MIRA INFORM REPORT

Report Date :

25.11.2014

IDENTIFICATION DETAILS

Name :	ARKOT DIAMONDS BVBA
Registered Office :	Hoveniersstraat 30-Bus 259 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2013
Date of Incorporation :	29.10.2010
Com. Reg. No.:	830908730
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of watches and jewellery
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 :	Slow but correct
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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 830908730

Company name ARKOT DIAMONDS BVBA

Address HOVENIERSSTRAAT 30-BUS 259

2018 ANTWERPEN

Number of staff 0

Date of establishment 29/10/2010

Telephone number 032330574

Commentary

The business was established over 4 years ago.

No employees are recorded for this business.

The business has been at the address for over 2 years.

A 59% decline in Total Assets occurred during the latest trading period.

The business saw an increase in their Cash Balance of 77% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013	49,595,069	132,092	1,705,191	1,503,093
31/12/2012	44,376,155	133,804	1,605,856	1,427,833
31/12/2011	53,205,608	139,082	109,642	51,260

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	6,551,218	0	1,419,532	107,255
31/12/2012	16,042,791	0	1,419,532	103,202
31/12/2011	7,921,021	0	18,600	92,362

Payment expectations

Past payments Payment expectation days 28.67

Industry average payment

expectation days 244.83 Industry average day sales

outstanding 355.48

Day sales outstanding 31.03

Company information

Business number	830908730	Company name	ARKOT DIAMONDS BVBA
Fax number		Date founded	29/10/2010
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2013
Activity code	46480	Liable for VAT	yes
Activity description	Wholesale of watches and jewellery	VAT Number	BE.0830.908.730 Check VAT number

Significant Events

Event Date 12/12/2012

Event Description

Event Details Doshi Manuskhlal schrijft in op 6067 nieuwe aandelen.

Profit & loss

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	Industry average 2013	%
Weeks	52		52		61
Currency	EUR		EUR		EUR
Turnover	49,595,069	11.76	44,376,155	-16.59	53,205,608	44,277,779	12.01
Total operating expenses	49,382,659	11.76	44,185,155	-16.65	53,013,819	44,132,397	11.90
Operating result	212,410	11.21	191,000	-0.41	191,789	32,569	552
Total financial income	38	707	5	-99	4,020	46,475	-99
Total financial expenses	80,355	40.48	57,200	0.84	56,726	111,293	-27.80
Results on ordinary operations before taxation	132,092	-1.28	133,804	-3.79	139,082	-36,385	363
Taxation	32,758	-14.96	38,522	-19.81	48,040	72,201	-54.63
Results on ordinary operations after taxation	99,334	4.25	95,282	4.66	91,042	-86,822	114
Extraordinary items	0	-	0	-	0	154,468	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	99,334	4.25	95,282	4.66	91,042	67,697	46.73
OTHER INFORMATION
Gross Operating Margin	-	-	-	-	-	61,268	-
Dividends	-	-	-	-	-	191,619	-
Director remuneration	-	-	-	-	-	114,333	-
Employee costs	-	-	39	-	-	206,842	-
Wages and salary	-	-	-	-	-	158,532	-
Employee pension costs	-	-	-	-	-	2,674	-
Social security contributions	-	-	-	-	-	43,214	-
Other employee costs	0	-100	39	-	0	6,518	-100
Amortization and depreciation	7,920	0	7,920	500	1,319	22,415	-64.67

balance sheet

Annual accounts	31-122013	%	31-12-2012	%	31-122011	Industry average 2013	%
Weeks	52		52		61
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	3,623	-100
Tangible fixed assets	701,751	-1.12	709,671	190	243,938	201,349	248
Land & building	696,810	-0.79	702,369	199	234,274	408,106	70.74
Plant & machinery	540	-61.50	1,401	-38.08	2,263	20,399	-97.35
Furniture & Vehicles	4,401	-25.42	5,901	-20.27	7,401	20,448 7,387	-78.48
Leasing & Other Similar Rights	-	-	-	-	-	330,214 23,188	-
Other tangible assets	0	-	0	-	0	6,720	-100
Financial fixed assets	-	-	-	-	-	615,932	-
Total fixed assets	701,751	-1.12	709,671	190	243,938	557,097	25.97
Inventories	196,235	-68.27	618,529	102	305,788	1,445,105	-86.42
Raw materials & consumables	-	-	-	-	-	5,250,757	-
Work in progress	0	-	0	-	0	155	-100
Finished goods	196,235	-68.27	618,529	102	305,788	794,984	-75.32
Other stocks	0	-	0	-	0	280,497	-100
Trade debtors	4,216,167	-69.67	13,901,284	137	5,860,578	1,820,847	131
Cash	1,432,639	77.99	804,908	-45.72	1,482,956	149,145	860
other amounts receivable	3,529	-50.85	7,181	-68.54	22,828	388,338	-99
Miscellaneous current assets	897	-26.35	1,218	-75.32	4,933	60,308	-98.51
Total current assets	5,849,467	-61.85	15,333,119	99	7,677,083	3,466,825	68.73
Total Assets	6,551,218	-59.16	16,042,791	102	7,921,021	3,941,094 299,984	66.23

