MIRA INFORM REPORT

Report Date :

15.05.2014

IDENTIFICATION DETAILS

Name :	DIABEX NV
Registered Office :	Hoveniersstraat 2 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	18.03.1997
Com. Reg. No.:	460287962
Legal Form :	Public Limited Liability Company
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	01

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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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 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	460287962
Company name	DIABEX NV
Address	HOVENIERSSTRAAT 2
	2018 ANTWERPEN
Safe number	BE00367899
Number of staff	1
Date of establishment	18/03/1997
Telephone number	032014878
Fax number	032014878

Ultimate holding company

Company name	Company Number	View linked companies from outside this company's group structure
-	-	No linked companies have been found.

Commentary

The business was established over 16 years ago.

The business has 1 employees.

The business has been at the address for over 2 years.

The credit rating for this business has increased from 79 to 91.

The credit limit for this business has increased from €2200000 to €2500000.

Operating Result in the latest trading period increased 70% on the previous trading period.

A 23% growth in Total Assets occurred during the latest trading period.

Pre-tax profits increased by 614% compared to the previous trading period.

The business saw a decrease in their Cash Balance of 95% during the latest trading period.

Turnover in the latest trading period decreased 24% on the previous trading period.

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	94,787,654	410,851	9,654,506	12,711,501
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

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	49,208,751	1	8,560,410	485,164
31/12/2011	39,980,721	2	8,560,410	322,297
31/12/2010	38,265,352	2	8,560,410	236,041

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	92.46
Industry average payment expectation days	166.06	Industry average day sales outstanding	121.08
Day sales outstanding	106.21

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	31/12/2012
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 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		2
Part-time Employees		1
Total Fte Employees		2
Number of hours worked
Full-time Employees		3,124
Part-time Employees		521
Total		3,645
Personnel Charges
Full-time Employees		70,963
Part-time Employees		8,693
Total		79,656
Benefits In Addition To Wages		-
During the previous reporting year
Average number employees in Fte		2
Actual working hours		3,782
Personnel Charges		78,666
Benefits In Addition To Wages		-
Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	1	2	2
Limited Duration Contracts	-	-	-
Contracts For Specific Work	-	-	-
Contracts Regarding Substitution	-	-	-

Gender and Education Level
Men	Full-Time	Part-Time	Total Fte
Primary education	-	1	0
Secondairy education	-	-	-
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondairy education	1	1	1
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	1	1	2
Blue collar worker	-	1	0
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

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.

