MIRA INFORM REPORT

Report Date :

10.12.2014

IDENTIFICATION DETAILS

Name :	SIMPLEX DIAM NV

Registered Office :	Hoveniersstraat 30, 2018 Antwerpen

Country :	Belgium

Financials (as on) :	31.12.2012

Date of Incorporation :	31.01.1992

Com. Reg. No.:	446464868

Legal Form :	Public Limited Liability Company (BE)

Line of Business :	Wholesale of diamonds and other precious stones

No. of Employees :	03

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 :	Slow but 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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Belgium

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	446464868
Company name	SIMPLEX DIAM NV
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	3
Date of establishment	31/01/1 992
Telephone number	032337131
Fax number	032337605

Commentary

The business was established over 22 years ago.

The business has 1 employees.

The business has been at the address for over 14 years.

Operating Result in the latest trading period decreased 41% on the previous trading period.

Pre-tax profits decreased by 55% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 85% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	60,810,603	209,671	15,746,133	19,428,524
31/12/2011	55,195,391	473,392	15,536,453	19,312,047
31/12/2010	42,954,405	732,596	15,029,756	1 8,711,321

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	40,602,198	3	14,700,000	274,177
31/12/2011	42,480,486	3	14,700,000	594,203
31/12/2010	44,837,968	2	14,700,000	809,265

Payment expectations

Past payments		Payment expectation days	38.14
Industry average payment	164.06	Industry average day sales outstanding	125.21
expectation days
Day sales outstanding	191.93

Court data summary

BANKRUPTCY DETAILS

Court action type no

PROTESTED BILLS

Bill amount -

NSSO DETAILS

Date of summons –

Social Balance Sheet Details

Social Balance Sheet		Total
During the reporting year ended 31-12-2012
Full-time Employees		3
Part-time Employees		-
Total Fte Employees		3

Number of hours worked
Full-time Employees		5,245
Part-time Employees		-
Total		5,245

Personnel Charges
Full-time Employees		143,726
Part-time Employees		-
Total		143,726
Benefits In Addition To Wages		-

During the previous reporting year
Average number employees in Fte		3
Actual working hours		4,691
Personnel Charges		110,173
Benefits In Addition To Wages		-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	3	-	3
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-


Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	1	-	1
Higher education (non university)	1	-	1
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	-	-	-
Higher education (non university)	1	-	1
Higher education (university)	-	-	-


Working Category	Full-Time	Part-Time	Total Fte	\
Management	-	-	-
White collar worker	2	-	2
Blue collar worker	1	-	1
Other	-	-	-


Temporary personnel		Total
Average number of temporary staff		-
Actual working hours		-
Cost of temporary staff		-


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

Personnel (NSSO classification)

Code -

Description FROM 1 TO 4 EMPLOYEES

Joint Industrial Committee (JIC)

JIC Code 218

Description Additional national joint committee for the employees

Profit & loss

Annual accounts	31-12-2012	%	31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	60,81 0,603	10.17	55,195,391	28.50	42,954,405	46,485,458	30.82
Total operating expenses	59,813,169	11.85	53,477,870	31.22	40,753,905	46,114,879	29.70
Operating result	997,434	-41.93	1,717,521	-21.95	2,200,500	140,970	607
Total financial income	742	234	222	-37.96	358	98,884	-99
Total financial expenses	788,506	-36.63	1,244,351	-15.25	1,468,262	206,312	282
Results on ordinary operations before taxation	209,671	-55.71	473,392	-35.38	732,596	25,266	729
Taxation	-9	-560	2	-99	30,511	20,807	-100
Results on ordinary operations after taxation	209,680	-55.71	473,390	-32.57	702,085	10,475	1901
Extraordinary items	0	-100	33,307	45.44	22,901	-3,969	0
Other appropriations	0.00	-	0.00	-	0	-	-
Net result OTHER INFORMATION	209,680	-58.62	506,697	-30.11	724,986	6,525	3113
Gross Operating Margin	-	-	-	-	-	56,835	-
Dividends	-	-	-	-	-	172,177	-
Director remuneration	67,563	-4.71	70,901	-	-	112,544	-39.97
Employee costs	143,726	30.46	110,173	29.21	85,269	125,946	14.12
Wages and salary	106,593	27.60	83,534	17.32	71,203	105,550	0.99
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	27,129	23.30	22,002	65.53	13,292	26,656	1.77
Other employee costs	10,005	115	4,637	499	774	4,344	130
Amortization and depreciation	64,497	-26.29	87,506	3.83	84,279	17,811	262

