|
Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
Damas Jewellery LLC |
|
|
|
|
Registered Office : |
Damas Building,
Block 3, 1st Floor, Jumeirah Lakes Towers, P O Box 1522, Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Date of Incorporation : |
19.03.1980 |
|
|
|
|
Com. Reg. No.: |
41342, Dubai |
|
|
|
|
Legal Form : |
Limited Liability
Company - LLC |
|
|
|
|
Line of Business : |
Wholesale and
retail of jewellery items and watches. |
|
|
|
|
No. of Employees : |
260 |
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 : |
Regular |
|
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 : DAMAS
JEWELLERY LLC
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date : 19th
March 1980
Commercial Registration
Number : 41342, Dubai
Trade Licence
Number : 208495
Chamber Membership
Number : 6460
Issued Capital : UAE Dh
50,000,000
Paid up Capital : UAE Dh
50,000,000
Total Workforce : 260
Activities :
Wholesale and retail of jewellery items and watches.
Financial Condition : Undetermined
Payments :
Nothing detrimental uncovered
Person Interviewed : Sanjay Kalasi,
Finance
Manager
DAMAS JEWELLERY LLC
Location : Damas Building, Block 3, 1st
Floor, Jumeirah Lakes Towers
PO Box : 1522
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 4459000 / 4459462 / 4270554
Facsimile : (971-4) 4459015 / 4459565
Mobile : (971-50) 3510218
Email : damas@emirates.net.ae / mahmood@damasjewellery.com / sanjayk@damasjewellery.com
Subject operates
from a medium sized suite of offices and a showroom that are owned and located
in the Central Business Area of Dubai.
Branch Office
(s)
Subject operates approximately 75 retail showrooms located in the major
shopping malls and 5 star hotels throughout Dubai and the United Arab Emirates,
including the following locations:
Location Description
·
Hamdan
Street Rented
showroom premises
Old Souk
Abu Dhabi
Tel: (971-2) 6227220
Fax: (971-2) 6227143
·
Abu
Dhabi Mall Rented
showroom premises
Nadi Seyahi Street
Abu Dhabi
Tel: (971-2) 6450700
Fax: (971-2) 6455507
·
Ajman
City Centre Rented
showroom premises
Ajman
Tel: (971-6) 7480307
Fax: (971-6) 7482252
·
Al Ain
Mall Rented
showroom premises
·
Fujairah Rented
showroom premises
Tel: (971-9) 2233557
Fax: (971-9) 2233559
·
Manar
Mall Rented
showroom premises
·
Old
Souk Rented
showroom premises
Sharjah
Tel: (971-6) 5743875
Fax: (971-6) 5726192
Name Nationality Position
·
Tawhid
Mohamed Taher Al Mohtadi Emirati Managing Director
·
Mohamed
Taher Tawfik Al Mohtadi Emirati Director
·
Mohamed
Tawfik Taher Al Mohtadi Emirati Director
·
Mohamed
Tamjid Taher Al Mohtadi Emirati Director
·
John Joy - Operations
Manager
·
Sanjay
Kalasi - Finance
Manager
·
Deepa
Abra - Assistant
Finance Manager
·
Dhanjai
Dedhia - Marketing
Manager
·
Cedrick Gonzales - Logistics
& Export Manager
Date of Establishment : 1907, however
subject was registered on 19th March 1980
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 41342, Dubai
Trade Licence No. : 208495
(Expires 14/03/2014)
Chamber Member No. : 6460
Issued Capital : UAE Dh 50,000,000
Paid up Capital : UAE Dh 50,000,000
·
Damas
LLC 99.998%
New Gold Centre Building, 3rd
Floor
Al Khor Street
Al Ras, Deira
PO Box: 1522
Dubai
Tel: (971-4) 2255206 / 2263682 / 2254300
Fax: (971-4) 2290242 / 2252259 / 2254256
Email: damas@eim.ae
·
Tawhid
Mohamed Taher Al Mohtadi 0.002%
Name Country
of Incorporation
·
Damascus
Jewellery LLC Dubai,
United Arab Emirates
·
Mukund Jewellery LLC Dubai, United Arab Emirates
·
Ocean Jewellery LLC Dubai, United Arab Emirates
·
Dhanak Jewellery LLC Dubai, United Arab Emirates
·
Armaan Jewellery LLC Dubai, United Arab Emirates
·
Damas Jewellery DMCC Dubai, United Arab Emirates
·
Gem Universe LLC Oman
·
Universe Jewellers Ltd United
States of America
·
Royal Jewellers Inc United
States of America
·
7816 3rd Avenue LLC United
States of America
·
Damas Company WLL Bahrain
·
Islanders Demas Pvt. Ltd Maldives
·
DIT group SpA Italy
·
Damas Egypt SAE Egypt
·
Diminco Damas Diamond Manufacturing DMCC Dubai, United Arab Emirates
·
Soir Jewellery Pvt. Ltd India
·
Damas (Thailand) Co. Ltd Thailand
·
Damas & Al Ghannam jewellery Co WLL Kuwait
·
Damas Southhall Limited UK United
Kingdom
·
Damas UK Limited UK United
Kingdom
·
Damas Dis Ticaret A.S. Turkey
·
Al Nahrain Jewellers Factory LLC Dubai,
United Arab Emirates
Activities: Engaged
in the wholesale and retail of jewellery items and watches.
Import
Countries: Europe and the Far East.
Brand Names: CARRERA,
LAURENTIA, BARAKA, MIKIMOTO, FOPE, CHIMENTO, FABERGE, POMELLATO, ROBERTO COIN, SCAVIA, CHANEL, BELL
& ROSS, OMEGA, WALTHAM, MONTEGA and
VACHERON CONSTANTIN
Subject has a
workforce of approximately 260 employees.
Companies
registered in Dubai, United Arab Emirates are not legally required to make
their accounts public and no financial information was released by the company
or submitted by outside sources.
·
Emirates
National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222241
No complaints
regarding subject’s payments have been reported.
Credit amount 100,000 73,000
Amount overdue 0 0
Payment terms 30
days 30 days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Euros US$
Dollars
Established in
1980, the company operates approximately 75 retail showrooms located in the major
shopping malls and 5 star hotels throughout Dubai, and stocks many well known
and leading brand names.
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.54.89 |
|
|
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.58 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.