|
Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHRENUJ DMCC |
|
|
|
|
Registered Office : |
41 D Al Mas
Tower, Jumeirah Lakes Towers, Sheikh Zayed Road, P O 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 : |
Traders of cut diamonds and jewellery |
|
|
|
|
No. of Employees : |
15 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
UAE 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.54.88 |
|
UK Pound |
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.