MIRA INFORM REPORT
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Report Date : |
29.09.2011 |
IDENTIFICATION DETAILS
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Name : |
GULF BEAUTY JEWELLERY LLC |
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Registered Office : |
209 Gold Land Building, Gold Souq, P O Box 64957, 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 : |
14.07.2003 |
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Com. Reg. No.: |
63358, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Wholesale and retail of
jewellery items, pearls and precious stones |
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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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 |
SUMMARY
Company Name :
GULF BEAUTY JEWELLERY LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
14th July 2003
Commercial Registration Number :
63358, Dubai
Trade Licence Number :
510148
Chamber Membership Number :
79309
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
4
Activities :
Wholesale and retail of jewellery items, pearls and precious stones.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Recommended Credit Limit :
US$ 1,500,000
Person Interviewed :
Vishal Ashwin Joladya, Managing Director
COMPANY NAME
GULF BEAUTY JEWELLERY
LLC
company ADDRESS
Registered &
Physical Address
Building : 209 Gold
Land Building
Area : Gold Souq
PO Box : 64957
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2263224
Facsimile : (971-4)
2263119
Mobile : (971-50)
5524565
Email : gbjewellery@emirates.net.ae / jewlry@eim.ae
Premises
Subject operates from a small suite of offices and a showroom that are
rented and located in the Central Business Area of Dubai.
Please note that the address Al Attor Escala Building, Ground Floor,
Counter No. 7, Al Mina Street, New Gold Souq, Dubai is an old address of the
subject’s.
KEY PRINCIPALS
Name Nationality Position
· Vishal Ashwin
Joladya Indian Managing
Director
· Saleh Abdullah
Mohamed Mahmood Arjumand Emirati Director
· Rajan
Modi - Commercial
Manager
· Agnes
Boniyal - Sales
Manager
LEGAL FORM & OWNERS
Date of
Establishment : 14th
July 2003
History : Subject was
originally registered in 2003 between the following shareholders:
1. Saleh Abdullah Mohamed Mahmood Arjumand –
51%
2. Fijay Kumar Jeramdas Dawda – 25%
3. Vishal Ashwin Joladya – 24%
However, in April 2009 Mr Fijay Kumar Jeramdas
Dawda sold his stake in the subject to Mr. Vishal Ashwin Joladya. This change
of ownership is in the final steps of being processed by the local authorities.
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 63358, Dubai
Trade Licence No. : 510148 (Expires 02/02/2012)
Chamber Member No. : 79309
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
· Saleh Abdullah
Mohamed Mahmood Arjumand 51%
· Vishal Ashwin
Joladya 49%
OPERATIONS
Activities: Engaged in the wholesale and retail of jewellery items, pearls and
precious stones.
Import Countries: Europe, South Africa and Asia
Operating Trend: Steady
Subject has a workforce of 4 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/10:
Total Sales UAE
Dh 35,000,000
Local sources consider subject’s financial condition to be Good.
The above financial figures were confirmed by Mr Vishal Ashwin Joladya, Managing Director
BANKERS
·
Mashreq Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4)
2229131 / 2221134
Fax: (971-4)
2233784
·
National Bank of Ras Al Khaimah
PO Box:
1531
Dubai
Tel: (971-4)
2226291 / 2915618
Fax:
(971-4) 2281312
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
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.
Local sources have confirmed Kiah Life Style Pvt Ltd have
awarded a franchise to Gulf Beauty Jewellery LLC to exhibit and sell their products in Dubai,
and thus the subject has a showroom named Kiah
Diamonds located in the Dubai Mall. Furthermore, Mr Vishal Ashwin
Joladya’s uncle is believed to be the owner of Kiah
Life Style Pvt Ltd.
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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.49.18 |
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UK Pound |
1 |
Rs.76.65 |
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Euro |
1 |
Rs.66.63 |
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.