MIRA INFORM REPORT

Report No. :	310830
Report Date :	12.03.2015

IDENTIFICATION DETAILS

Name :	HF DIAMONDS EBVBA

Registered Office :	Schupstraat 20-Bus 16 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

Date of Incorporation :	30.10.1997

Com. Reg. No.:	461799974

Legal Form :	One Person Private Limited Company (BE)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employee :	2

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 :	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

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 461799974

Branche Unit Number 2084975210

Company name HF DIAMONDS EBVBA

Address SCHUPSTRAAT 20-BUS 16

2018 ANTWERPEN

Number of staff 2

Date of establishment 30/10/1997

Telephone number 0461799974

Fax number 032332030

Commentary

The business was established over 17 years ago.

The business has 3 employees.

The business has changed its registered name recently.

The business has been at the address for over 8 years.

The credit rating for this business has increased from 86 to 89.

The credit limit for this business has increased from €165000 to €170000.

Operating Result in the latest trading period decreased 254% on the previous trading period.

Pre-tax profits decreased by 42% compared to the previous trading period.

The business saw an increase in their Cash Balance of 1171% during the latest trading period.

Turnover in the latest trading period decreased 38% on the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	47,353,380	118,486	961,201	943,916
31/12/2012	77,268,203	205,478	878,146	866,621
31/12/2011	39,405,807	138,086	743,807	732,132
ACCOUNTS
DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	8,521,516	2	457,659	84,682
31/12/2012	8,921,164	2	457,659	134,489
31/12/2011	8,358,382	2	457,659	115,452

Trends

Profitability

Liquidity

Net worth

Payment expectations

Past payments		Payment expectation days	56.61
Industry average payment	127.02	Industry average day sales	185.93
expectation days		outstanding
Day sales outstanding	2.94

Court data summary

BANKRUPTCY DETAILS

Court action type no

PROTESTED BILLS

Bill amount -

NSSO DETAILS

Date of summons -

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	17,285	49.98	11,525	-1.28	11,675	9.46	10,666	1287	769
Intangible fixed assets	0	-	0	-	0	-	0	-	0
Tangible fixed assets	6,209	1282	449	-25.04	599	-	-	-	603
Land & building	-	-	-	-	-	-	-	-	-
Plant & machinery	5,909	-	-	-	-	-	0	-100	603
Furniture & Vehicles	300	-33.27	449	-25.04	599	-	-	-	0
Leasing & Other Similar Rights	-	-	-	-	-	-	-	-	-
Other tangible assets	0	-	0	-	0	-	0	-	0
Financial fixed assets	11,076	0.00	11,076	0	11,076	3.84	10,666	6329	166
Total current assets	8,504,231	-4.55	8,909,639	6.74	8,346,707	14.87	7,265,988	74.38	4,166,783
Inventories	6,540,284	-18.97	8,071,851	110	3,833,372	-27.17	5,263,581	186	1,836,041
Raw materials & consumables	-	-	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	-	0	-	0
Finished goods	6,540,284	-18.97	8,071,851	110	3,833,372	-27.17	5,263,581	186	1,836,041
Other stocks	0	-	0	-	0	-	0	-	0
Trade debtors	382,035	30.62	292,473	-90.63	3,122,915	145	1,273,714	0.31	1,269,739
Other amounts receivable	401,860	-11.20	452,528	-24.08	596,048	34.79	442,215	-55.15	986,070
Cash	1,180,052	1171	92,787	-88.32	794,372	190	273,915	333	63,138
Miscellaneous current assets	0	-	0	-	0	-100	12,564	6.52	11,795
Total Assets	8,521,516	-4.48	8,921,164	6.73	8,358,382	14.87	7,276,654	74.60	4,167,551