CURRENT LIABILITIES

	Trade creditors	3,878,537	-71.96	13,831,897	115	6,422,588	951,182	307
Short term group loans - - - - - - -
	Financial debts	276	-	-	-	318	2,840,424 27,487	-99
	Current portion of long term debt	31,994	-1.07	32,340	142	13,333	123,980 16,831	-74.19
	Amounts Payable for Taxes, Remuneration & Social Security	32,750	-17.35	39,623	-17.52	48,040	9,363 -	-61.19
	Miscellaneous current liabilities	402,816	28150	1,426	-99	1,141,544	55.96	- -
	Total current liabilities	4,346,374	-68.74	13,905,286	82.34	7,625,823	2,276,076	90.96
LONG TERM DEBTS AND LIABILITIES
Long term group loans - - - - - - - -
	Other long term loans	499,654	-6.02	531,648	186	185,556	-70.42	- -
	Deffered taxes	-	-	-	-	-	47,658 28,276	-
	Provisions for Liabilities & Charges	0	-	0	-	0	16,493 0	-100
	Other long term liabilities	0	-	0	-	0	48,856	-100
	Total long term debts	499,654	-6.02	531,648	186	185,556	668,561	-25.26
	SHAREHOLDERS EQUITY
	Issued share capital	1,419,532	0	1,419,532	7531	18,600	633,964	123
	Share premium account	-	-	-	-	-	261,617	-
	Reserves	285,659	53.31	186,324	104	91,042	341,970	-16.47
	Revaluation reserve	-	-	-	-	-	570,310	-
	Total shareholders equity	1,705,191	6.19	1,605,856	1364	109,642	996,457	71.13
	Working capital	1,503,093	5.27	1,427,833	2685	51,260	1,190,749	26.23
	Cashflow	107,255	3.93	103,202	11.74	92,362	85,638	25.24
	Net worth	1,705,191	6.19	1,605,856	1364	109,642	992,834	71.75

ratio analysis

	Trade creditors	3,878,537	-71.96	13,831,897	115	6,422,588	951,182	307
Short term group loans - - - - - - -
	Financial debts	276	-	-	-	318	2,840,424 27,487	-99
	Current portion of long term debt	31,994	-1.07	32,340	142	13,333	123,980 16,831	-74.19
	Amounts Payable for Taxes, Remuneration & Social Security	32,750	-17.35	39,623	-17.52	48,040	9,363 -	-61.19
	Miscellaneous current liabilities	402,816	28150	1,426	-99	1,141,544	55.96	- -
	Total current liabilities	4,346,374	-68.74	13,905,286	82.34	7,625,823	2,276,076	90.96
LONG TERM DEBTS AND LIABILITIES
Long term group loans - - - - - - - -
	Other long term loans	499,654	-6.02	531,648	186	185,556	-70.42	- -
	Deffered taxes	-	-	-	-	-	47,658 28,276	-
	Provisions for Liabilities & Charges	0	-	0	-	0	16,493 0	-100
	Other long term liabilities	0	-	0	-	0	48,856	-100
	Total long term debts	499,654	-6.02	531,648	186	185,556	668,561	-25.26
	SHAREHOLDERS EQUITY
	Issued share capital	1,419,532	0	1,419,532	7531	18,600	633,964	123
	Share premium account	-	-	-	-	-	261,617	-
	Reserves	285,659	53.31	186,324	104	91,042	341,970	-16.47
	Revaluation reserve	-	-	-	-	-	570,310	-
	Total shareholders equity	1,705,191	6.19	1,605,856	1364	109,642	996,457	71.13
	Working capital	1,503,093	5.27	1,427,833	2685	51,260	1,190,749	26.23
	Cashflow	107,255	3.93	103,202	11.74	92,362	85,638	25.24
	Net worth	1,705,191	6.19	1,605,856	1364	109,642	992,834	71.75

Industry comparison

Activity code 46480

Activity description Wholesale of watches and jewellery

Payment expectations

Payment expectation days 28.67

Day sales outstanding 31.03

Industry comparison

Activity code 46480

Activity description Wholesale of watches and jewellery

Industry average payment

expectation days 244.83

Industry average day sales

Outstanding 355.48

Industry quartile analysis

Payment expectations

Company result 28.67

Lower 129.57

Median 63.03

Upper 19.75

Day sales outstanding

Company result 31.03

Lower 123.34

Median 56.14

Upper 21.03

Shareholder Details

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Forename	Manuskhlal	Middle name	-
Surname	Doshi
SHAREHOLDER DETAILS
Start date	12/12/2012	End date	-
Percentage owned	54.70%
SHAREHOLDER ADDRESS
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	India
Companies that match this address

Companies that match this address

no Companies Match this address

Summons

there is no data for this company

Protested Bills

there is no data for this company

Bankruptcy and other legal events

there is no data for this company

Director details

Current director details

Name JIGNESHKUMAR SHAH

Position Principal Manager

Start Date 01/11/2012

Street 122 BELGIËLEI ANTWERPEN

Post code 2018

Country Belgium

Former director details

Name RAJIV SHASHIKANT KOTHARI

Position Principal Manager

Start Date 29/10/2010

End Date 31/10/2012

Street 26 ARENDSNESTLAAN EDEGEM

Post code 2650

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.61.78
UK Pound	1	Rs.96.78
Euro	1	Rs.76.59

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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