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Report Date : |
03.03.2012 |
IDENTIFICATION DETAILS
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Name : |
SIROYA JEWELLERS LLC |
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Registered Office : |
The Gold Center, 1st Floor, Suite 27 Al Khor Street New
Gold Souq, Deira PO Box 16067 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 : |
06.11.1992 |
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Com. Reg. No.: |
42492, Dubai |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Retailers of jewellery |
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No. of Employees : |
65 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
UAE |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
Company Name : SIROYA JEWELLERS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 6th November 1992
Commercial Registration Number : 42492, Dubai
Trade Licence Number : 229396
Chamber Membership Number : 25536
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 65
Activities : Retailers of jewellery
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : H R Banfna, Finance Manager
SIROYA JEWELLERS LLC
Building : The Gold
Center, 1st Floor, Suite 27
Street : Al Khor
Street
Area : New Gold
Souq, Deira
PO Box : 16067
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2265678
/ 2254254
Facsimile : (971-4)
2251840
Email : siroya@emirates.net.ae
Subject operates from a medium sized suite of offices and a showroom
that are rented and located in the Central Business Area of Dubai.
Branch Office (s)
Location Description
· Hamil Bin Khadim
Al Ghaith Building Rented
retail outlet
Al
Khaleej Street
Dubai
Tel:
(971-4) 2261313
Fax:
(971-4) 2251840
· Mirza Hussain Al
Fardan Building Rented
retail outlet
Al
Mussalla Street
Bur Dubai
Dubai
Tel:
(971-4) 3511001
Fax:
(971-4) 3511002
Name Position
· Chandra Prakash
Siroya Managing
Director
· Ashok Siroya Director
· Sanjay Siroya Director
· H R Banfna Finance
Manager
· Rajesh Jain Commercial
Manager
· Jayan Thakkar Sales
Manager
Date of
Establishment : 6th
November 1992
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 42492, Dubai
Trade Licence No. : 229396 (Expires 30/10/2012)
Chamber Member No. : 25536
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
· Sheikh Majid Hamad
Al Qassimi 51%
· Chandra Prakash
Siroya 25%
· Ashok Siroya
12%
· Sanjay Siroya 12%
· Happy Umbrella FZC
Ras Al Khaimah
· Belgium Diamond
Jewellery LLC
Dubai
· Kunal Gold
Industrial Factory Ltd
Dubai
· Al Basti
International
Dubai
· Bali Bullion
Trading FZC
Hamriyah
Sharjah
· Bullion & Gems
Trading FZC
Hamriyah
Sharjah
Activities: Retailers of jewellery, specialising in 21K & 22K jewellery pieces,
as well as dealing in rough, cut and
polished diamonds, precious stones like
emeralds and rubies.
Subject also provides custom made jewellery items and handmade bangles.
Import Countries: Bahrain, India, Italy, Turkey, Singapore and
Malaysia.
Operating Trend: Steady
Subject has a workforce of 65 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/09: Year
Ending 31/12/10:
Total Sales UAE
Dh 318,000,000 UAE Dh
323,000,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr H R Banfna, Finance Manager
·
The Standard Chartered Bank
Khalid Bin Waleed
Street
Mankhool Branch
PO Box: 999
Dubai
Tel: (971-4)
2520455
·
Habib Bank Ltd
Murshid Bazaar
PO Box: 888
Dubai
Tel: (971-4)
2221281
Fax: (971-4)
2284631
No complaints regarding subject’s payments have been reported.
Siroya Jewellers LLC specialises in 21K & 22K jewellery pieces, as
well as dealing in rough, cut and polished diamonds, precious stones like
emeralds and rubies.
The company is owned by members of the Siroya family who have many years
experience in the jewellery industry and are respected businessmen in the local
community.
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.
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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.
-
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.49.35 |
|
|
1 |
Rs.78.68 |
|
Euro |
1 |
Rs.65.63 |
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 |
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-- |
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.