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Report Date : |
19.07.2013 |
IDENTIFICATION DETAILS
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Name : |
JOY ALUKKAS JEWELLERY LLC |
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Formerly Known As : |
ALUKKAS JEWELLERY LLC |
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Registered Office : |
New Century City
Tower, 9th Floor, Deira, P O Box 12928, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.11.1988 |
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Com. Reg. No.: |
43636, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
wholesaler and retailer of jewellery
and precious stones, necklace sets, bangles, bracelets, chains, earrings,
pendants, rings and coins. |
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No. of Employees : |
400 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
United Arab
Emirates |
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 |
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 : JOY ALUKKAS JEWELLERY LLC
Previously Known As : ALUKKAS JEWELLERY LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 13th November 1988
Commercial Registration Number : 43636, Dubai
Trade Licence Number : 217959
Chamber Membership Number : 9635
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 400
Activities : Wholesaler and retailer of jewellery and precious stones.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Joby Chen, Assistant Finance Manager
JOY ALUKKAS
JEWELLERY LLC
ALUKKAS JEWELLERY
LLC
Registered &
Physical Address
Building : New Century City Tower, 9th Floor
Area : Deira
PO Box : 12928
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2522900
Facsimile : (971-4) 2255933
Mobile : (971-50) 6252623 / 6518173
Email : alukkas@alukkas.com / finance@joyalukkas.com
/ thomas@joyalukkas.com
Please note that
subject’s previous address was, Gold Centre, 3rd Floor, Al Khor Street, Al Ras, Deira, Dubai.
Premises
Subject operates
from a large suite of offices and a showroom that are rented and located in the
Central Business Area of Dubai.
Branch Office
(s)
Location Description
·
Hamel Bin Khadim Alghiath Building Rented
showroom premises
Al Daghaya Street
Dubai
Tel:
(971-4) 2290076
Fax:
(971-4) 2269735
·
Development Board Building Rented
showroom premises
Al Nahda Road
Dubai
Tel:
(971-4) 2635270 / 2631573
·
Lulu Shopping Mall Rented
showroom premises
Al Nahda Road
Dubai
Tel:
(971-4) 2988590
Fax:
(971-4) 2988580
·
Karama Centre Rented
showroom premises
Zaabeel Street
Dubai
Tel:
(971-4) 3379183
Fax:
(971-4) 3379188
Name Nationality Position
·
Joy
Varghese Alukkas Indian Managing
Director
·
Jassim Mohamed Ibrahim Abdullah Al Hasawi Emirati Director
·
Justin Sunny - Administration
Manager
·
Jibin Tom - Commercial
Manager
·
Thomas Sackarya - Finance
Manager
·
Joby Chen - Assistant
Finance Manager
Date of Establishment : 13th
November 1988
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 43636, Dubai
Trade Licence No. : 217959 (Expires 26/10/2013)
Chamber Member No. : 9635
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
·
Jassim Mohamed Ibrahim Abdullah Al Hasawi
51%
·
Joy
Varghese Alukkas 49%
·
Alukkas Gulf FZCO
Gold & Diamond Park
Jebel Ali Free Zone
Dubai
·
House of Alukkas LLC
Gold Centre
Al Khor Street
PO Box:
112454
Dubai
Tel:
(971-4) 2291300
Email: houseofalukkas@hotmail.com
· Alukkas Wedding Centre
Main Road
Angamaly
India
Tel: (91-484) 2452999
Fax: (91-484) 2456299
· Joy Alukkas Traders (India)Pvt Ltd
St Louis Commercial Complex
10/815/28
Erinjery Angadi
Thrissur-680001
India
Tel: (91-487) 2445444
Fax: (91-487) 2446555
· Joy Alukkas Jewellery WLL
PO Box: 1897
Muscat
Oman
Tel: (968) 24797212
Fax: (968) 24797181
· Joy Alukkas Jewellery WLL
PO Box: 22717
Doha
Qatar
Tel: (974) 44786844
Fax: (974) 44786838
· Joy Alukkas Jewellery WLL
PO Box: 3008
Safat
Kuwait
Tel: (965) 22494845
/ 22475959
Fax: (965) 22494842
· Joy Alukkas
Diamonds LLC
PO Box: 27847
Sharjah
Tel: (971-6) 5749919
Fax: (971-6) 5639626
· Joy Alukkas Jewellery WLL
PO Box: 11492
Manama
Bahrain
Tel: (973-17) 229914
Fax: (973-17) 229924
· Joy Alukkas Jewellery LLC
PO Box: 11659
Ras Al Khaimah
Tel: (971-7) 2283221
Fax: (971-7) 2270207
· Joy Alukkas Jewellery LLC
PO Box: 71659
Abu Dhabi
Tel: (971-2) 6331377
Fax: (971-2) 6319835
· Alukkas Exchange
PO Box: 171468
Dubai
Tel: (971-4) 3535469
Fax: (971-4) 3535683
Activities: Engaged in the wholesale and retail of jewellery and precious stones, necklace sets, bangles,
bracelets, chains, earrings, pendants, rings and coins.
Import
Countries: Europe and the
Far East
Brand Names: MAYOORI, FLORENTINA and ZENINA
Operating Trend: Steady
Subject has a
workforce of approximately 400 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year Ending 31/12/11: Year Ending 31/12/12:
Total Revenue UAE Dh 1,295,000,000 UAE Dh 1,371,000,000
Local sources consider
subject’s financial condition to be Good.
The above figures
were provided by Mr Joby Chen, Assistant Finance Manager
·
Emirates
National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222555
Fax: (971-4) 2221110
·
Mashreq Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4) 2229131 / 2221134
Fax: (971-4) 2233784
·
Standard
Chartered Bank
Khalid Bin Waleed Street
PO Box: 999
Dubai
Tel: (971-4) 2520455
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 – INDIA
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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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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 –
-
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.
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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.59.71 |
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UK Pound |
1 |
Rs.90.59 |
|
Euro |
1 |
Rs.78.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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.