MIRA INFORM REPORT

Report Date :

12.05.2014

IDENTIFICATION DETAILS

Name :	SHAH IMEXPORT BVBA
Registered Office :	Hoveniersstraat 53 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	06.01.1989
Com. Reg. No.:	436310354
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees	1

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
Belgium	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 436310354

Company name SHAH IMEXPORT BVBA

Address HOVENIERSSTRAAT

53

2018 ANTWERPEN

Number of staff 1

Date of establishment 06/01/1989

Telephone number 032335816

Fax number 032263035

Commentary

The business was established over 25 years ago.

The business has 1 employees.

The business has been at the address for over 11 years.

A 25% growth in Total Assets occurred during the latest trading period.

Pre-tax profits decreased by 24% compared to the previous trading period.

The business saw an increase in their Cash Balance of 53% during the latest trading period.

Accounts

DATE OF LATEST ACCOUNTS	TURNOVER	PROFIT BEFORE TAX	NET WORTH	WORKING CAPITAL
31/12/2012	32,920,236	123,234	1,178,272	3,792,332
31/12/2011	35,569,869	163,294	1,092,453	2,987,746

Accounts

DATE OF LATEST ACCOUNTS	BALANCE TOTAL	NUMBER OF EMPLOYEES	CAPITAL	CASHFLOW
31/12/2012	12,456,686	1	890,000	110,247
31/12/2011	9,915,622	1	890,000	133,183
31/12/2010	5,005,797	1	890,000	44,842

Payment expectations

Past payments		Payment expectation days	59.01
Industry average payment expectation days	164.15	Industry average day sales outstanding	119.90
Day sales outstanding	109.96
Court data summary
BANKRUPTCY DETAILS
Court action type	no

Company information

Business number	436310354	Company name	SHAHIMEXPORT BVBA
Fax number	032263035	Date founded	06/01/1989
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46761	liable for VAT
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0436.310.354
Belgian Bullettin of Acts Publications	moniteur belge
Contractor details			Check Article 30 Bis
Registered contractor number	-
Contractor description	-
Date struck off register

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-12-2012
Full-time Employees	1
Part-time Employees	-
Total Fte Employees	1
Number of hours worked
Full-time Employees	1,695
Part-time Employees	-
Total	1,695
Personnel Charges
Full-time Employees	31,449
Part-time Employees	-
Total	31,449
Benefits In Addition To Wages	-
During the previous reporting year
Average number employees in Fte	1
Actual working hours	2,394
Personnel Charges	65,385
Benefits In Addition To Wages	-

Personnel (NSSO classification)

Code	-
Description	FROM 1 TO 4 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	32,920,236	-7.45	35,569,869	103	17,505,138	46,537,630	29.26
Total operating expenses	32,577,667	-7.52	35,225,085	102	17,434,648	46,145,645	29.40
Operating result	342,570	-0.64	344,784	389	70,490	147,590	132
Total financial income	3,076	-	-	-	43,089	97,743	96.85
Total financial expenses	222,413	22.55	181,490	161	69,375	204,361	8.83
Results on ordinary operations before taxation	123,234	24.53	163,294	269	44,204	32,848	275
Taxation	37,415	25.73	50,377	320	11,979	20,918	78.86
Results on ordinary operations after taxation	85,819	24.00	112,917	250	32,225	18,016	376
Extraordinary items	0	-	0	-	0	-4,395	0
Other appropriations	0.00	-	0.00	-	0	-	-
Net result	85,819	24.00	112,917	250	32,225	13,640	529
OTHER INFORMATION
Dividends	-	-	-	-	-	172,177	-
Director remuneration	-	-	-	-	-	114,302	-
Employee costs	19,221	70.60	65,385	48.84	43,930	125,948	84.74
Wages and salary	21,690	56.50	49,858	39.10	35,842	105,678	79.48
Employee pension costs	-	-	-	-	-	14,428	-
Social security contributions	3,864	74.70	15,277	105	7,424	26,585	85.46
Other employee costs	-6,333	-2633	250	62.35	664	4,360	-245
Amortization and depreciation	24,428	20.54	20,266	60.62	12,617	17,895	36.51

