MIRA INFORM REPORT

 

 

Report Date :

15.10.2007

 

IDENTIFICATION DETAILS

 

Name :

AL NOBALA DIAMONDS LLC

 

 

Registered Office :

Mohamed Hamad Al Haidan Building, Al Khor Street, Old Gold Souk, Deira, P O Box 51405, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1989

 

 

Com. Reg. No.:

59544

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the wholesale and retail of jewellery, precious stones and watches.

 

 

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 :

Regular

 

 

Litigation :

Clear


SUMMARY

 

Company Name                         : AL NOBALA DIAMONDS LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Start Date                                             : 1989

Registration Date                                   : 5th June 2002

Commercial Registration Number            : 59544, Dubai

Trade Licence Number                            : 128430

Membership Number                              : 69490

Issued Capital                                        : UAE Dh 300,000

Paid up Capital                                      : UAE Dh 300,000

Total Workforce                                     : 17

Line of Business                                    : Wholesalers and retailers of jewellery, precious stones and watches.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

AL NOBALA DIAMONDS LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Mohamed Hamad Al Haidan Building

Street               : Al Khor Street

Area                 : Old Gold Souk, Deira

PO Box             : 51405

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2266900 / 3477493

Facsimile          : (971-4) 2266640

 

 

Premises

 

Subject operates from a small suite of offices and a showroom that are rented and located in the Central Business Area of Dubai.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Hamir Rajendra Disai                             Indian                        Managing Director

 

·       Fardan Abdullah Fardan Ali Al Fardan    Emirati                       Director

 

·       Parag Parekh                                                       -                            General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1989, however it was officially registered on 5th June

                                      2002.

 

Legal Form                  : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

Commercial Reg. No.  : 59544, Dubai

 

Trade Licence No.       : 128430 (Expires 2nd January 2008)

 

Membership No.          : 69490

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)             Percentage

 

·       Fardan Abdullah Fardan Ali Al Fardan                                                 51%

 

·       Hamir Rajendra Disai                                                                         49%

 

Note to the Legal Form

 

A Limited Liability Company (LLC) is defined in the Company Law as a company incorporated with not less than two and not more than fifty shareholders, each responsible only for the liabilities of the company to the extent of their share participation in the capital of the company.

 

The Company Law provides that the capital of a Limited Liability Company (LLC) should not be less than UAE Dh 300,000, which should be divided into equal shares of a value not less than UAE Dh 100 each.

 

This type of company may engage in any form of legitimate business, with the exception of insurance, banking and investment of funds.

 

Non UAE Participation   

 

The participation of non-Emirati in a trade or business in the United Arab Emirates is governed by the Foreign Business Investment Law, which sets capital requirements and requires 51 percent Emirati participation in capital and profits.

 

It is common for the 51 percent to be held by the UAE national on paper only with the foreign partner(s) providing all the capital requirements for the company and paying an annual fee to the local partner.

 

Under this arrangement the above ownership may not reflect the actual profit distribution within the company, as the company may have internal management agreements in place that provides full management of the company in return for a share of the company’s assets and profits. This internal relationship may or may not be recognised by law depending on the way the internal agreement is made.

 

 

LINE OF BUSINESS

 

Operations : Engaged in the wholesale and retail of jewellery, precious stones and watches.

 

Import Countries : Belgium, India and Hong Kong.

 

Export Countries : Saudi Arabia, Russia and the United States of America

 

Operating Trend : Steady

 

Subject has a workforce of 17 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : United Arab Emirates Dirham (UAE Dh)

 

 

                                                Year Ending 31/12/05:                Year Ending 31/12/06:

 

Total Revenue                            UAE Dh 5,820,000                     UAE Dh 6,300,000

 

Local sources consider subject’s financial condition to be Fair.

 

 

BANKERS

 

·       Commercial Bank of Dubai

Baniyas Street

PO Box : 1709

Deira

Dubai

Tel : (971-4) 2227121 / 2253222

     Fax : (971-4) 2220943 / 2254565

 

·       Bank of Baroda

PO Box : 3162

Dubai

Tel : (971-4) 5531955

Fax : (971-4) 5536962

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1989, subject is owned and managed by Mr Hamir Rajendra Disai, an Indian national who operates in Dubai under the local sponsorship of Mr Fardan Abdullah Fardan Ali Al Fardan.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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