MIRA INFORM REPORT

Report Date :

07.08.2010

IDENTIFICATION DETAILS

Name :	MICHAEL HILL JEWELLER (AUSTRALIA) PTY LTD
Formerly Known As :	HALTROSE PTY LTD
Registered Office :	7 Smallwood Place Murarrie Queensland QLD 4172
Country :	Australia
Financials (as on) :	31.12.2009
Date of Incorporation :	16.10.1986
Com. Reg. No.:	ACN 003181333
Legal Form :	Australian Proprietary Company
Line of Business :	Manufacture, warehouse and sale of precious jewellery through retail outlets.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Australia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Summary

Subject Name:	MICHAEL HILL JEWELLER (AUSTRALIA) PTY LTD
Address:	7 Smallwood Place
Town:	Murarrie
State/province:	Queensland
Zip/postal code:	QLD 4172
Country:	Australia
Telephone:	+61 (7) 33990200
Fax:	+61 (7) 33990222
Website:	www.michaelhill.com
EXECUTIVE SUMMARY
Date established:	16/10/1986
Legal form:	Australian Proprietary Company
Issued & Paid up	AUD 19,500,000
Sales turnover:	AUD 277,517,000 (Group consolidated 12 months, 31/12/2009)
Main activities:	Retailer of fine jewellery.
Employees:	1,400
CREDIT RISK RATING
Credit Limit	Recommended Limit:		GBP 500,000
REGISTRY DATA
Key Facts
Date established:	16/10/1986
Legal form:	Australian Proprietary Company
Registration no:	ACN 003181333
Registry auth.	Australian Securities & Investments Commission
Fiscal/tax code:	ABN 82003181333
Registry status:	ACN Registered
Previous names:	The Subject formerly operated under the name of HALTROSE PTY LTD and changed to the present style on 21/05/1987.
LEGAL FILINGS
Bankruptcy Filings:	None
Court Judgements:	None
Tax Liens:	None
Other:	None
MANAGEMENT & STAFF
Key Managers
Name:	Michael Robin Parsell
Job Title:	Director
Name:	Richard Michael Hill
Job Title:	Director
Name:	Wayne Kenneth Butler
Job Title:	Company Secretary
Name:	Philip Roy Taylor
Job Title:	Director, Company Secretary
Key Advisors
Auditor:	PRICEWATERHOUSECOOPERS 'riverside Centre' Level 15 123 Eagle Street Brisbane QLD 4001 Appointment Date: 30/10/1991 Australia
Staff
No of employees	1,400
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Michael Robin Parsell
Board function:	Director
Date appointed:	16/09/1987
Address:	19 Masthead Drive Cleveland QLD 4163, Australia
Biography:	Born: 23/05/1959 in Kawakawa New Zealand
Name:	Richard Michael Hill
Board function:	Director
Date appointed:	06/04/1987
Address:	Lakes Hayes Rd Arrowtown New Zealand
Biography:	Born: 23/03/1938 in Whangarei New Zealand
Name:	Wayne Kenneth Butler
Board function:	Company Secretary
Date appointed:	06/04/1987
Address:	20 Kayelene Place, Omokoroa Rd 2 Tauranga New Zealand
Biography:	Born: 19/11/1946 in Auckland New Zealand
Name:	Philip Roy Taylor
Board function:	Director, Company Secretary
Date appointed:	26/06/2009
Address:	12 Ada Street Taringa QLD 4068, Australia
Biography:	Born: 31/12/1958 in Whangarei New Zealand
SHARE CAPITAL
Composition
Number/type:	2,500 Redeemable Preference Shares, 1,386,277 Ordinary Shares
Share value:	AUD 1,000 Redeemable Preference Shares, AUD 12.26 Ordinary Shares
Issued:	AUD 19,500,000
Paid-up:	AUD 19,500,000
Shareholders/Owners
How Listed	Full List
Composition
Name:	MICHAEL HILL JEWELLER LIMITED
% of shares:	100%
Address:	Cameron St Whangarei New Zealand
CORPORATE AFFILIATIONS
Structure
Name:	MICHAEL HILL JEWELLER LIMITED
Affiliation type:	Parent Company
Address:	Cameron St Whangarei New Zealand
Name:	MICHAEL HILL (WHOLESALE) PTY LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	Australia
Name:	MICHAEL HILL FINANCE AUSTRALIA PTY LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	Australia
Name:	MICHAEL HILL MANUFACTURING PTY LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	Australia
Name:	MH FINANCE LIMITED PARTNERSHIP