LIABILITIES
Total shareholders equity	961,201	9.46	878,146	18.06	743,807	18.35	628,505	5.45	596,015
Issued share capital	457,659	0.00	457,659	0	457,659	0.00	457,659	0	457,659
Share premium account	-	-	-	-	-	-	-	-	-
Revaluation reserve	-	-	-	-	-	-	-	-	-
Reserves	503,541	19.75	420,487	46.95	286,148	67.49	170,846	23.48	138,355
Provisions for Liabilities & Charges	0	-	0	-	0	-	0	-	0
Deffered taxes	-	-	-	-	-	-	-	-	-
Creditors	7,560,315	-6.00	8,043,018	5.63	7,614,575	14.54	6,648,150	86.14	3,571,537
Other long term loans	-	-	-	-	-	-	-	-	-
Long term group loans	-	-	-	-	-	-	-	-	-
Other long term liabilities	0	-	0	-	0	-	0	-	0
Total long term debts	0	-	0	-	0	-	0	-	0
Current portion of long term debt	-	-	-	-	-	-	-	-	-
Financial debts	-	-	-	-	-	-	-	-	-
Trade creditors	7,402,226	-7.04	7,962,726	5.39	7,555,776	14.26	6,612,918	85.39	3,567,052
Amounts Payable for Taxes, Remuneration & Social Security	49,960	-37.78	80,292	39.86	57,410	62.95	35,232	685	4,485
Miscellaneous current liabilities	108,128	-	0	-100	1,389	-	0	-	0
Total current liabilities	7,560,315	-6.00	8,043,018	5.63	7,614,575	14.54	6,648,150	86.14	3,571,537
Total Liabilities	8,521,516	-4.48	8,921,164	6.73	8,358,382	14.87	7,276,654	74.60	4,167,551

RATIO ANALYSIS

TRADING PERFORMANCE
Profit Before Tax	0.25	-7.41	0.27	-22.86	0.35	94.44	0.18	-28.00	0.25
Return on capital employed	12.33	-47.31	23.40	26.08	18.56	134	7.92	86.79	4.24
Return on total assets employed	1.39	-39.57	2.30	39.39	1.65	142	0.68	11.48	0.61
Return on net assets employed	12.33	-47.31	23.40	26.08	18.56	134	7.92	86.79	4.24
Sales / net working capital	50.17	-43.73	89.16	65.66	53.82	21.11	44.44	157	17.26
Stock turnover ratio	13.81	32.15	10.45	7.40	9.73	-49.24	19.17	7.27	17.87
Creditor days	56.61	50.04	37.73	-47.12	71.35	-19.88	89.05	-29.45	126.23
Debtor days	2.94	113	1.38	-95.23	28.93	70.88	16.93	-62.47	45.11

SHORT TERM STABILITY
Current ratio	1.12	0.90	1.11	0.91	1.10	0.92	1.09	-6.84	1.17
Liquidity ratio / acid ratio	0.26	160	0.10	-83.05	0.59	96.67	0.30	-53.85	0.65
Current debt ratio	7.87	-14.08	9.16	-10.55	10.24	-3.21	10.58	76.63	5.99
Liquidity ratio reprocessed	-	-	-	-	-	-	-	-	-
Cashflow	84,682	-37.03	134,489	16.49	115,452	248	33,093	18.82	27,851
Net worth	961,201	9.46	878,146	18.06	743,807	18.35	628,505	5.45	596,015

LONG TERM STABILITY
Gearing	-	-	-	-	-	-	-	-	-
Equity in percentage	11.28	14.63	9.84	10.56	8.90	3.01	8.64	-39.58	14.30
Total debt ratio	7.87	-14.08	9.16	-10.55	10.24	-3.21	10.58	76.63	5.99
Working capital	943,916	8.92	866,621	18.37	732,132	18.50	617,839	3.80	595,246

PROFIT & LOSS
Operating Income	47,354,582	-38.71	77,269,321	96.08	39,407,471	43.51	27,460,260	167	10,275,917
Turnover	47,353,380	-38.72	77,268,203	96.08	39,405,807	43.53	27,454,460	167	10,273,922
Total operating expenses	47,724,062	-38.04	77,028,897	99	38,655,217	42.61	27,105,019	162	10,314,264
Gross Operating Margin	-	-	-	-	-	-	-	-	-
Operating Charges	47,725,263	-38.04	77,030,015	99	38,656,881	42.59	27,110,819	162	10,316,260
Employee costs	162,449	10.56	146,939	-2.60	150,854	-4.88	158,586	253	44,880
Wages and salary	119,519	7.40	111,284	-0.15	111,453	3.75	107,425	249	30,740
Employee pension costs	-	-	-	-	-	-	-	-	-
Social security contributions	29,417	7.90	27,263	0.89	27,022	-14.68	31,673	270	8,547
Other employee costs	13,513	61.02	8,392	-32.21	12,379	-36.48	19,488	248	5,593
Director remuneration	-	-	-	-	-	-	-	-	-
Amortization and depreciation	1,627	984	150	0	150	-75.11	603	-83.40	3,629
Operating result	-370,682	-254	239,306	-68.12	750,590	114	349,441	866	-40,343
Total financial income	1,395,547	-13.97	1,622,205	-21.30	2,061,144	31.23	1,570,678	12.44	1,396,882
Total financial expenses	906,380	-45.27	1,656,033	-38.06	2,673,648	42.95	1,870,311	40.49	1,331,250
Results on ordinary operations	118,486	-42.34	205,478	48.80	138,086	177	49,808	96.96	25,289
before taxation
Extraordinary Income	6,992	-	-	-	909	-	-	-	-
Extraordinary Charges	6,992	-	-	-	-	-	-	-	-
Extraordinary items	0	-	0	-100	909	-	0	-	0
Results for the Year Before	118,486	-42.34	205,478	47.83	138,995	179	49,808	96.96	25,289
Taxation
Other appropriations	-	-	-	-	-	-	-	-	-
Taxation	35,431	-50.19	71,139	200	23,693	36.81	17,318	1522	1,068
Results on ordinary operations	83,055	-38.17	134,339	17.44	114,393	252	32,490	34.14	24,221
after taxation
Net result	83,055	-38.17	134,339	16.51	115,302	254	32,490	34.14	24,221
Profit (Loss) for the Year to be appropiated	83,055	-38.17	134,339	16.51	115,302	254	32,490	34.14	24,221
Dividends	-	-	-	-	-	-	-	-	-

