MIRA INFORM REPORT

Report Date :

25.03.2014

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 :	Wholesaler of diamonds and other precious stones.
No. of Employees :	03

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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 and address

Business number	446464868
Company name	SIMPLEX DIAM NV
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	3
Date of establishment	31/01/1992
Telephone number	032337131
Fax number	032337605

COMMENTARY

The business was established over 21 years ago.

The business has 3 employees.

The business has been at the address for over 13 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	18,711,321

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

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	38.14
Industry average payment expectation days	158.70	Industry average day sales outstanding	114.97
Day sales outstanding	191.93

Court data summary

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

Company information

Business number	446464868	Company name	SIMPLEX DIAM NV
Fax number	032337605	Date founded	31/01/1992
Company status	active	Company type	Public Limited Liability Company (BE)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0446.464.868
Belgian Bullettin of Acts Publications	moniteur belge

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	-	-		-

Total of formal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of less formal and informal continuing vocational training initiatives for workers paid by the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-
Total of initial training initiatives at the expense of the employer	Male	Female
Number of employees	-	-
Number of training hours	-	-
Net costs for enterprise	-	-

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
category

Significant Events

Event Date	25/05/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 25-05-2012: Herbenoemd als bestuurders voor een periode van 6 jaar: Shah Chetankumar Amratlal en Shah Milan Amratlan. Herbenoemd als gedelegeerd bestuurder: Shah Chetankumar Amratlal.

comparison mode

average

median

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	60,810,603	10.17	55,195,391	28.50	42,954,405	43,472,665	39.88
Total operating expenses	59,813,169	11.85	53,477,870	31.22	40,753,905	43,089,263	38.81
Operating result	997,434	-41.93	1,717,521	-21.95	2,200,500	138,401	620
Total financial income	742	234	222	-37.96	358	97,353	-99
Total financial expenses	788,506	-36.63	1,244,351	-15.25	1,468,262	197,940	298
Results on ordinary operations before taxation	209,671	-55.71	473,392	-35.38	732,596	28,745	629
Taxation	-9	-560	2	-99	30,511	20,054	-100
Results on ordinary operations after taxation	209,680	-55.71	473,390	-32.57	702,085	14,468	1349
Extraordinary items	0	-100	33,307	45.44	22,901	-4,539	0
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	209,680	-58.62	506,697	-30.11	724,986	9,939	2009
other information
Dividends	-	-	-	-	-	183,441	-
Director remuneration	67,563	-4.71	70,901	-	-	119,612	-43.51
Employee costs	143,726	30.46	110,173	29.21	85,269	123,116	16.74
Wages and salary	106,593	27.60	83,534	17.32	71,203	103,328	3.16
Employee pension costs	-	-	-	-	-	14,092	-
Social security contributions	27,129	23.30	22,002	65.53	13,292	25,949	4.55
Other employee costs	10,005	115	4,637	499	774	4,439	125
Amortization and depreciation	64,497	-26.29	87,506	3.83	84,279	16,225	297

