MIRA INFORM REPORT

Report Date :

14.12.2013

IDENTIFICATION DETAILS

Name :	SHEETAL EUROPE BVBA
Registered Office :	Hoveniersstraat 30, 2018 Antwerp
Country :	Belgium
Financials (as on) :	31.03.2013
Date of Incorporation :	17.12.2004
Com. Reg. No.:	870784539
Legal Form :	Private Limited Company
Line of Business :	Wholesaler 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 :	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 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

REGISTERED NAME & COMPANY SUMMARY

Business number	870784539
Company name	SHEETAL EUROPE BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERP
Number of staff	1
Date of establishment	17/12/2004
Telephone number	0483048211
Fax number	032299543

DIRECTORS/MANAGEMENT

Current director details

Name	JITENDRA ODHAVAJI BAGADIA
Position	Principal Manager
Start Date	12/10/2010
Street	30 HOVENIERSSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	SHEETAL GOLDEN WORKS (INDIA) PRIVATE LIMITED
Position	Non Statutory Partner
Start Date	17/12/2004
Country	India

Name	SHEETAL GOLDEN WORKS PRIVATE LIMITED
Position	Principal Manager
Start Date	12/10/2010
Street	0 1001 PRASAD CHAMBERS, OPERA HOUSE
Post code	400004
Country	India

Name	HITESH KAKADIYA
Position	Principal Manager
Start Date	12/09/2012
Country	India

Name	GOVINDBHAI KAKADIA
Position	Legal Representative
Start Date	17/12/2004

Former director details

Name	JITENDRA ODHAVAJI BAGADIA
Position	Non Statutory Partner
Start Date	17/12/2004
End Date	01/06/2013
Street	30 HOVENIERSSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

NEGATIVE INFORMATION

Court data summary

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

Business number	870784539	Company name	SHEETAL EUROPE BVBA
Fax number	032299543	Date founded	17/12/2004
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/03/2013
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0870.784.539
Belgian Bullettin of Acts Publications	moniteur belge

NSSO details

Business number

870784539

Bankruptcy details

There is no bankruptcy data against this company

Court data

There is no data for this company

SHARE & SHARE CAPITAL INFORMATION

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	26.51
Industry average payment expectation days	166.75	Industry average day sales outstanding	118.14
Day sales outstanding	64.76

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones

Payment expectations

Payment expectation days	26.51
Day sales outstanding	64.76

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	166.75
Industry average day sales outstanding	118.14

Industry quartile analysis

Payment expectations
Company result	26.51
Lower	134.36
Median	84.93
Upper	44.86
Day sales outstanding
Company result	64.76
Lower	112.73
Median	58.56
Upper	28.58

GROUP STRUCTURE & AFFILIATED COMPANIES

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/03/2013	97,046,731	481,982	5,767,785	6,510,854
31/03/2012	68,566,895	719,474	2,966,889	3,698,754
31/03/2011	17,846,603	129,367	913,453	3,018,777

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/03/2013	22,260,758	1	4,017,030	338,314
31/03/2012	24,319,580	1	2,358,405	501,884
31/03/2011	6,002,826	0	809,485	86,839

Profit & loss

Annual accounts	31-03-2013	%	31-03-2012	%	31-03-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	97,046,731	41.54	68,566,895	284	17,846,603	115,261,487	-15.80
Total operating expenses	95,896,478	41.88	67,589,016	281	17,703,276	113,785,535	-15.72
Operating result	1,150,253	17.63	977,879	582	143,327	909,368	26.49
Total financial income	805	-37.98	1,298	64800	2	421,880	-99
Total financial expenses	669,076	157	259,704	1759	13,963	1,083,755	-38.26
Results on ordinary operations before taxation	481,982	-33.01	719,474	456	129,367	210,268	129
Taxation	151,386	-31.68	221,575	414	43,086	42,386	257
Results on ordinary operations after taxation	330,596	-33.60	497,899	477	86,281	177,855	85.88
Extraordinary items	0	-	0	-	0	11,121	-100
Other appropriations	0	-	0	-	0	-	-
Net result	330,596	-33.60	497,899	477	86,281	188,976	74.94
other information
Dividends	-	-	-	-	-	-	-
Director remuneration	-	-	-	-	-	109,381	-
Employee costs	62,699	20.05	52,227	1142	4,204	172,447	-63.64
Wages and salary	49,814	13.92	43,726	1020	3,901	147,348	-66.19
Employee pension costs	-	-	-	-	-	-	-
Social security contributions	11,741	51.15	7,768	25793	30	35,701	-67.11
Other employee costs	1,145	56.21	733	167	274	3,907	-70.69
Amortization and depreciation	7,718	93.68	3,985	614	558	50,988	-84.86

