MIRA INFORM REPORT

Report Date :

25.06.2014

IDENTIFICATION DETAILS

Name :	PLUCZENIK DIAMOND COMPANY NV
Registered Office :	Pelikaanstraat 78 2018 Antwerpen
Country :	Belgium
Financials (as on) :	15.01.2013
Date of Incorporation :	20.07.1963
Com. Reg. No.:	405805438
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	13 (15.01.2013)

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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 2013 Belgian GDP grew by 0.1%, the unemployment rate increased to 8.8% from 7.6% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 3.2%. 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 405805438

Company name PLUCZENIK DIAMOND COMPANY NV

Address PELIKAANSTRAAT 78

2018 ANTWERPEN

Number of staff 13 (15.01.2013)

Date of establishment 20/07/1963

Telephone number 032315765

Commentary

The business was established over 50 years ago.

The business has 13 employees.

The business has been at the address for over 31 years.

Operating Result in the latest trading period increased 134% on the previous trading period.

The business saw an increase in their Cash Balance of 343% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
15/01/2013	503,927,630	1,845,646	125,621,677	123,940,318
31/12/2011	561,435,797	2,231,554	127,460,806	125,692,066
31/12/2010	643,404,105	2,829,894	162,044,535	159,520,454

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
15/01/2013	346,602,138	13	113,292,406	2,039,842
31/12/2011	360,891,575	12	116,689,367	2,447,824
31/12/2010	343,149,708	19	150,976,021	3,151,161

Payment expectations

Past payments		Payment expectation days 70.33
Industry average payment expectation days	164.15	Industry average day sales 119.90 outstanding
Day sales outstanding	71.68
Court data summary

Company information

Business number	405805438		PLUCZENIK DIAMOND COMPANY NV
Office address	Diamantbeurs, Pelikaanstraat 78, Office 1601 - 1608, 2018 Antwerpen Belgium
Fax number		Date founded	20/07/1963
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	15/01/2013
Activity code	46761	liable for VAT	yes
Activity description	Wholesaler of diamonds and other precious stones	VAT Number	BE.0405.805.438
Belgian Bullettin of Acts Publications	moniteur belge

Social Balance Sheet details

Social Balance Sheet	Total
During the reporting year ended 15-01-2013
Full-time Employees	13
Part-time Employees	3
Total Fte Employees	15
Number of hours worked
Full-time Employees	20,239
Part-time Employees	3,185
Total	23,424
Personnel Charges
Full-time Employees	413,221
Part-time Employees	63,701
Total	476,923
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	16
Actual working hours	26,781
Personnel Charges	560,470
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	10	3	12
Limited Duration Contracts	2	-	2
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-
Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondary education	6	2	7
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	1	1	2
Secondary education	5	-	5
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	9	3	11
Blue collar worker	3	-	3
Other	-	-	-
Temporary personnel		Total
Average number of temporary staff		-
Actual working hours		-
Cost of temporary staff		-
New staff and leavers	Full-Time	Part-Time	Total Fte
New Starters	2	-	2
Leavers	1	-	1

Personnel

(NSSO classification)

Code	-
Description	FROM 10 TO 19 EMPLOYEES

Joint Industrial Committee

(JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category
JIC Code	324.02
Description	JSC small merchandisers in the diamant industry and trade
category Significant Events
Event Date	13/10/2010
Event Description	re-appointment of director(s)
Event Details	Commentaar 13-10-2010: Herbenoemd als bestuurders tot na de jaarvergadering van 2016 : Pluczenik Chaim (tevens gedelegeerd bestuurder), Stern Michel en Pluczenik Tsvi.

