MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	BRONNER TRADING COMPANY NV
Registered Office :	Plantin En Moretuslei 23 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	03.07.1985
Com. Reg. No.:	427446534
Legal Form :	Public Limited Liability Company (BE)
LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES
No. of Employees :	2

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 :	Unknown
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	427446534
Company name	BRONNER TRADING COMPANY NV
Address	PLANTIN EN MORETUSLEI 23
	2018 ANTWERPEN
Date of establishment	03/07/1985
Telephone number	032338255
Fax number	032317215

Commentary

The business was established over 27 years ago.

The business has 1 employees.

Number of employees in the latest trading period decreased 60% on the previous trading period.

The business has been at the address for over 17 years.

The credit rating for this business has increased from 39 to 64.

The credit limit for this business has increased from €0 to €7000.

Operating Result in the latest trading period decreased 156% on the previous trading period.

A 53% decline in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 106% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011		29,535	3,260,340	2,552,698
31/12/2010		-5,776	3,244,196	2,488,212
31/12/2009	2,269,009	-867,321	3,247,496	2,442,252

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	4,169,897	2	311,553	64,486
31/12/2010	8,901,086	5	311,553	45,959
31/12/2009	8,238,063	9	311,553	-890,540

Trends

Profitability
Liquidity
Net worth

Payment expectations

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

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-
Business number	427446534	Company name	BRONNER TRADING COMPANY NV
Fax number	032317215	Date founded	03/07/1985
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.0427.446.534
Belgian Bullettin of Acts Publications	moniteur belge

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 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

Significant Events

Event Date	20/09/2008
Event Description	re-appointment of director(s)
Event Details	Commentaar 20-09-2008: Israël Bronner wordt herbenoemd als bestuurder en gedelegeerd bestuurder voor een periode van zes jaar. Jacob Bronner wordt voor diezelfde periode eveneens herbenoemd als gedelegeerd bestuurder.

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	-	-	-	-	2,269,009	49,567,599	-
Total operating expenses	-	-	-	-	3,006,738	48,933,721	-
Operating result	-204,671	-156	363,374	49.26	-737,729	238,043	-185
Total financial income	429,445	263	118,245	-84.23	749,738	148,968	188
Total financial expenses	195,239	-59.94	487,395	-44.57	879,330	287,213	-32.02
Results on ordinary operations before taxation	29,535	511	-5,776	0.67	-867,321	84,424	-65.02
Taxation	-	-	-1,532	-101	102,993	37,970	-
Results on ordinary operations after taxation	29,535	695	-4,244	0.44	-970,314	59,148	-50.07
Extraordinary items	-13,391	-1520	943	-	0	3,209	-517
Other appropriations	0	-	0	-	0	-	-
Net result	16,144	489	-3,301	0.34	-970,314	62,241	-74.06
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	-	-	-	-	-	115,275	-
Employee costs	52,405	-63.81	144,814	-53.39	310,665	127,998	-59.06
Wages and salary	39,405	-72.79	144,814	-18.06	176,736	108,777	-63.77
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	13,000	-	-	-	129,451	27,123	-52.07
Other employee costs	0	-	0	-100	4,478	3,600	-100
Amortization and depreciation	48,342	-1.86	49,260	-38.25	79,774	18,413	162

