MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	SHEETAL EUROPE BVBA
Registered Office :	Hoveniersstraat 30 2018 Antwerp
Country :	Belgium
Financials (as on) :	31.03.2012
Date of Incorporation :	17.12.2004
Com. Reg. No.:	870784539
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
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 2.0%, the unemployment rate decreased slightly to 7.7% 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. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 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 arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

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	032052640
Fax number	032299543

DIRECTORS/MANAGEMENT

Current director details

Name	JITENDRA ODHAVAJI BAGADIA
Position	Principal Manager
Start Date	12/10/2010
Street	42 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium
Name	JITENDRA ODHAVAJI BAGADIA
Position	Non Statutory Partner
Start Date	17/12/2004
Street	42 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	SHEETAL GOLDEN WORKS (INDIA) PRIVATE LIMITED
Position	Non Statutory Partner
Start Date	17/12/2004
Street
Post code
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
Street
Post code
Country	India
Name	GOVINDBHAI KAKADIA
Position	Legal Representative
Start Date	17/12/2004

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	31/03/2012
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
Name of defendant	-
Legal form of defendant	-
Date of summons	-

Bankruptcy details

There is no bankruptcy data against this company

Court data

there is no data for this company

SHARE & SHARE CAPITAL INFORMATION

Minority Shareholders

Business number	Company name	%	Date of accounts
-	SHEETAL GOLDEN WORKS (INDIA) PRIVATE LIMITED	-	-

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	35.94
Industry average payment expectation days	176.14	Industry average day sales outstanding	109.67
Day sales outstanding	120.01

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	35.94
Day sales outstanding	120.01

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.14
Industry average day sales outstanding	109.67

Industry quartile analysis

Payment expectations
Company result	35.94
Lower	121.46
Median	73.03
Upper	41.43
Day sales outstanding
Company result	120.01
Lower	106.41
Median	54.84
Upper	24.41

GROUP STRUCTURE & AFFILIATED COMPANIES

Summary

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

Group Structure

No group structure for this company.

FINANCIAL INFORMATION

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
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
31/03/2010	34,225,067	14,272	127,153	127,153

Accounts & ratios

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/03/2012	24,319,580	1	2,358,405	501,884
31/03/2011	6,002,826	0	809,485	86,839
31/03/2010	-	0	100,000	11,159

Trends

Profitability
Liquidity
Net worth

Profit & loss

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		65
Currency	EUR		EUR		EUR
Turnover	68,566,895	284	17,846,603	-47.86	34,225,067	52,550,489	30.48
Total operating expenses	67,589,016	281	17,703,276	-48.22	34,190,668	51,939,054	30.13
Operating result	977,879	582	143,327	316	34,399	390,146	150
Total financial income	1,298	64800	2	-98.18	110	133,068	-99
Total financial expenses	259,704	1759	13,963	-31.00	20,236	345,275	-24.78
Results on ordinary operations before taxation	719,474	456	129,367	806	14,272	167,912	328
Taxation	221,575	414	43,086	1283	3,114	64,493	243
Results on ordinary operations after taxation	497,899	477	86,281	673	11,159	120,111	314
Extraordinary items	0	-	0	-	0	-3,241	0
Other appropriations	0	-	0	-	0.00	-	-
Net result	497,899	477	86,281	673	11,159	116,870	326
other information
Dividends	-	-	-	-	-	0	-
Director remuneration	-	-	-	-	-	98,780	-
Employee costs	52,227	1142	4,204	-	-	247,255	-78.88
Wages and salary	43,726	1020	3,901	-	-	211,437	-79.32
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	7,768	25793	30	-	-	46,831	-83.41
Other employee costs	733	167	274	-	0	8,552	-91.43
Amortization and depreciation	3,985	614	558	-	-	31,590	-87.39

