MIRA INFORM
REPORT
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Report Date : |
10.12.2011 |
IDENTIFICATION DETAILS
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Name : |
AL NOBALA DIAMONDS LLC |
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Registered Office : |
Mohamed Hamad Al
Haidan Building, Al Khor Street,: Old Gold Souk, Deira, P O Box 51405, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
05.06.2002 |
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Com. Reg. No.: |
59544, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Wholesale and retail of jewellery, precious stones and watches |
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No. of Employee: |
6 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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United Arab Emirates |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Bottom of Form
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
Chamber Membership Number : 69490
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 6
Activities : Wholesale and retail of jewellery, precious stones and watches.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Udai Debri, Administrative Officer
COMPANY NAME
AL NOBALA DIAMONDS LLC
company 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
Facsimile : (971-4) 2266640
Mobile : (971-50) 6447069
Email : alnobala@hotmail.com
Premises
Subject operates
from a small suite of offices and a showroom that are rented and located in the
Central Business Area of Dubai.
Branch Office (s)
Location Description
·
Sheikh Zayed Road Rented
sales office
Dubai
Tel: (971-4) 3477443 / 3477493
Fax: (971-4)
3476118
KEY PRINCIPALS
Name Nationality Position
·
Ramesh Jamandas Khimiji Indian Managing
Director
·
Fardan
Abdullah Fardan Ali Al Fardan Emirati Director
·
Parag
Parekh - General
Manager
·
Audi Devera - Finance
Manager
·
Udai Debri - Administrative
Officer
LEGAL FORM & OWNERS
Date of Establishment : Subject’s
operations date back to 1989, however it was officially registered on 5th
June 2002
History : Subject was originally established between
the following shareholders:
- Hamir Rajendra Disai
- Fardan Abdullah Fardan Ali Al Fardan
However Hamir Rajendra Disai withdrew from
the company after selling his shares to Mr
Ramesh
Jamandas Khimiji.
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 59544, Dubai
Trade Licence No. : 128430
(Expires 02/02/2012)
Chamber Member 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%
·
Ramesh Jamandas Khimiji 49%
AFFILIATED COMPANIES
·
Al Nobala Daimonds FZCO
Jebel
Ali Free Zone
Dubai
·
Le Brilliant FZCO
Jebel
Ali Free Zone
Dubai
OPERATIONS
Activities: 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
Subject has a workforce
of 6 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/09: Year
Ending 31/12/10:
Total Sales UAE Dh
61,000,000 UAE Dh
63,400,000
Local sources
consider subject’s financial condition to be Fair.
The above financial
figures were based on estimations by our local sources.
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 Ramesh
Jamandas Khimiji, 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.
DIAMOND INDUSTRY –
INDIA
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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 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th 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.
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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.52.28 |
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UK Pound |
1 |
Rs.81.55 |
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Euro |
1 |
Rs.69.60 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.