MIRA INFORM REPORT

Report Date :

29.11.2012

IDENTIFICATION DETAILS

Name :	K.G.K. DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2 -Bureel 529, antwerpen, Post Code 2018
Country :	Belgium
Financials (as on) :	31.03.2012
Date of Incorporation :	27.11.1989
Com. Reg. No.:	439113159
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	05 employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Belgium	A1	A1

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 2011 Belgian GDP grew by 2.0%, the unemployment rate decreased slightly to 7.7% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

Company name & address

Business number	439113159	Company name	K.G.K. DIAMONDS BVBA
		Telephone number	0491280531
Address	HOVENIERSSTRAAT 2 -BUREEL 529ANTWERPEN	Fax number	032269123
Post code	2018	Number of staff	5
Date of establishment	27/11/1989

Accounts & ratios

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH
31/03/2012	215,946,214	770,201	19,263,161
31/03/2011	220,854,762	761,823	14,828,653
31/03/2010	137,745,008	525,789	14,179,197

Accounts & ratios

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	INVESTMENTS	CAPITAL	CASH FLOW	NUMBER OF EMPLOYEES
31/03/2012	142,430,064	33,901	15,531,799	1,177,120	5
31/03/2011	110,128,259	27,661	11,737,884	769,091	5
31/03/2010	68,903,986	27,661	11,737,884	91,273	4

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	65.77
Industry average payment expectation days	177.79	Industry average day sales outstanding	110.44
Day sales outstanding	155.67

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Company summary

Business number	439113159	Company name	K.G.K. DIAMONDS BVBA
Fax number	032269123	Date founded	27/11/1989
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/03/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0439.113.159
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	-

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

Significant Events

Event Date	05/03/2012
Event Description
Event Details	Prime International DMCC van de Verenigde Arabische Emiraten schrijft in op de 1458 nieuwe aandelen.

Export accounts to CSV file

comparison mode

average

median

Profit & loss

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	215,946,214	-2.22	220,854,762	60.34	137,745,008	86,040,059	150
Total operating expenses	213,267,529	-2.05	217,730,014	60.89	135,324,352	85,119,166	150
Operating result	2,678,686	-14.28	3,124,748	29.09	2,420,657	442,974	504
Total financial income	1,351,344	215	428,983	291	109,679	102,398	1219
Total financial expenses	3,259,828	16.76	2,791,908	39.28	2,004,547	384,752	747
Results on ordinary operations before taxation	770,201	1.10	761,823	44.89	525,789	156,354	392
Taxation	133,181	13.49	117,349	99	58,948	42,397	214
Results on ordinary operations after taxation	637,021	-1.16	644,474	38.05	466,842	121,023	426
Extraordinary items	2,127	-	0	-	0	-1,364	155
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	639,147	-0.83	644,474	38.05	466,842	119,659	434
OTHER INFORMATION
Dividends	-	-	-	-	-	-	-
Director remuneration	-	-	-	-	100,000	83,679	-
Employee costs	223,165	16.61	191,374	10.03	173,935	109,293	104
Wages and salary	164,048	16.28	141,074	2.10	138,175	96,398	70.18
Employee pension costs	-	-	-	-	-	-	-
Social security contributions	44,516	26.47	35,198	11.38	31,601	20,572	116
Other employee costs	14,602	-3.31	15,102	263	4,159	4,093	256
Amortization and depreciation	213,847	54.72	138,211	76.83	78,160	44,814	377

