MIRA INFORM REPORT

Report Date :

08.05.2013

IDENTIFICATION DETAILS

Name :	MISHAL NV
Registered Office :	Hoveniersstraat 2 -B 611Antwerpen 2018
Country :	Belgium
Financials (as on) :	31.12.2011
Date of Incorporation :	14.02.1989
Com. Reg. No.:	436734085
Legal Form :	Public Limited Liability Company (BE)
Line of Business :	Wholesaler of Diamonds and Other Precious Stones.
No. of Employees :	2

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 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	436734085	Company name	MISHAL NV
		Telephone number	032261217
Address	HOVENIERSSTRAAT 2 -B 611ANTWERPEN	Fax number	032261217
Post code	2018	Number of staff	2
Date of establishment	14/02/1989

DIRECTORS/MANAGEMENT

Current director details

Name	SAROJ RAMESH PATEL
Position	Director
Start Date	05/08/2010
Street	9 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	RAMESH PATEL
Position	Managing Director
Start Date	05/08/2010
Date of birth	29/03/1969
Street	9 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	RAMESH PATEL
Position	Director
Start Date	29/09/1997
Date of birth	29/03/1969
Street	9 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	RAMESH PATEL
Position	Chairman of the Board
Start Date	29/09/1997
Date of birth	29/03/1969
Street	9 BERKENLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	LUC DISCRY
Position	Commissioner
Start Date	26/12/1997
End Date	-
Date of birth	03/08/1951
Street	4 BOSDUIFDREEF SCHILDE
Post code	2970
Country	Belgium

Name	RAMESH PATEL
Position	Principal Manager
Start Date	23/10/1997
End Date	29/09/1997
Date of birth	29/03/1969
Street	9 BERKENLAAN 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	436734085	Company name	MISHAL NV
Fax number	032261217	Date founded	14/02/1989
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.0436.734.085
Belgian Bullettin of Acts Publications	moniteur belge

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	02/06/2012
Event Description	authority appointed
Event Details	Commentaar 02-06-2012: Opheffing van de volmachten van Kalpesh Patel.

Event Date	02/06/2012
Event Description
Event Details	Neerlegging van de notulen van de algemene vergadering van aandeelhouders houdende goekeuring van bepalingen die van toepassing zijn ingeval van een controlewijziging.

Protested bills

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

NSSO details

Business number	436734085
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

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	24.45
Industry average payment expectation days	176.30	Industry average day sales outstanding	109.72
Day sales outstanding	88.39

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	24.45
Day sales outstanding	88.39

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.30
Industry average day sales outstanding	109.72

Industry quartile analysis

Payment expectations
Company result	24.45
Lower	122.56
Median	73.75
Upper	41.43
Day sales outstanding
Company result	88.39
Lower	107.66
Median	55.21
Upper	24.45

GROUP STRUCTURE & AFFILIATED COMPANIES

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
31/12/2011	212,152,348	278,250	10,109,435
31/12/2010	185,217,582	260,853	9,831,809
31/12/2009	94,144,148	186,160	3,564,954

Accounts & ratios

Date of latest accounts	Balance Total	Investments	Capital	Cash Flow	Number of Employees
31/12/2011	64,932,078		8,623,500	771,707	2
31/12/2010	53,045,569		8,623,500	1,099,665	1
31/12/2009	51,612,170		2,579,828	895,964	1

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	212,152,348	14.54	185,217,582	96.74	94,144,148	57,071,239	271
	Total operating expenses	210,001,839	14.80	182,932,509	98.26	92,268,496	56,388,961	272
	Operating result	2,150,509	-5.89	2,285,072	21.83	1,875,652	262,084	720
	Total financial income	2	-98.88	159	48.75	107	170,510	-99
	Total financial expenses	1,872,261	-7.51	2,024,379	19.81	1,689,599	345,273	442
	Results on ordinary operations before taxation	278,250	6.67	260,853	40.12	186,160	70,815	292
	Taxation	2,702	-93.58	42,099	200	14,005	38,720	-93.02
	Results on ordinary operations after taxation	275,548	25.96	218,754	27.07	172,155	44,618	517
	Extraordinary items	413	-90.91	4,545	1668	257	11,616	-96.44
	Other appropriations	0.00	-	0.00	-	0	-	-
	Net result	275,961	23.58	223,300	29.52	172,412	56,173	391
	other information
	Dividends	-	-	-	-	-	135,797	-
	Director remuneration	-	-	-	-	-	118,597	-
	Employee costs	43,938	-33.46	66,037	150	26,365	152,302	-71.15
	Wages and salary	32,373	-39.20	53,246	176	19,277	129,219	-74.95
	Employee pension costs	-	-	-	-	-	8,542	-
	Social security contributions	6,982	-33.91	10,565	214	3,363	31,839	-78.07
	Other employee costs	4,583	105	2,226	-40.25	3,725	4,354	5.26
	Amortization and depreciation	21,136	-64.46	59,472	-0.38	59,699	21,715	-2.67
	back to top

