|
Report Date : |
23.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ DMCC |
|
|
|
|
Registered Office : |
41 D Al Mas
Tower, Jumeirah Lakes Towers, Sheikh Zayed Road, P O Box 120485, Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
24.07.2005 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Traders of cut diamonds and jewellery |
|
|
|
|
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 : |
Usually Correct |
|
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 : SHRENUJ DMCC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company
Registration Date : 24th July 2005
Trade Licence Number : 30243, DMCC
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 15
Activities : Traders of cut diamonds and jewellery.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
SHRENUJ DMCC
Registered &
Physical Address
Building : 41 D Al Mas Tower,
Jumeirah Lakes Towers
Street : Sheikh Zayed Road
PO Box : 120485
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2259552 / 2295683
Facsimile : (971-4) 2295684
Email : shrenujdmcc@shrenuj.com / smitkothari@shrenuj.com
Please note that
subject’s previous address was, Gold Land Building, 1st Floor, Suite 106, Al
Daghaya, Deira, Dubai.
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Dubai.
Name Position
·
Smit Kothari General
Manager
·
Arapit Shah Finance
Manager
Date of Establishment : 24th
July 2005
Legal Form :
Limited Liability Company
Trade Licence No. : 30243, DMCC
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
·
Shrenuj & Co 100%
405 Dharam Palace, 100 - 103 N. S. Patkar Marg
Mumbai - 400 007
India
Tel: (91-22) 66373500
Fax: (91-22)
23632982
Subject is a member of the Shrenuj Group of Companies, which includes
the following concerns:
Name Country Incorporated
·
Alija International Pty Ltd Australia
·
Shrenuj
NV Belgium
· Shrenuj (Shanghai) Diamond Co. Ltd China
· Jomard SAS (JV) France
· Shrenuj GmbH Germany
· Inter-gems (HK) Limited Hong
Kong
· SWA Trading Company (JV) Israel
· Copem & Shrenuj (JV) Italy
· Shrenuj Japan Corporation Japan
·
Shrenuj USA United
States of America
Activities: Engaged as traders of cut diamonds and
jewellery.
Import
Countries: India and Europe
Operating Trend: Steady
Subject has a
workforce of 15 employees.
Financial
highlights provided by local sources are given below:
Currency: United States
Dollars (US$) & Indian Rupees (INR)
Balance Sheet 31/12/11 31/12/10
31/12/11 31/12/10
US$ US$ INR INR
ASSETS
Non-current
assets
Property plant
and equipment 3,767,151
3,672,077 168,014,935 163,774,634
Capital work in
progress 219,493
50,311 9,789,388 2,243,871
Investments 865,000
865,000 38,579,000 38,579,000
4,851,644 4,587,388 216,383,323 204,597,505
Current assets
Inventories 14,906,810
8,716,568 664,843,726 388,758,933
Trade and other
receivables 50,783,484
45,462,691 2,264,943,386 2,027,636,019
Prepayments 105,083
44,882 4,686,702 2,001,737
Due from related
parties 5,220,191
2,300,191 232,820,519 102,588,519
Cash and bank
balances 1,100,440
2,346,142 49,079,624 104,637,932
72,116,008 58,870,474 3,216,373,957 2,625,623,140
TOTAL ASSETS 76,967,652
63,457,862 3,432,757,280 2,830,220,645
EQUITY AND
LIABILITIES
Equity
Share capital 3,054,496
3,054,496 136,230,522 136,230,522
Accumulated
profits 17,809,663
12,503,545 794,310,970 557,658,107
Total equity 20,864,159
15,558,041 930,541,492 693,888,629
Non-current
liabilities 5,684,114
44,203 253,511,484 1,971,454
Current
liabilities
Trade and other
payables 36,089,051
31,863,339 1,609,571,675 1,421,104,919
Due to related
parties 1,333,400
1,333,400 59,469,640 59,469,640
Bank borrowings 12,996,928
14,658,879 579,662,989 653,786,003
50,419,379 47,855,618 2,248,704,304 2,134,360,562
TOTAL EQUITY AND LIABILITIES 76,967,652
63,457,862 3,432,757,280 2,830,220,645
Statement of
Income
Revenue 91,006,597
66,196,383 4,058,894,226 2,952,358,682
Cost of sales (83,139,989)
(61,140,783) (3,708,043,509) (2,726,878,922)
Gross profit 7,866,608
5,055,600 350,850,717 225,479,760
Other income 51,152
38,875 2,281,379 1,733,825
Expenses (1,677,133)
(1,313,282) (74,800,132) (58,572,377)
Profit from
operations 6,240,627
3,781,193 278,331,964 168,641,208
Interest income
from bank 2,808
518,881 125,237 23,142,093
Finance cost (787,777)
(489,353) (35,134,854) (21,825,144)
Profit from
operation after
finance cost 5,455,658
3,810,721 243,322,347 169,958,157
Profit/(loss) on
derivative instruments (149,540)
533,281 (6,669,484) 23,784,333
Net profit for the year 5,306,118
4,344,002 236,652,863 193,742,490
Local sources
consider subject’s financial condition to be Good.
·
Habib
Bank AG Zurich
Baniyas Road
PO Box: 3306
Dubai
Tel: (971-4) 2214535
No complaints
regarding subject’s payments have been reported.
During the course
of this investigation nothing detrimental was uncovered regarding the manner in
which payment obligations are fulfilled. The operating history is clear and the
financial situation is satisfactory. As such we are of the opinion that the
subject is 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.55.51 |
|
UK Pound |
1 |
Rs.87.60 |
|
Euro |
1 |
Rs.69.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.