balance sheet

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	14,073	-	15,519	-	20,501	2,950	377
Tangible fixed assets	3,701,964	8.45	3,413,513	150	1,364,832	671,867	450
Land & building	2,671,397	-2.44	2,738,270	189	945,500	1,591,132	67.89
Plant & machinery	787,738	41.25	557,688	139	233,143	86,426	811
Other tangible assets	242,829	106	117,556	-36.86	186,189	24,601	887
Financial fixed assets	33,901	22.56	27,661	0	27,661	6,492	422
Total fixed assets	3,749,938	8.48	3,456,694	144	1,412,994	588,189	537
Inventories	43,585,363	71.55	25,406,982	170	9,402,918	4,494,735	869
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	43,585,363	71.55	25,406,982	170	9,402,918	3,462,686	1158
Other stocks	0	-	0	-	0	470,208	-100
Trade debtors	92,097,509	14.88	80,170,908	38.48	57,894,623	11,955,795	670
Cash	1,177,120	53.05	769,091	742	91,273	584,965	101
other amounts receivable	1,771,419	578	260,975	286	67,558	163,396	984
Miscellaneous current assets	48,715	-23.42	63,610	83.74	34,620	11,831	311
Total current assets	138,680,126	30.01	106,671,565	58.05	67,490,992	16,648,881	732
CURRENT LIABILITIES
Trade creditors	38,430,552	-20.55	48,371,385	160	18,535,488	5,946,606	546
Short term group loans	-	-	-	-	-	-	-
Other short term loans	68,736,916	93.44	35,533,882	13.08	31,422,433	6,686,186	928
Miscellaneous current liabilities	251,176	55.06	161,991	115	75,260	-50.06	- -
Total current liabilities	107,418,644	27.78	84,067,258	68.02	50,033,182	12,887,947	733
LONG TERM DEBTS
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	15,359,823	41.37	10,864,890	152	4,300,159	608	- -
Other long term liabilities	374,364	6.37	351,939	-5.12	370,947	120,654	210
Total long term debts	15,734,186	40.27	11,216,829	140	4,671,106	1,205,358	1205
SHAREHOLDERS EQUITY
Issued share capital	15,531,799	32.32	11,737,884	0	11,737,884	2,478,203	526
Share premium account	-	-	-	-	-	-	-
Reserves	3,745,435	20.58	3,106,287	26.18	2,461,814	446,659	738
Revaluation reserve	-	-	-	-	-	4,077,263	-
Total shareholders equity	19,277,234	29.86	14,844,172	4.54	14,199,698	3,094,748	522
Working capital	31,261,482	38.30	22,604,307	29.48	17,457,811	3,760,934	731
Net worth	19,263,161	29.90	14,828,653	4.58	14,179,197	3,091,798	523

ratio analysis

Annual accounts	31-03-2012	change(%)	31-03-2011	change(%)	31-03-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.36	5.88	0.34	-10.53	0.38	4,00	-91.00
Return on capital employed	2.20	-24.66	2.92	4.66	2.79	17,00	-87.06
Return on total assets employed	0.54	-21.74	0.69	-9.21	0.76	-10,00	5.40
Return on net assets employed	4	-22.03	5.13	38.65	3.70	16,00	-75.00
Sales / net working capital	6.91	-29.27	9.77	23.83	7.89	75,00	-99
Stock turnover ratio	20.18	75.48	11.50	68.37	6.83	15,00	34.53
Debtor days	155.67	17.49	132.50	-13.63	153.41	124,00	25.54
Creditor days	65.77	-18.89	81.09	62.21	49.99	89,00	-26.10
SHORT TERM STABILITY
Current ratio	1.29	1.57	1.27	-5.93	1.35	12,00	-90.08
Liquidity ratio / acid ratio	0.89	-8.25	0.97	-16.38	1.16	10,00	-91.10
Current debt ratio	5.57	-1.59	5.66	60.80	3.52	13,00	-57.15
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	436.25	39.57	312.57	24.25	251.57	179,00	143
Equity in percentage	13.54	0.45	13.48	-34.59	20.61	-22,00	61.55
Total debt ratio	6.39	-0.47	6.42	66.75	3.85	13,00	-50.85

Suspension of payments

/ moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	65.77
Day sales outstanding	155.67

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	177.79
Industry average day sales outstanding	110.44

Industry quartile analysis

Payment expectations
Company result	65.77
Lower	128.45
Median	74.57
Upper	41.71

Day sales outstanding
Company result	155.67
Lower	111.49
Median	57.40
Upper	24.45

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

Business number	Company name	%	Date of accounts
-	PRIME INTERNATIONAL DMCC	-	-

Minority Interests

No minority interests found

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	439113159
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

court data

There is no data for this company

Current director details

Name	RAJESH KUMAR JAIN
Position	Principal Manager
Street	47 MOLENVELDLAAN EDEGEM
Post code	2650
Country	Belgium
Name	PRIME INTERNATIONAL DMCC SOC. ETRANGERE
Position	Principal Manager
Country	United Arab Emirates

Name	MANJU KOTHARI
Position	Legal Representative
Name	SINO CHARM LIMITED
Position	Legal Representative

Name	PRIME INTERNATIONAL DMCC
Position	Principal Manager

Former director details

Name	PRIME INTERNATIONA FZCO SOC. ETRANGERE
Position	Principal Manager
Country	United Arab Emirates
Name	PRIME INTERNATIONAL FZCO
Position	Principal Manager
Street	214 2ND FLOOR, FLAT, PO BOX 54630
Post code
Country	United Arab Emirates

Name	PRIME INTERNATIONAL FZCO
Position	Legal Representative
Name	PRIME INTERNATIONAL FZCO
Country

Name	RAVI KUMAR KUDAL
Position	Principal Manager

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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.