MIRA INFORM REPORT

Report No. :	304523
Report Date :	24.01.2015

IDENTIFICATION DETAILS

Name :	KAY DIAMONDS NV

Registered Office :	Hoveniersstraat 74 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.03.2013

Date of Incorporation :	29.07.1998

Com. Reg. No.:	463947634

Legal Form :	Public Limited Liability Company

LINE OF BUSINESS :	WHOLESALE OF DIAMONDS AND OTHER PRECIOUS STONES

No. of Employee :	from 5 to 9

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 463947634

Branche Unit Number 2088177101

Company name KAY DIAMONDS NV

Address HOVENIERSSTRAAT 74

2018 ANTWERPEN

Safe number BE00396899

Number of staff 3

Date of establishment 29/07/1998

Telephone number 032325675

Fax number 032274574

Commentary

The business was established over 16 years ago.
The business has 5 employees.
The business is part of a group.
This business has a foreign parent business.
The business has been at the address for over 0 months.
The business has been at the address for less than 6 months.
The business has changed address 1 times in the last year.
Operating Result in the latest trading period increased 70% on the previous trading period.
Pre-tax profits increased by 179% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 83% during the latest trading period.
Turnover in the latest trading period increased 27% on the previous trading period.

Accounts

Date Of Latest Accounts	Turnover	Profit Before Tax	Net Worth	Working Capital
31/03/2013	47,487,041	262,188	5,356,626	7,243,433
31/12/2011	37,125,324	93,786	5,270,282	7,109,246
31/12/2010	37,055,667	34,943	5,235,225	6,912,982
Accounts
Date Of Latest Accounts	Balance Total	Number Of Employees	Capital	Cashflow
31/03/2013	28,020,531	3	350,000	110,899
31/12/2011	26,081,690	5	350,000	68,499
31/12/2010	28,568,115	6	350,000	52,427
Trends
Profitability
Liquidity
Net worth
Payment expectations
Past payments		Payment expectation days		87.38
Industry average payment	124.12	Industry average day sales		181.44
expectation days		outstanding

Court data summary

BANKRUPTCY DETAILS
Court action type	no
PROTESTED BILLS
Bill amount	--
NSSO DETAILS
Date of summons	--

Company accounts

ASSETS
Annual accounts	31-03-013	%	31-12-011	%	31-12-010	%	31-12-009	%	31-12-008
Weeks	65		52		52		52		52
Currency	EUR		EUR		EUR		EUR		EUR
Total fixed assets	2,402,643	-0.38	2,411,751	-1.09	2,438,443	46.43	1,665,249	-2.69	1,711,313
Intangible fixed assets	0	-	0	-	0	-100	375	-74.03	1,445

Tangible fixed assets	45,537	-16.67	54,645	-32.82	81,337	41.29	57,568	-43.87	102,562
Land & building - - - - - - - - -
Plant & machinery	20,428	5.97	19,276	-8.09	20,973	1.49	20,666	-32.04	30,409
Furniture & Vehicles	25,109	-29.01	35,369	-41.41	60,364	63.58	36,902	-48.86	72,153
Leasing & Other Similar Rights - - - - - - - - -
Other tangible assets	0	-	0	-	0	-	0	-	0

Financial fixed assets	2,357,106	0	2,357,106	0	2,357,106	46.65	1,607,306	0.00	1,607,306

Total current assets	25,617,889	8.23	23,669,939	-9.41	26,129,672	-2.97	26,929,447	-8.29	29,362,224
Inventories	9,223,383	-1.22	9,336,924	-5.35	9,864,300	-24.60	13,082,307	-5.45	13,836,987
Raw materials & consumables	-	-	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	-	0	-	0
Finished goods	9,223,383	-1.22	9,336,924	-5.35	9,864,300	-24.60	13,082,307	-5.45	13,836,987

Other stocks	0 -				0	-			0	-	0		-		0
Trade debtors	15,476,048 13.53				13,631,788	-13.18			15,701,876	19.20	13,172,710		-11.53		14,888,672
Other amounts receivable	305,039 314				73,544	385			15,154	-94.05	254,714		25.65		202,714