balance sheet

Annual accounts	31-12-2012	%	31-122011	%	31-122010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,553	-100
Tangible fixed assets	222,388	-0.73	224,020	47.02	152,379	185,189	20.09
Land & building	158,689	5.30	150,703	-0.23	151,057	362,988	56.28
Plant & machinery	12,190	21.57	10,027	658	1,322	22,664	46.21
Furniture & Vehicles	51,509	18.62	63,291	-	-	17,327 5,364	197
Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
Other tangible assets	0	-	0	-	0	7,634	-100
Financial fixed assets	610	0	610	0	610	307,703	-99
Total fixed assets	222,998	-0.73	224,630	46.83	152,989	396,856	43.81
Inventories	2,246,755	35.75	3,497,108	238	1,034,163	3,093,934	27.38
Raw materials & consumables	-	-	-	-	-	7,209,884	-
Work in progress	0	-	0	-	0	2,399	-100
Finished goods	2,246,755	35.75	3,497,108	238	1,034,163	1,982,203	13.35
Other stocks	0	-	0	-	0	571,885	-100
Trade debtors	9,917,202	61.71	6,132,540	78.52	3,435,248	4,167,122	137
Cash	2,938	53.89	1,909	-99	331,325	226,208	98.70
other amounts receivable	62,608	11.26	56,272	9.31	51,479	185,906	66.32
Miscellaneous current assets	4,185	32.35	3,162	433	593	18,028	76.78
Total current assets	12,233,688	26.24	9,690,991	99	4,852,808	7,215,183	69.55
Total Assets	12,456,686	25.63	9,915,622	98.08	5,005,797	7,579,247 1,446,080	64.35
CURRENT LIABILITIES
Trade creditors	5,267,221	13.00	6,054,401	163	2,298,405	3,040,360	73.24
Short term group loans	-	-	-	-	-	-	-
Financial debts	3,009,279	541	469,381	32.04	355,490	4,261,350 189,666	29.38
Current portion of long term debt	12,480	4.75	11,914	-	-	110,204 15,373	88.68
Amounts Payable for Taxes, Remuneration & Social Security	63,041	39.99	45,032	150	17,966	9,709 -	85.64
Miscellaneous current liabilities	89,336	27.08	122,517	10.97	137,619	-69.93	- -
Total current liabilities	8,441,356	25.93	6,703,245	138	2,809,480	5,342,128	58.01
LONG TERM DEBTS AND LIABILITIES
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	2,837,058	33.83	2,119,924	74.22	1,216,781	157	- -
Deffered taxes	-	-	-	-	-	37,626 26,358	-
Provisions for Liabilities & Charges	0	-	0	-	0	3,184 0	-100
Other long term liabilities	0	-	0	-	0	128,672	-100
Total long term debts	2,837,058	33.83	2,119,924	74.22	1,216,781	559,214	407
SHAREHOLDERS EQUITY
Issued share capital	890,000	0	890,000	0	890,000	943,974	-5.72
Share premium account	-	-	-	-	-	109,362	-
Reserves	288,272	42.39	202,453	126	89,536	690,619	58.26
Revaluation reserve	-	-	-	-	-	939,206	-
Total shareholders equity	1,178,272	7.86	1,092,453	11.53	979,536	1,664,274	29.20
Working capital	3,792,332	26.93	2,987,746	46.22	2,043,328	1,873,055	102
Cashflow	110,247	17.22	133,183	197	44,842	28,425	287
Net worth	1,178,272	7.86	1,092,453	11.53	979,536	1,661,040	29.06

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
TRADING PERFORMANCE
Profit Before Tax	0.37	-19.57	0.46	84.00	0.25	-25,00	1.48
Return on capital employed	3.07	-39.57	5.08	152	2.01	29,00	-89.41
Return on total assets employed	0.99	-40.0	1.65	87.50	0.88	-201,00	0.49
Return on net assets employed	10.46	-30.03	14.95	231	4.51	19,00	-44.95
Sales / net working capital	8.68	-27.12	11.91	38.97	8.57	45,00	-99
Stock turnover ratio	6.82	-30.62	9.83	66.33	5.91	111,00	-93.86
Debtor days	109.96	74.73	62.93	-12.15	71.63	133,00	-17.32
Creditor days	59.01	-5.95	62.74	30.38	48.12	122,00	-51.63
SHORT TERM STABILITY
Current ratio	1.45	0	1.45	-16.18	1.73	7,00	-83.89
Liquidity ratio / acid ratio	1.18	28.26	0.92	-32.35	1.36	4,00	-70.50
Current debt ratio	7.16	16.61	6.14	113	2.87	9,00	-20.44
Liquidity ratio reprocessed	-	-	-	-	-	-	-
LONG TERM STABILITY
Gearing	497.24	108	238.11	48.35	160.51	360,00	38.12
Equity in percentage	9.46	-14.16	11.02	-43.69	19.57	-3.211,00	0.29
Total debt ratio	9.57	18.44	8.08	96.59	4.11	10,00	-4.30

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Payment Information

Suspension of payments / moratorium history

Amount	-
Details	-
Payment expectations
Payment expectation days	59.01
Day sales outstanding	109.96
Industry comparison
Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	164.15
Industry average day sales outstanding	119.90
Industry quartile analysis
Payment expectations
Company result	59.01
Lower	134.34
Median	84.60
Upper	45.29

Day sales outstanding
Company result	109.96
Lower	112.48
Median	58.56
Upper	28.09

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Director details

Name	TUSHAR NAVINCHANDRA SHAH
Position	Principal Manager
Start Date	01/01/2012
Street	10 ELSDONKLAAN ANTWERPEN
Post code	2610
Country	Belgium

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.60.05
UK Pound	1	Rs.101.65
Euro	1	Rs.83.07

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIS

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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