MIRA INFORM REPORT

Report Date :

10.04.2013

IDENTIFICATION DETAILS

Name :	KARP IMPEX NV
Registered Office :	Hoveniersstraat 30 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	22.06.1988
Com. Reg. No.:	434647003
Legal Form :	Public Limited Liability Company (BE)
Line of business :	wholesaler of diamonds and other precious stones
No. of Employees :	3

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

Maximum Credit Limit :	6,47,625 USD
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	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 and address

Business number	434647003
Company name	KARP IMPEX NV
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	3
Date of establishment	22/06/1988
Telephone number	032265820
Fax number	032333668

Credit Limit

6,47,625 USD

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	64,051,194	5,567	4,250,950	32,415	3
31/12/2010	47,648,409	5,391	1,050,814	99,221	3
31/12/2009	42,809,775	5,000	280,495	3,784,978	2

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	30.07
Industry average payment expectation days	176.04	Industry average day sales outstanding	109.62
Day sales outstanding	81.65

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Business number	434647003	Company name	KARP IMPEX NV
Fax number	032333668	Date founded	22/06/1988
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2011
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0434.647.003
Belgian Bullettin of Acts Publications	moniteur belge

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

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

Significant Events

Event Date	19/12/2011
Event Description
Event Details	De vergadering besluit de aard van de aandelen te wijzigen in die zin dat de aandelen op naam zullen zijn.

Export accounts to CSV file

comparison mode

average

median

Profit & loss

Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	204,318,501	62.54	125,706,873	27.43	98,651,214	57,071,239	258
Total operating expenses	202,894,733	62.88	124,570,673	27.34	97,826,602	56,388,961	259
Operating result	1,423,768	25.31	1,136,200	37.79	824,612	261,580	444
Total financial income	146,285	-91.76	1,775,994	660	233,568	170,510	-14.21
Total financial expenses	1,332,212	-50.97	2,717,186	193	926,131	344,640	286
Results on ordinary operations before taxation	237,841	21.96	195,008	47.68	132,049	70,654	236
Taxation	78,234	24.18	63,000	56.80	40,178	38,720	102
Results on ordinary operations after taxation	159,607	20.91	132,008	43.69	91,871	44,504	258
Extraordinary items	0	0	-3,246	-195	3,406	11,595	-100
Other appropriations	0	0	-1	-	0.00	-	-
Net result	159,607	23.96	128,761	35.14	95,277	56,038	184
other information
Dividends	-	-	-	-	-	135,797	-
Director remuneration	64,056	-	-	-	-	118,597	-45.99
Employee costs	107,697	41.49	76,118	29.82	58,635	152,302	-29.29
Wages and salary	80,373	36.42	58,916	24.69	47,251	129,219	-37.80
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	18,036	59.19	11,330	18.59	9,554	31,775	-43.24
Other employee costs	9,287	58.16	5,872	220	1,830	4,346	113
Amortization and depreciation	63,187	0.56	62,835	4.35	60,217	21,699	191