COMPANY ACCOUNTS

Comparison Mode

· Average Median Export accounts to CSV File

Profit & loss

Annual accounts	15-01-2013	%	31-12-2011	%	31-12-2010	Industry average 2013	%
Weeks	54		52		52
Currency	EUR		EUR		EUR
Turnover	503,927,630	10.24	561,435,797	12.74	643,404,105	66,679,268	655
Total operating expenses	497,453,267	10.96	558,672,292	13.25	644,039,693	65,892,042	654
Operating result	6,474,363	134	2,763,505	434	-635,588	456,225	1319
Total financial income	8,782,835	41.07	14,904,036	23.21	19,408,496	207,909	4124
Total financial expenses	13,411,552	13.12	15,435,987	-3.18	15,943,014	528,778	2436
Results on ordinary operations before taxation	1,845,646	17.29	2,231,554	21.14	2,829,894	107,466	1617
Taxation	-16,678	-206	15,591	422	2,986	23,893	-169
Results on ordinary operations after taxation	1,862,324	15.96	2,215,963	21.61	2,826,908	88,526	2003
Extraordinary items	9,075	1361	621	84.57	4,024	2,926	210
Other appropriations	1	-	0	-	0	-	-
Net result	1,871,400	15.57	2,216,584	21.70	2,830,932	91,452	1946
OTHER INFORMATION
Dividends	-	-	-	-	-	25,000	-
Director remuneration	134,896	2.52	131,576	-	-	136,227	0.98
Employee costs	476,923	17.38	577,275	16.61	692,261	161,477	195
Wages and salary	384,248	17.87	467,870	-	-	139,859	174
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	83,742	19.14	103,562	-	-	33,641	148
Other employee costs	8,933	52.86	5,844	-	0	3,834	132
Amortization and depreciation	168,442	27.16	231,240	27.79	320,229	29,491	471

balance sheet

Annual accounts		15-01-2013		%		31-12-2011		%		31-12-2010		Industry average 2013		%
Weeks		54				52				52
Currency		EUR				EUR				EUR
Intangible fixed assets		0		-		0		-		0		1,235		-100
Tangible fixed assets		487,758		-9.38		538,232		42.34		933,436		324,002		50.54
Land & building		110,108		38.24		79,650		26.48		108,335		700,498		84.28
Plant & machinery		291,277		29.44		412,800		41.27		702,894		39,122		644
Furniture & Vehicles		86,373		88.66		45,782		62.54		122,207		19,170 6,882		350
Leasing & Other Similar Rights		-		-		-		-		-		153,494 20,215		-
Other tangible assets		0		-		0		-		0		6,995		-100
Financial fixed assets		1,327,848		-2.99		1,368,780		22.65		1,769,547		49,267		2595
Total fixed assets		1,815,606		-4.79		1,907,012		29.45		2,702,983		331,339		447
Inventories		227,682,011		9.99		206,996,224		-2.51		212,318,537		7,239,819		3044
Raw materials & consumables		-		-		-		-		-		-		-
Work in progress		0		-		0		-		0		12,859		-100
Finished goods		227,682,011		9.99		206,996,224		-2.51		212,318,537		5,561,020		3994
Other stocks		0		-		0		-		0		518,164		-100
Trade debtors		98,963,507		30.92		143,252,916		28.62		111,379,896		13,780,472		618
Cash		11,637,085		343		2,626,224		58.17		6,278,950		657,742		1669
other amounts receivable		6,338,822		7.91		5,874,382		41.55		10,049,903		361,280		1654
Miscellaneous current assets		165,107		29.69		234,817		44.02		419,439		39,381		319
Total current assets		344,786,532		-3.96		358,984,563		5.45		340,446,725		20,922,896		1547
Total Assets		346,602,138		-3.96		360,891,575		5.17		343,149,708		21,221,909 3,350,014		1533
CURRENT LIABILITIES
Trade creditors		95,850,379		14.64		112,289,688		12.91		128,936,162		7,972,331		1102
Short term group loans		-		-		-		-		-		-		-
Financial debts		124,793,225		3.38		120,708,602		132		51,839,672		12,240,271 331,560		919
Current portion of long term debt		-		-		-		-		-		66,356 10,511		-
Amounts Payable for Taxes, Remuneration & Social Security		82,389		24.32		108,871		27.63		150,437		13,587 -		98.69
Miscellaneous current liabilities		120,221		35.13		185,336		-		0		-84.21		- -
Total current liabilities		220,846,214		-5.34		233,292,497		28.94		180,926,271		15,376,234		1336
LONG TERM DEBTS AND LIABILITIES
Long term group loans		-		-		-		-		-		-		- -
Other long term loans		134,247		-2.91		138,273		22.71		178,902		-94.59		- -
Deffered taxes		-		-		-		-		-		0 0		-
Provisions for Liabilities & Charges		0		-		0		-		0		2,207 0		-100
Other long term liabilities		0		0		-1		-		0		198,511		-100
Total long term debts		134,247		-2.91		138,272		22.71		178,902		1,533,100		91.24
SHAREHOLDERS EQUITY
Issued share capital	113,292,406		-2.91		116,689,367		22.71		150,976,021		3,210,308		3429
Share premium account	-		-		-		-		-		273,462		-
Reserves	12,329,271		14.46		10,771,439		-2.68		11,068,514		967,255		1174
Revaluation reserve	-		-		-		-		-		1,662,858		-
Total shareholders equity	125,621,677		-1.44		127,460,806		21.34		162,044,535		4,312,575		2812
Working capital	123,940,318		-1.39		125,692,066		21.21		159,520,454		5,546,662		2134
Cashflow	2,039,842		16.67		2,447,824		22.32		3,151,161		115,908		1659
Net worth	125,621,677		-1.44		127,460,806		21.34		162,044,535		4,311,341		2813

