MIRA INFORM REPORT

 

 

Report Date :

21.10.2011

 

IDENTIFICATION DETAILS

 

Name :

BLUE GEM JEWELLERY (L.L.C.)

 

 

Registered Office :

Mohamad Hamad Ibrahim Bldg, Ground Floor, Shop 3 Al Khor Street Deira, Al Ras Area, Gold Souk, Next to Damas Head Office) P.O.Box No.26965 Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

04.04.1994

 

 

Com. Reg. No.:

47294

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading as importers and wholesalers of loose diamonds.

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

United Arab Emirates 

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name   

 

Blue Gem Jewellery (L.L.C.)

 

 

company ADDRESS

 

Building             : Mohamad Hamad Ibrahim Bldg, Ground Floor, Shop 3

Street               : Al Khor Street

Area                 : Deira, Al Ras Area, Gold Souk, Next to Damas Head Office)

P.O.Box No.      : 26965

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971 4) 229 1662 / Mobile (971 50) 624 2780 (Vinay Haresh Karani)

Fax                   : (971 4) 229 1663

E-mail               : bluegem@emirates.net.ae

 

 

SENIOR COMPANY PERSONNEL

 

Name                                       Position

 

Vinay Haresh Karani                  Managing Director

 

Total Employees : 2

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

We consider it is acceptable to deal with subject for MEDIUM amounts.

 

Trade risk assessment: Normal

 

 

PRINCIPAL BANKERS

 

NAME               : EMIRATES NDB (fmly NATIONAL BANK OF DUBAI)

Branch              : Baniyas Street

PO Box             : 2923

Town                 : Dubai

Telephone         : (971 4) 225 6256

Fax                   : (971 4) 226 8005 / 228 3000

 

 

FINANCIAL INFORMATION

 

Private companies in United Arab Emirates are not required to

publish or disclose balance sheets. However, the subject

interviewed offered the following information :

 

Sales Turnover      : Dh 25,000,000 - 2009 – exact

                            : Dh 36,000,000 – 2010 – exact

 

Net Profit          : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                                          : 4 April 1994

 

C.R. No.                                                : 47294

 

Chamber of Commerce Membership No.: 33382 (issue date: 18/02/1995)

 

Trade License No.                                  : 237031 (expiry date: 03/04/2011)

 

Authorised Capital                                  : Dh 300,000

 

Paid-Up Capital                          : Dh 300,000

 

Limited Liability Company with the following shareholders :

 

                                                            Percentage                                    

 

1. Vinay Haresh Karani                           25%

   (Indian national / Born in 1967)

 

2. Karani Haresh Tikamdas                      24%

   (Indian national / Date of Birth: 10/10/1942)

 

3. Ibrahim Bilal Salem Mubarak *               51%

   (UAE national)

 

* The local sponsor, according to UAE laws must hold a minimum of 51% of the capital, however, in practice and unofficially the sponsor gets a fixed annual percentage of the profit and a sponsorship fee without any investment in the company.                              


Affiliated companies of the Blue Gem Jewellery (L.L.C.):

 

Associates

Other affiliated companies of Karani Haresh Tikamdas in Dubai:

 

Kings Traders

P.O. Box 2058

Dubai

Telephone: (971 4) 353 4708

Fax      : (971 4) 353 1730

Est.: 06/01/1971

Trade License No.: 205279

 

Ibrahim Bilal Salem Mubarak subject's local sponsor has also interest in the following companies based in Dubai :

 

1. Al Fannan Gents Salon

   Dubai

   Est.: 02/10/1984

   Trade License No.: 202354

 

2. Ibrahim Bilal Salim Carpentry

   Dubai

   Est.: 06/06/1985

   Trade License No.: 105264

 

3. Perfect Link Grocery

   Dubai

   Est.: 30/03/2009

   Trade License No.: 623516

 

4. Perfect Link General Trading (L.L.C)

   Dubai

   Est.: 29/03/1982

   Trade License No.: 206647

   Partner

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers and wholesalers of loose diamonds.

 

Imports from India and Belgium.

 

The Company does not export, all sales are domestic.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented premises comprising administrative office premises and a retail outlet located at the heading address.

 

 

SPECIAL NOTE

 

Interviewed: Vinay Haresh Karani (Managing Director).

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 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.

-          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 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.

-          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.49.71

UK Pound

1

Rs.78.08

Euro

1

Rs.68.05

 

 

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%)

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.