|
Report Date : |
07.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ DMCC |
|
|
|
|
Registered Office : |
41 D Al Mas Tower, Jumeirah Lakes Towers, Sheikh Zayed Road, PO Box :
120485, Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
24.07.2005 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is engaged as 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 : |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
UNITED ARAB
EMIRATES - ECONOMIC
OVERVIEW
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
|
Source
: CIA |
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 / 4357242
Facsimile : (971-4)
2295684 / 4357658
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
Apoorva Prakash Doshi Managing
Director
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 Ltd 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 31/12/12 31/12/11
31/12/12 31/12/11
US$ US$ INR INR
ASSETS
Non-current assets
Property, plant and equipment 4,198,542 3,767,151 213,579,832 191,634,971
Capital work in progress 93,715 219,493 4,767,282 11,165,609
Investments 865,000
865,000 44,002,550 44,002,550
5,157,257 4,851,644
262,349,664 246,803,130
Current assets
Inventories 15,456,827
14,906,810 786,288,789 758,309,425
Trade and other receivables 68,231,719 50,783,484 3,470,947,546 2,583,355,831
Prepayments 208,633
105,083 10,613,161 5,345,572
Due from related parties 2,120,191 5,220,191
107,854,116 265,551,116
Cash and bank balances 7,067,946 1,100,440 359,546,413 55,979,383
93,085,316 72,116,008
4,735,250,025 3,668,541,327
TOTAL ASSETS 98,242,573
76,967,652 4,997,599,689 3,915,344,457
EQUITY AND
LIABILITIES
Equity
Share capital 3,054,496 3,054,496 155,382,212 155,382,212
Accumulated profits 24,539,855 17,809,663 1,248,342,424 905,977,557
Total equity 27,594,351
20,864,159 1,403,724,635 1,061,359,768
Non-current
liabilities 4,207,732
5,684,114 214,047,327 289,150,879
Current liabilities
Trade and other payables 32,410,079 36,089,051 1,648,700,719 1,835,850,024
Due to related parties 1,333,400
1,333,400 67,830,058 67,830,058
Bank borrowings 32,697,011 12,996,928 1,663,296,950 661,153,727
66,440,490 50,419,379
3,379,827,726 2,564,833,810
TOTAL EQUITY AND
LIABILITIES 98,242,573
76,967,652 4,997,599,689 3,915,344,457
Statement of Income
Sales 161,966,012
91,006,597 8,239,211,844 4,629,505,589
Cost of sales (149,426,685) (82,962,958) (7,601,335,466)
(4,220,325,673)
Gross profit 12,539,327
8,043,639 637,876,378 409,179,916
Other income 39,957
51,152 2,032,613 2,602,102
Expenses (4,960,541)
(1,854,164) (252,342,721) (94,321,323)
Profit from
operations 7,618,743
6,240,627 387,566,270 317,460,695
Interest income from banks 22,883 2,808 1,164,058 142,843
Interest income from a related party 85,455 - 4,347,096
-
Finance cost paid to banks (996,889) (787,777) (50,711,743) (40,074,216)
Profit from
operation after finance cost 6,730,192
5,455,658 342,365,681 277,529,322
Profit/(loss) on derivative instruments - (149,540) -
(7,607,100)
Net profit for the
year 6,730,192
5,306,118 342,365,681 269,922,222
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.67 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.