MIRA INFORM REPORT

 

 

Report Date :

11.07.2013

 

IDENTIFICATION DETAILS

 

Name :

LULU HYPER MARKET TRADING CO WLL

 

 

Registered Office :

Al Rayyan Road, P O Box 9763, Doha

 

 

Country :

Qatar

 

 

Date of Incorporation :

27.02.1999

 

 

Com. Reg. No.:

21255, Doha

 

 

Legal Form :

With Limited Liability

 

 

Line of Business :

Engaged as owners and operators of a shopping complex

Subject is a three level department store with electronic items, household goods, clothes, shoes, suitcases, stationery, jewellery and personal care products.

 

 

No. of Employees :

150

 

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)

Qatar

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Qatar ECONOMIC OVERVIEW

 

Qatar has prospered in the last several years with continued high real GDP growth. Throughout the financial crisis Qatari authorities sought to protect the local banking sector with direct investments into domestic banks. GDP had rebounded in 2010 largely due to the increase in oil prices, and 2011's growth was supported by Qatar's investment in expanding its gas sector. GDP slowed to 6.3% in 2012 as Qatar's gas sector expansion moved toward completion. Economic policy is focused on developing Qatar's non- associated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues. Oil and gas have made Qatar the world's highest per-capita income country and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for 57 years. Qatar's proved reserves of natural gas exceed 25 trillion cubic meters, more than 13% of the world total and third largest in the world. Qatar's successful 2022 world cup bid will likely accelerate large-scale infrastructure projects such as Qatar's metro system, light rail system, and the Qatar-Bahrain causeway. The Hamad International Airport is projected to open by the end of 2013 with an annual passenger capacity of 24 million.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : LULU HYPER MARKET TRADING CO WLL

Also Known As                                     : LULU CENTER

Country of Origin                                   : Qatar

Legal Form                                           : With Limited Liability - WLL

Registration Date                                  : 27th February 1999

Commercial Registration Number           : 21255, Doha

Chamber Membership Number               : 4573

Issued Capital                                       : QR 500,000

Paid up Capital                                     : QR 500,000

Total Workforce                                     : 150

Activities                                               : Owners and operators of a shopping complex.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered


COMPANY NAME

 

LULU HYPER MARKET TRADING CO WLL

 

 

ALSO KNOWN AS

 

LULU CENTER

 

 

Company ADDRESS

 

Registered & Physical Address

Location           : Al Rayyan Road

PO Box            : 9763

Town                : Doha

Country             : Qatar

Telephone         : (974) 44324324

Facsimile          : (974) 44363434

Mobile              : (974) 55835798

Email                : info@luluhypermarket.com / satheesh@luluhypermarket.net.qa

 

Premises

Subject operates from a large suite of offices and a shopping complex that are rented and located in the Central Business Area of Doha.

 

Branch Office (s)

 

     Location                                                                                                                  Description

 

·       Airport Road            , Ring Road                                                                              Office premises

Doha

Tel: (974) 44667780

Fax: (974) 44667790

 

 

KEY PRINCIPALS

 

     Name                                                                                   Nationality                    Position

·       Yousef Ali Abdulqader Musailam Veettil Abdulqader              Indian                           Managing Director

·       Sheikh Hassan Khalid Al Abdullah                                         Qatari                           Director

 

 


LEGAL FORM & OWNERS

 

Date of Establishment  : 27th February 1999

 

Legal Form                  : With Limited Liability - WLL

 

Commercial Reg. No.   : 21255, Doha

 

Chamber Member No.  : 4573

 

Issued Capital              : QR 500,000

 

Paid up Capital            : QR 500,000

 

Name of Shareholder (s)

·       Yousef Ali Abdulqader Musailam Veettil Abdulqader

·       Sheikh Hassan Khalid Al Abdullah

 

 

AFFILIATED COMPANIES

 

·       Lulu Bahrain Hypermarket SPC

Shop No. 273, Building No. 702

Road No. 5115

Block No. 351

PO Box: 21584

Manama

Bahrain

Tel: (973-17) 553555

Fax: (973-17) 550505

 

 

OPERATIONS

 

Activities: Engaged as owners and operators of a shopping complex.

 

     Lulu Center is a three level department store with electronic items, household goods, clothes, shoes,

     suitcases, stationery, jewellery and personal care products.

 

Subject has a workforce of approximately 150 employees.

 

 

FINANCIAL DATA

 

Companies registered in Qatar are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

Abdulla Bin Jassim Street

PO Box: 57

Doha

Tel: (974) 44423124

Fax: (974) 44416353

 

·       International Bank of Qatar

PO Box: 2001

Doha

Tel: (974) 44478000

Fax: (974) 44473745

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.

-            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.60.13

UK Pound

1

Rs.89.52

Euro

1

Rs.76.89

 

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%)

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.