MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	NAKODIAM BVBA

Registered Office :	Hoveniersstraat 30, Internal Postal Box 152, Antwerpen, 2018

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	26.11.1992

Com. Reg. No.:	448717743

Legal Form :	Private Limited Company

Line of Business :	Wholesaler of Diamonds and Other Previous 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 :	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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Belgium

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 448717743

Company name NAKODIAM BVBA

Address Hoveniersstraat 30, Internal Postal Box 152,

Antwerpen, 2018

Number of staff 0

Date of establishment 26/11/1992

Telephone number 037707771

Fax number 032275727

Commentary

The business was established over 21 years ago.

No employees are recorded for this business.

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

Operating Result in the latest trading period decreased 58% on the previous trading period.

A 34% growth in Total Assets occurred during the latest trading period.

Pre-tax profits decreased by 73% compared to the previous trading period.

the business saw a decrease in their Cash Balance of 39% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012		16,740	1,901,896	1,825,144
31/12/2011	26,124,999	63,622	1,885,258	1,819,692
31/12/2010	33,993,755	56,726	1,834,081	1,771,266

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	3,279,816	0	500,000	22,841
31/12/2011	2,443,013	0	500,000	63,762
31/12/2010	3,664,668	0	500,000	61,774

TRENDS

Profitability
Liquidity
Net worth

Payment expectations

Payment expectation days -

Industry average payment expectation days 163.90

Day sales outstanding -

Industry average day sales outstanding 125.21

COMPANY ACCOUNTS

Comparison Mode

· Average Median Export accounts to CSV File

Profit & Loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	--	--	26,124,999	-23.15	33,993,755	46,485,458	--
Total operating expenses	--	--	26,029,644	-23.24	33,909,846	46,114,879	--
Operating result	39,927	-58.13	95,355	13.64	83,910	140,714	-71.63
Total financial income	19	-98.13	1,066	-15.88	1,268	98,658	-99
Total financial expenses	23,206	-29.25	32,799	15.28	28,452	205,891	-88.73
Results on ordinary operations before taxation	16,740	-73.69	63,622	12.16	56,726	25,242	-33.68
Taxation	101	-99	12,446	41.98	8,766	20,807	-99
Results on ordinary operations after taxation	16,639	-67.49	51,177	6.71	47,960	10,481	58.75
Extraordinary items	0	--	0	--	0	-3,961	0
Other appropriations	0.00	--	0.00	--	0.00	--	--
Net result	16,639	-67.419	51,177	6.71	47,960	6,539	154
OTHER INFORMATION
Gross operating Margin	71,220	--	--	--	--	56,748	25.50
Dividends	--	---	--	--	--	172,177	---
Director remuneration	--	--	--	--	--	112,544	---
Employee costs	--	--	300	714	37	125,946	---
Wages and salary	--	--	--	--	--	105,550	--
Employee pension costs	--	--		--	--	14,428	---
Social security contributions	--	--	--	--	--	26,656	---
Other employee costs	0	-100	300	714	37	4,336	-100
Amortization and depreciation	6,202	-50.72		-8.89	13814	17,814	-65.18

