MIRA INFORM REPORT

 

 

Report Date :           

21.10.2011

 

IDENTIFICATION DETAILS

 

Name :

JOY ALUKKAS JEWELLERY (L.L.C)  

 

 

Registered Office :

Gold Land Building, Diamond Section, 3rd Floor, New Gold Market / Gold Souq, Deira, P.O.Box No. 12928, Dubai

 

 

Country :

United Arab Emirates 

 

 

Date of Incorporation :

27.10.1988

 

 

Com. Reg. No.:

43636

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

importers and retailers of jewellery including gold, pearl, diamonds and precious gems.

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

Joy Alukkas Jewellery (L.L.C) 

 

 

company ADDRESS

 

Building             : Gold Land Building, Diamond Section, 3rd Floor

Area                 : New Gold Market / Gold Souq, Deira

P.O.Box No.      : 12928

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971 4) 226 4103 / 225 3221 / 225 5590 / (Mobiles) (971

                        50) 278 2515 (Thomas Skaria) / (971 50) 651 8173

Fax                   : (971 4) 226 4932

E-Mail               : alukkas@emirates.net.ae / jobychen@joyalukkas.com /

                        thomas@joyalukkas.com

Website            : www.joyalukkas.com

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Varghese Joy Alukkas                                    Managing Director

 

2. John Paul Joy Alukkas                                   General Manager

   (son of the above)

 

3. Thomas Skaria                                   Financial Manager

 

4. Suresh Babu                                      Accountants Manager

 

5. Joby Chenjus                                     Assistant to Financial Manager

 

Total Employees :          550 (subject)

                                    3,100 (group)

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a member of the well-known Dubai based Joyalukkas Group which was established in 1956 by the late Sri Alukka J Varghhese in Kerala (India) and operates in diverse fields including jewellery, hotel, hospitality and real estate.

 

Subject operates retail chain of 73 outlets in the Middle East and

India region.

 

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

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME     : MASHREQ BANK

Branch   : Omer Bin Al Khattab Street

PO Box   : 1250

Town     : Dubai

Telephone: (971 4) 222 9131

Fax      : (971 4) 222 6061

 

The company also has an account with the following banks :

 

1. Emirates NBD Bank (fmly National Bank of Dubai)

   Baniyas Street

   PO Box 777

   Dubai

   Telephone: (971 4) 222 2111

   Fax      : (971 4) 228 3000

 

2. National Bank of Fujairah

   Khalid Bin Waleed Street

   PO Box 2979

   Dubai

   Telephone: (971 4) 397 1700

   Fax      : (971 4) 397 9100

 

3. Standard Chartered Bank

   Al Mankhool Street

   PO Box   : 999

   Dubai

   Telephone: (971 4) 352 0455

   Fax      : (971 4) 352 6679

 

 

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   880,000,000 - 2007 - exact

                   : Dh 1,000,000,000 - 2008 - exact

                   : Dh 1,500,000,000 - 2009 - exact

                   : Dh 1,250,000,000 – 2010 – exact *

                   : Dh 1,600,000,000 – 2011 – exact

                   : Dh 1,900,000,000 – 2012 – projected

 

Net Profit               : Dh    45,000,000 – 2010 – exact

                   : Dh    63,000,000 – 2011 – exact

                   : Dh    82,000,000 – 2012 - projected

 

* Decrease in sales turnover in 2010 was due to unfavourable market conditions.

 

Financial year ends 31 March.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :                27 October 1988

 

C.R. No. :                      43636

 

Trade Licence No. :        217959 (expiry date: 26/10/2011)

 

DCCI Membership No. : 9635 (issued on 13 November 1988)

 

Authorised Capital :        Dh 300,000

 

Paid up Capital :            Dh 300,000

 

Limited Liability Company with the following shareholders :

 

1. Varghese Joy Alukkas                                                                        49%

   (Indian national / Date of Birth: 04/09/1956)

 

2. Jassim Mohamed Ibrahim Abdulla Al Hasawi *                                      51%

   (local sponsor, UAE national / Date of Birth: 14/04/1950)

 

* The local sponsor, according to UAE laws must hold a minimum of

  51% of the capital, however, in practice and unofficially the

  local sponsor gets a fixed annual percentage of the profit and

  a sponsorship fee without any investment in the company.

 

Affiliated companies of Joy Alukkas Jewellery LLC :

 

Associates

 

1. Joyalukkas Exchange

   Dubai

   Est. Date: 05/08/1990

   Trade License No.: 223447

   Telephone: (971 4) 353 5469

   Fax      : (971 4) 353 5683

 

2. Joyalukkas India Pvt Ltd

   Marine Drive

   Cochin. 682 031

   India

   Telephone: (91 484) 238 5035

   Fax      : (91 484) 238 5032

 

3. Joy Alukka Traders India Pvt Limited

   Trichur

   Kerala

   India

   (Established in 1953)

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers and retailers of jewellery including gold, pearl, diamonds and precious gems.

 

Subject is ISO 9001:2008 and 14001:2004 certified.

 

NACE Code : 4777

 

Imports from Europe and Asia, mainly from India, Hong Kong, Italy, UK and Turkey.

 

Subject only sells locally and does not engage in re-export business.

 

 

FACILITIES

 

The Company has the following facilities :

 

Rented administrative offices and a showroom with integrated storage

facilities located at the heading address, as well as further 18

retail outlets throughout Dubai and additional 13 showrooms elsewhere in UAE (see 'Branch Offices' below).

 

The Group has 38 retail outlets in total throughout GCC countries and UK (excluding Saudi Arabia). 

 

SPECIAL NOTE

 

Main outlets :

 

1. Oasis Centre

   PO Box 12928

   Dubai

   Telephone: (971 4) 339 7883

   Fax      : (971 4) 339 7884

 

2. Gold Centre

   Deira

   PO Box 12928

   Dubai

   Telephone: (971 4) 225 3646

   Fax      : (971 4) 226 9947

 

3. Souq Al Watya

   PO Box 12928

   Kuwait

   Telephone: (965) 2249 4845

   Fax      : (965) 2249 4842

 

4. Gold City

   Manama 

   PO Box 11492

   Bahrain

   Telephone: (973) 1722 9914

   Fax      : (973) 1722 9924

 

5. Lulu Centre

   Rayyan Road

   PO Box 22717

   Qatar

   Telephone: (974) 4447 8890

   Fax      : (974) 4447 8499

 

6. Ruwi

   PO Box 1897

   Oman

   Telephone: (968) 2479 7212

   Fax      : (968) 2479 7181

 

 

SPECIAL NOTE

 

Interviewed: Thomas Skaria (Financial Manager).

 

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.