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Report Date : |
24.05.2012 |
IDENTIFICATION DETAILS
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Name : |
TWIN STAR JEWELLERY LLC |
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Registered Office : |
208 Gold Land Building, 2nd Floor Gold Souq, Deira |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.07.2006 |
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Com. Reg. No.: |
997807, |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Wholesale and retail of loose diamonds |
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No. of Employees : |
07 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
UAE |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 : TWIN STAR JEWELLERY LLC
Country of Origin :
Legal Form : Limited Liability Company - LLC
Registration Date : 26th July 2006
Commercial Registration Number :
997807,
Trade Licence Number : 584157
Chamber Membership Number : 109676
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 7
Activities : Wholesale and retail of loose diamonds.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Tawfiq Hamid, Accountant
TWIN STAR JEWELLERY LLC
Registered &
Physical Address
Building : 208 Gold
Land Building, 2nd Floor
Area : Gold Souq,
Deira
PO Box : 117258
Town :
Country :
Telephone : (971-4) 2202633
Facsimile : (971-4)
2202611
Email : twinstar@eim.ae
Please note that subject’s previous address was,
Premises
Subject operates from a small suite of offices and a showroom that are
rented and located in the Central Business Area of Dubai.
Name Nationality Position
· Mohamed Junaid
Shaikh Noor Indian Managing
Director
· Manish Vardhi
Shankar Dave
Indian Director
· Abdul Reda Mohamed
Ali Hashimi Emirati Director
· Tawfiq Hamid - Accountant
Date of Establishment : 26th July 2006
History : Subject was
originally established in 2006 between the following shareholders:
1. Mohamed Abdul Ghaffar Ali Al Khoori – 51%
2. Mohamed Junaid Shaikh Noor – 25%
3. Manish Vardhi Shankar Dave – 24%
However on 14th August 2008,
Mohamed Abdul Ghaffar Ali Al Khoori withdrew from the
company after transferring his shares to a new shareholder, namely Abdul
Reda Mohamed Ali Hashimi
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 997807,
Trade Licence No. : 584157 (Expires 25/07/2012)
Chamber Member No. : 109676
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
· Abdul Reda Mohamed
Ali Hashimi 51%
· Mohamed Junaid Shaikh
Noor 25%
· Manish Vardhi
Shankar Dave 24%
Activities: Engaged in the wholesale and retail of loose diamonds.
Import Countries: Europe and
Operating Trend: Steady
Subject has a workforce of 7 employees.
Financial highlights provided by local sources are given below:
Currency:
Year
Ending 31/12/10: Year
Ending 31/12/11:
Total Sales UAE
Dh 12,000,000 UAE Dh
15,000,000
Local sources consider subject’s financial condition to be Fair.
The above figures were provided by Mr Tawfiq Hamid, Accountant
·
Emirates Bank International Ltd
Deira
PO Box: 2923
Tel: (971-4)
2256256 / 2256900
Fax: (971-4)
2268005 / 2267718
No complaints regarding subject’s payments have been reported.
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 –
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From time immemorial,
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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
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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.
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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
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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.54.88 |
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|
1 |
Rs.86.84 |
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Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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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.