MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	DIABEX NV
Registered Office :	Hoveniersstraat 2, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	18.03.1997
Com. Reg. No.:	460287962
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesaler of diamonds and other precious stones
No. of Employees :	02

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 :	Usually Correct
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 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 2.0%, the unemployment rate decreased slightly to 7.7% 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. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

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

DIRECTORS/MANAGEMENT

Current director details

Name	KALPEN HARSHAD SHAH
Position	Director
Start Date	01/04/2011
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium
Name	ANKIT NARESH MEHTA
Position	Managing Director
Start Date	02/05/2006
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Name	ANKIT NARESH MEHTA
Position	Director
Start Date	21/12/1999
Street	157 PRINS BOUDEWIJNLAAN EDEGEM
Post code	2650
Country	Belgium

Former director details

Name	NIMESH PRAVINBHAI SHETH
Position	Director
Start Date	19/04/2005
End Date	31/08/2007
Street	94 LANGE HERENTALSESTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	DILIP DESAI
Position	Managing Director
Start Date	02/05/2006
End Date	18/03/2011
Street	4 BLAUWMEESLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	DILIP DESAI
Position	Director
Start Date	26/01/2001
End Date	18/03/2011
Street	4 BLAUWMEESLAAN ANTWERPEN
Post code	2610
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

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	31/12/2011
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

Contractor details

Registered contractor number	-
Contractor description	-
Date struck off register

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	46.96
Industry average payment expectation days	176.14	Industry average day sales outstanding	109.67
Day sales outstanding	71.13

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	46.96
Day sales outstanding	71.13

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.14
Industry average day sales outstanding	109.67

Industry quartile analysis

Payment expectations
Company result	46.96
Lower	121.46
Median	73.03
Upper	41.43
Day sales outstanding
Company result	71.13
Lower	106.41
Median	54.84
Upper	24.41

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	Working capital
31/12/2011	125,599,260	57,493	9,247,152	12,481,815
31/12/2010	137,944,504	172,735	8,976,218	12,692,856
31/12/2009	59,542,887	46,847	8,787,981	12,181,553

Accounts & ratios

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2011	39,980,721	2	8,560,410	322,297
31/12/2010	38,265,352	2	8,560,410	236,041
31/12/2009	41,017,759	2	8,560,410	54,417

Trends

Profitability
Liquidity
Net worth

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	125,599,260	-8.95	137,944,504	131	59,542,887	49,761,740	152
Total operating expenses	125,051,634	-8.90	137,261,078	132	59,031,848	49,123,405	154
Operating result	547,625	-19.87	683,425	33.73	511,040	238,450	129
Total financial income	31,635	940	3,039	-47.64	5,804	149,554	-78.85
Total financial expenses	521,767	1.56	513,729	9.30	469,996	288,302	80.98
Results on ordinary operations before taxation	57,493	-66.72	172,735	268	46,847	84,337	-31.83
Taxation	188	-15.93	223	-98.86	19,587	37,937	-99
Results on ordinary operations after taxation	57,305	-66.78	172,512	532	27,260	59,033	-2.93
Extraordinary items	216,049	1273	15,726	70.85	-22,197	3,114	6838
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	273,354	45.22	188,237	3617	5,063	62,031	340
other information
Dividends	-	-	-	-	-	147,735	-
Director remuneration	84,452	5.08	80,371	0	80,371	115,336	-26.78
Employee costs	78,666	7.72	73,031	-21.70	93,276	128,224	-38.65
Wages and salary	61,649	3.31	59,675	-15.24	70,405	108,712	-43.29
Employee pension costs	-	-	-	-	-	8,542	-
Social security contributions	11,088	37.55	8,061	-50.43	16,261	27,245	-59.30
Other employee costs	5,929	11.96	5,296	-19.88	6,610	3,581	65.57
Amortization and depreciation	48,942	2.38	47,803	-3.14	49,353	18,431	165

