MIRA INFORM REPORT

Report Date :

08.05.2014

IDENTIFICATION DETAILS

Name :	K.G.K. DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2-Bureel 529, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.03.2013
Date of Incorporation :	27.11.1989
Com. Reg. No.:	439113159
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	7

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 Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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

K.G.K. DIAMONDS BVBA

Company summary

Business number	439113159
Company name	K.G.K. DIAMONDS BVBA
Address	HOVENIERSSTRAAT 2-Bureel 529
	2018 ANTWERPEN
Number of staff	7
Date of establishment	27/11/1989
Telephone number	032131157
Fax number	032131158

Commentary

The business was established over 24 years ago.

The business has 5 employees.

The business has been at the address for over 9 years.

The business saw a decrease in their Cash Balance of 56% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/03/2013	252,319,204	765,024	22,535,319	42,633,365
31/03/2012	215,946,214	770,201	19,263,161	31,261,482
31/03/2011	220,854,762	761,823	14,828,653	22,604,307

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/03/2013	146,773,726	7	20,531,799	538,891
31/03/2012	142,430,064	5	15,531,799	852,994
31/03/2011	110,128,259	5	11,737,884	782,685

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	38.40
Industry average payment expectation days	165.80	Industry average day sales outstanding	116.75
Day sales outstanding	153.25

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	-
NSSO DETAILS
Date of summons	-
Business number	439113159	Company name	K.G.K. DIAMONDS BVBA
Fax number	032131158	Date founded	27/11/1989
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/03/2013
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0439.113.159
Belgian Bullettin of Acts Publications	Belgian monitor

Social Balance Sheet Details

Social Balance Sheet		Total
During the reporting year ended 31-03-2013
Full-time Employees		7
Part-time Employees		-
Total Fte Employees		7
Number of hours worked
Full-time Employees		11,438
Part-time Employees		-
Total		11,438
Personnel Charges
Full-time Employees		269,977
Part-time Employees		-
Total		269,977
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		5
Actual working hours		8,588
Personnel Charges		223,165
Benefits In Addition To Wages		-
Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	5	-	5
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	1	-	1
Secondairy education	3	-	3
Higher education (non university)	-	-	-
Higher education (university)	1	-	1
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	2	-	2
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	7	-	7
Blue collar worker	-	-	-
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	3	-		3
Leavers	1	-		1

Personnel (NSSO classification)

Code	-
Description	FROM 5 TO 9 EMPLOYEES

Joint Industrial Committee (JIC)

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

Significant Events

Event Date	27/03/2013
Event Description
Event Details	Toekenning van de 1114 nieuwe aandelen aan Prime International DMCC.

comparison mode

average

median

Profit & loss

Annual accounts	31-03-2013	%	31-03-2012	%	31-03-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	252,319,204	16.84	215,946,214	-2.22	220,854,762	110,150,782	129
Total operating expenses	249,356,417	16.92	213,267,529	-2.05	217,730,014	108,741,734	129
Operating result	2,962,787	10.61	2,678,686	-14.28	3,124,748	760,917	289
Total financial income	845,780	-37.41	1,351,344	215	428,983	351,071	140
Total financial expenses	3,043,543	-6.63	3,259,828	16.76	2,791,908	907,595	235
Results on ordinary operations before taxation	765,024	-0.67	770,201	1.10	761,823	178,705	328
Taxation	497,322	273	133,181	13.49	117,349	36,884	1248
Results on ordinary operations after taxation	267,701	-57.98	637,021	-1.16	644,474	150,817	77.50
Extraordinary items	11,107	422	2,127	-	0	9,295	19.49
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	278,808	-56.38	639,147	-0.83	644,474	160,112	74.13
OTHER INFORMATION
Dividends	-	-	-	-	-	50,000	-
Director remuneration	100,000	-	-	-	-	109,381	-8.58
Employee costs	269,977	20.98	223,165	16.61	191,374	150,116	79.85
Wages and salary	206,800	26.06	164,048	16.28	141,074	131,466	57.30
Employee pension costs	-	-	-	-	-	-	-
Social security contributions	58,269	30.89	44,516	26.47	35,198	31,645	84.13
Other employee costs	4,909	-66.38	14,602	-3.31	15,102	3,378	45.31
Amortization and depreciation	260,083	21.62	213,847	54.72	138,211	43,907	492