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	94,787,654	-24.53	125,599,260	-8.95	137,944,504	47,072,785	101
	Total operating expenses	93,854,938	-24.95	125,051,634	-8.90	137,261,078	46,675,644	101
	Operating result	932,717	70.32	547,625	-19.87	683,425	150,098	521
	Total financial income	42,113	33.12	31,635	940	3,039	98,032	-57.04
	Total financial expenses	563,979	8.09	521,767	1.56	513,729	206,380	173
	Results on ordinary operations before taxation	410,851	614	57,493	-66.72	172,735	33,205	1137
	Taxation	562	199	188	-15.93	223	21,121	-97.34
	Results on ordinary operations after taxation	410,289	615	57,305	-66.78	172,512	18,168	2158
	Extraordinary items	-4,548	-102	216,049	1273	15,726	-4,626	98.31
	Other appropriations	0.00	-	0.00	-	0.00	-	-
	Net result	405,741	48.43	273,354	45.22	188,237	13,561	2891
	other information
	Dividends	-	-	-	-	-	172,177	-
	Director remuneration	-	-	84,452	5.08	80,371	114,526	-
	Employee costs	79,656	1.26	78,666	7.72	73,031	128,069	-37.80
	Wages and salary	60,683	-1.57	61,649	3.31	59,675	107,259	-43.42
	Employee pension costs	-	-	-	-	-	14,428	-
	Social security contributions	11,676	5.31	11,088	37.55	8,061	27,017	-56.78
	Other employee costs	7,298	23.08	5,929	11.96	5,296	4,448	64.07
	Amortization and depreciation	79,424	62.28	48,942	2.38	47,803	17,817	345
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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	807	-	2,420	-	0	1,592	-49.33
	Tangible fixed assets	1,118,298	5.03	1,064,717	147	430,252	184,711	505
	Land & building	618,090	2.24	604,530	61.59	374,120	359,116	72.11
	Plant & machinery	403,330	14.29	352,912	3571	9,612	22,996	1653
	Furniture & Vehicles	96,879	-9.69	107,276	130	46,519	17,490 5,418	453
	Leasing & Other Similar Rights	-	-	-	-	-	142,153 32,369	-
	Other tangible assets	0	-	0	-	0	7,817	-100
	Financial fixed assets	347	-94.53	6,347	6419	97	292,396	-99
	Total fixed assets	1,119,452	4.28	1,073,484	149	430,349	385,273	190
	Inventories	19,972,558	49.88	13,325,981	43.33	9,297,461	3,117,056	540
	Raw materials & consumables	-	-	-	-	-	7,209,884	-
	Work in progress	0	-	0	-	0	2,461	-100
	Finished goods	19,972,558	49.88	13,325,981	43.33	9,297,461	1,998,768	899
	Other stocks	0	-	0	-	0	573,758	-100
	Trade debtors	27,580,921	12.68	24,477,129	-12.98	28,128,310	4,210,663	555
	Cash	29,591	-95.30	629,241	2249	26,786	224,602	-86.83
	other amounts receivable	444,428	9.25	406,809	27.05	320,205	184,252	141
	Miscellaneous current assets	61,799	-9.22	68,076	9.38	62,241	17,964	244
	Total current assets	48,089,298	23.60	38,907,236	2.83	37,835,003	7,275,521	560
	Total Assets	49,208,751	23.08	39,980,721	4.48	38,265,352	7,629,895 1,453,566	544
	current liabilities
	Trade creditors	23,773,704	47.76	16,089,741	9.33	14,717,168	3,074,610	673
	Short term group loans	-	-	-	-	-	-	-
	Financial debts	11,255,244	12.82	9,975,979	-1.16	10,093,181	4,276,454 193,728	163
	Current portion of long term debt	27,445	-24.69	36,442	73.15	21,047	108,524 15,189	-74.71
	Amounts Payable for Taxes, Remuneration & Social Security	25,974	25.34	20,722	7.62	19,254	9,423 -	-23.96
	Miscellaneous current liabilities	295,431	-2.35	302,538	3.79	291,498	-1.98	- -
	Total current liabilities	35,377,797	33.88	26,425,421	5.10	25,142,147	5,397,152	555
	Long term debts and liabilities
	Long term group loans	-	-	-	-	-	-	- -
	Other long term loans	4,175,640	-3.02	4,305,727	3.83	4,146,987	276	- -
	Deffered taxes	-	-	-	-	-	37,626 26,358	-
	Provisions for Liabilities & Charges	0	-	0	-	0	3,194 0	-100
	Other long term liabilities	0	-	0	-	0	131,647	-100
	Total long term debts	4,175,640	-3.02	4,305,727	3.83	4,146,987	569,236	633
	shareholders equity
	Issued share capital	8,560,410	0	8,560,410	0	8,560,410	909,382	841
	Share premium account	-	-	-	-	-	109,362	-
	Reserves	1,094,903	58.87	689,162	65.74	415,808	709,736	54.27
	Revaluation reserve	-	-	-	-	-	968,672	-
	Total shareholders equity	9,655,313	4.39	9,249,572	3.05	8,976,218	1,649,404	485
	Working capital	12,711,501	1.84	12,481,815	-1.66	12,692,856	1,878,369	576
	Cashflow	485,164	50.53	322,297	36.54	236,041	28,258	1616
	Net worth	9,654,506	4.41	9,247,152	3.02	8,976,218	1,646,103	486
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ratio analysis

	Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
	Trading performance
	Profit Before Tax	0.43	760	0.05	-61.54	0.13	-26,00	1.65
	Return on capital employed	2.97	607	0.42	-68.18	1.32	30,00	-90.10
	Return on total assets employed	0.83	492	0.14	-68.89	0.45	-211,00	0.39
	Return on net assets employed	4.26	587	0.62	-67.71	1.92	20,00	-78.70
	Sales / net working capital	7.46	-25.84	10.06	-7.45	10.87	45,00	-99
	Stock turnover ratio	21.07	98.59	10.61	57.42	6.74	113,00	-81.35
	Debtor days	106.21	49.32	71.13	-4.43	74.43	134,00	-20.74
	Creditor days	92.46	96.89	46.96	19.98	39.14	122,00	-24.21
	short term stability
	Current ratio	1.36	-7.48	1.47	-2.00	1.50	7,00	-84.89
	Liquidity ratio / acid ratio	0.79	-18.56	0.97	-14.91	1.14	4,00	-80.25
	Current debt ratio	3.66	27.97	2.86	2.14	2.80	9,00	-59.33
	Liquidity ratio reprocessed	-	-	-	-	-	-	-
	long term stability
	Gearing	160.10	3.42	154.80	-2.57	158.88	369,00	-56.61
	Equity in percentage	19.62	-15.21	23.14	-1.36	23.46	-3.294,00	0.60
	Total debt ratio	4.10	23.49	3.32	1.84	3.26	11,00	-62.73

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 expectations

Payment expectation days	92.46
Day sales outstanding	106.21

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	166.06
Industry average day sales outstanding	121.08

Industry quartile analysis

Payment expectations
Company result	92.46
Lower	134.36
Median	84.93
Upper	45.29
Day sales outstanding
Company result	106.21
Lower	113.11
Median	59.77
Upper	28.61

Company result	92.46
Lower	134.36
Median	84.93
Upper	45.29

Company result	106.21
Lower	113.11
Median	59.77
Upper	28.61

Summary

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

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	-

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

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

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.59.88
UK Pound	1	Rs.100.98
Euro	1	Rs.82.40

INFORMATION DETAILS

Report Prepared by :

NNA

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.