MIRA INFORM REPORT

Report Date :

08.06.2013

IDENTIFICATION DETAILS

Name :	J PINCHASI & SONS BVBA
Registered Office :	Schupstraat 1 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	03.11.1969
Com. Reg. No.:	404955402
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	23

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 :	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 – 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	404955402
Company name	J PINCHASI & SONS BVBA
Address	SCHUPSTRAAT 1
	2018 ANTWERPEN
Number of staff	23
Date of establishment	03/11/1969
Telephone number	032269295
Fax number	032326397

Commentary

The business was established over 43 years ago.

The business has 20 employees.

The business has been at the address for over 6 years.

The credit rating for this business has increased from 64 to 97.

The credit limit for this business has increased from €3700000 to €5350000.

Pre-tax profits increased by 23% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 91% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	184,745,643	435,924	29,398,032	30,666,955
31/12/2010	150,704,536	352,389	29,132,906	30,329,644
31/12/2009	113,173,110	130,077	28,934,917	30,420,610

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	90,638,192	23	7,500,000	345,514
31/12/2010	87,537,851	22	7,500,000	287,560
31/12/2009	81,904,235	23	7,500,000	192,423

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	52.76
Industry average payment expectation days	174.12	Industry average day sales outstanding	108.81
Day sales outstanding	111.53

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	404955402	Company name	J PINCHASI & SONS BVBA
Fax number	032326397	Date founded	03/11/1969
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.0404.955.402
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	FROM 20 TO 49 EMPLOYEES

Joint Industrial Committee (JIC)

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

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

comparison mode

average

median

Export accounts to CSV file

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	184,745,643	22.59	150,704,536	33.16	113,173,110	49,567,599	272
Total operating expenses	182,776,502	22.69	148,974,947	33.95	111,214,652	48,933,721	273
Operating result	1,969,142	13.85	1,729,589	-11.69	1,958,457	238,043	727
Total financial income	16,329,836	30.49	12,514,517	73.30	7,221,281	148,968	10861
Total financial expenses	17,863,053	28.59	13,891,717	53.51	9,049,661	287,213	6119
Results on ordinary operations before taxation	435,924	23.71	352,389	170	130,077	84,424	416
Taxation	167,621	27.17	131,813	197	44,273	37,970	341
Results on ordinary operations after taxation	268,303	21.64	220,576	157	85,804	59,148	353
Extraordinary items	-3,177	14.07	-22,587	-47812	47	3,209	-199
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	265,126	33.91	197,988	130	85,851	62,241	325
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	570,306	5.79	539,071	6.41	506,598	127,998	345
Wages and salary	400,686	3.12	388,569	9.02	356,425	108,777	268
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	148,894	7.08	139,045	8.59	128,046	27,123	448
Other employee costs	20,725	80.89	11,457	-48.22	22,127	3,600	475
Amortization and depreciation	80,388	-10.25	89,572	-15.95	106,572	18,413	336

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	1,461	-100
Tangible fixed assets	730,779	-8.65	799,964	56.55	511,010	177,242	312
Land & building	536,564	-2.13	548,239	101	271,795	346,034	55.06
Plant & machinery	114,709	-14.76	134,564	-14.77	157,884	21,796	426
Other tangible assets	79,506	-32.14	117,161	44.05	81,332	24,582	223
Financial fixed assets	3,297	0	3,297	0	3,297	276,060	-98.81
Total fixed assets	734,077	-8.61	803,262	56.18	514,308	362,860	102
Inventories	33,394,359	21.73	27,432,682	-4.94	28,857,120	3,063,024	990
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,458	-100
Finished goods	33,394,359	21.73	27,432,682	-4.94	28,857,120	2,045,298	1532
Other stocks	0	-	0	-	0	471,192	-100
Trade debtors	56,448,928	-4.11	58,871,247	12.91	52,138,303	3,929,112	1336
Cash	24,995	-91.09	280,411	-20.27	351,721	239,216	-89.55
other amounts receivable	16,682	-48.08	32,127	224	9,906	244,784	-93.19
Miscellaneous current assets	19,151	-83.79	118,122	259	32,877	21,369	-10.38
Total current assets	89,904,115	3.65	86,734,589	6.57	81,389,927	6,980,828	1187
current liabilities
Trade creditors	26,419,347	1.67	25,984,251	-5.01	27,353,502	2,820,279	836
Short term group loans	-	-	-	-	-	-	-
Other short term loans	32,006,396	7.76	29,700,422	29.56	22,924,443	1,891,909	1591
Miscellaneous current liabilities	811,417	12.65	720,272	4.18	691,372	119	- -
Total current liabilities	59,237,160	5.02	56,404,946	10.66	50,969,318	4,963,567	1093
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,000,000	0	2,000,000	0	2,000,000	73.92	- -
Other long term liabilities	3,000	-	0	-	0	142,775	-97.90
Total long term debts	2,003,000	0.15	2,000,000	0	2,000,000	598,045	234
shareholders equity
Issued share capital	7,500,000	0	7,500,000	0	7,500,000	1,020,482	634
Share premium account	-	-	-	-	-	108,219	-
Reserves	21,898,032	1.23	21,632,906	0.92	21,434,917	696,305	3044
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	29,398,032	0.91	29,132,906	0.68	28,934,917	1,738,093	1591
Working capital	30,666,955	1.11	30,329,644	-0.30	30,420,610	2,017,261	1420
Cashflow	345,514	20.15	287,560	49.44	192,423	77,414	346
Net worth	29,398,032	0.91	29,132,906	0.68	28,934,917	1,736,632	1592

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.24	4.35	0.23	109	0.11	-740,00	0.03
Return on capital employed	1.39	23.01	1.13	169	0.42	-14,00	9.93
Return on total assets employed	0.48	20.0	0.40	150	0.16	-33,00	1.45
Return on net assets employed	1.48	22.31	1.21	168	0.45	-12,00	12.33
Sales / net working capital	6.02	21.13	4.97	33.60	3.72	66,00	-99
Stock turnover ratio	18.08	-0.66	18.20	-28.63	25.50	67,00	-73.01
Debtor days	111.53	-21.78	142.58	-15.21	168.15	57.718,00	-99
Creditor days	52.76	-17.12	63.66	-29.09	89.77	327,00	-83.87
short term stability
Current ratio	1.52	-1.30	1.54	-3.75	1.60	4,00	-91.56
Liquidity ratio / acid ratio	0.95	-9.52	1.05	1.94	1.03	3,00	-68.33
Current debt ratio	2.02	4.12	1.94	10.23	1.76	18,00	-88.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	115.68	6.31	108.81	26.32	86.14	264,00	-56.18
Equity in percentage	32.43	-2.55	33.28	-5.80	35.33	-1.077,00	3.01
Total debt ratio	2.08	4.00	2	9.29	1.83	19,00	-89.05

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	52.76
Day sales outstanding	111.53

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	174.12
Industry average day sales outstanding	108.81

Industry quartile analysis

Payment expectations
Company result	52.76
Lower	120.92
Median	73.49
Upper	41.43
Day sales outstanding
Company result	111.53
Lower	105.52
Median	54.63
Upper	24.45

Company result	52.76
Lower	120.92
Median	73.49
Upper	41.43

Company result	111.53
Lower	105.52
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	404955402
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	ABRAHAM PINCHASI
Position	Principal Manager
Start Date	16/07/2001
Street	13 ELSDONKLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	GAL PINCHASI
Position	Principal Manager
Start Date	14/08/2010
Street	63 ZWALUWENLAAN 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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

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%)