balance sheet

Annual accounts	31-03-2013	%	31-03-2012	%	31-03-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	20,723	-	14,073	-	15,519	1,134	1727
Tangible fixed assets	3,563,370	-3.74	3,701,964	8.45	3,413,513	428,449	731
Land & building	2,604,525	-2.50	2,671,397	-2.44	2,738,270	1,069,477	143
Plant & machinery	765,734	-2.79	787,738	41.25	557,688	63,782	1100
Furniture & Vehicles	193,112	-20.47	242,829	106	117,556	19,8774,501	871
Leasing & Other Similar Rights	-	-	-	-	-	204,65820,725	-
Other tangible assets	0	-	0	-	0	9,807	-100
Financial fixed assets	37,326	10.10	33,901	22.56	27,661	59,785	-37.57
Total fixed assets	3,621,419	-3.43	3,749,938	8.48	3,456,694	417,050	768
Inventories	36,095,197	-17.19	43,585,363	71.55	25,406,982	12,480,427	189
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	36,095,197	-17.19	43,585,363	71.55	25,406,982	9,819,324	267
Other stocks	0	-	0	-	0	530,299	-100
Trade debtors	105,939,698	15.03	92,097,509	14.88	80,170,908	20,658,546	412
Cash	511,389	-56.56	1,177,120	53.05	769,091	986,727	-48.17
other amounts receivable	545,914	-69.18	1,771,419	578	260,975	544,495	0.26
Miscellaneous current assets	60,108	23.39	48,715	-23.42	63,610	70,620	-14.89
Total current assets	143,152,306	3.22	138,680,126	30.01	106,671,565	32,610,011	338
Total Assets	146,773,726	3.05	142,430,064	29.33	110,128,259	32,986,3734,681,503	344
CURRENT LIABILITIES
Trade creditors	26,234,885	-31.73	38,430,552	-20.55	48,371,385	11,956,668	119
Short term group loans	-	-	-	-	-	-	-
Financial debts	73,749,316	7.82	68,400,931	94.11	35,237,626	20,816,0795,052,128	254
Current portion of long term debt	286,975	-14.59	335,985	13.41	296,256	85,94218,696	233
Amounts Payable for Taxes, Remuneration & Social Security	203,616	4.24	195,340	45.85	133,932	26,491 -	236
Miscellaneous current liabilities	44,150	-20.93	55,836	98.99	28,060	-85.61	- -
Total current liabilities	100,518,941	-6.42	107,418,644	27.78	84,067,258	23,357,333	330
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	23,308,270	51.75	15,359,823	41.37	10,864,890	441	- -
Deffered taxes	-	-	-	-	-	- -	-
Provisions for Liabilities & Charges	0	-	0	-	0	4,414 0	-100
Other long term liabilities	390,472	4.30	374,364	6.37	351,939	384,519	1.55
Total long term debts	23,698,743	50.62	15,734,186	40.27	11,216,829	2,592,312	814
SHAREHOLDERS EQUITY
Issued share capital	20,531,799	32.19	15,531,799	32.32	11,737,884	5,797,475	254
Share premium account	-	-	-	-	-	538,244	-
Reserves	2,024,243	-45.95	3,745,435	20.58	3,106,287	1,044,044	93.88
Revaluation reserve	-	-	-	-	-	1,731,760	-
Total shareholders equity	22,556,041	17.01	19,277,234	29.86	14,844,172	7,036,727	220
Working capital	42,633,365	36.38	31,261,482	38.30	22,604,307	9,252,678	360
Cashflow	538,891	-36.82	852,994	8.98	782,685	194,381	177
Net worth	22,535,319	16.99	19,263,161	29.90	14,828,653	7,035,594	220

