MIRA INFORM REPORT

Report Date :

25.04.2013

IDENTIFICATION DETAILS

Name :	LUKHI DIAM BVBA

Registered Office :	Hoveniersstraat 2 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2011

Date of Incorporation :	28.04.2005

Com. Reg. No.:	873539438

Legal Form :	Private Limited Company (BL/LX)

LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES

No. of Employees :	Not Available

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 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

REGISTERED NAME & COMPANY SUMMARY

Business number	873539438
Company name	LUKHI DIAM BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN

Number of staff	0
Date of establishment	28/04/2005
Telephone number	032909293
Fax number	032909495

DIRECTORS/MANAGEMENT

Current director details

Name	SANJAYKUMAR NARANBHAI BODARA
Position	Principal Manager
Start Date	06/10/2011
Street	120 LANGE HERENTALSESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	CHETANKUMAR KALUBHAI KEVADIYA
Position	Principal Manager
Start Date	31/05/2012
Street
Post code
Country	India

NEGATIVE INFORMATION

Court data summary

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

Business number	873539438	Company name	LUKHI DIAM BVBA
Fax number	032909495	Date founded	28/04/2005
Company status	active	Company type	Private Limited Company (BL/LX)
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.0873.539.438
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number	873539438
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.

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found.

Minority Interests

No minority interests found.

Individual Shareholders

Shareholder Name
Forename	Sanjaykumar	Middle name	-
Surname	Bodara
Shareholder Details
Start date	22/07/2010	End date	-
Percentage owned	84.54%
Shareholder Address
Street name	Lange Herentalsestraat	House number	120
Minor town	-	Postal town	Antwerpen
Post code	2018	Country	Belgium

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	12.64
Industry average payment expectation days	174.77	Industry average day sales outstanding	108.66
Day sales outstanding	46.67

Payment expectations

Payment expectation days	12.64
Day sales outstanding	46.67

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.77
Industry average day sales outstanding	108.66

Industry quartile analysis

Payment expectations
Company result	12.64
Lower	121.46
Median	72.36
Upper	40.99

Day sales outstanding
Company result	46.67
Lower	105.52
Median	54.72
Upper	23.72

GROUP STRUCTURE & AFFILIATED COMPANIES

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	56,633,377	129,583	1,570,915	1,801,550
31/12/2010	31,939,348	79,596	1,469,853	1,696,960
31/12/2009	16,546,597	40,971	216,341	1,477,642

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	9,554,311	0	1,254,792	123,689
31/12/2010	8,961,180	0	1,254,792	70,905
31/12/2009	6,176,068	0	61,000	50,748

Trends

Profitability
Liquidity
Net worth

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	56,633,377	77.32	31,939,348	93.03	16,546,597	49,527,631	14.35
Total operating expenses	56,310,987	77.28	31,764,558	92.75	16,479,431	48,890,358	15.18
Operating result	322,391	84.44	174,790	160	67,166	238,466	35.19
Total financial income	6,504	146711	4	-99	450	148,968	-95.63
Total financial expenses	199,312	109	95,199	257	26,645	287,728	-30.73
Results on ordinary operations before taxation	129,583	62.80	79,596	94.27	40,971	84,458	53.43
Taxation	24,750	20.11	20,607	2076	947	37,844	-34.60
Results on ordinary operations after taxation	104,832	77.72	58,988	47.38	40,024	59,254	76.92
Extraordinary items	0	-	0	-	0	3,201	-100
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	104,832	77.72	58,988	47.38	40,024	62,339	68.16
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	-	-	-	-	-	127,998	-
Wages and salary	-	-	-	-	-	108,777	-
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	-	-	-	-	-	27,123	-
Other employee costs	0	-	0	-	0	3,607	-100
Amortization and depreciation	18,857	58.25	11,916	11.12	10,724	18,309	2.99