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	1,526	-100
Tangible fixed assets	828,594	-9.43	914,891	-5.39	966,979	171,106	384
Land & building	647,168	-4.27	676,022	-4.96	711,338	346,148	86.96
Plant & machinery	2,022	332	468	-54.82	1,036	21,689	-90.68
Furniture & Vehicles	22,112	-61.39	57,271	-26.59	78,016	16,2795,083	35.83
Leasing & Other Similar Rights	-	-	-	-	-	68,69530,812	-
Other tangible assets	157,292	-13.16	181,130	2.57	176,589	8,171	1825
Financial fixed assets	124	0	124	0.30	124	207,252	-99
Total fixed assets	828,718	-9.43	915,016	-5.39	967,103	309,276	167
Inventories	6,858,132	-19.51	8,520,106	-36.10	13,332,971	2,835,960	141
Raw materials & consumables	-	-	-	-	-	7,494,338	-
Work in progress	0	-	0	-	0	2,621	-100
Finished goods	6,858,132	-19.51	8,520,106	-36.10	13,332,971	1,752,244	291
Other stocks	0	-	0	-	0	584,965	-100
Trade debtors	31,976,902	0.49	31,820,129	20.67	26,368,734	3,774,685	747
Cash	115,575	-85.54	799,400	-79.14	3,832,453	212,418	-45.59
other amounts receivable	507,062	396	102,059	330	23,719	175,481	188
Miscellaneous current assets	315,808	-2.46	323,776	3.45	312,988	15,090	1992
Total current assets	39,773,480	-4.31	41,565,470	-5.25	43,870,865	6,571,655	505
Total Assets	40,602,198	-4.42	42,480,486	-5.26	44,837,968	6,850,6011,351,303	492
current liabilities
Trade creditors	6,249,507	-26.27	8,476,230	-19.51	10,530,340	2,854,960	118
Short term group loans	-	-	-	-	-	-	-
Financial debts	13,934,502	2.19	13,635,614	-5.65	14,451,424	3,871,982167,791	259
Current portion of long term debt	84,247	4.80	80,390	4.65	76,817	110,21814,379	-23.56
Amounts Payable for Taxes, Remuneration & Social Security	25,192	5.91	23,786	8.14	21,997	8,714 -	-23.77
Miscellaneous current liabilities	51,506	37.71	37,402	-52.63	78,966	-82.82	- -
Total current liabilities	20,344,955	-8.58	22,253,423	-11.55	25,159,544	4,903,950	314
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	353	- -
Deffered taxes	-	-	-	-	-	32,23815,445	-
Provisions for Liabilities & Charges	0	-	0	-	0	2,408 0	-100
Other long term liabilities	0	-	0	-	0	124,749	-100
Total long term debts	4,511,109	-3.83	4,690,609	0.90	4,648,668	505,290	792
shareholders equity
Issued share capital	14,700,000	0	14,700,000	0	14,700,000	816,719	1699
Share premium account	-	-	-	-	-	117,681	-
Reserves	1,046,133	25.07	836,453	153	329,756	593,076	76.39
Revaluation reserve	-	-	-	-	-	847,347	-
Total shareholders equity	15,746,133	1.35	15,536,453	3.37	15,029,756	1,435,384	996
Working capital	19,428,524	0.60	19,312,047	3.21	18,711,321	1,667,705	1064
Cashflow	274,177	-53.86	594,203	-26.58	809,265	23,281	1077
Net worth	15,746,133	1.35	15,536,453	3.37	15,029,756	1,432,274	999

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	-24,00	1.42
Return on capital employed	1.04	-55.56	2.34	-37.10	3.72	32,00	-96.75
Return on total assets employed	0.52	-53.15	1.11	-31.90	1.63	-224,00	0.23
Return on net assets employed	1.33	-56.39	3.05	-37.37	4.87	22,00	-93.95
Sales / net working capital	3.13	9.44	2.86	24.35	2.30	46,00	-99
Stock turnover ratio	11.28	-26.94	15.44	-50.26	31.04	117,00	-90.36
Debtor days	191.93	-8.79	210.42	-6.09	224.07	138,00	39.08
Creditor days	38.14	-34.07	57.85	-38.66	94.31	115,00	-66.83
short term stability
Current ratio	1.95	4.28	1.87	7.47	1.74	7,00	-75.62
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	8,00	-83.88
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	117.68	-0.67	118.47	-7.15	127.59	382,00	-69.19
Equity in percentage	38.78	6.04	36.57	9.10	33.52	-3.506,00	1.11
Total debt ratio	1.58	-8.67	1.73	-12.63	1.98	10,00	-84.20

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	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	158.70
Industry average day sales outstanding	114.97

Industry quartile analysis

Payment expectations
Company result	38.14
Lower	132.13
Median	82.62
Upper	44.36

Day sales outstanding
Company result	191.93
Lower	112.04
Median	57.84
Upper	28.11

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

NSSO details

Business number

446464868

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details

Name	CHETANKUMAR AMRATLAL SHAH
Position	Director
Start Date	05/10/2012
Street	3 FLAMINGOLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	CHETANKUMAR AMRATLAL SHAH
Position	Chairman of the Board
Start Date	31/05/2000
Street	3 FLAMINGOLAAN ANTWERPEN
Post code	2610
Country	Belgium

Former director details

Name	CHETANKUMAR SHAN AMRATLAL
Position	Director
Start Date	28/05/2010
End Date	31/12/2011
Street	3 FLAMINGOSTRAAT ANTWERPEN
Post code	2610
Country	Belgium

Name	CHETANKUMAR AMRATLAL SHAH
Position	Managing Director
Start Date	25/07/2012
End Date	26/05/2012
Street	3 FLAMINGOLAAN ANTWERPEN
Post code	2610
Country	Belgium

Name	MILAN SHAH AMRATLAL
Position	Director
Start Date	03/07/2011
End Date	31/12/2011
Street	27 CHATHAMROAD OCEAN VIEW COAST
Post code	TST
Country	Hong Kong

Name	MILAN AMRATLAL SHAH
Position	Director
Start Date	25/07/2012
End Date	28/05/2012
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.60.70
UK Pound	1	Rs.100.11
Euro	1	Rs.83.81

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.