089	134
Taxation	29,270	-		- 21,656	35.16
Results on ordinary operations after taxation	55,438	-		- 20,203	174
Extraordinary items	0	-		- 5,352	-100
Other appropriations	0.00				-
Net result	55,438	-		- 25,694	115

OTHER INFORMATION
	Gross Operating Margin	112,311	- - - 35,887	212
	Dividends	-	- - - 237,850	-
	Director remuneration	-	- - - 124,122	-
	Employee costs	195	- - - 138,548	-99
	Wages and salary	-	- - - 119,852	-
	Employee pension costs	-	- - - 23,129	-
	Social security contributions	-	- - - 29,615	-
	Other employee costs	195	- - - 3,977	-95.09
	Amortization and depreciation	4,765	- - - 17,965	-73.48

BALANCE SHEET

Annual accounts	31-12-2013 %	%	Industry average 2013	%
Weeks	58	-
Currency	EUR	-

Intangible fixed assets	0	- -	- 1,297	-100
Tangible fixed assets	18,843	- -	- 189,128	-90.04
Land & building	-	- -	- 369,305	-
Plant & machinery	4,682	- -	- 27,078	-82.71
Furniture & Vehicles	2,414	- -	- 15,670 4,508	-84.59
Leasing & Other Similar Rights	-	- -	- 107,517 34,551	-
Other tangible assets	11,747	- -	- 9,222	27.38
Financial fixed assets	-	- -	- 185,455	-
Total fixed assets	18,843	- -	- 302,817	-93.78
Inventories	1,725,737	- -	- 2,905,671	-40.61
Raw materials & consumables	-	- -	- 6,545,857	-
Work in progress	0	- -	- 1,156	-100
Finished goods	0	- -	- 1,933,217	-100
Other stocks	1,725,737	- -	- 434,396	297
Trade debtors	4,565,883	- -	- 4,224,995	8.07
Cash	574,932	- -	- 469,935,151	-99
other amounts receivable	5,295	- -	- 204,858	-97.42
Miscellaneous current assets	37,455	- -	- -462,484,014	0.01
Total current assets	6,909,302	- -	- 7,078,907	-2.40
Total Assets	6,928,145	- -	- 7,348,6101,280,121	-5.72

CURRENT LIABILITIES

CURRENT LIABILITIES
	Trade creditors	6,473,823 - -	- - 2,868,217	125
	Short term group loans	- -		-
	Financial debts	- -	- - 4,391,654130,855	-
	Current portion of long term debt	- -	- - 76,461 13,929	-
	Amounts Payable for Taxes, Remuneration & Social Security	29,680 - -	- - 8,190-	-4.98
	Miscellaneous current liabilities	350,605 - -	- - 45.72	--
	Total current liabilities	6,854,107 - -	- - 5,041,745	35.95
LONG TERM DEBTS AND LIABILITIES
	Long term group loans	-
	Other long term loans	-		--
	Deffered taxes	-	- - 46,266 28,377	-
	Provisions for Liabilities & Charges	0 - -	- - 4,039 0	-100
	Other long term liabilities	0 - -	- - 250,478	-100
	Total long term debts	0 - -	- - 687,464	-100
SHAREHOLDERS EQUITY
	Issued share capital	18,600 - -	- - 974,199	-98.09
	Share premium account	- -	- - 124,160	-
	Reserves	55,438 - -	- - 617,549	-91.02
	Revaluation reserve	- -	- - 872,766	-
	Total shareholders equity	74,038 - -	- - 1,612,934	-95.41
	Working capital	55,195 - -	- - 2,037,162	-97.29
	Cashflow	60,203 - -	- - 40,310	49.35
	Net worth	74,038 - -	- - 1,611,637	-95.41

RATIO ANALYSIS

	Annual accounts	31-12-2013	change(%)	change(%)	Industry average 2013	%
TRADING PERFORMANCE
	Profit Before Tax	-	-	- -	- -8,00	-
	Return on capital employed	114.41	-	- -	- -8,00	1430
	Return on total assets employed	1.22	-	- -	- -8,00	15.25
	Return on net assets employed	114.41	-	- -	- -8,00	1430
	Sales / net working capital	-	-	- -	- 137,00	-
	Stock turnover ratio	-	-	- -	- 74,00	-
	Debtor days	-	-	- -	- 141,47	-
	Creditor days	-	-	- -	- 125,69	-
SHORT TERM STABILITY
	Current ratio	1.01	-	- -	- 4,00	-89.90
	Liquidity ratio / acid ratio	0.76	-	- -	- 3,00	-74.67
	Current debt ratio	92.58	-	- -	- 10,00	825
	Liquidity ratio reprocessed	-	-	- -	- -	-
	LONG TERM STABILITY
	Gearing	-	-	- -	- 230,00	-
	Equity in percentage	1.07	-	- -	- -217,00	0.49
	Total debt ratio	92.58	-	- -	- 11,00	741

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

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	125.69
Industry average day sales outstanding	141.47

Industry quartile analysis

Payment expectations

Company result -

Lower 123.48

Median 76.39

Upper 46.98

Day sales outstanding

Company result -

Lower 102.33

Median 54.08

Upper 24.12

Shareholders Details

Summary

Group - Number of Companies 0

Linkages - Number of Companies 0

Number of Countries 0

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Linked Companies

Summary

Group - Number of Companies 0

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

Bankruptcy and other legal events

There is no data for this company

Director details

Current director details

Name RISHI KUMAR JAIN

Position Principal Manager

Start Date 21/11/2012

Street 86 FRANKRIJKLEI 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.61.79
UK Pound	1	Rs.95.42
Euro	1	Rs.69.28

INFORMATION DETAILS

Analysis Done by :	KAR

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.

MIRA INFORM REPORT

Company Summary

Commentary

Accounts

Payment Expectations

Company Information

Company Accounts

Industry Comparison

Shareholders Details

Linked Companies

Summons

Protested Bills

Bankruptcy and other legal events

Director details

Unit