MIRA INFORM REPORT

Report Date :

20.06.2012

IDENTIFICATION DETAILS

Name :	DIABEX NV

Registered Office :	Hoveniersstraat 2 Bus 201 Antwerpen, Post Code 2018

Country :	Belgium

Financials (as on) :	31.12.2010

Date of Incorporation :	18.03.1997

Com. Reg. No.:	460287962

Legal Form :	Public Limited Liability Company

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	02

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Belgium

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

REGISTERED NAME & COMPANY SUMMARY

Business number	460287962	Company name	DIABEX NV
		Telephone number	032014878
Address	HOVENIERSSTRAAT 2 BUS 201 ANTWERPEN	Fax number	032014878
Post code	2018	Number of staff	2
Date of establishment	18/03/1997

Business number	460287962	Company name	DIABEX NV
Fax number	032014878	Date founded	18/03/1997
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2010
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0460.287.962
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	KALPEN HARSHAD SHAH
Position	Director
Street	82 PRINS BOUDEWIJNLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	ANKIT NARESH MEHTA
Position	Managing Director
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Name	ANKIT NARESH MEHTA
Position	Director
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Former director details

Name	NARESH JAYANTILAL MEHTA
Position	Director
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Name	NARESH JAYANTILAL MEHTA
Position	Managing Director
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Name	NIMESH PRAVINBHAI SHETH
Position	Director
Street	94 LANGE HERENTALSESTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	DILIP DESAI
Position	Managing Director
Street	4 BLAUWMEESLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	DILIP DESAI
Position	Director
Street	4 BLAUWMEESLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	NARESH MEHTA
Position	Managing Director
Street
Post code
Country

Name	NARESH MEHTA
Position	Director
Street
Post code
Country

NEGATIVE INFORMATION

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel limit NSSO

Code	-
Description	FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code	218
Description	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	14/10/2011
Event Description
Event Details	De 25870 bestaande aandelen aan toonder om te zetten in aandelen op naam. 8623 van de 25870 bestaande aandelen worden omgezet in aandelen zonder stemrecht en behoren thans aan Shah Dipak.

Protested bills

Drawee name	-
Address	-
Bill amount	-
Bill currency	-
Maturity of bill	-
Name of drawer	-
City of drawer	-

NSSO details

Business number	460287962
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

Individual Shareholders

Shareholder Name
Forename	Rajiv Dinesh	Middle name	-
Surname	Shah
Shareholder Details
Start date	22/03/1999	End date	-
Percentage owned	33.34%
Shareholder Address
Street name	Prins Boudewijnlaan	House number	157
Minor town	-	Postal town	Edegem
Post code	2650	Country	Belgium

Shareholder Name
Forename	Dipak	Middle name	-
Surname	Shah
Shareholder Details
Start date	28/10/2011(estimated)	End date	-
Percentage owned	-
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	United Arab Emirates

Shareholder Name
Forename	ABHUBHAI	Middle name	-
Surname	DESAI
Shareholder Details
Start date	22/03/1999	End date	-
Percentage owned	33.33%
Shareholder Address
Street name	NORTH-SOUTH ROAD	House number	9
Minor town	-	Postal town	BOMBAY
Post code	-	Country	India

Shareholder Name
Forename	Amit	Middle name	-
Surname	Shah
Shareholder Details
Start date	22/03/1999	End date	-
Percentage owned	33.33%
Shareholder Address
Street name	-	House number	-
Minor town	-	Postal town	-
Post code	-	Country	-

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	39.14
Industry average payment expectation days	190.92	Industry average day sales outstanding	142.94
Day sales outstanding	74.43

Suspension of payments / moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	39.14
Day sales outstanding	74.43

GROUP STRUCTURE & AFFILIATED COMPANIES

Summary

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth
31/12/2010	137,944,504	172,735	8,976,218
31/12/2009	59,542,887	46,847	8,787,981
31/12/2008	48,451,204	-110,704	8,782,917

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2010	38,265,352	97	8,560,410	26,786	2
31/12/2009	41,017,759	97	8,560,410	13,889	2
31/12/2008	36,920,570	97	8,560,410	16,877	4

Trends

Profitability
Liquidity
Net worth

Profit & loss

Annual accounts	31-12-2010	%	31-12-2009	%	31-12-2008	Industry average 2010	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	137,944,504	131	59,542,887	22.89	48,451,204	46,617,247	195
Total operating expenses	137,261,078	132	59,031,848	23.51	47,793,502	46,014,303	198
Operating result	683,425	33.73	511,040	-22.30	657,702	210,576	224
Total financial income	3,039	-47.64	5,804	-25.25	7,764	156,852	-98.06
Total financial expenses	513,729	9.30	469,996	-39.45	776,170	309,724	65.87
Results on ordinary operations before taxation	172,735	268	46,847	42.32	-110,704	41,326	317
Taxation	223	-98.86	19,587	16.72	16,781	15,181	-98.53
Results on ordinary operations after taxation	172,512	532	27,260	21.38	-127,485	31,025	456
Extraordinary items	15,726	70.85	-22,197	-	0	2,678	487
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	188,237	3617	5,063	3.97	-127,485	33,700	458
other information
Dividends	-	-	-	-	-	326,298	-
Director remuneration	80,371	0	80,371	-	-	113,424	-29.14
Employee costs	73,031	-21.70	93,276	-9.55	103,120	144,880	-49.59
Wages and salary	59,675	-15.24	70,405	-13.26	81,164	127,392	-53.16
Employee pension costs	-	-	-	-	-	7,164	-
Social security contributions	8,061	-50.43	16,261	11.74	14,553	30,947	-73.95
Other employee costs	5,296	-19.88	6,610	-10.72	7,403	3,136	68.86
Amortization and depreciation	47,803	-3.14	49,353	-33.46	74,173	21,827	119