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	2,420	-	0	-	0	1,448	67.12
Tangible fixed assets	1,064,717	147	430,252	-9.46	475,225	177,869	498
Land & building	604,530	61.59	374,120	-3.69	388,465	346,516	74.46
Plant & machinery	352,912	3571	9,612	-14.89	11,293	21,761	1521
Other tangible assets	107,276	130	46,519	-38.36	75,467	24,774	333
Financial fixed assets	6,347	6419	97	0	97	277,948	-97.72
Total fixed assets	1,073,484	149	430,349	-9.46	475,322	364,361	194
Inventories	13,325,981	43.33	9,297,461	-34.58	14,212,990	3,057,509	335
Raw materials & consumables	-	-	-	-	-	4,164,364	-
Work in progress	0	-	0	-	0	2,470	-100
Finished goods	13,325,981	43.33	9,297,461	-34.58	14,212,990	2,042,920	552
Other stocks	0	-	0	-	0	470,724	-100
Trade debtors	24,477,129	-12.98	28,128,310	8.55	25,912,822	3,898,466	527
Cash	629,241	2249	26,786	92.86	13,889	240,068	162
other amounts receivable	406,809	27.05	320,205	-4.53	335,381	247,007	64.70
Miscellaneous current assets	68,076	9.38	62,241	-7.59	67,355	21,314	219
Total current assets	38,907,236	2.83	37,835,003	-6.68	40,542,437	6,955,068	459
current liabilities
Trade creditors	16,089,741	9.33	14,717,168	-27.78	20,378,914	2,783,115	478
Short term group loans	-	-	-	-	-	-	-
Other short term loans	10,012,420	-1.01	10,114,227	31.55	7,688,716	1,893,711	428
Miscellaneous current liabilities	323,260	4.03	310,751	5.97	293,254	-12.89	- -
Total current liabilities	26,425,421	5.10	25,142,147	-11.35	28,360,884	4,930,367	435
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	4,305,727	3.83	4,146,987	7.19	3,868,895	273	- -
Other long term liabilities	0	-	0	-	0	143,350	-100
Total long term debts	4,305,727	3.83	4,146,987	7.19	3,868,895	599,761	617
shareholders equity
Issued share capital	8,560,410	0	8,560,410	0	8,560,410	1,025,391	734
Share premium account	-	-	-	-	-	108,219	-
Reserves	689,162	65.74	415,808	82.72	227,570	698,475	-1.33
Revaluation reserve	-	-	-	-	-	815,555	-
Total shareholders equity	9,249,572	3.05	8,976,218	2.14	8,787,981	1,745,277	429
Working capital	12,481,815	-1.66	12,692,856	4.20	12,181,553	2,024,701	516
Cashflow	322,297	36.54	236,041	333	54,417	77,239	317
Net worth	9,247,152	3.02	8,976,218	2.14	8,787,981	1,743,828	430

Ratio analysis

Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
Trading performance
Profit Before Tax	0.05	-61.54	0.13	62.50	0.08	-748,00	0.01
Return on capital employed	0.42	-68.18	1.32	256	0.37	-14,00	3.00
Return on total assets employed	0.14	-68.89	0.45	309	0.11	-34,00	0.41
Return on net assets employed	0.62	-67.71	1.92	262	0.53	-13,00	4.77
Sales / net working capital	10.06	-7.45	10.87	122	4.89	67,00	-99
Stock turnover ratio	10.61	57.42	6.74	-71.76	23.87	67,00	-84.16
Debtor days	71.13	-4.43	74.43	-53.14	158.85	58.397,00	-99
Creditor days	46.96	19.98	39.14	-68.94	126	330,00	-85.77
short term stability
Current ratio	1.47	-2.00	1.50	4.90	1.43	4,00	-91.83
Liquidity ratio / acid ratio	0.97	-14.91	1.14	22.58	0.93	3,00	-67.67
Current debt ratio	2.86	2.14	2.80	-13.31	3.23	18,00	-84.11
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	154.80	-2.57	158.88	20.80	131.52	265,00	-41.58
Equity in percentage	23.14	-1.36	23.46	9.52	21.42	-1.082,00	2.14
Total debt ratio	3.32	1.84	3.26	-11.17	3.67	19,00	-82.53

ADDITIONAL INFORMATION

Number of staff	2
Date of establishment	18/03/1997

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.

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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

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%)

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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.