Balance sheet

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		65
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	5,869	-100
Tangible fixed assets	16,835	164	6,376	-	-	352,051	-95.22
Land & building	-	-	-	-	-	753,305	-
Plant & machinery	-	-	-	-	-	36,975	-
Other tangible assets	16,835	164	6,376	-	0	43,634	-61.42
Financial fixed assets	-	-	-	-	-	36,183	-
Total fixed assets	16,835	164	6,376	-	-	370,924	-95.46
Inventories	1,611,009	-	-	-	-	3,948,436	-59.20
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	1,611,009	-	0	-	0	2,785,537	-42.17
Other stocks	0	-	0	-	0	466,116	-100
Trade debtors	22,544,040	277	5,975,844	70.24	3,510,188	10,344,551	117
Cash	143,842	649	19,186	-86.42	141,269	433,431	-66.81
other amounts receivable	3,855	171	1,420	-3.69	1,474	227,852	-98.31
Miscellaneous current assets	-1	-	0	-	0	10,302	-100
Total current assets	24,302,745	305	5,996,450	64.15	3,652,931	14,267,789	70.33
current liabilities
Trade creditors	6,655,187	271	1,793,723	-49.08	3,522,878	5,209,064	27.76
Short term group loans	-	-	-	-	-	-	-
Other short term loans	13,688,951	1100	1,140,363	-	0	4,954,643	176
Miscellaneous current liabilities	259,853	496	43,587	1403	2,900	-60.65	- -
Total current liabilities	20,603,991	591	2,977,673	-15.55	3,525,778	10,640,269	93.64
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	748,700	6.36	703,900	-	-	-61.11	- -
Other long term liabilities	0	-100	1,407,800	-	0	248,853	-100
Total long term debts	748,700	-64.55	2,111,700	-	0	1,222,840	-38.77
shareholders equity
Issued share capital	2,358,405	191	809,485	709	100,000	1,919,217	22.88
Share premium account	-	-	-	-	-	139,492	-
Reserves	608,484	485	103,968	282	27,153	687,600	-11.51
Revaluation reserve	-	-	-	-	-	1,664,632	-
Total shareholders equity	2,966,889	224	913,453	618	127,153	2,727,603	8.77
Working capital	3,698,754	22.52	3,018,777	2274	127,153	3,627,520	1.96
Cashflow	501,884	477	86,839	678	11,159	144,744	246
Net worth	2,966,889	224	913,453	618	127,153	2,721,734	9.01

Ratio analysis

Annual accounts	31-03-2012	change(%)	31-03-2011	change(%)	31-03-2010	Industry average 2012	%
Trading performance
Profit Before Tax	1.05	45.83	0.72	1700	0.04	1,00	5.00
Return on capital employed	19.36	352	4.28	-61.85	11.22	15,00	29.07
Return on total assets employed	2.96	37.04	2.16	453	0.39	-2,00	148
Return on net assets employed	24.25	71.26	14.16	26.20	11.22	20,00	21.25
Sales / net working capital	18.54	213	5.91	-97.80	269.17	39,00	-99
Stock turnover ratio	2.35	-	-	-	-	19,00	-87.63
Debtor days	120.01	-1.81	122.22	226	37.44	124,00	-3.22
Creditor days	35.94	-2.81	36.98	-1.68	37.61	84,00	-57.21
short term stability
Current ratio	1.18	-41.29	2.01	93.27	1.04	5,00	-83.14
Liquidity ratio / acid ratio	1.10	-45.27	2.01	93.27	1.04	4,00	-72.50
Current debt ratio	6.94	112	3.26	-88.24	27.73	7,00	-0.86
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	486.63	141	201.90	-	-	198,00	145
Equity in percentage	12.20	-19.84	15.22	337	3.48	10,00	22.00
Total debt ratio	7.20	29.26	5.57	-79.91	27.73	7,00	2.86

FOREIGN EXCHANGE RATES

N/a

ADDITIONAL INFORMATION

Number of staff	1
Date of establishment	17/12/2004

Joint Industrial Committee (JIC)

Significant Events

Event Date	14/01/2013
Event Description
Event Details	Toekenning van 728 nieuwe aandelen aan Sheetal Golden Works (india) Private Limited.

NOTES & COMMENTS

N/a

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.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- 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 –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

PRL

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.