balance sheet

Annual accounts	31-12-2010	%	31-12-2009	%	31-12-2008	Industry average 2010	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,696	-100
Tangible fixed assets	430,252	-9.46	475,225	-29.46	673,676	193,909	121
Land & building	374,120	-3.69	388,465	-35.30	600,404	359,916	3.95
Plant & machinery	9,612	-14.89	11,293	-45.22	20,617	27,328	-64.83
Other tangible assets	46,519	-38.36	75,467	43.32	52,655	27,378	69.92
Financial fixed assets	97	0	97	0.37	97	313,719	-99
Total fixed assets	430,349	-9.46	475,322	-29.45	673,773	407,080	5.72
Inventories	9,297,461	-34.58	14,212,990	57.06	9,049,465	3,151,100	195
Raw materials & consumables	-	-	-	-	-	2,393,499	-
Work in progress	0	-	0	-	0	2,060	-100
Finished goods	9,297,461	-34.58	14,212,990	57.06	9,049,465	2,081,218	346
Other stocks	0	-	0	-	0	521,276	-100
Trade debtors	28,128,310	8.55	25,912,822	-3.27	26,789,160	3,850,118	630
Cash	26,786	92.86	13,889	-17.70	16,877	265,184	-89.90
other amounts receivable	320,205	-4.53	335,381	15.82	289,564	368,698	-13.15
Miscellaneous current assets	62,241	-7.59	67,355	-33.79	101,731	42,648	45.94
Total current assets	37,835,003	-6.68	40,542,437	11.85	36,246,797	7,148,400	429
current liabilities
Trade creditors	14,717,168	-27.78	20,378,914	18.56	17,189,168	2,702,449	444
Short term group loans	-	-	-	-	-	-	-
Other short term loans	10,114,227	31.55	7,688,716	21.52	6,326,911	1,923,880	425
Miscellaneous current liabilities	310,751	5.97	293,254	-16.02	349,194	371	- -
Total current liabilities	25,142,147	-11.35	28,360,884	18.84	23,865,273	4,436,553	466
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	4,146,987	7.19	3,868,895	-6.29	4,128,671	163	- -
Other long term liabilities	0	-	0	-100	143,709	717,640	-100
Total long term debts	4,146,987	7.19	3,868,895	-9.44	4,272,380	1,348,729	207
shareholders equity
Issued share capital	8,560,410	0	8,560,410	0.00	8,560,410	1,026,735	733
Share premium account	-	-	-	-	-	183,372	-
Reserves	415,808	82.72	227,570	2.28	222,507	681,260	-38.96
Revaluation reserve	-	-	-	-	-	715,893	-
Total shareholders equity	8,976,218	2.14	8,787,981	0.06	8,782,917	1,725,757	420
Working capital	12,692,856	4.20	12,181,553	-1.62	12,381,524	2,711,847	368
Net worth	8,976,218	2.14	8,787,981	0.06	8,782,917	1,724,061	420

ratio analysis

Annual accounts	31-12-2010	change(%)	31-12-2009	change(%)	31-12-2008	Industry average 2010	%
Trading performance
Profit Before Tax	0.13	62.50	0.08	34.78	-0.23	-2,00	6.50
Return on capital employed	1.32	256	0.37	43.53	-0.85	17,00	-92.24
Return on total assets employed	0.45	309	0.11	36.67	-0.30	-78,00	0.58
Return on net assets employed	1.92	262	0.53	42.06	-1.26	19,00	-89.89
Sales / net working capital	10.87	122	4.89	25.06	3.91	35,00	-99
Stock turnover ratio	6.74	-71.76	23.87	27.78	18.68	67,00	-89.94
Debtor days	74.43	-53.14	158.85	-21.29	201.81	168,00	-55.70
Creditor days	39.14	-68.94	126	-4.01	131.27	174,00	-77.51
short term stability
Current ratio	1.50	4.90	1.43	-5.92	1.52	8,00	-81.25
Liquidity ratio / acid ratio	1.14	22.58	0.93	-18.42	1.14	5,00	-77.20
Current debt ratio	2.80	-13.31	3.23	18.75	2.72	8,00	-65.00
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	158.88	20.80	131.52	10.48	119.04	122,00	30.23
Equity in percentage	23.46	9.52	21.42	-9.96	23.79	-1.496,00	1.57
Total debt ratio	3.26	-11.17	3.67	14.69	3.20	9,00	-63.78

FOREIGN EXCHANGE RATES

ADDITIONAL INFORMATION

Limit History

no limit history data found

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	190.92
Industry average day sales outstanding	142.94

Industry quartile analysis

Payment expectations
Company result	39.14
Lower	133.90
Median	89.16
Upper	46.72

Day sales outstanding
Company result	74.43
Lower	115.33
Median	59.30
Upper	27.27

NOTES & COMMENTS

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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.01
UK Pound	1	Rs.87.85
Euro	1	Rs.70.54

INFORMATION DETAILS

Report Prepared by :

MNL

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.