MIRA INFORM REPORT

 

 

Report Date :

04.04.2012

 

IDENTIFICATION DETAILS

 

Name :

AL SALAM JEWELLERY LLC

 

 

Registered Office :

Gold Centre Building, 4th Floor, Suite No. 110, Al Khor Street, Gold Souq, Deira, 6350, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

18.01.1978

 

 

Com. Reg. No.:

42364, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Retail of Jewellery, Specialising In 18k And 22k Gold Pieces and Diamonds

 

 

No. of Employees :

8

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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

 

SUMMARY

 

Company Name                                     : AL SALAM JEWELLERY LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 18th January 1978

Commercial Registration Number            : 42364, Dubai

Trade Licence Number                            : 204157

Chamber Membership Number                : 3956

Issued Capital                                        : UAE Dh 3,500,000

Paid up Capital                                      : UAE Dh 3,500,000

Total Workforce                                     : 8

Activities                                               : Retail of jewellery, specialising in 18k and 22k gold pieces and diamonds.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Sachin Narayan, Finance Manager

 

COMPANY NAME

 

AL SALAM JEWELLERY LLC

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Gold Centre Building, 4th Floor, Suite No. 110

Street               : Al Khor Street

Area                 : Gold Souq, Deira

PO Box             : 6350

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2266243 / 2232759 / 2232884 / 2255871

Facsimile          : (971-4) 2254185 / 2264460

Mobile               : (971-50) 6449930 / 4505176

Email                : tamara10@emirates.net.ae

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Markas Agob Markastian                                 Syrian                         Managing Director

 

·       Waleed Abdel Malek Mohamed                        Emirati                        Director

 

·       Hagob Barbarian                                                  -                            General Manager

 

·       Sachin Narayan                                                   -                            Finance Manager          

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18th January 1978

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 42364, Dubai

 

Trade Licence No.       : 204157 (Expires 01/03/2012)

 

Chamber Member No. : 3956

 

Issued Capital              : UAE Dh 3,500,000

 

Paid up Capital            : UAE Dh 3,500,000

 

Name of Shareholder (s)                                              Percentage

 

·       Waleed Abdel Malek Mohamed                                       51%

 

·       Markas Agob Markastian                                                49%

 

 

OPERATIONS

 

Activities: Engaged in the retail of jewellery, specialising in 18k and 22k gold pieces and diamonds, as well as

     bracelets, necklaces, lockets, rings, watches and clocks.

 

Import Countries: Italy, India and Hong Kong.

 

Export Countries: Saudi Arabia and Kuwait.

 

Operating Trend: Steady

 

Subject has a workforce of 8 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                UAE Dh 45,700,000                   UAE Dh 48,000,000

 

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

 

The above figures were provided by Mr Sachin Narayan, Finance Manager

 

 

BANKERS

 

·       Standard Chartered Bank

Khalid Bin Waleed Street

Mankhool Branch

PO Box: 999

Dubai

Tel: (971-4) 2520455

 

·       Habib Bank Ltd

Trade Service Centre

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

     Tel: (971-4) 2229131 / 2221134

     Acc No. 0490102097

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              September 2000

Credit amount                                        250,000

Amount overdue                         0

Payment terms                                      180 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

Al Salam Jewellery LLC is a well established company with operations dating back to 1978, specialising in the retail of jewellery.

 

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

 

-          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.50.56

UK Pound

1

Rs.81.05

Euro

1

Rs.67.49

 

 

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.