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	684,568	-6.60	732,910	-6.30	782,171	177,242	286
Land & building	683,989	-5.85	726,515	-5.36	767,685	346,034	97.67
Plant & machinery	-	-	4,805	-59.57	11,885	21,796	-
Other tangible assets	579	-63.58	1,590	-38.87	2,601	24,582	-97.64
Financial fixed assets	23,074	0	23,074	0	23,074	276,060	-91.64
Total fixed assets	707,642	-6.39	755,984	-6.12	805,244	362,860	95.02
Inventories	3,350,011	-41.23	5,700,123	14.21	4,990,923	3,063,024	9.37
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,458	-100
Finished goods	0	-	0	-100	4,990,923	2,045,298	-100
Other stocks	3,350,011	-41.23	5,700,123	-	0	471,192	610
Trade debtors	90,401	-96.27	2,426,162	0.23	2,420,483	3,929,112	-97.70
Cash	1,041	106	505	-84.09	3,175	239,216	-99
other amounts receivable	20,802	13.60	18,312	0.41	18,238	244,784	-91.50
Miscellaneous current assets	0	-	0	-	0	21,369	-100
Total current assets	3,462,255	-57.49	8,145,102	9.58	7,432,819	6,980,828	-50.40
current liabilities
Trade creditors	1,280	-99	576,911	-3.46	597,564	2,820,279	-99
Short term group loans	-	-	-	-	-	-	-
Other short term loans	391,101	-91.26	4,473,022	27.31	3,513,535	1,891,909	-79.33
Miscellaneous current liabilities	517,176	-14.79	606,957	-30.99	879,468	39.81	- -
Total current liabilities	909,557	-83.92	5,656,890	13.35	4,990,567	4,963,567	-81.68
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Other long term liabilities	0	-	0	-	0	142,775	-100
Total long term debts	0	-	0	-	0	598,045	-100
shareholders equity
Issued share capital	311,553	0	311,553	0	311,553	1,020,482	-69.47
Share premium account	-	-	-	-	-	108,219	-
Reserves	2,948,787	0.55	2,932,643	-0.11	2,935,943	696,305	323
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	3,260,340	0.50	3,244,196	-0.10	3,247,496	1,738,093	87.58
Working capital	2,552,698	2.59	2,488,212	1.88	2,442,252	2,017,261	26.54
Cashflow	64,486	40.31	45,959	5.16	-890,540	77,414	-16.70
Net worth	3,260,340	0.50	3,244,196	-0.10	3,247,496	1,736,632	87.74

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	-	-	-	-	-38.22	-740,00	-
Return on capital employed	0.91	505	-0.18	0.67	-26.71	-14,00	6.50
Return on total assets employed	0.71	1183	-0.06	0.57	-10.53	-33,00	2.15
Return on net assets employed	0.91	505	-0.18	0.67	-26.71	-12,00	7.58
Sales / net working capital	-	-	-	-	0.93	66,00	-
Stock turnover ratio	-	-	-	-	219.96	67,00	-
Debtor days	-	-	-	-	389.37	57.718,00	-
Creditor days	-	-	-	-	72.54	327,00	-
short term stability
Current ratio	3.81	164	1.44	-3.36	1.49	4,00	-78.83
Liquidity ratio / acid ratio	0.12	-72.09	0.43	-12.24	0.49	3,00	-96.00
Current debt ratio	0.28	-83.91	1.74	12.99	1.54	18,00	-98.44
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	12	-91.30	137.88	27.44	108.19	264,00	-95.45
Equity in percentage	78.19	114	36.45	-7.53	39.42	-1.077,00	7.26
Total debt ratio	0.28	-83.91	1.74	12.99	1.54	19,00	-98.53

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

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	-
Lower	120.92
Median	73.49
Upper	41.43
Day sales outstanding
Company result	-
Lower	105.52
Median	54.63
Upper	24.45

Lower	120.92
Median	73.49
Upper	41.43

Company result	-
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	427446534
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	JACOB BRONNER
Position	Director
Start Date	20/09/2008
Street	28 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	JACOB BRONNER
Position	Managing Director
Start Date	09/06/2008
Street	28 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	ISRAËL M. BRONNER
Position	Managing Director
Start Date	24/09/2008
End Date	28/05/2014
Street	53 CONSCIENCESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	ISRAËL M. BRONNER
Position	Director
Start Date	29/05/1996
Street	53 CONSCIENCESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	PINCKAS PAPPENHEIM
Position	Director
Start Date	07/09/2007
Street
Post code
Country

Former director details

Name	NATHAN BRANDYS
Position	Director
Start Date	21/12/1994
End Date	-
Street	48 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HENRYK BRONNER
Position	Director
Start Date	22/05/1997
End Date	-
Street	44 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	HARRY LEITNER
Position	Director
Start Date	27/05/1998
End Date	-
Street	22 HELENALEI ANTWERPEN
Post code	2018
Country	Belgium

Name	ISAAC EBERSTARK
Position	Director
Start Date	27/05/1998
End Date	-
Street	142 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	PINCHAS PAPPENHEIM
Position	Director
Start Date	07/09/2007
End Date	31/12/2011
Street	119 BELGIËLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	JULIANA HEYLEN
Position	Director
Start Date	01/01/2008
End Date	31/12/2011
Date of birth	14/03/1947
Street	18 LANGSTRAAT HERENTHOUT
Post code	2270
Country	Belgium

Bottom of Form

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.57.78
UK Pound	1	Rs.89.71
Euro	1	Rs.76.23

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%)