MIRA INFORM REPORT

Report No. :	342309
Report Date :	24.09.2015

IDENTIFICATION DETAILS

Name :	K.G.K. DIAMONDS BVBA
Registered Office :	Hoveniersstraat 2-Bureel 529, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.03.2014
Date of Incorporation :	27.11.1989
Com. Reg. No.:	439113159
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No of Employees :	09 (31.03.2014)

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 :	Good
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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Belgium	A2	A2

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 439113159

Branche Unit Number 2046208070

Company name K.G.K. DIAMONDS BVBA

Address HOVENIERSSTRAAT 2-BUREEL 529

2018 ANTWERPEN

Number of staff 09 (31.03.2014)

Date of establishment 27/11/1989

Telephone number 032131157

Fax number 032131158

Ultimate holding company

Company name Company Number

K.G.K. Diamonds BVBA 439113159

Commentary

The business was established over 25 years ago.

The business has 9 employees.

The business is part of a group.

This business has a foreign parent business.

The business has been at the address for over 10 years.

The business saw a decrease in their Cash Balance of 37% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/03/2014	300,045,473	883,599	23,313,467	42,373,622
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

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/03/2014	151,330,417	9	20,531,799	1,035,158
31/03/2013	146,773,726	7	20,531,799	538,891
31/03/2012	142,430,064	5	15,531,799	852,994

Payment expectations

Payment expectation days 35

Industry average payment

expectation days 127.02

Industry average day sales

Outstanding 185.93

Day sales outstanding 147.61

Company information

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	31/03/2014
Activity code	46761	Liable for VAT	yes
Activity description	Wholesaler of diamonds and other precious stones	VAT Number	BE.0439.113.159 Check VAT number
Belgian Bullettin of Acts Publications	moniteur belge

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.

Company accounts

Assets

Annual accounts	31-03-2014	%	31-03-2013		%		31-03-2012		%			31-03-2011			%	31-03-2010
Weeks	52		52				52					52				52
Currency	EUR		EUR				EUR					EUR				EUR
Total fixed assets	3,901,249	7.73	3,621,419		-3.43		3,749,938		8.48			3,456,694			144	1,412,994
Intangible fixed assets	11,620	-43.93	20,723		47.26		14,073		-9.32			15,519			-24.30	20,501
Tangible fixed assets	3,833,303	7.58	3,563,370		-3.74		3,701,964		8.45			3,413,513			150	1,364,832
Land & building	2,886,310	10.82	2,604,525		-2.50		2,671,397		-2.44			2,738,270			189	945,500
Plant & machinery	760,204	-0.72	765,734		-2.79		787,738		41.25			557,688			139	233,143
Furniture & Vehicles	186,789	-3.27	193,112		-20.47		242,829		106			117,556			155	46,089
Other tangible assets	0	-	0		-		0		-			0			-100	140,100
Financial fixed assets	56,326	50.90	37,326		10.10		33,901		22.56			27,661			0	27,661
Total current assets	147,429,167	2.99	143,152,306		3.22		138,680,126		30.01			106,671,565			58.05	67,490,992
Inventories	24,038,597	-33.40	36,095,197		-17.19		43,585,363		71.55			25,406,982			170	9,402,918
Finished goods	24,038,597	-33.40	36,095,197		-17.19		43,585,363		71.55			25,406,982			170	9,402,918
Trade debtors	121,339,320	14.54	105,939,698		15.03		92,097,509		14.88			80,170,908			38.48	57,894,623
Other amounts receivable	1,675,085	206	545,914		-69.18		1,771,419		578			260,975			286	67,558
Cash	319,790	-37.47	511,389		-56.56		1,177,120		53.05			769,091			742	91,273
Miscellaneous current assets	56,375	-6.21	60,108		23.39		48,715		-23.42			63,610			83.74	34,620
Total assets	151,330,417	3.10	146,773,726		3.05		142,430,064		29.33			110,128,259			59.83	68,903,986
Liabilities
Total shareholders equity	23,325,087	3.41	22,556,041			17.01	19,277,234		29.86		14,844,172			4.54		14,199,698
Issued share capital	20,531,799	0	20,531,799			32.19	15,531,799		32.32		11,737,884			0		11,737,884
Reserves	2,793,288	37.99	2,024,243			-45.95	3,745,435		20.58		3,106,287			26.18		2,461,814
Provisions for Liabilities &	125,973	-	0			-	0		-		0			-		0
Creditors	127,879,357	2.95	124,217,684			0.86	123,152,830		29.25		95,284,087			74.18		54,704,288
Other long term loans	22,461,178	-3.63	23,308,270			51.75	15,359,823		41.37		10,864,890			152		4,300,159
Other long term liabilities	362,634	-7.13	390,472			4.30	374,364		6.37		351,939			-5.12		370,947
Total long term debts	22,949,785	-3.16	23,698,743			50.62	15,734,186		40.27		11,216,829			140		4,671,106
Current portion of long term	301,587	5.09	286,975			-14.59	335,985		13.41		296,256			149		118,503
debt
Financial debts	75,950,187	2.98	73,749,316			7.82	68,400,931		94.11		35,237,626			12.57		31,303,930
Trade creditors	28,437,324	8.40	26,234,885			-31.73	38,430,552		-20.55		48,371,385			160		18,535,488
Amounts Payable for Taxes, Remuneration & Social Security	195,941	-3.77	203,616			4.24	195,340		45.85		133,932			180		47,733
Miscellaneous current liabilities	170,506	286	44,150			-20.93	55,836		98.99		28,060			1.93		27,528
Total current liabilities	105,055,545	4.51	100,518,941			-6.42	107,418,644		27.78		84,067,258			68.02		50,033,182
Total Liabilities	151,330,417	3.10	146,773,726	3.05			142,430,064	29.33		110,128,259			59.83			68,903,986