Cash	26,250 -83.43				158,432	134			67,456	182	23,896		-37.17		38,032

Miscellaneous current assets	191,350 160				73,430	-13.68			85,065	-	0		0		-1

Total Assets	28,020,531 7.43				26,081,690	-8.70			28,568,115	-0.09	28,594,696		-7.98		31,073,537
Liabilities
Total shareholders equity	5,356,626 1.64				5,270,282	0.67			5,235,225	0.32	5,218,758		0.55		5,190,443

Issued share capital	350,000 0				350,000	0			350,000	0	350,000		0		350,000

Share premium account	- -				-	-			-	-	-		-		^-
Revaluation reserve	- -				_-	_-			_-	_-	_-		_-

Reserves	5,006,626 1.75				4,920,282	0.72			4,885,225	0.34	4,868,758		0.58		4,840,443
Provisions for Liabilities & Charges	0 -				0	-			0	-	0		-		0
Deffered taxes	- -				-	-			-	-	-		-		-

Creditors	22,663,906 8.90				20,811,408	-10.81			23,332,890	-0.18	23,375,938		-9.69		25,883,094

Other long term loans	4,289,450 0.91				4,250,715	467			748,391	-	-		-		-
Long term group loans	- -				-	-			-	-	-		-		-
Other long term liabilities	0 -				0	-100			3,367,809	7.81	3,123,900		-3.39		3,233,455
Total long term debts	4,289,450 0.91				4,250,715	3.27			4,116,200	31.76	3,123,900		-3.39		3,233,455

Current portion of long term debt	- -				-	-			-	-	-		-		-
Financial debts	7,049,513 -5.97				7,497,145	-6.75			8,040,035	17.96	6,815,821		-15.58		8,073,251
Trade creditors	11,172,656 24.80				8,952,160	-19.28			11,090,488	-16.14	13,224,354		-8.02		14,377,631
Amounts Payable for Taxes, Remuneration & Social Security	43,856 21.12				36,207	-3.23			37,415	-53.45	80,372		164		30,331


Miscellaneous current liabilities	108,432 44.23				75,182	54.21			48,753	-62.92	131,491		-21.93		168,426

Total current liabilities	18,374,456 10.95				16,560,693	-13.82			19,216,690	-5.11	20,252,038		-10.59		22,649,639
Total Liabilities	28,020,531 7.43				26,081,690	-8.70			28,568,115	-0.09	28,594,696		-7.98		31,073,537


RATIO ANALYSIS
TRADING PERFORMANCE
Profit Before Tax	0.55 120				0.25	177			0.09	-75.68	0.37		85.00		0.20

Return on capital employed	2.72 174				0.99	167			0.37	-66.36	1.10		48.65		0.74

Return on total assets employed	0.94 161				0.36	200			0.12	-62.50	0.32		60.0		0.20

Return on net assets employed	4.89 174				1.78	165			0.67	-61.93	1.76		45.45		1.21

Sales / net working capital	6.56 25.67				5.22	-2.61			5.36	42.93	3.75		-17.94		4.57
Stock turnover ratio	19.42 -22.78				25.15	-5.52			26.62	-49.00	52.20		15.77		45.09
Creditor days	87.38			-2.00	89.16		-21.53	113.62		-41.68		194.82		8.61		179.38
Debtor days	118.95			-11.24	134.02		-13.35	154.66		-19.38		191.84		8.32		177.10
SHORT TERM STABILITY
Current ratio	1.39			-2.80	1.43		5.15	1.36		2.26		1.33		2.31		1.30

Liquidity ratio / acid ratio	0.89	2.30			0.87		2.35	0.85		25.00		0.68		-1.45		0.69

