MIRA INFORM REPORT

Report Date :

04.07.2013

IDENTIFICATION DETAILS

Name :	SUNNEX BVBA
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	09.11.1995
Com. Reg. No.:	456455769
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	01

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 :	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 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Belgium	A1	A1

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 2011 Belgian GDP grew by 1.8%, the unemployment rate decreased slightly to 7.2% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011 and 3.3% in 2012. Fourth quarter GDP growth in 2012 was at -0.1%, the third consecutive quarter of negative growth. This brought economic growth for the whole of 2012 to negative 0.2%. It also left Belgium on the brink of a possible recession at the end of 2012. However, at year's end, the government appeared close to meeting its 2012 budget deficit goal of 3% of GDP. 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 name & address

Business number	456455769
Company name	SUNNEX BVBA
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Number of staff	0
Date of establishment	09/11/1995
Telephone number	032984709
Fax number	-

Commentary

The business was established over 17 years ago.
The business has 1 employees.
The business has been at the address for over 14 months.
There has been no significant change in the business's credit rating.
The credit limit for this business has increased from €0 to €1250000.
Operating Result in the latest trading period increased 28% on the previous trading period.
Pre-tax profits increased by 44% compared to the previous trading period.
The business saw a decrease in their Cash Balance of 79% during the latest trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2011	54,621,177	118,394	2,074,447	2,032,040
31/12/2010	38,885,593	81,829	1,974,028	1,968,003
31/12/2009	19,005,028	38,579	1,908,886	1,908,098

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	19,730,973	1	1,844,750	104,377
31/12/2010	17,439,623	0	1,844,750	65,621
31/12/2009	13,072,384	0	1,844,750	37,055

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	47.96
Industry average payment expectation days	163.35	Industry average day sales outstanding	105.94
Day sales outstanding	113.06

Court data summary

Bankruptcy details
Court action type		no
Protested bills
Bill amount		-
NSSO details
Date of summons		-
Business number	456455769		Company name	SUNNEX BVBA
Fax number	-		Date founded	09/11/1995
Company status	active		Company type	Private Limited Company (BL/LX)
Currency	Euro (€)		Date of latest accounts	31/12/2011
Activity code	46761		liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones		VAT Number	BE.0456.455.769
Belgian Bullettin of Acts Publications	moniteur belge

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

Personnel

(NSSO classification)

Code	-
Description	1 EMPLOYEE

Joint Industrial Committee

(JIC)

comparison mode

averagemedian

Export accounts to CSV file

Profit & loss

Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	54,621,177	40.47	38,885,593	104	19,005,028	49,567,599	10.20
Total operating expenses	54,067,592	40.59	38,456,392	103	18,861,775	48,933,721	10.49
Operating result	553,585	28.98	429,200	199	143,253	237,792	132
Total financial income	7,823	46.86	5,326	6370	82	148,961	-94.75
Total financial expenses	443,013	25.61	352,698	236	104,756	287,043	54.34
Results on ordinary operations before taxation	118,394	44.68	81,829	112	38,579	84,348	40.36
Taxation	17,975	7.72	16,688	769	1,919	37,920	-52.60
Results on ordinary operations after taxation	100,419	54.16	65,141	77.69	36,660	59,093	69.93
Extraordinary items	0	-	0	-	0	3,218	-100
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	100,419	54.16	65,141	77.69	36,660	62,195	61.46
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	22,320	-	-	-	-	115,275	-80.64
Employee costs	5,098	-	-	-	-	127,746	-96.01
Wages and salary	4,801	-	-	-	-	108,527	-95.58
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	264	-	-	-	-	27,065	-99
Other employee costs	33	-	0	-	0	3,598	-99
Amortization and depreciation	3,958	725	479	21.63	394	18,392	-78.48

