MIRA INFORM REPORT

Report Date :

06.06.2013

IDENTIFICATION DETAILS

Name :	SKD INTERNATIONAL BVBA
Registered Office :	Hoveniersstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	30.06.2012
Date of Incorporation :	27.03.2006
Com. Reg. No.:	880292618
Legal Form :	Private Limited Company (BL/LX)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	1

RATING & COMMENTS

MIRA’s Rating :

B

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 1.8%, the unemployment rate decreased slightly to 7.2% 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 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. 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 name and address

Business number	880292618
Company name	SKD INTERNATIONAL BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Number of staff	1
Date of establishment	27/03/2006
Telephone number	0484942777
Fax number	032264213

Commentary

The business was established over 7 years ago.

No employees are recorded for this business.

The business has been at the address for over 4 years.

The credit rating for this business has increased from 62 to 65.

The credit limit for this business has increased from €120000 to €125000.

A 22% decline in Total Assets occurred during the latest trading period.

The business saw a decrease in their Cash Balance of 76% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
30/06/2012	6,931,767	11,651	376,854	370,817
30/06/2011	8,154,424	12,093	365,203	358,453
30/06/2010	3,227,692	-21,561	353,110	348,926

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
30/06/2012	2,186,479	0	350,000	14,951
30/06/2011	2,820,967	0	350,000	15,372
30/06/2010	1,763,828	0	350,000	-18,512

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	85.19
Industry average payment expectation days	174.31	Industry average day sales outstanding	108.96
Day sales outstanding	98.21

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	880292618	Company name	SKD INTERNATIONAL BVBA
Fax number	032264213	Date founded	27/03/2006
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	30/06/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0880.292.618
Belgian Bullettin of Acts Publications	moniteur belge

Joint Industrial Committee (JIC)

Significant Events

Event Date	09/01/2007
Event Description	resignation-appointment of director(s)
Event Details	Commentaar 09-01-2007: Het mandaat van Jhaveri Saumil is aangevangen op 09.01.07

comparison mode

averagemedian

Export accounts to CSV file

Profit & loss

Annual accounts	30-06-2012	%	30-06-2011	%	30-06-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	6,931,767	-14.99	8,154,424	152	3,227,692	46,741,605	-85.17
Total operating expenses	6,913,402	-15.05	8,137,883	150	3,247,129	46,200,176	-85.04
Operating result	18,365	11.03	16,541	85.10	-19,437	324,817	-94.35
Total financial income	160	47.65	109	1524	7	120,585	-99
Total financial expenses	6,874	50.87	4,556	113	2,131	297,860	-97.69
Results on ordinary operations before taxation	11,651	-3.65	12,093	56.09	-21,561	139,145	-91.63
Taxation	-	-	-	-	-	55,324	-
Results on ordinary operations after taxation	11,651	-3.65	12,093	56.09	-21,561	99,048	-88.24
Extraordinary items	0	-	0	-	0	-2,150	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	11,651	-3.65	12,093	56.09	-21,561	96,898	-87.98
other information
Dividends	-	-	-	-	-	0	-
Director remuneration	-	-	-	-	-	94,559	-
Employee costs	-	-	-	-	-	220,144	-
Wages and salary	-	-	-	-	-	185,246	-
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	-	-	-	-	-	42,980	-
Other employee costs	0	-	0	-	0	7,646	-100
Amortization and depreciation	3,300	0.64	3,279	7.51	3,050	29,078	-88.65