ratio analysis

Annual accounts	31-03-2013	change(%)	31-03-2012	change(%)	31-03-2011	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	0.30	-16.67	0.36	5.88	0.34	31,00	-99
Return on capital employed	1.65	-25.00	2.20	-24.66	2.92	9,00	-81.67
Return on total assets employed	0.52	-3.70	0.54	-21.74	0.69	1,00	-48.00
Return on net assets employed	3.39	-15.25	4	-22.03	5.13	8,00	-57.62
Sales / net working capital	5.92	-14.33	6.91	-29.27	9.77	26,00	-99
Stock turnover ratio	14.31	-29.09	20.18	75.48	11.50	16,00	-10.56
Debtor days	153.25	-1.55	155.67	17.49	132.50	132,00	16.10
Creditor days	38.40	-41.61	65.77	-18.89	81.09	89,00	-56.85
SHORT TERM STABILITY
Current ratio	1.42	10.08	1.29	1.57	1.27	8,00	-87.09
Liquidity ratio / acid ratio	1.07	20.22	0.89	-8.25	0.97	7,00	-84.71
Current debt ratio	4.46	-19.93	5.57	-1.59	5.66	11,00	-59.45
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	431.57	-1.07	436.25	39.57	312.57	240,00	79.82
Equity in percentage	15.37	13.52	13.54	0.45	13.48	17,00	-9.59
Total debt ratio	5.51	-13.77	6.39	-0.47	6.42	11,00	-49.91

Payment expectations

Payment expectation days	38.40
Day sales outstanding	153.25

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	165.80
Industry average day sales outstanding	116.75

Industry quartile analysis

Payment expectations
Company result	38.40
Lower	134.58
Median	84.93
Upper	45.29
Day sales outstanding
Company result	153.25
Lower	113.11
Median	59.77
Upper	28.61

Group Structure

No group structure for this company.

Minority Shareholders

Business number	Company name	%	Date of accounts
838225795	PRIME INTERNATIONAL DMCC	-	-

Minority Interests

No minority interests found

Companies that match this address

no Companies Match this address

NSSO details

Business number	439113159
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	RAJESH KUMAR JAIN
Position	Principal Manager
Start Date	31/12/1996
Street	47 MOLENVELDLAAN EDEGEM
Post code	2650
Country	Belgium

Name	PRIME INTERNATIONAL DMCC SOC. ETRANGERE
Position	Principal Manager
Start Date	28/09/2010
Country	United Arab Emirates

Name	MANJU KOTHARI
Position	Legal Representative
Start Date	28/09/2010

Name	SINO CHARM LIMITED
Position	Legal Representative
Start Date	28/09/2010

Name	PRIME INTERNATIONAL DMCC
Position	Principal Manager
Start Date	28/09/2010

Former director details

Name	PRIME INTERNATIONA FZCO SOC. ETRANGERE
Position	Principal Manager
Start Date	20/10/2006
End Date	28/09/2010
Country	United Arab Emirates

Name	PRIME INTERNATIONAL FZCO
Position	Principal Manager
Start Date	13/10/2010
End Date	31/03/2012
Street	214 2ND FLOOR, FLAT, PO BOX 54630
Country	United Arab Emirates

Name	PRIME INTERNATIONAL FZCO
Position	Legal Representative
Start Date	20/10/2006
End Date	-

Name	PRIME INTERNATIONAL FZCO
Position	Principal Manager
Start Date	20/10/2006
End Date	-

Name	RAVI KUMAR KUDAL
Position	Principal Manager
Start Date	15/10/2002
End Date	27/09/2002

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.60.04
UK Pound	1	Rs.101.97
Euro	1	Rs.83.58

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%)

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.