Current debt ratio	3.43	9.24			3.14		-14.44	3.67		-5.41		3.88		-11.01		4.36

Liquidity ratio reprocessed - - - - - - - - -

Cashflow	110,899	61.90			68,499		30.66	52,427		-29.51		74,378		11.17		66,908

Net worth	5,356,626	1.64			5,270,282		0.67	5,235,225		0.32		5,218,383		0.57		5,188,998
LONG TERM STABILITY
Gearing	211.68		-5.04		222.91		32.79	167.87		28.54		130.60		-16.03		155.54
Equity in percentage	19.12		-5.39		20.21		10.26	18.33		0.44		18.25		9.28		16.70

Total debt ratio	4.23		7.09		3.95		-11.43	4.46		-0.45		4.48		-10.22		4.99

Working capital	7,243,433		1.89		7,109,246		2.84	6,912,982		3.53		6,677,409		-0.52		6,712,585
Profit & loss
Operating Income	47,500,978		27.91		37,135,595		0.18	37,069,246		47.80		25,080,172		-18.32		30,704,212
Turnover	47,487,041		27.91		37,125,324		0.19	37,055,667		47.85		25,062,191		-18.32		30,685,074
Total operating expenses	46,672,335		27.36		36,647,426		2.86	35,629,013		43.80		24,776,458		-15.31		29,255,072
Gross Operating Margin	-		-		-		-	-		-		-		-		-

Operating Charges	46,686,272	27.36			36,657,697		2.85	35,642,593		43.75		24,794,439		-15.30		29,274,210
Employee costs	370,765	8.40			342,036		-26.71	466,669		7.22		435,247		3.42		420,838
Wages and salary	283,522	7.00			264,974		-32.11	390,287		8.01		361,349		3.82		348,050
Employee pension costs - - - - - - - - -
Social security contributions	69,723	9.16			63,871		5.30	60,658		-0.66		61,059		7.18		56,969
Other employee costs	17,521	32.83			13,191		-16.11	15,723		22.47		12,838		-18.84		15,819
Director remuneration	343,571	21.97			281,685		8.16	260,435		27.25		204,660		0.00		204,665
Amortization and depreciation	24,555	-26.57			33,442		-7.00	35,960		-21.93		46,064		-0.17		46,143
Operating result	814,706	70.48			477,898		-66.50	1,426,653		399		285,733		-80.02		1,430,002
Total financial income	116,916	14.57			102,051		3.75	98,362		-59.50		242,864		826		26,208

Total financial expenses	669,434	37.70			486,163		-67.37	1,490,073		241		436,502		-68.68		1,393,517

Results on ordinary operations	262,188	179			93,786		168	34,943		-62.06		92,095		46.90		62,693
before taxation
Extraordinary Income	78,594	-			-		-	25,518		242		7,452		-		-

Extraordinary Charges	178,158	2284			7,470		-	-		-		7,519		-		-

Extraordinary items	-99,564	-1232			-7,470		-129	25,518		38171		-67		-		0

Results for the Year Before taxation	162,625	88.41			86,316		42.76	60,461		-34.30		92,028		46.79		62,693

Other appropriations	-	-			-		-	-		-		-		-		-

Taxation	76281	48.82			51259		16.51	43994		-30.95		63714		51.96		41928
Results on ordinary operations after taxation	185907	337			42527		469	-9051		-131		28381		36.68		20765

Net result	86344	146			35057		112	16467		-41.84		28315		36.36		20765

Profit (Loss) for the Year to be appropiated	86344	146			35057		112	16467		-41.84		28315		36.36		20765

Dividends	-	-			-		-	-		-		-		-		-

Social Balance Sheet Details


Social Balance Sheet	Total
During the reporting year ended 31-03-2013
Full-time Employees	4
Part-time Employees	3
Total Fte Employees	5
Number of hours worked
Full-time Employees	7,980
Part-time Employees	3,342
Total	11,322

Personnel Charges
Full-time Employees	261,324
Part-time Employees	109,442
Total	370,765
Benefits In Addition To Wages	-

During the previous reporting year
Average number employees in Fte	7
Actual working hours	11,512
Personnel Charges	342,036
Benefits In Addition To Wages	-

Type of Contract Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts 2	3	3
Limited Duration Contracts -	-	-
Contracts For Specific Work -	-	-
Contracts Regarding -Substitution	-	-

