MIRA INFORM REPORT

 

 

Report Date :           

05.04.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

MOHAMED YAHYA MUNSHI EST

 

 

Registered Office :

Al Mohtasib Building, 4th Floor, Office No. 11, Al Dhahab Street, Al Balad District, P O Box 20123, Jeddah 21455

 

 

Country :

Saudi Arabia 

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

09.03.1979

 

 

Com. Reg. No.:

4030018094, Jeddah

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Wholesale and retail of leather products, ready made garments,  footwear and imitation jewellery as well as stationery, school bags, plastic utensils and glassware.

 

 

No. of Employees :

15

 

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Saudi Arabia 

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                                     : MOHAMED YAHYA MUNSHI EST

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Sole Proprietorship

Registration Date                                   : 9th March 1979

Commercial Registration Number            : 4030018094, Jeddah

Chamber Membership Number                : 300149

Invested Capital                                     : SR 50,000

Total Workforce                                     : 15

Activities                                               : Wholesale and retail of leather products, ready made garments,

footwear and imitation jewellery as well as stationery, school bags, plastic utensils and glassware.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Mohamed Yahya Abdul Shakoor Abdul Qadar Mushi, Proprietor


COMPANY NAME

 

MOHAMED YAHYA MUNSHI EST

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Al Mohtasib Building, 4th Floor, Office No. 11

Street               : Al Dhahab Street

Area                 : Al Balad District

PO Box             : 20123

Town                 : Jeddah 21455

Country             : Saudi Arabia

Telephone         : (966-2) 6470563 / 6486536 / 6486527 / 6472249

Facsimile          : (966-2) 6470563

Mobile               : (966-50) 5618465

Email                : mymunshi@sol.net.sa / mymunshi@mymunshi.net

 

Premises

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Al Sanabel Centre                                                                             Rented showroom premises

     Al Hindawiya District

     Jeddah

     Tel: (966-2) 6478080

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Mohamed Yahya Abdul Shakoor Abdul Qadar Mushi                            Proprietor  General Manager

·       Moazzam Mukhtar Ahmed                                                                 Assistant General Manager

·       Majaz Murtota Patel                                                                          Commercial Manager

·       Vargis Charyan                                                                                 Administrative Executive

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10/04/1399 Hijri (corresponding to 9th March 1979)

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.  : 4030018094, Jeddah

 

Chamber Member No. : 300149

 

Invested Capital           : SR 50,000

 

Mr Mohamed Yahya Abdul Shakoor Abdul Qadar Mushi is the sole proprietor of the business.

 

 

OPERATIONS

 

Activities: Engaged in the wholesale and retail of leather products, ready made garments, footwear and imitation

     jewellery as well as stationery, school bags, plastic utensils and glassware.

 

Import Countries: India

 

International Suppliers:

 

·       Varoun Industries                  India

·       Panjab Stainless Steel          India

·       Offcon                                  India

·       Samrat                                 India

·       Teckrawal                             India

 

Operating Trend: Steady

 

Subject has a workforce of 15 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

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

 

Total Sales                                SR 11,100,000                           SR 11,250,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       National Commercial Bank

Palestine Square

PO Box: 7161

Jeddah 21462

Tel: (966-2) 6697384

Fax: (966-2) 6697388

 

 

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 business 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.51.05

UK Pound

1

Rs.81.09

Euro

1

Rs.67.39

 

 

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.