MIRA INFORM REPORT

Report Date :

30.11.2013

IDENTIFICATION DETAILS

Name :	SANGHAVI JEWELS BVBA
Registered Office :	Hoveniersstraat 30, 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.12.2012
Date of Incorporation :	27.07.2001
Com. Reg. No.:	475439956
Legal Form :	Private Limited Company
Line of Business :	Wholesaler of watches and jewellery
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		475439956
Company name		SANGHAVI JEWELS BVBA
Address		HOVENIERSSTRAAT 30
		2018 ANTWERPEN
Number of staff		1
Date of establishment		27/07/2001
Business number	475439956	Company name	SANGHAVI JEWELS BVBA
Fax number		Date founded	27/07/2001
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/12/2012
Activity code	46480	liable for VAT	yes
Activity description	Wholesale of watches and jewellery	VAT Number	BE.0475.439.956
Belgian Bullettin of Acts Publications	moniteur belge

DIRECTORS/MANAGEMENT

Current director details

Name	SAMIR SHETH
Position	Principal Manager
Start Date	13/09/2010
Street	4 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Name	ISHAN NILESHKUMAR SHAH
Position	Principal Manager
Start Date	10/02/2012
Street	15 VAN EYCKLEI 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	-

Personnel (NSSO classification)

Code	-
Description	1 EMPLOYEES

Joint Industrial Committee (JIC)

Significant Events

Event Date	10/02/2012
Event Description	re-appointment of director(s)
Event Details	Commentaar 10-02-2012: Herbenoemd als zaakvoerder : Shah Ishan.

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

No minority shareholders found

Minority Interests

No minority interests found

PAYMENT INFORMATION

Payment expectations

Past payments		Payment expectation days	1160.70
Industry average payment expectation days	170.60	Industry average day sales outstanding	486.78
Day sales outstanding	1080.62

Industry comparison

Activity code	46480
Activity description	Wholesale of watches and jewellery

Payment expectations

Payment expectation days	1160.70
Day sales outstanding	1080.62

Industry comparison

Activity code	46480
Activity description	Wholesale of watches and jewellery
Industry average payment expectation days	170.60
Industry average day sales outstanding	486.78

Industry quartile analysis

Payment expectations
Company result	1160.70
Lower	118.39
Median	54.06
Upper	14.65
Day sales outstanding
Company result	1080.62
Lower	115.14
Median	49.84
Upper	16.22

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

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/12/2012	400,743	-15,915	78,722	73,811
31/12/2011	439,959	37,484	94,672	89,827
31/12/2010	585,293	53,617	69,531	63,236

Accounts

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/12/2012	1,465,806	1	18,600	-15,164
31/12/2011	1,546,788	0	18,600	25,643
31/12/2010	1,633,628	0	18,600	39,750

Social Balance Sheet Details

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

Type of Contract	Full-Time	Part-Time	Total Fte
Unlimited Duration Contracts	-	-	-
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	-	-	-
Secondairy education	-	-	-
Higher education (non university)	-	-	-
Higher education (university)	-	-	-

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

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	400,743	-8.91	439,959	-24.83	585,293	1,756,736	-77.19
Total operating expenses	414,724	3.25	401,670	-24.02	528,683	1,676,219	-75.26
Operating result	-13,980	-136	38,289	-32.36	56,610	27,295	-151
Total financial income	-	-	2,467	822276	0	22,101	-
Total financial expenses	1,935	-40.88	3,272	9.33	2,993	17,641	-89.03
Results on ordinary operations before taxation	-15,915	-142	37,484	-30.09	53,617	28,191	-156
Taxation	35	-99	12,343	-14.88	14,500	17,932	-99
Results on ordinary operations after taxation	-15,950	-163	25,141	-35.73	39,117	17,215	-192
Extraordinary items	0	-	0	-	0	-19,040	0
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	-15,950	-163	25,141	-35.73	39,117	-1,749	-811
other information
Dividends	-	-	-	-	-	250,394	-
Director remuneration	-	-	-	-	-	49,203	-
Employee costs	-	-	-	-	-	202,186	-
Wages and salary	-	-	-	-	-	154,893	-
Employee pension costs	-	-	-	-	-	405	-
Social security contributions	-	-	-	-	-	45,317	-
Other employee costs	0	-	0	-	0	5,673	-100
Amortization and depreciation	786	56.66	502	-20.79	633	19,593	-95.99