ratio analysis

Annual accounts	15-01-2013	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2013
TRADING PERFORMANCE
Profit Before Tax	0.37	-7.50	0.40	-9.09	0.44	15,00	-97.53
Return on capital employed	1.47	-16.00	1.75	0.57	1.74	-2,00	73.50
Return on total assets employed	0.53	-14.52	0.62	-24.39	0.82	-1,00	53.00
Return on net assets employed	1.47	-16.00	1.75	0	1.75	6,00	-75.50
Sales / net working capital	4.07	-8.95	4.47	10.92	4.03	38,00	-99
Stock turnover ratio	45.18	22.54	36.87	11.73	33	21,00	115
Debtor days	71.68	-23.03	93.13	47.38	63.19	183,00	-60.83
Creditor days	70.33	-4.13	73.36	0.40	73.07	94,00	-25.18
SHORT TERM STABILITY
Current ratio	1.56	1.30	1.54	-18.09	1.88	6,00	-92.57
Liquidity ratio / acid ratio	0.53	-18.46	0.65	-8.45	0.71	5,00	-89.40
Current debt ratio	1.76	-3.83	1.83	63.39	1.12	21,00	-91.62
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	99.45	4.89	94.81	195	32.10	165,00	-39.73
Equity in percentage	36.24	2.60	35.32	-25.20	47.22	20,00	81.20
Total debt ratio	1.76	-3.83	1.83	63.39	1.12	21,00	-91.62

Industry comparison

Activity code	46761
Activity description	Wholesaler of diamonds and other precious stones

Payment Information

Amount	-
Details	-
Payment expectations
Payment expectation days	70.33
Day sales outstanding	71.68
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	164.15
Industry average day sales outstanding	119.90
Industry quartile analysis
Payment expectations
Company result	70.33
Lower	134.34
Median	84.60
Upper	45.29

Day sales outstanding
Company result	71.68
Lower	112.48
Median	58.56
Upper	28.09

Group Structure

No group structure for this company

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Court data

There is no data for this company

NSSO details
Business number	405805438

Current director details

Name	CHAIM PLUCZENIK
Position	Director
Start Date	11/10/2007
Street	15 REMBRANDTSTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	CHAIM PLUCZENIK
Position	Managing Director
Start Date	11/10/2007
Street	15 REMBRANDTSTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	MICHEL STERN
Position	Director
Start Date	11/10/2007
Date of birth	05/12/1948
Street	5 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	TSVI PLUCZENIK
Position	Director
Start Date	22/10/2010
Street	132 FLAT B, 9/F TAI WAH BUILDING, ELECTRIC ROAD,
Post code	North P
Country	Hong Kong

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.60.11
UK Pound	1	Rs.102.32
Euro	1	Rs.81.75

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.