Affiliation type:	Associate
Address:	Australia
Comments	A list of major affiliated companies is attached to this report.
BANKING & FINANCING
Bankers
Bank name:	ANZ BANKING GROUP (NEW ZEALAND) LIMITED
Relationship type:	Current Account
Bank name:	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Relationship type:	Current Account
Charges & Mortgages	ASC Charge Number: 87890 Charge Status: Registered Date Registered: 24/09/1987 Date Created: 17/09/1987 Organisation Name: ANZ BANKING GROUP (NEW ZEALAND) LIMITED ASC Charge Number: 375856 Charge Status: Satisfied Date Registered: 22/02/1993 Date Created: 23/10/1992 Organisation Name: QUEENSLAND INDUSTRY DEVELOPMENT CORPORATION ASC Charge Number: 392619 Charge Status: Satisfied Date Registered: 08/07/1993 Date Created: 01/07/1993 Organisation Name: QUEENSLAND INDUSTRY DEVELOPMENT CORPORATION ASC Charge Number: 393133 Charge Status: Satisfied Date Registered: 12/07/1993 Date Created: 01/07/1993 Organisation Name: QUEENSLAND INDUSTRY DEVELOPMENT CORPORATION ASC Charge Number: 1420711 Charge Status: Registered Date Registered: 23/02/2007 Date Created: 08/02/2007 Organisation Name: AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Comments	It is generally not the policy of local banks to provide credit status information to non-bona fide applications, and interested parties would be advised to consult first with the Subject if banker's references are required.
FINANCIAL ACCOUNTS
Description
Required to file:	Yes
Source:	Group Consolidated Statements
Presentation:	Attached to this report / Summarised below
Date of accounts:	31-12-2009
Type of accounts:	Full audited
Currency:	Australian Dollar (AUD)
Exchange rate:	USD 1 = AUD 1.12 as of 29-07-2010
Summarised
	31-12-2009			31-12-2008	31-12-2007
Consolidation:	Group consolidated			Group consolidated	Group consolidated
Period:	12 months			12 months	12 months
Sales turnover:	277,517,000			260,581,000	412,679,000
Profit before tax:	15,154,000			11,745,000	20,149,000
Profit after tax:	10,716,000			8,315,000	69,533,000
Non-current assets:	23,352,000			23,053,000	97,087,000
Current assets:	195,564,000			90,971,000	151,459,000
Inventories:	64,024,000			83,879,000	119,105,000
Total assets:	218,916,000			114,024,000	248,546,000
Current liabilities:	75,848,000			52,862,000	37,300,000
Non-current liabilities:	50,273,000			41,082,000	61,762,000
Total liabilities:	126,121,000			93,944,000	99,062,000
Shareholders' equity:	92,795,000			20,080,000	149,484,000
Retained Earnings:	32,296,000			20,080,000	141,008,000
Comments	The above group consolidated figures relate to the Subject's Parent Company, MICHAEL HILL JEWELLER LIMITED.
OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in manufacture, warehouse and sale of precious jewellery through retail outlets.
PROPERTY & ASSETS
Premises	The Subject operates from premises located at the heading address, consisting of a warehouse and administrative offices.
PAYMENTS
Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	L/Cs Credits 30 days net
Sales Terms
Local:	Cash Credits 14-30 days
Exports:	L/Cs Credits 30 days net
Debt Collections / Judgements	No negative information was found.
Payment Experience
Payment Behaviour:	As trade references were not supplied, the Subject's payment track record history CANNOT BE ACCURATELY DETERMINED, but payments are believed to be PROMPT.
INVESTIGATIVE NOTES
Sources:		Interviews and material provided by the Subject Other official and local business sources
ATTACHMENTS
Attachments:		Group consolidated financial statements List of affiliated companies

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.02
UK Pound	1	Rs.73.21
Euro	1	Rs.60.70

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

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.