MIRA INFORM REPORT

Report Date :

22.03.2014

IDENTIFICATION DETAILS

Name :	J & K DIAMONDS BVBA
Registered Office :	Hovenierstraat 30, Office 421, 192, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	01.10.1973
Com. Reg. No.:	445525849
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 :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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 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 summary

Business number 445525849

Company name J & K DIAMONDS BVBA

Address HOVENIERSTRAAT 30, OFFICE 421, 192, 2018 ANTWERPEN, BELGIUM

Number of staff 0

Date of establishment 01/10/1973

Telephone number 034750120

Fax number 032339119

Commentary

The business was established over 22 years ago.

No employees are recorded for this business.

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

Operating Result in the latest trading period increased 1558% on the previous trading period.

Net Worth increased by 37% during the latest trading period.

A 54% decline in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 130% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	32,328	87,630	87,630
31/12/2011	27,615	63,501	63,501
31/12/2010	-17,630	37,886	37,886

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	-	0	18,600	24,129
31/12/2011	-	0	18,600	25,615
31/12/2010	-	0	18,600	-17,252

Payment expectations
Past payments		Payment expectation days	-
Industry average payment	168.56	Industry average day sales	120.30
expectation days		outstanding
Day sales outstanding	-
Court data summary
BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-

Company information

Business number	445525849	Company name	J & K DIAMONDS BVBA
Fax number	032339119	Date founded	01/10/1973
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0445.525.849
Belgian Bullettin of Acts Publications	moniteur belge
Contractor details
Registered contractor number	-
Contractor description	-
Date struck off register

Profit & loss

Annual accounts	31-122012	%	31-122011	%	31-122010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	46,788,819	-
Total operating expenses	-	-	-	-	-	46,394,806	-
Operating result	38,442	1558	2,317	48.06	-4,821	148,448	-74.10
Total financial income	716	-97.27	26,269	29415	89	98,246	-99
Total financial expenses	6,830	603	971	-92.47	12,898	205,370	-96.67
Results on ordinary operations before taxation	32,328	17.07	27,615	156	-17,630	32,991	-2.01
Taxation	8,199	309	2,000	529	-378	20,939	-60.84
Results on ordinary operations after taxation	24,129	-5.80	25,615	148	-17,252	18,080	33.46
Extraordinary items	0	-	0	-	0	-4,535	0
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	24,129	-5.80	25,615	148	-17,252	13,564	77.89
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	114,302	-
Employee costs	-	-	-	-	-	126,470	-
Wages and salary	-	-	-	-	-	105,963	-
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	-	-	-	-	-	26,627	-
Other employee costs	0	-	0	-	0	4,387	-100
Amortization and depreciation	-	-	-	-	-	17,945	-

balance sheet

Annual accounts	31-122012	%	31-122011	%	31-122010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,564	-100
Tangible fixed assets	-	-	-	-	-	185,821	-
Land & building	-	-	-	-	-	362,952	-
Plant & machinery	-	-	-	-	-	22,827	-
Furniture & Vehicles	-	-	-	-	-	17,432 5,433	-
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,680	-100
Financial fixed assets	-	-	-	-	-	310,124	-
Total fixed assets	-	-	-	-	-	399,140	-
Inventories	140,114	73.30	80,852	43.49	143,066	3,112,414	95.50
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,416	-100
Finished goods	0	-	0	-	0	1,996,318	-100
Other stocks	140,114	73.30	80,852	43.49	143,066	572,733	75.54
Trade debtors	424,879	-83.31	2,545,235	4967	50,227	4,196,966	89.88
Cash	4,983	130	2,161	22.32	2,782	226,680	97.80
other amounts receivable	617,569	156254	395	96.96	13,012	186,660	230
Miscellaneous current assets	0	-	0	-	0	18,104	-100
Total current assets	1,187,545	-54.82	2,628,643	1157	209,087	7,261,736	83.65
Total Assets	1,187,545	-54.82	2,628,643	1157	209,087	7,627,670 1,453,566	84.43
CURRENT LIABILITIES
Trade creditors	908,765	-61.97	2,389,554	39600	6,019	3,059,411	70.30
Short term group loans	-	-	-	-	-	-	-
Financial debts	5	-94.53	91	1723	5	4,295,770 191,085	-99
Current portion of long term debt	-	-	-	-	-	107,941 15,359	-
Amounts Payable for Taxes, Remuneration & Social Security	8,000	300	2,000	-	-	9,574 -	76.51
Miscellaneous current liabilities	183,145	5.56	173,497	5.04	165,177	-38.87	- -
Total current liabilities	1,099,915	-57.12	2,565,142	1398	171,201	5,375,608	79.54
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,207 0	-100
Other long term liabilities	0	-	0	-	0	129,796	-100
Total long term debts	0	-	0	-	0	563,316	-100
SHAREHOLDERS EQUITY
Issued share capital	18,600	0	18,600	0	18,600	950,239	98.04
Share premium account	-	-	-	-	-	109,362	-
Reserves	69,030	53.74	44,901	132	19,286	694,788	90.06
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	87,630	38.00	63,501	67.61	37,886	1,674,930	94.77
Working capital	87,630	38.00	63,501	67.61	37,886	1,886,128	95.35
Cashflow	24,129	-5.80	25,615	148	-17,252	28,369	14.95
Net worth	87,630	38.00	63,501	67.61	37,886	1,671,662	94.76

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	-	-	-	-	-	-26,00	-
Return on capital employed	36.89	-15.18	43.49	93.47	-46.53	29,00	27.21
Return on total assets employed	2.72	159	1.05	12.46	-8.43	-203,00	1.34
Return on net assets employed	36.89	-15.18	43.49	93.47	-46.53	19,00	94.16
Sales / net working capital	-	-	-	-	-	45,00	-
Stock turnover ratio	-	-	-	-	-	111,00	-
Debtor days	-	-	-	-	-	133,00	-
Creditor days	-	-	-	-	-	122,00	-
SHORT TERM STABILITY
Current ratio	1.08	5.88	1.02	-16.39	1.22	7,00	-88.00
Liquidity ratio / acid ratio	0.95	-4.04	0.99	153	0.39	4,00	-76.25
Current debt ratio	12.55	-68.94	40.40	793	4.52	9,00	39.44
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	0.01	-92.86	0.14	1300	0.01	363,00	-99
Equity in percentage	7.38	204	2.42	-86.64	18.12	-3.234,00	0.23
Total debt ratio	12.55	-68.94	40.40	793	4.52	11,00	14.09

Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	168.56
Industry average day sales outstanding	120.30

Industry quartile analysis

Payment expectations
Company result	-
Lower	134.58
Median	84.62
Upper	45.17

Day sales outstanding
Company result	-
Lower	113.11
Median	58.70
Upper	28.58

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details
Business number	445525849
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

court data

there is no data for this company

Director details

Current director details

Name	SURAJ PODDAR
Position	Principal Manager
Start Date	01/01/2010
Street	31 QUINTEN MATSIJSLEI ANTWERPEN
Post code	2018
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.61.05
UK Pound	1	Rs.100.81
Euro	1	Rs.84.18

INFORMATION DETAILS

Report Prepared by :

NNA

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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