MIRA INFORM REPORT

Report Date :

18.09.2014

IDENTIFICATION DETAILS

Name :	J & K DIAMONDS BVBA

Registered Office :	Hoveniersstraat 30, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2013

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 :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Belgium

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate 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 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	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	0
Date of establishment	01/1 0/1 973
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 7 years.

Operating Result in the latest trading period increased 42% on the previous trading period.

Net Worth increased by 44% during the latest trading period.

A 235% growth in Total Assets occurred during the latest trading period.

Pre-tax profits increased by 75% compared to the previous trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2013		56,656	126,234	126,234
31/12/2012		32,328	87,630	87,630
31/12/2011		27,615	63,501	63,501
Accounts
DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2013	-	0	18,600	38,605
31/12/2012	-	0	18,600	24,129
31/12/2011	-	0	18,600	25,615

Payment expectations

Past payments

Payment expectation days -

Industry average payment expectation days 125.38

Industry average day sales outstanding 143.77

Company accounts

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	-	-	-	-	-	60,358,088	-
Total operating expenses	-	-	-	-	-	59,797,817	-
Operating result	54,794	42.54	38,442	1558	2,317	176,531	-68.96
Total financial income	9,169	11 80	716	-97.27	26,269	62,816	-85.40
Total financial expenses	7,307	6.99	6,830	603	971	187,232	-96.10
Results on ordinary operations before taxation	56,656	75.25	32,328	17.07	27,615	53,587	5.73
Taxation	18,052	120	8,199	309	2,000	23,397	-22.85
Results on ordinary operations after taxation	38,605	59.99	24,129	-5.80	25,615	36,681	5.24
Extraordinary items	0	-	0	-	0	7,353	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	38,605	59.99	24,129	-5.80	25,615	44,265	-12.79
OTHER INFORMATION
Gross Operating Margin	56,028	43.50	39,045	1040	3,424	36,742	52.49
Dividends	-	-	-	-	-	221,730	-
Director remuneration	-	-	-	-	-	128,969	-
Employee costs	-	-	-	-	-	146,458	-
Wages and salary	-	-	-	-	-	115,141	-
Employee pension costs	-	-	-	-	-	1,459	-
Social security contributions	-	-	-	-	-	28,730	-
Other employee costs	0	-	0	-	0	2,737	-100
Amortization and depreciation	-	-	-	-	-	17,548	-

Balance sheet

Annual accounts	31-12-2013	%	31-12-2012	%	31-12-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,081	-100
Tangible fixed assets	-	-	-	-	-	199,589	-
Land & building	-	-	-	-	-	402,058	-
Plant & machinery	-	-	-	-	-	27,834	-
Furniture & Vehicles	-	-	-	-	-	15,335 4,171	-
Leasing & Other Similar Rights	-	-	-	-	-	44,547 27,638	-
Other tangible assets	0	-	0	-	0	9,274	-100
Financial fixed assets	-	-	-	-	-	253,258	-
Total fixed assets	-	-	-	-	-	360,073	-
Inventories	783,383	459	140,114	73.30	80,852	3,178,257	-75.35
Raw materials & consumables	-	-	-	-	-	7,018,384	-
Work in progress	0	-	0	-	0	1,427	-100
Finished goods	0	-	0	-	0	2,122,637	-100
Other stocks	783,383	459	140,114	73.30	80,852	447,609	75.01
Trade debtors	3,192,174	651	424,879	-83.31	2,545,235	4,134,292	-22.79
Cash	4,303	-13.65	4,983	130	2,161	580,413,425	-99
other amounts receivable	1,474	-99	617,569	156254	395	213,784	-99
Miscellaneous current assets	0	-	0	-	0	-570,754,345	0
Total current assets	3,981,334	235	1,187,545	-54.82	2,628,643	7,201,468	-44.71
Total Assets	3,981,334	235	1,187,545	-54.82	2,628,643	7,520,557 1,189,274	-47.06

Current Liabilities

Trade creditors	3,780,680	316	908,765	-61.97	2,389,554	2,930,090	29.03
Short term group loans	-	-	-	-	-	-	-
Financial debts	5	0	5	-94.53	91	4,489,511 121,204	-99
Current portion of long term debt	-	-	-	-	-	85,953 14,135	-
Amounts Payable for Taxes, Remuneration & Social Security	18,000	125	8,000	300	2,000	7,742 -	-38.68
Miscellaneous current liabilities	56,414	-69.20	183,145	5.56	173,497	-75.40	- -
Total current liabilities	3,855,100	250	1,099,915	-57.12	2,565,142	5,111,206	-24.58
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	58,297 69,470	-
Provisions for Liabilities & Charges	0	-	0	-	0	5,403 0	-100
Other long term liabilities	0	-	0	-	0	242,523	-100
Total long term debts	0	-	0	-	0	672,094	-100
SHAREHOLDERS EQUITY
Issued share capital	18,600	0	18,600	0	18,600	1,052,317	-98.23
Share premium account	-	-	-	-	-	86,926	-
Reserves	107,634	55.92	69,030	53.74	44,901	650,964	-83.47
Revaluation reserve	-	-	-	-	-	907,399	-
Total shareholders equity	126,234	44.05	87,630	38.00	63,501	1,727,081	-92.69
Working capital	126,234	44.05	87,630	38.00	63,501	2,090,263	-93.96
Cashflow	38,605	59.99	24,129	-5.80	25,615	58,560	-34.08
Net worth	126,234	44.05	87,630	38.00	63,501	1,726,000	-92.69

Ratio analysis

Annual accounts	31-12-2013	change(%)	31-12-2012	change(%)	31-12-2011	Industry average 2013	%
TRADING PERFORMANCE
Profit Before Tax	-	-	-	-	-	-9,00	-
Return on capital employed	44.88	21.66	36.89	-15.18	43.49	-14,00	320
Return on total assets employed	1.42	-47.79	2.72	159	1.05	-5,00	28.40
Return on net assets employed	44.88	21.66	36.89	-15.18	43.49	-15,00	299
Sales / net working capital	-	-	-	-	-	170,00	-
Stock turnover ratio	-	-	-	-	-	51,00	-
Debtor days	-	-	-	-	-	143,77	-
Creditor days SHORT TERM STABILITY						125,38
Current ratio	1.03	-4.63	1.08	5.88	1.02	4,00	-93.13
Liquidity ratio / acid ratio	0.83	-12.63	0.95	-4.04	0.99	3,00	-72.33
Current debt ratio	30.54	143	12.55	-68.94	40.40	15,00	103
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	0	-100	0.01	-92.86	0.14	250,00	-100
Equity in percentage	3.17	-57.05	7.38	204	2.42	-264,00	1.20
Total debt ratio	30.54	143	12.55	-68.94	40.40	16,00	90.88

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 125.38

Industry average day sales

Outstanding 143.77

Payment expectations

Company result -

Lower 126.42

Median 78.01

Upper 48.73

Day sales outstanding

Company result -

Lower 103.77

Median 54.50

Upper 25.06

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

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

Former director details

Name BHARATKUMAR GOHIL

Position Director

Start Date 21/08/1997

End Date Unknown date

Street

Post code

Country India

Name KETKI GOHIL

Position Principal Manager

Start Date 01/10/2008

End Date Unknown date

Street

Post code

Country
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.60.95
UK Pound	1	Rs.99.32
Euro	1	Rs.78.96

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	PDT

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.

MIRA INFORM REPORT

Company summary

Commentary

Accounts

Payment expectations

Company information

Company accounts

Balance sheet

Ratio analysis

Industry comparison

Industry comparison

Payment expectations

Day sales outstanding

Summary

Director details

Unit