balance sheet

Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,775	-100
Tangible fixed assets	216,969	-20.02	271,276	-12.46	309,894	208,237	4.19
Land & building	184,393	-11.92	209,355	-6.02	222,754	381,832	-51.71
Plant & machinery	2,429	-30.44	3,492	-22.31	4,495	27,852	-91.28
Other tangible assets	30,147	-48.40	58,429	-29.30	82,645	30,964	-2.64
Financial fixed assets	5,567	3.26	5,391	7.82	5,000	321,397	-98.27
Total fixed assets	222,536	-19.57	276,667	-12.14	314,894	427,235	-47.91
Inventories	18,045,542	94.56	9,275,153	54.46	6,005,059	3,531,853	410
Raw materials & consumables	-	-	-	-	-	3,816,893	-
Work in progress	0	-	0	-	0	2,261	-100
Finished goods	18,045,542	94.56	9,275,153	54.46	6,005,059	2,464,757	632
Other stocks	0	-	0	-	0	455,632	-100
Trade debtors	45,704,817	20.39	37,963,639	16.13	32,689,680	4,392,223	940
Cash	32,415	-67.33	99,221	-97.38	3,784,978	306,714	-89.43
other amounts receivable	151	-	0	-	0	447,746	-99
Miscellaneous current assets	45,733	35.59	33,729	122	15,164	41,902	9.14
Total current assets	63,828,658	34.74	47,371,742	11.48	42,494,881	8,139,766	684
current liabilities
Trade creditors	16,715,317	2.97	16,233,779	22.59	13,241,846	2,928,994	470
Short term group loans	-	-	-	-	-	-	-
Other short term loans	33,271,590	58.10	21,044,414	-7.73	22,807,410	2,442,273	1262
Miscellaneous current liabilities	279,478	45.65	191,877	17.68	163,044	-30.10	- -
Total current liabilities	50,266,385	34.15	37,470,070	3.47	36,212,301	5,655,192	788
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	8,840,021	2.85	8,595,260	44.97	5,928,810	449	- -
Other long term liabilities	0	-	0	-	0	289,264	-100
Total long term debts	8,840,021	2.85	8,595,260	44.97	5,928,810	944,427	836
shareholders equity
Issued share capital	4,250,950	304	1,050,814	274	280,495	1,169,545	263
Share premium account	-	-	-	-	-	173,859	-
Reserves	693,838	30.36	532,265	37.12	388,169	724,519	-4.23
Revaluation reserve	-	-	-	-	-	776,200	-
Total shareholders equity	4,944,788	212	1,583,079	136	668,664	1,918,204	157
Working capital	13,562,273	36.97	9,901,672	57.61	6,282,580	2,484,574	445
Net worth	4,944,788	212	1,583,079	136	668,664	1,916,428	158

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.12	-25.00	0.16	23.08	0.13	-662,00	0.02
Return on capital employed	1.73	-9.90	1.92	-4.00	2	-12,00	14.42
Return on total assets employed	0.37	-9.76	0.41	32.26	0.31	-31,00	1.19
Return on net assets employed	4.81	-60.96	12.32	-37.62	19.75	-18,00	26.72
Sales / net working capital	15.07	18.66	12.70	-19.11	15.70	61,00	-99
Stock turnover ratio	8.83	19.65	7.38	21.18	6.09	62,00	-85.76
Debtor days	81.65	-25.93	110.23	-8.86	120.95	51.715,00	-99
Creditor days	30.07	-36.79	47.57	-3.72	49.41	299,00	-89.94
short term stability
Current ratio	1.27	0.79	1.26	7.69	1.17	4,00	-92.06
Liquidity ratio / acid ratio	0.91	-10.78	1.02	0.99	1.01	3,00	-69.67
Current debt ratio	10.17	-57.03	23.67	-56.30	54.16	16,00	-36.44
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	851.64	-54.51	1872.28	-56.43	4297.55	273,00	211
Equity in percentage	7.72	132	3.32	112	1.56	-990,00	0.78
Total debt ratio	11.95	-58.93	29.10	-53.82	63.02	17,00	-29.71

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 expectations

Payment expectation days	30.07
Day sales outstanding	81.65

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.04
Industry average day sales outstanding	109.62

Industry quartile analysis

Payment expectations
Company result	30.07
Lower	122.08
Median	73.75
Upper	41.43
Day sales outstanding
Company result	81.65
Lower	106.72
Median	54.84
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

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number	434647003
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	PANKAJBHAI BHIKHABHAI VIRANI
Position	Managing Director
Start Date	20/10/2003
Street	1 ACACIALAAN ANTWERPEN
Post code	2020
Country	Belgium
Name	PANKAJBHAI BHIKHABHAI VIRANI
Position	Director
Start Date	20/10/2003
Street	1 ACACIALAAN ANTWERPEN
Post code	2020
Country	Belgium

Name	RASILA RAMESH VIRANI
Position	Director
Start Date	08/06/2003
Street	6 ASHLEY ROAD
Post code	xx
Country	Hong Kong
Name	KARP IMPEX LTD SOC. ETRANGERE
Position	Director
Start Date	08/06/2003
Street	1411 PRASAD CHAMBERS, OPERA HOUSE
Post code
Country	India

Name	KARP IMPEX
Position	Director
Start Date	01/07/2009
End Date	30/06/2015
Street	1411 PRASAD CHAMBERS, OPERA HOUSE
Post code	400 004
Country	India

Former director details

Name	GERDA AERTS
Position	Principal Manager
Start Date	31/12/1995
End Date	-
Street	83 KRUISBEKSTRAAT ANTWERPEN
Post code	2170
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.

- 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.54.46
UK Pound	1	Rs.83.13
Euro	1	Rs.70.99

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%)