balance sheet

Annual accounts	31-12-2012		31-12-2011	%	31-12-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,571	-100
Tangible fixed assets	828,594	-9.43	914,891	-5.39	966,979	184,117	350
Land & building	647,168	-4.27	676,022	-4.96	711,338	362,988	78.29
Plant & machinery	2,022	332	468	-54.82	1,036	22,615	-91.06
Furniture & Vehicles	22,112	-61.39	57,271	-26.59	78,016	17,295 5,364	27.85
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	157,292	-13.16	181,130	2.57	176,589	7,588	1972
Financial fixed assets	124	0	124	0.30	124	306,282	-99
Total fixed assets	828,718	-9.43	915,016	-5.39	967,103	394,259	110
Inventories	6,858,132	-19.51	8,520,106	-36.10	1 3,332,971	3,102,024	121
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,384	-100
Finished goods	6,858,132	-19.51	8,520,106	-36.10	1 3,332,971	1,994,651	243
Other stocks	0	-	0	-	0	569,553	-100
Trade debtors	31,976,902	0.49	31,820,129	20.67	26,368,734	4,239,087	654
Cash	11 5,575	-85.54	799,400	-79.14	3,832,453	227,241	-49.14
other amounts receivable	507,062	396	102,059	330	23,719	209,025	142
Miscellaneous current assets	315,808	-2.46	323,776	3.45	312,988	18,235	1631
Total current assets	39,773,480	-4.31	41,565,470	-5.25	43,870,865	7,321,447	443
Total Assets	40,602,198	-4.42	42,480,486	-5.26	44,837,968	7,675,911 1,453,566	428
CURRENT LIABILITIES
Trade creditors	6,249,507	-26.27	8,476,230	-19.51	10,530,340	3,144,774		98.73
Short term group loans	-	-	-	-	-	-		-
Financial debts	13,934,502	2.19	13,635,614	-5.65	14,451,424	4,280,807 189,666		225
Current portion of long term debt	84,247	4.80	80,390	4.65	76,817	110,204 15,373		-23.55
Amounts Payable for Taxes, Remuneration & Social Security	25,192	5.91	23,786	8.14	21,997	9,740 -		-25.97
Miscellaneous current liabilities	51,506	37.71	37,402	-52.63	78,966	-82.70		- -
Total current liabilities	20,344,955	-8.58	22,253,423	-11.55	25,159,544	5,457,561		272
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-		- -
Other long term loans	4,511,109	-3.83	4,690,609	0.90	4,648,668	304		- -
Deffered taxes	-	-	-	-	-	37,626 26,358		-
Provisions for Liabilities & Charges	0	-	0	-	0	3,165 0		-100
Other long term liabilities	0	-	0	-	0	127,897		-100
Total long term debts	4,511,109	-3.83	4,690,609	0.90	4,648,668	562,239		702
SHAREHOLDERS EQUITY
Issued share capital	14,700,000	0	14,700,000	0	14,700,000	967,416		1419
Share premium account	-	-	-	-	-	109,362		-
Reserves	1,046,133	25.07	836,453	153	329,756	653,158		60.17
Revaluation reserve	-	-	-	-	-	939,206		-
Total shareholders equity	15,746,133	1.35	15,536,453	3.37	15,029,756	1,650,062		854
Working capital	19,428,524	0.60	19,312,047	3.21	18,711,321	1,863,886		942
Cashflow	274,177	-53.86	594,203	-26.58	809,265	21,260		1189
Net worth	15,746,133	1.35	15,536,453	3.37	15,029,756	1,646,834		856

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.34	-60.47	0.86	-49.71	1.71	-29,00	1.17
Return on capital employed	1.04	-55.56	2.34	-37.10	3.72	29,00	-96.41
Return on total assets employed	0.52	-53.15	1.11	-31.90	1.63	-200,00	0.26
Return on net assets employed	1.33	-56.39	3.05	-37.37	4.87	19,00	-93.00
Sales / net working capital	3.13	9.44	2.86	24.35	2.30	44,00	-99
Stock turnover ratio	11.28	-26.94	15.44	-50.26	31.04	116,00	-90.28
Debtor days	191.93	-8.79	210.42	-6.09	224.07	143,00	34.22
Creditor days SHORT TERM STABILITY	38.14	-34.07	57.85	-38.66	94.31	125,00	-69.49
Current ratio	1.95	4.28	1.87	7.47	1.74	6,00	-78.33
Liquidity ratio / acid ratio	1.62	9.46	1.48	22.31	1.21	4,00	-59.50
Current debt ratio	1.29	-9.79	1.43	-14.37	1.67	9,00	-85.67
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	117.68	-0.67	11 8.47	-7.15	127.59	357,00	-67.04
Equity in percentage	38.78	6.04	36.57	9.10	33.52	-3.189,00	1.22
Total debt ratio	1.58	-8.67	1.73	-12.63	1.98	11,00	-85.64

Payment Information
Payment expectations
Payment expectation days	38.14
Day sales outstanding	191.93

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	164.06
Industry average day sales outstanding	125.21

Industry quartile analysis

Payment expectations
Company result	38.14
Lower	133.74
Median	84.62
Upper	45.40

Day sales outstanding
Company result	191.93
Lower	110.17
Median	59.01
Upper	28.11

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number 446464868

Name of defendant -

Legal form of defendant -

Date of summons –

Labour court –

Bankruptcy details

There is no bankruptcy data against this company

Bankruptcy Data

Court data

There is no data for this company

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.61.88
UK Pound	1	Rs.96.90
Euro	1	Rs.76.29

INFORMATION DETAILS

Report Prepared by :

SMN

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.

MIRA INFORM REPORT

Company summary

Commentary

Accounts

Accounts

Payment expectations

Court data summary

Company information

Social Balance Sheet Details

Profit & loss

balance sheet

ratio analysis

Payment Information

Industry comparison

Industry quartile analysis

Bankruptcy Data

Unit