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year
ended 31-12-2013
Full-time Employees	2
Part-time Employees	1
Total Fte Employees	3
Number of hours worked
Full-time Employees	3,555
Part-time Employees	1,425
Total	4,980
Personnel Charges
Full-time Employees	115,965
Part-time Employees	46,484
Total	162,449
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	3
Actual working hours	4,373
Personnel Charges	146,939
Benefits In Addition To Wages	750

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration	2	1	3
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	-	-	-
Higher education (non university)	1	-	1
Higher education (university)	-	-	-

Women	Full-Time	Part-Time	Total Fte
Primary education	1	-	1
Secondairy education	-	1	1
Higher education (non university)	-	-	-
Higher education (university)	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	2	1	3
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	-	-	-

Total of formal continuing vocational training initiatives
for workers paid by the employer	Male	Female
Number of employees	1	1
Number of training hours	-	-
Net costs for enterprise	161	115
Total of less formal and informal continuing vocational
training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
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	56.61
Day sales outstanding	2.94

INDUSTRY COMPARISON
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	127.02
Industry average day sales outstanding	185.93

INDUSTRY QUARTILE ANALYSIS

Payment expectations

Company result 56.61

Lower 120.44

Median 74.93

Upper 46.53

DAY SALES OUTSTANDING

Company result 2.94

Lower 102.33

Median 54.07

Upper 24.12

Shareholder 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

COMPANIES THAT MATCH THIS ADDRESS

No Companies Match this address

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	KARIM RUSTOM
Position	Principal Manager
Start Date	02/01/2006
Street	388 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Name	ALEXANDER AHMAD
Position	Principal Manager
Start Date	01/10/2014
Street
Post code
Country
Name	SLEIMAN AHMAD
Position	Principal Manager
Start Date	01/04/2014
Date of birth	22/04/1980
Street
Post code
Country
Name	ADAM AHMAD
Position	Principal Manager
Start Date	01/10/2008
Street
Post code
Country
Name	AFIF AHMAD AFIF
Position	Principal Manager
Start Date	02/01/2006
Street
Post code
Country

Name	FAKIH HUSSEIN
Position	Principal Manager
Start Date	28/10/1997
Street	730 VERDUN STREET
Post code	0
Country

FORMER DIRECTOR DETAILS


Name	AFIF AHMAD
Position	Principal Manager
Start Date	02/01/2006
End Date	Unknown date
Street	27 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	ALI AHMAD AHMAD
Position	Principal Manager
Start Date	01/10/2008
End Date	31/12/2010
Street	1 RUBENSLEI ANTWERPEN
Post code	2018
Country	Belgium
Position	Non Statutory Partner
Start Date	02/01/2006
End Date	Unknown date
Street	1 RUBENSLEI 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.61.75
UK Pound	1	Rs.94.60
Euro	1	Rs.67.10

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.

Business number	461799974	Company name	HF DIAMONDS EBVBA
Fax number	032332030	Date founded	30/10/1997
Company status	active	Company type	One Person Private Limited
			Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2013
Activity code	46761	Liable for VAT	yes
Activity description	Wholesale of diamonds and	VAT Number	BE.0461.799.974 Check VAT
	other precious stones		number
Belgian Bullettin of Acts	moniteur belge

MIRA INFORM REPORT

Company summary

Commentary

Accounts

Trends

Payment expectations

Court data summary

Company information

Company accounts

Social Balance Sheet Details

Payment Information

Shareholder Details

Linked Companies

Director details

Unit