balance sheet

Annual accounts	31-12-2011	%	31-12-2010	%	31-12-2009	Industry average 2011	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,459	-100
Tangible fixed assets	94,611	3372	2,725	245	788	177,029	-46.56
Land & building	-	-	-	-	-	344,924	-
Plant & machinery	32,401	1562	1,949	-	-	21,796	48.66
Other tangible assets	62,210	7915	776	-1.54	788	24,558	153
Financial fixed assets	3,300	0	3,300	-	-	275,637	-98.80
Total fixed assets	97,911	1525	6,025	664	788	362,460	-72.99
Inventories	2,515,092	-50.71	5,102,938	11.17	4,590,318	3,059,710	-17.80
Raw materials & consumables	-	-	-	-	-	4,101,634	-
Work in progress	0	-	0	-	0	2,455	-100
Finished goods	2,515,092	-50.71	5,102,938	11.17	4,590,318	2,043,301	23.09
Other stocks	0	-	0	-	0	470,962	-100
Trade debtors	16,918,736	44.40	11,716,926	67.73	6,985,637	3,925,709	330
Cash	117,189	-79.05	559,242	-61.70	1,460,150	239,002	-50.97
other amounts receivable	71,744	75.42	40,900	31.05	31,208	244,545	-70.66
Miscellaneous current assets	10,301	-24.22	13,593	217	4,283	21,348	-51.75
Total current assets	19,633,062	12.62	17,433,598	33.37	13,071,596	6,974,699	181
current liabilities
Trade creditors	7,103,914	-9.63	7,860,584	65.94	4,736,874	2,817,971	152
Short term group loans	-	-	-	-	-	-	-
Other short term loans	6,386,638	20.47	5,301,263	23.22	4,302,226	1,890,061	237
Miscellaneous current liabilities	4,110,471	78.43	2,303,748	8.44	2,124,398	1012	- -
Total current liabilities	17,601,022	13.81	15,465,595	38.54	11,163,498	4,959,298	254
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	55,504	-	-	-	-	-95.17	- -
Other long term liabilities	0	-	0	-	0	142,636	-100
Total long term debts	55,504	-	0	-	0	597,461	-90.71
shareholders equity
Issued share capital	1,844,750	0	1,844,750	0	1,844,750	1,019,505	80.95
Share premium account	-	-	-	-	-	108,219	-
Reserves	229,696	77.68	129,277	101	64,136	695,720	-66.98
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	2,074,447	5.09	1,974,028	3.41	1,908,886	1,736,509	19.46
Working capital	2,032,040	3.25	1,968,003	3.14	1,908,098	2,015,401	0.83
Cashflow	104,377	59.06	65,621	77.09	37,055	77,354	34.93
Net worth	2,074,447	5.09	1,974,028	3.41	1,908,886	1,735,050	19.56

ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.22	4.76	0.21	5.00	0.20	-740,00	0.03
Return on capital employed	5.56	33.98	4.15	105	2.02	-14,00	39.71
Return on total assets employed	0.60	27.66	0.47	56.67	0.30	-33,00	1.82
Return on net assets employed	5.71	37.59	4.15	105	2.02	-12,00	47.58
Sales / net working capital	26.88	36.03	19.76	98.39	9.96	66,00	-99
Stock turnover ratio	4.60	-64.94	13.12	-45.67	24.15	67,00	-93.13
Debtor days	113.06	2.80	109.98	-18.02	134.16	57.718,00	-99
Creditor days	47.96	-35.72	74.61	-18.60	91.66	327,00	-85.33
short term stability
Current ratio	1.12	-0.88	1.13	-3.42	1.17	4,00	-93.78
Liquidity ratio / acid ratio	0.97	21.25	0.80	5.26	0.76	3,00	-67.67
Current debt ratio	8.48	8.30	7.83	33.85	5.85	18,00	-52.89
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	310.55	15.64	268.55	19.15	225.38	264,00	17.63
Equity in percentage	10.51	-7.16	11.32	-22.47	14.60	-1.076,00	0.98
Total debt ratio	8.51	8.68	7.83	33.85	5.85	19,00	-55.21

Industry comparison

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

Suspension of payments

/ moratorium history

Amount	-
Details	-

Payment expectations

Payment expectation days	47.96
Day sales outstanding	113.06

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	163.35
Industry average day sales outstanding	105.94

Industry quartile analysis

Payment expectations
Company result	47.96
Lower	120.63
Median	73.49
Upper	40.04
Day sales outstanding
Company result	113.06
Lower	105.52
Median	54.72
Upper	23.49

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

Protested bills

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

NSSO details

Business number	456455769
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

Current director details

Name	KAUSHAL ASHVINKUMAR SHAH
Position	Principal Manager
Start Date	10/07/2010
Street	48 FAZANTENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	RAJESH KANTILAL SHAH
Position	Principal Manager
Start Date	01/07/2007
End Date	01/06/2009
Street	8 BLAUWMEESLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	PIYUSH JAYNTITILAL SHAH
Position	Principal Manager
Start Date	31/12/2009
End Date	-
Street	45 HENDRIK KENNISSTRAAT EDEGEM
Post code	2650
Country	Belgium

Name	NIRAJ MAHENDRA SHAH
Position	Principal Manager
Start Date	02/04/2002
End Date	-
Street	CHANDANBALA APTS, B WING FLAT, 404 RATILAL, R.THAKKAR MARG BOMBAY
Post code
Country	India

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.60.10
UK Pound	1	Rs.91.07
Euro	1	Rs.77.95

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%)