MIRA INFORM REPORT

 

 

Report Date :

15.03.2012

 

IDENTIFICATION DETAILS

 

Name :

ROSY BLUE DMCC

 

 

Registered Office :

Almas Tower, Level 31, Jumeirah Lakes Towers, 340502 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

26.02.2006

 

 

Legal Form :

Limited Liability Company

 

 

LINE OF BUSINESS :

DISTRIBUTORS OF DIAMONDS, POLISHED DIAMONDS AND JEWELLERY.

 

 

No. of Employees :

13

 

 

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 :

Good 

 

 

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                                     : ROSY BLUE DMCC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company

Registration Date                                   : 26th February 2006

Trade Licence Number                            : 30426

Issued Capital                                        : UAE Dh 210,000

Paid up Capital                                      : UAE Dh 210,000

Total Workforce                                     : 13

Activities                                               : Distributors of diamonds, polished diamonds and jewellery.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Monoj Shah, General Manager

 


COMPANY NAME

 

ROSY BLUE DMCC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Almas Tower, Level 31, Jumeirah Lakes Towers

 

PO Box             : 340502

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 4230644

Facsimile          : (971-4) 4230645

Mobile               : (971-50) 4551259 / 5518661

Email                : dubai@rosyblue.com / monoj.shah@rosyblue.com

 

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

 

·       Delip Mehta                                                     Indian                         Managing Director

 

·       Harshad Mehta                                                Indian                         Director

 

·       Monoj Shah                                                         -                            General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26th February 2006

 

Legal Form                  : Limited Liability Company

 

Trade Licence No.       : 30426

 

Membership No.          : 0247

 

Issued Capital              : UAE Dh 210,000

 

Paid up Capital            : UAE Dh 210,000

 

Name of Shareholder (s)

 

·       Delip Mehta

 

·       Harshad Mehta

 

 

AFFILIATED COMPANIES

 

·       Rosy Blue Trading LLC

     Gold Centre Building, Zone IV, Suite 134

     Al Khor Street

     Al Ras

     PO Box: 54303

     Dubai

     Tel: (971-4) 2252221

     Fax: (971-4) 2269442

 

·       Rosy Blue Eurasia FZE

Dubai Airport Free Zone, West Wing No. 3, 3rd Floor, Suite No. 304

Dubai

Tel: (971-4) 2995914 / 2995915

Fax: (971-4) 2995916

Email: rosyblue@emirates.net.ae / dubai@rosyblue.com

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of diamonds, polished diamonds and jewellery.

 

Import Countries: India, South Africa and Switzerland.

 

Operating Trend: Steady

 

Subject has a workforce of 13 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 178,600,000                  UAE Dh 185,200,000

 

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

 

The above figures were provided by Mr Monoj Shah, General Manager

 

 

BANKERS

 

·       Emirates Bank International Ltd

Baniyas Road

Deira

PO Box: 2923

Dubai

Tel: (971-4) 2256256 / 2256900

Fax: (971-4) 2268005 / 2267718

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

According to local sources subject is making steady progress in the local business market and nothing detrimental has been reported regarding 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.49.90

UK Pound

1

Rs.78.14

Euro

1

Rs.65.08

 

 

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.