Balance Sheets

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	--	0	1,568	-100
Tangible fixed assets	137,931	-3.53	142,980	-8.09	155,565	184,617	-25.29
Land & building	133,158	-3.53	138,035	-3.41	142,911	363,684	-63.39
Plant & machinery	4,685	-1.60	4,761	-18.93	5,874	22,596	-79.26
Furniture & Vehicles	87	-52.51	184	-97.28	6,781	17,295 5,364	-99
Leasing & Other Similar Rights	--	--	---	-	-	142,153 32,369	--
Other tangible assets	0	--	0	-	0	7,573	-100
Financial fixed assets	--	--	--	-	-	306,282	--
Total fixed assets	137,931	-3.53	142,980	-8.09	155,565	394,480	-65.03
Inventories	1,981,312	109	944,095	81.35	520,579	3,094 786	-35.98
Raw materials & consumables	--	--	-	--	-	7,209 884	--
Work in progress	0	--	0	--	0	2,380	-100
Finished goods	0	-100	944,095	81.35	520,579	1,990,653	-100
Other stocks	1,981,312	--	0	-	0	568,485	248
Trade debtors	807,579	3.95	778,841	-70.78	2,665,072	4,230 636	-80.86
Cash	345,691	-39.75	573,741	79.51	319,618	226,789	52.43
other amounts receivable	2,367	51.70	1,561	-22.92	2,024	208,673	-98.87
Miscellaneous current assets	2,935	63.44	1,796	-0.77	1,810	18,199	-83.87
Total current assets	3,141,885	36.60	2,300,033	-34.46	3,509,103	7,306,971	-57.00
Total Assets	3,279,816	34.25	2,443,013	-33.34	3,664,668	7,661,299 1,449,923	-57.19
CURRENT LIABILITIES
Trade creditors	503,205	76.94	284,395	-81.23	1,515,514	3,138,282	-83.97
Financial debts	636,369	287602	221	-98.52	14,933	4,280,807 189,666	-85.13
Current portion of long term debt	16,235	5.86	15,336	-28.20	21,360	110,204 15,373	85.27
Amounts Payable for Taxes, Remuneration & Social Security	4,614	-70.31	15,540	33.69	11,624	9,727	-86.42
Miscellaneous current liabilities	156,317	-5.18	164,849	-5.48	174,406	-47.45	--
Total current liabilities	1,316,741	174	480,342	-72.36	1,737,836	5,447,054	-75.83
LONG TERM DEBTS AND LIABILITIES
Other long term loans	61,179	-20.97	77,414	-16.54	92,750	-94.51	---
Deffered taxes	--	--	--	---	--	37,626 26,358	---
Provisions for Liabilities & Charges	0	--	0	--	0	3,158	-100
Other long term liabilities	0	--	0	--	0	127,681	-100
Total long term debts	61,179	-20.97	77,414	-16.54	-16.54 92,750	561,152	-89.10
SHAREHOLDERS EQUITY
Issued share capital	500,000	0	500,000	0	500,000	966,279	-48.26
Share premium account	--	--	--	--	--	109,362	--
Reserves	1,401,896	1.20	1,385,258	3.84	1,334,081	651,363	115
Revaluation reserve	--	--	-	---	--	939,206	--
Total shareholders equity	1,901,896	0.88	1,885,258	2.79	1,834,081	1,647,067	15.47
Working capital	1,825,144	0.30	1,819,692	2.73	1,771,266	1,859,917	-1.87
Cashflow	22,841	64.18	63,762	3.22	61,774	21,265	7.41
Net worth	1,901,896	0.88	1,885,258	2.79	1,834,081	1,643,849	15.70

Ratio Analysis

Annual Accounts	31-12-2012	Change (%)	31-12-2011	Change (%)	Industry Average	%
Trading performance
Profit Before Tax	-	-	0.24	41.18	0.17	-29,00
Return on capital employed	0.85	-73.77	3.24	10.20	2.94	29,00
Return on total assets employed	0.51	-80.38	2.60	67.74	1.55	-200,00
Return on net assets employed	0.88	-73.89	3.37	9.06	3.09	19,00
Sales / net working capital	-	-	14.36	-25.17	19.19	44,00
Stock turnover ratio	-	-	3.61	135	1.53	116,00
Debtor days	-	-	10.88	-61.98	28.62	143,00
Creditor days	-	-	3.99	-75.54	16.31	125,00
short term stability
Current ratio	2.39	-50.10	4.79	137	2.02	6,00
Liquidity ratio / acid ratio	0.88	-68.79	2.82	63.95	1.72	4,00
Current debt ratio	0.69	176	0.25	-73.68	0.95	9,00
Liquidity ratio reprocessed				-	-	-
Long term stability
Gearing	37.53	661	4.93	-29.97	7.04	357,00
Equity in percentage	57.99	-24.85	77.17	54.19	50.05	-3.182,00
Total debt ratio	0.72	140	0.30	-70.00	1	11,00

Industry comparison

Activity code 46761

Activity description Wholesaler of diamonds and other precious stones

Industry average payment expectation days 163.90

Industry average day sales outstanding 125.21

Industry quartile analysis

Payment expectations

Lower 133.37

Median 84.62

Upper 45.55

Day sales outstanding

Lower 108.80

Median 58.49

Upper 28.11

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 448717743

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Court Data

there is no data for this company

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.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Report Prepared by :

TPT

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.