ratio analysis

TRADING PERFORMANCE
Profit Before Tax	0.29	-3.33	0.30	-16.67	0.36	5.88	0.34	-10.53	0.38
Return on capital employed	1.91	15.76	1.65	-25.00	2.20	-24.66	2.92	4.66	2.79
Return on total assets employed	0.58	11.54	0.52	-3.70	0.54	-21.74	0.69	-9.21	0.76
Return on net assets employed	3.79	11.80	3.39	-15.25	4.00	-22.03	5.13	38.65	3.70
Sales / net working capital	7.08	19.59	5.92	-14.33	6.91	-29.27	9.77	23.83	7.89
Stock turnover ratio	8.01	-44.03	14.31	-29.09	20.18	75.48	11.50	68.37	6.83
Creditor days	35.00	-8.85	38.40	-41.61	65.77	-18.89	81.09	62.21	49.99
Debtor days	147.61	-3.68	153.25	-1.55	155.67	17.49	132.50	-13.63	153.41
SHORT TERM STABILITY
Current ratio	1.40	-1.41	1.42	10.08	1.29	1.57	1.27	-5.93	1.35
Liquidity ratio / acid ratio	1.17	9.35	1.07	20.22	0.89	-8.25	0.97	-16.38	1.16
Current debt ratio	4.50	0.90	4.46	-19.93	5.57	-1.59	5.66	60.80	3.52
Cashflow	1,035,158	92.09	538,891	-36.82	852,994	8.98	782,686	43.61	545,002
Net worth	23,313,467	3.45	22,535,319	16.99	19,263,161	29.90	14,828,653	4.58	14,179,197
LONG TERM STABILITY
Gearing	423.21	-1.94	431.57	-1.07	436.25	39.57	312.57	24.25	251.57
Equity in percentage	15.41	0.26	15.37	13.52	13.54	0.45	13.48	-34.59	20.61
Total debt ratio	5.49	-0.36	5.51	-13.77	6.39	-0.47	6.42	66.75	3.85
Working Capital	42,373,622	-0.61	42,633,365	36.38	31,261,482	38.30	22,604,307	29.48	17,457,811

Profit & Loss

Annual accounts	31-03-2014	%	31-03-2013	%	31-03-2012	%	31-03-2011	%	31-03-2010
Weeks	52		52		52		52		52
Currency	EUR		EUR		EUR		EUR		EUR
Operating Income	300,151,717	18.91	252,410,024	16.79	216,115,155	-2.21	221,010,050	60.31	137,868,058
Turnover	300,045,473	18.92	252,319,204	16.84	215,946,214	-2.22	220,854,762	60.34	137,745,008
Total Operating Expense	296,598,021	18.95	249,356,417	16.92	213,267,529	-2.05	217,730,014	60.89	135,324,352
Operating Charges	296,704,264	18.94	249,447,238	16.87	213,436,469	-2.04	217,885,303	60.86	135,447,401
Employees Costs	379,309	40.50	269,977	2098	223,165	16.61	191,374	10.03	173,935
Wages & Salary	286,616	38.60	206,800	2606	164,048	16.28	141,074	2.10	138,175
Social security Contribution	82,333	41.30	58,269	30.89	44,516	26.47	35,198	11.38	61,601
Other Employees Costs	10,360	111	4,909	-66.38	14,602	-3.31	15,102	263	4,159
Director remuneration	---	---	100,000	---	---	---	---	---	100,000
Amortization & Depreciation	266,112	2.32	260,083	21.62	213,847	54.72	138,211	76.83	78,160
Operating result	3,447,453	16.36	2,962,787	10.61	2,678,686	-14.28	3,124,748	29.09	2,420,657
Total financial income	416,937	-50.70	845,780	-37.41	1,351,344	215	428,983	291	109,679
Total financial expenses	2,980,790	-2.06	3,043,543	-6.63	3,259,828	16.76	2,791,908	39.28	2,004,547
Results on ordinary operations	883,599	15.50	765,024	-0.67	770,201	1.10	761,823	44.89	525,789
Extra ordinary Income	7,967	-99	2,057,599	96652	2,127	---	---	---	---
Extra ordinary Charges	---	---	2,046,492	--	---	---	---	---	---
Extraordinary Items	7,967	-28.27	11,107	422	2,127	--	0	--	0
Results for the year Before Taxation	891,566	14.87	776,130	0.49	772,328	1.38	761,823	44.89	525,789
Taxation	122,521	-75.36	497,322	273	133,181	13.49	117,349	99	58,948
Result on ordinary Operations after taxation	761,078	184	267,701	-57.98	637,021	-1.16	644,474	38.05	466,842
Net result	769,045	175	278,808	-56.38	639,147	-0.83	644,474	38.05	466,842
Profit (Loss) for the year to be appropriated	769,045	175	278,808	-56.38	639,147	-0.83	644,474	38.05	466,842