Balance sheet

Annual accounts	31-03-2013	%	31-03-2012	%	31-03-2011	Industry average 2013	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	1,367	-100
Tangible fixed assets	37,831	124	16,835	164	6,376	502,085	-92.47
Land & building	-	-	-	-	-	1,173,922	-
Plant & machinery	-	-	-	-	-	69,511	-
Furniture & Vehicles	37,831	124	16,835	164	6,376	23,388 6,882	61.75
Leasing & Other Similar Rights	-	-	-	-	-	204,658 20,725	-
Other tangible assets	0	-	0	-	0	11,827	-100
Financial fixed assets	-	-	-	-	-	69,580	-
Total fixed assets	37,831	124	16,835	164	6,376	492,668	-92.32
Inventories	803,702	-50.11	1,611,009	-	-	14,994,792	-94.64
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	803,702	-50.11	1,611,009	-	0	11,840,949	-93.21
Other stocks	0	-	0	-	0	507,703	-100
Trade debtors	17,217,806	-23.63	22,544,040	277	5,975,844	24,734,146	-30.39
Cash	4,168,745	2798	143,842	649	19,186	1,160,647	259
other amounts receivable	32,673	747	3,855	171	1,420	654,238	-95.01
Miscellaneous current assets	1	100	-1	-	0	84,588	-99
Total current assets	22,222,927	-8.56	24,302,745	305	5,996,450	38,982,271	-42.99
Total Assets	22,260,758	-8.47	24,319,580	305	6,002,826	39,431,468 7,491,173	-43.55
current liabilities
Trade creditors	6,965,613	4.66	6,655,187	271	1,793,723	13,982,887	-50.18
Short term group loans	-	-	-	-	-	-	-
Financial debts	8,531,333	-37.68	13,688,951	1100	1,140,363	23,767,856 8,774,844	-64.11
Current portion of long term debt	-	-	-	-	-	80,575 5,888	-
Amounts Payable for Taxes, Remuneration & Social Security	155,293	-34.74	237,958	445	43,587	33,400 -	125
Miscellaneous current liabilities	59,834	173	21,895	-	0	-82.49	- -
Total current liabilities	15,712,073	-23.74	20,603,991	591	2,977,673	27,851,125	-43.59
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	780,900	4.30	748,700	6.36	703,900	-83.56	- -
Deffered taxes	-	-	-	-	-	- -	-
Provisions for Liabilities & Charges	0	-	0	-	0	5,323 0	-100
Other long term liabilities	0	-	0	-100	1,407,800	463,685	-100
Total long term debts	780,900	4.30	748,700	-64.55	2,111,700	3,123,150	-75.00
shareholders equity
Issued share capital	4,017,030	70.33	2,358,405	191	809,485	6,977,762	-42.43
Share premium account	785,505	-	-	-	-	538,244	45.94
Reserves	965,250	58.63	608,484	485	103,968	1,244,033	-22.41
Revaluation reserve	-	-	-	-	-	1,731,760	-
Total shareholders equity	5,767,785	94.41	2,966,889	224	913,453	8,457,193	-31.80
Working capital	6,510,854	76.03	3,698,754	22.52	3,018,777	11,131,146	-41.51
Cashflow	338,314	-32.59	501,884	477	86,839	229,466	47.44
Net worth	5,767,785	94.41	2,966,889	224	913,453	8,455,826	-31.79

Ratio analysis

Annual accounts	31-03-2013	change(%)	31-03-2012	change(%)	31-03-2011	Industry average 2013	%
Trading performance
Profit Before Tax	0.50	-52.38	1.05	45.83	0.72	33,00	-98.48
Return on capital employed	7.36	-61.98	19.36	352	4.28	7,00	5.14
Return on total assets employed	2.17	-26.69	2.96	37.04	2.16	1,00	117
Return on net assets employed	8.36	-65.53	24.25	71.26	14.16	6,00	39.33
Sales / net working capital	14.91	-19.58	18.54	213	5.91	26,00	-99
Stock turnover ratio	0.83	-64.68	2.35	-	-	15,00	-94.47
Debtor days	64.76	-46.04	120.01	-1.81	122.22	136,00	-52.38
Creditor days	26.51	-26.24	35.94	-2.81	36.98	90,00	-70.54
short term stability
Current ratio	1.41	19.49	1.18	-41.29	2.01	10,00	-84.33
Liquidity ratio / acid ratio	1.36	23.64	1.10	-45.27	2.01	8,00	-83.00
Current debt ratio	2.72	-60.81	6.94	112	3.26	9,00	-69.78
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	161.45	-66.82	486.63	141	201.90	250,00	-35.42
Equity in percentage	25.91	112	12.20	-19.84	15.22	16,00	61.94
Total debt ratio	2.86	-60.28	7.20	29.26	5.57	10,00	-71.40

ADDITIONAL INFORMATION

Social Balance Sheet Details

Social Balance Sheet	Total
During the reporting year ended 31-03-2013
Full-time Employees	1
Part-time Employees	-
Total Fte Employees	1
Number of hours worked
Full-time Employees	1,763
Part-time Employees	-
Total	1,763
Personnel Charges
Full-time Employees	47,419
Part-time Employees	-
Total	47,419
Benefits In Addition To Wages	195
During the previous reporting year
Average number employees in Fte	1
Actual working hours	1,531
Personnel Charges	34,018
Benefits In Addition To Wages	-

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	1	-	1
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	-	-	-
Higher education (non university)	-	-	-
Higher education (university)	-	-	-
Women	Full-Time	Part-Time	Total Fte
Primary education	-	-	-
Secondary education	-	-	-
Higher education (non university)	1	-	1
Higher education (university)	-	-	-

Working Category	Full-Time	Part-Time	Total Fte
Management	-	-	-
White collar worker	1	-	1
Blue collar worker	-	-	-
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	1 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	22/03/2013
Event Details	Toekenning van de 383 nieuwe aandelen aan Sheetal Manufacturing Company Private Limited.

NOTES & COMMENTS

Commentary

The business was established over 8 years ago.
The business has 1 employees.
The business has been at the address for over 8 years.
Net Worth increased by 94% during the latest trading period.
Pre-tax profits decreased by 33% compared to the previous trading period.
The business saw an increase in their Cash Balance of 2798% during the latest trading period.
Turnover in the latest trading period increased 41% on the previous trading period.

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.62.13
UK Pound	1	Rs.101.53
Euro	1	Rs.85.41

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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