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	0	-	0	-	0	2,972	-100
Tangible fixed assets	568	13.31	502	-50.0	1,003	161,510	-99
Land & building	-	-	-	-	-	324,955	-
Plant & machinery	-	-	-	-	-	16,311	-
Furniture & Vehicles	568	13.31	502	-50.0	1,003	19,449 6,933	-97.08
Leasing & Other Similar Rights	-	-	-	-	-	28,424 18,203	-
Other tangible assets	0	-	0	-	0	6,932	-100
Financial fixed assets	4,343	0	4,343	-17.94	5,293	236,434	-98.16
Total fixed assets	4,912	1.38	4,845	-23.05	6,296	285,374	-98.28
Inventories	111,461	216	35,165	2.31	34,370	375,202	-70.29
Raw materials & consumables	-	-	-	-	-	579,713	-
Work in progress	0	-	0	-	0	57	-100
Finished goods	0	-	0	-	0	58,209	-100
Other stocks	111,461	216	35,165	2.31	34,370	216,226	-48.45
Trade debtors	1,186,445	-11.45	1,339,910	-2.94	1,380,476	200,962	490
Cash	85,278	7.90	79,036	-33.98	119,722	78,645	8.43
other amounts receivable	77,711	-11.52	87,832	-5.32	92,764	64,679	20.15
Miscellaneous current assets	0	-	0	-	0	9,860	-100
Total current assets	1,460,894	-5.26	1,541,943	-5.25	1,627,332	627,344	132
Total Assets	1,465,806	-5.24	1,546,788	-5.32	1,633,628	872,777 229,624	67.95
current liabilities
Trade creditors	1,318,822	-4.65	1,383,206	-8.25	1,507,664	243,838	440
Short term group loans	-	-	-	-	-	-	-
Financial debts	12,076	9102	131	442	24	216,092 17,423	-94.41
Current portion of long term debt	-	-	-	-	-	51,197 13,202	-
Amounts Payable for Taxes, Remuneration & Social Security	1,200	-95.53	26,843	85.12	14,500	8,073 -	-96.42
Miscellaneous current liabilities	54,986	31.12	41,936	0.06	41,909	-58.00	- -
Total current liabilities	1,387,084	-4.48	1,452,116	-7.16	1,564,096	469,235	195
Long term debts and liabilities
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	-	-	-	-	-	-	- -
Deffered taxes	-	-	-	-	-	58,570 29,464	-
Provisions for Liabilities & Charges	0	-	0	-	0	7,402 0	-100
Other long term liabilities	0	-	0	-	0	28,789	-100
Total long term debts	0	-	0	-	0	144,246	-100
shareholders equity
Issued share capital	18,600	0	18,600	0	18,600	175,971	-89.43
Share premium account	-	-	-	-	-	257,207	-
Reserves	60,122	-20.97	76,072	49.36	50,931	75,654	-20.53
Revaluation reserve	-	-	-	-	-	110,754	-
Total shareholders equity	78,722	-16.85	94,672	36.16	69,531	257,415	-69.42
Working capital	73,811	-17.83	89,827	42.05	63,236	158,109	-53.32
Cashflow	-15,164	-159	25,643	-35.49	39,750	13,621	-211
Net worth	78,722	-16.85	94,672	36.16	69,531	254,443	-69.06

ratio analysis

Annual accounts	31-12-2012	change(%)	31-12-2011	change(%)	31-12-2010	Industry average 2012	%
Trading performance
Profit Before Tax	-3.97	-146	8.52	-6.99	9.16	-189,00	2.10
Return on capital employed	-20.22	-151	39.59	-48.66	77.11	405,00	-104
Return on total assets employed	-1.09	-145	2.42	-26.22	3.28	3,00	-136
Return on net assets employed	-20.22	-151	39.59	-48.66	77.11	412,00	-104
Sales / net working capital	5.43	10.82	4.90	-47.08	9.26	32,00	-99
Stock turnover ratio	27.81	248	7.99	36.12	5.87	1.183,00	-97.65
Debtor days	1080.62	-2.79	1111.62	29.12	860.89	795,00	35.93
Creditor days	1160.70	-7.66	1256.93	20.76	1040.88	314,00	269
short term stability
Current ratio	1.05	-0.94	1.06	1.92	1.04	48,00	-99
Liquidity ratio / acid ratio	0.97	-6.73	1.04	1.96	1.02	46,00	-97.89
Current debt ratio	17.62	14.86	15.34	-31.79	22.49	106,00	-83.38
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	15.34	10857	0.14	366	0.03	219,00	-93.00
Equity in percentage	5.37	-12.25	6.12	43.66	4.26	-135,00	3.98
Total debt ratio	17.62	14.86	15.34	-31.79	22.49	106,00	-83.38

ADDITIONAL INFORMATION

Commentary

The business was established over 12 years ago.
The business has 1 employees.
The business has been at the address for over 8 years.
The credit rating for this business has decreased from 78 to 75.
The credit limit for this business has decreased from €115000 to €99000.
Operating Result in the latest trading period decreased 136% on the previous trading period.
Pre-tax profits decreased by 142% compared to the previous trading period.

Trends

Profitability
Liquidity
Net worth

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.62.39
UK Pound	1	Rs.102.06
Euro	1	Rs.84.98

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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