balance sheet

Annual accounts	30-06-2012	%	30-06-2011	%	30-06-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	4,588	-100
Tangible fixed assets	6,038	-31.78	8,850	-20.50	11,132	334,472	-98.19
Land & building	-	-	-	-	-	653,862	-
Plant & machinery	230	-50.0	460	-33.33	690	35,255	-99
Other tangible assets	5,808	-30.78	8,390	-19.65	10,442	53,776	-89.20
Financial fixed assets	-	-	-	-	-	27,772	-
Total fixed assets	6,038	-31.78	8,850	-20.50	11,132	336,390	-98.21
Inventories	216,856	-72.52	789,187	4.92	752,167	3,292,838	-93.41
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	19,684	-100
Finished goods	0	-	0	-	0	2,237,125	-100
Other stocks	216,856	-72.52	789,187	4.92	752,167	462,047	-53.07
Trade debtors	1,865,125	15.25	1,618,299	75.04	924,541	8,391,051	-77.77
Cash	94,899	-76.46	403,212	435	75,250	377,850	-74.88
other amounts receivable	3,562	150	1,420	92.24	738	192,664	-98.15
Miscellaneous current assets	0	-	0	-	0	13,976	-100
Total current assets	2,180,442	-22.46	2,812,118	60.45	1,752,696	11,690,931	-81.35
current liabilities
Trade creditors	1,613,543	-29.17	2,277,915	88.46	1,208,704	4,254,826	-62.08
Short term group loans	-	-	-	-	-	-	-
Other short term loans	168,899	3383	4,848	5.65	4,589	4,049,977	-95.83
Miscellaneous current liabilities	27,183	-84.09	170,901	-10.28	190,477	-94.95	- -
Total current liabilities	1,809,625	-26.25	2,453,664	74.79	1,403,770	8,687,406	-79.17
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	2,100	-69.78	6,948	-	- -
Other long term liabilities	0	-	0	-	0	195,638	-100
Total long term debts	0	-100	2,100	-69.78	6,948	1,012,556	-100
shareholders equity
Issued share capital	350,000	0	350,000	0	350,000	1,587,531	-77.95
Share premium account	-	-	-	-	-	98,781	-
Reserves	26,854	76.64	15,203	388	3,110	608,445	-95.59
Revaluation reserve	-	-	-	-	-	1,664,632	-
Total shareholders equity	376,854	3.19	365,203	3.42	353,110	2,311,532	-83.70
Working capital	370,817	3.45	358,453	2.73	348,926	3,003,525	-87.65
Cashflow	14,951	-2.74	15,372	83.04	-18,512	121,975	-87.74
Net worth	376,854	3.19	365,203	3.42	353,110	2,285,738	-83.51

ratio analysis

Annual accounts	30-06-2012	change(%)	30-06-2011	change(%)	30-06-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.17	13.33	0.15	22.39	-0.67	1,00	-83.00
Return on capital employed	3.09	-6.08	3.29	54.92	-5.99	163,00	-98.10
Return on total assets employed	0.53	23.26	0.43	35.25	-1.22	8,00	-93.38
Return on net assets employed	3.09	-6.65	3.31	54.17	-6.11	20,00	-84.55
Sales / net working capital	18.69	-17.85	22.75	145	9.25	34,00	-99
Stock turnover ratio	3.13	-67.67	9.68	-58.45	23.30	24,00	-86.96
Debtor days	98.21	35.57	72.44	-30.71	104.55	124,00	-20.80
Creditor days	85.19	-16.62	102.17	-24.80	135.87	78,00	9.22
short term stability
Current ratio	1.20	4.35	1.15	-8.00	1.25	5,00	-80.00
Liquidity ratio / acid ratio	1.09	32.93	0.82	15.49	0.71	4,00	-72.75
Current debt ratio	4.80	-28.57	6.72	68.84	3.98	6,00	-20.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	44.82	2258	1.90	-41.90	3.27	179,00	-74.96
Equity in percentage	17.24	33.13	12.95	-35.31	20.02	11,00	56.73
Total debt ratio	4.80	-28.57	6.72	68.00	4	7,00	-31.43

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	85.19
Day sales outstanding	98.21

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.31
Industry average day sales outstanding	108.96

Industry quartile analysis

Payment expectations
Company result	85.19
Lower	121.46
Median	73.49
Upper	41.43
Day sales outstanding
Company result	98.21
Lower	105.69
Median	54.63
Upper	24.45

Company result	85.19
Lower	121.46
Median	73.49
Upper	41.43

Company result	98.21
Lower	105.69
Median	54.63
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	880292618
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	SAUMIL YOGESH JHAVERI
Position	Principal Manager
Start Date	09/01/2007
Street	168 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	CHETANKUMAR AMRATLAL SHAH
Position	Non Statutory Partner
Start Date	27/03/2006
End Date	30/11/2010
Street	3 FLAMINGOLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	CHETANKUMAR AMRATLAL SHAH
Position	Principal Manager
Start Date	22/12/2009
End Date	30/06/2012
Street	3 FLAMINGOLAAN ANTWERPEN
Post code	2610
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.56.42
UK Pound	1	Rs.86.54
Euro	1	Rs.73.86

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%)