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	6,658	-	8,323	-	8,323	1,778	274
	Tangible fixed assets	1,255,042	-0.98	1,267,416	-4.39	1,325,658	208,237	502
	Land & building	1,231,814	0	1,231,814	-3.17	1,272,204	381,832	222
	Plant & machinery	15,989	-47.69	30,569	-31.12	44,379	27,852	-42.59
	Other tangible assets	7,238	43.80	5,034	-44.53	9,075	31,019	-76.66
	Financial fixed assets	-	-	-	-	-	321,574	-
	Total fixed assets	1,261,700	-1.10	1,275,739	-4.37	1,333,981	427,471	195
	Inventories	11,504,310	92.54	5,974,951	-69.09	19,330,635	3,531,853	225
	Raw materials & consumables	-	-	-	-	-	3,816,893	-
	Work in progress	0	-	0	-	0	2,265	-100
	Finished goods	11,504,310	92.54	5,974,951	-69.09	19,330,635	2,469,198	365
	Other stocks	0	-	0	-	0	456,453	-100
	Trade debtors	51,376,188	14.98	44,681,464	48.74	30,040,257	4,400,137	1067
	Cash	771,707	-29.82	1,099,665	22.74	895,964	307,269	151
	other amounts receivable	7,764	65.86	4,681	-10.84	5,250	448,541	-98.27
	Miscellaneous current assets	10,409	14.77	9,070	49.10	6,083	41,977	-75.20
	Total current assets	63,670,378	22.99	51,769,830	2.97	50,278,189	8,154,413	680
	current liabilities
	Trade creditors	14,064,456	87.48	7,501,816	-41.51	12,826,222	2,934,481	379
	Short term group loans	-	-	-	-	-	-	-
	Other short term loans	32,762,383	16.55	28,110,927	22.20	23,004,657	2,446,673	1239
	Miscellaneous current liabilities	1,238,385	51.04	819,889	9.14	751,224	209	- -
	Total current liabilities	48,065,224	31.93	36,432,631	-0.41	36,582,103	5,665,157	748
	Long term debts
	Long term group loans	-	-	-	-	-	-	- -
	Other long term loans	6,750,760	-0.33	6,772,806	-40.88	11,456,791	319	- -
	Other long term liabilities	0	-	0	0	-1	282,125	-100
	Total long term debts	6,750,760	-0.33	6,772,806	-40.88	11,456,790	938,470	619
	shareholders equity
	Issued share capital	8,623,500	0	8,623,500	234	2,579,828	1,171,581	636
	Share premium account	-	-	-	-	-	173,859	-
	Reserves	1,492,593	22.68	1,216,632	22.47	993,449	725,924	105
	Revaluation reserve	-	-	-	-	-	776,200	-
	Total shareholders equity	10,116,093	2.80	9,840,132	175	3,573,277	1,921,689	426
	Working capital	15,605,154	1.75	15,337,199	11.98	13,696,086	2,489,256	526
	Net worth	10,109,435	2.82	9,831,809	175	3,564,954	1,919,911	426
	back to top

ratio analysis

	Annual accounts	31-12-2011	change(%)	31-12-2010	change(%)	31-12-2009	Industry average 2011	%
	Trading performance
	Profit Before Tax	0.13	-7.14	0.14	-30.0	0.20	-662,00	0.02
	Return on capital employed	1.65	5.10	1.57	26.61	1.24	-13,00	12.69
	Return on total assets employed	0.43	-12.24	0.49	36.11	0.36	-30,00	1.43
	Return on net assets employed	2.75	3.77	2.65	-49.14	5.21	-19,00	14.47
	Sales / net working capital	13.60	12.58	12.08	75.84	6.87	61,00	-99
	Stock turnover ratio	5.42	67.80	3.23	-84.27	20.53	62,00	-91.26
	Debtor days	88.39	0.39	88.05	-24.40	116.47	51.715,00	-99
	Creditor days	24.45	63.33	14.97	-70.50	50.74	299,00	-91.82
	short term stability
	Current ratio	1.32	-7.04	1.42	3.65	1.37	4,00	-91.75
	Liquidity ratio / acid ratio	1.09	-13.49	1.26	48.24	0.85	3,00	-63.67
	Current debt ratio	4.75	28.38	3.70	-63.87	10.24	16,00	-70.31
	Liquidity ratio reprocessed	-	-	-	-	-	-	-
	long term stability
	Gearing	390.60	10.18	354.50	-63.24	964.42	273,00	43.08
	Equity in percentage	15.58	-16.01	18.55	168	6.92	-991,00	1.57
	Total debt ratio	5.42	23.46	4.39	-67.34	13.44	17,00	-68.12

ADDITIONAL INFORMATION

Trends

Profitability
Liquidity
Net worth

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.54.28
UK Pound	1	Rs.84.32
Euro	1	Rs.70.99

INFORMATION DETAILS

Report Prepared by :

NIT

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.