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	585	-	1,315	-	2,045	1,462	-60.02
Tangible fixed assets	311,121	-4.95	327,329	11.08	294,670	177,648	75.13
Land & building	261,551	-2.19	267,420	-2.15	273,290	346,034	-24.41
Plant & machinery	9,554	-5.80	10,142	65.82	6,116	21,826	-56.23
Other tangible assets	40,016	-19.59	49,767	226	15,264	24,613	62.58
Financial fixed assets	2,160	0	2,160	19.34	1,810	276,884	-99
Total fixed assets	313,865	-5.12	330,804	10.81	298,525	363,620	-13.68
Inventories	1,951,463	64.82	1,184,001	-30.16	1,695,284	3,060,929	-36.25
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,462	-100
Finished goods	1,951,463	64.82	1,184,001	-30.16	1,695,284	2,049,305	-4.77
Other stocks	0	-	0	-	0	470,366	-100
Trade debtors	7,241,433	0.95	7,173,604	71.96	4,171,579	3,888,007	86.25
Cash	30,451	-87.31	239,912	5045	4,663	239,603	-87.29
other amounts receivable	10,859	-59.46	26,784	353	5,909	245,153	-95.57
Miscellaneous current assets	6,240	2.71	6,075	5525	108	21,392	-70.83
Total current assets	9,240,446	7.07	8,630,376	46.84	5,877,543	6,943,733	33.08
current liabilities
Trade creditors	1,949,462	-57.53	4,589,741	5.82	4,337,493	2,777,715	-29.82
Short term group loans	-	-	-	-	-	-	-
Other short term loans	3,866,511	67.86	2,303,462	16447	13,920	1,895,458	103
Miscellaneous current liabilities	1,622,923	3935	40,214	-17.06	48,488	338	- -
Total current liabilities	7,438,896	7.29	6,933,416	57.58	4,399,901	4,926,143	51.01
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	543,916	-2.28	556,596	-64.27	1,557,781	-52.70	- -
Other long term liabilities	0	-	0	-	0	142,929	-100
Total long term debts	543,916	-2.28	556,596	-64.27	1,557,781	597,953	-9.04
shareholders equity
Issued share capital	1,254,792	0	1,254,792	1957	61,000	1,022,392	22.73
Share premium account	-	-	-	-	-	108,219	-
Reserves	316,707	46.37	216,375	37.48	157,386	695,355	-54.45
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	1,571,499	6.82	1,471,167	573	218,386	1,739,095	-9.64
Working capital	1,801,550	6.16	1,696,960	14.84	1,477,642	2,017,589	-10.71
Cashflow	123,689	74.44	70,905	39.72	50,748	77,438	59.73
Net worth	1,570,915	6.88	1,469,853	579	216,341	1,737,632	-9.59

Ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.23	-8.00	0.25	0	0.25	-744,00	0.03
Return on capital employed	6.13	55.98	3.93	70.13	2.31	-14,00	43.79
Return on total assets employed	1.36	52.81	0.89	34.85	0.66	-34,00	4.00
Return on net assets employed	8.25	52.50	5.41	-71.16	18.76	-12,00	68.75
Sales / net working capital	31.44	67.06	18.82	68.04	11.20	67,00	-99
Stock turnover ratio	3.45	-7.01	3.71	-63.80	10.25	67,00	-94.85
Debtor days	46.67	-43.07	81.98	-10.91	92.02	58.055,00	-99
Creditor days	12.64	-76.03	52.74	-45.10	96.07	328,00	-96.15
short term stability
Current ratio	1.24	0	1.24	-7.46	1.34	4,00	-93.11
Liquidity ratio / acid ratio	0.98	-8.41	1.07	12.63	0.95	3,00	-67.33
Current debt ratio	4.73	0.42	4.71	-76.63	20.15	18,00	-73.72
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	280.65	44.36	194.41	-72.99	719.69	265,00	5.91
Equity in percentage	16.45	0.18	16.42	363	3.54	-1.079,00	1.52
Total debt ratio	5.08	-0.20	5.09	-81.34	27.28	19,00	-73.26

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

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

NOTES & COMMENTS

N/a

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.54.30
UK Pound	1	Rs.82.88
Euro	1	Rs.70.80

INFORMATION DETAILS

Report Prepared by :

PRL

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.