Social Balance Sheet Details

Social Balance Sheet Total

During the reporting year

ended 31-03-2014

Full-time Employees 8

Part-time Employees 1

Total Fte Employees 9

Number of hours worked

Full-time Employees 13,558

Part-time Employees 1,428

Total 14,986

Personnel Charges

Full-time Employees 346,415

Part-time Employees 32,894

Total 379,309

During the previous reporting year

Average number employees in Fte 7

Actual working hours 11,438

Personnel Charges 269,977

Type of Contract Full-Time Part-Time Total Fte

Unlimited Duration

Contracts 8 1 9

Limited Duration Contracts 1 - 1

Gender and Education

Level

Men Full-Time Part-Time Total Fte

Primary education 4 - 4

Secondary education 2 - 2

Women Full-Time Part-Time Total Fte

Primary education 1 1 2

Secondary education 2 - 2

Working Category Full-Time Part-Time Total Fte

White collar worker 8 1 9

Other 1 - 1

New staff and leavers Full-Time Part-Time Total Fte

New Starters 4 1 5

Leavers 2 – 2

Payment Information

Payment expectations

Payment expectation days 35

Day sales outstanding 147.61

Industry comparison

Activity code 46761

Activity description Wholesale of diamonds and other precious stones

Industry average payment

expectation days 127.02

Industry average day sales

Outstanding 185.93

Industry quartile analysis

Company result 35

Lower 120.44

Median 74.93

Upper 46.53

Day sales outstanding

Company result 147.61

Lower 102.33

Median 54.07

Upper 24.12

Shareholder Details

Summary

Group - Number of Companies 2

Linkages - Number of Companies 0

Number of Countries 0

Group Structure

Company name	Number	Latest
		financials
K.G.K. DIAMONDS BVBA	439113159	31-03-2014
K.G.K FINE JEWELLERY BVBA	472549455	31-12-2013

Minority Shareholders

Business

Number Company name Date of accounts

838225795 PRIME INTERNATIONAL DMCC ---

Minority Interests

Business

Number Company name Date of accounts

822903854 Munic Sourcing NV 31/12/2013

Director details

Current director details

Name YASH JAIN

Position Principal Manager

Start Date 01/04/2014

Street 14 LANGE KIEVITSTRAAT ANTWERPEN

Post code 2018

Country Belgium

Name PRIME INTERNATIONAL DMCC

Position Principal Manager

Start Date 28/09/2010

Street 0 ONBEKEND BELGISCH ADRES ONBEKEND

Post code 0000

Country Belgium

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

Street 36 ALMAS TOWER, JUMEIRAH LAKE TOWERS

Country United Arab Emirates

Name RAJESH JAIN RAJESH

Position Principal Manager

Start Date 25/02/1991

Name SANJAY KOTHARI

Position Legal Representative

Start Date 28/09/2010

Name SINO CHARM LIMITED

Position Legal Representative

Start Date 28/09/2010

Name MANJU KOTHARI

Position Legal Representative

Start Date 28/09/2010

Current mandates in other companies

Name K.G.K Fine Jewellery BVBA

Business number 472549455

Position Principal Manager

Start Date 16/06/2008

Business number 472549455

Position Legal Representative

Start Date 16/06/2008

Former director details

Name PRIME INTERNATIONAL FZCO

Position Principal Manager

Start Date 20/10/2006

End Date Unknown date

Position Legal Representative

Start Date 20/10/2006

End Date Unknown date

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.65.97
UK Pound	1	Rs.101.19
Euro	1	Rs.73.37

INFORMATION DETAILS

Analysis Done by :	SUB
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%)

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.