Gender and Education
Level
Men	Full-Time	Part-Time	Total Fte
Primary education - - -
Secondairy education	1	1	1
Higher education	-	-	-
(non university)
Higher education	-	-	-
(university)
Women	Full-Time	Part-Time	Total Fte
Primary education - - -
Secondairy education	1	2	2
Higher education (non	-	-	-
university)
Higher education	-	-	-
(university)

Working Category	Full-Time	Part-Time	Total Fte
Management - - -
White collar worker	2	2	3
Blue collar worker	-	1	0
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	-	1	0
Leavers	2	1	3

Total of formal continuing vocational training initiatives for workers paid by the employer		Male	Female
Number of employees		-	-
Number of training hours		-	-
Net costs for enterprise		-	-
Total of less formal and informal continuing vocational training initiatives for workers paid by the employer		Male	Female
Number of employees		-	-
Number of training hours		-	-
Net costs for enterprise		-	-
Total of initial training initiatives at the expense of the employer		Male	Female
Number of employees		-	-
Number of training hours		-	-
Net costs for enterprise		-	-

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

Payment Information

Suspension of payments / moratorium history

Amount –

Details -

Payment expectations

Payment expectation days 87.38

Day sales outstanding 118.95

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 124.12

Industry average day sales 181.44

outstanding

Industry quartile analysis

Payment expectations

Company result 87.38

Lower 120.76

Median 74.61

Upper 45.88

Day sales outstanding

Company result 118.95

Lower 101.92

Median 53.69

Upper 24.18

Shareholder Details

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Group Structure

Company name Number Safe Number Latest financials Rating

- KAY DIAMONDS NV 463947634 BE00396899 31-03-2013 95

- - M.I.C. NV 429761171 BE00164881 31-12-2013 58

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Companies that match this address

no Companies Match this address

Linked Companies

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Director details

Current director details

Name RASHMI KIRTILAL MEHTA

Position Director

Start Date 29/07/1998

Date of birth 04/09/1943

Street 27 BERKENLAAN ANTWERPEN

Post code 2610

Country Belgium

Name BHAVIN MEHTA

Position Director

Start Date 29/07/1998

Date of birth 27/09/1971

Street 27 BERKENLAAN ANTWERPEN

Post code 2610

Country Belgium

Name CHETAN MEHTA

Position Directror

Start Date 20/06/2006

Date of birth 06/02/1965

Start Date 20/06/2006

Date of birth 06/02/1965

Street 33 BERKENLAAN ANTWERPEN

Post code 2610

Country Belgium

Former director details

Name RASHMI KIRTILAL MEHTA

Position Managing Director

Start Date 02/06/2008

End Date 02/06/2014

Date of birth 04/09/1943

Street 27 BERKENLAAN ANTWERPEN

Post code 2610

Country Belgium

Name BHAVIN MEHTA

Position Managing Director

Start Date 02/06/2008

End Date 03/06/2014

Date of birth 27/09/1971

Street 27 BERKENLAAN ANTWERPEN

Name CHETAN MEHTA

Position Managing Director

Start Date 02/06/2008

End Date 02/09/2014

Date of birth 06/02/1965

Street 33 BERKENLAAN ANTWERPEN

Post code 2610

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. 61.50
UK Pound	1	Rs. 92.16
Euro	1	Rs. 69.62

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	ASH

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.

JIC Code Description	218 Additional national joint committee for the employees
Category
JIC Code	324
Description	Joint committee for the industry and the trade in diamant
Category
Significant Events
Event Date	16/12/2014
Event Description	re-appointment of director(s)
Event Details	Commentaar 16-12-2014: Herbenoemd als bestuurders en gedelegeerd bestuurders voor een periode van 6 jaar : Rashmi, Chetan en Bhavin Mehta.

MIRA INFORM REPORT

Company summary

Company information

Company accounts

Social Balance Sheet Details

Payment Information

Shareholder Details

Linked Companies

Director details

Unit