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Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
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Name : |
AL SARRAJ JEWELLERS WLL |
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Registered Office : |
Gold Souq Building, 2nd Floor, Suite No. 221 Sheikh
Abdullah Road PO Box 1341 Manama |
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Country : |
Bahrain |
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Financials (as on) : |
31.12.2012 |
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Year of Incorporation : |
1982 |
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Com. Reg. No.: |
65726-1 |
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Legal Form : |
With Limited Liability |
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Line of Business : |
Wholesalers and retailers of jewellery, diamonds and other precious stones |
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No. of Employees : |
22 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
|
Bahrain |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
BAHRAIN - ECONOMIC OVERVIEW
Bahrain has taken great strides in diversifying its economy and its highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain''s economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain''s export receipts, 70% of government revenues, and 11% of GDP. Other major economic activities are production of aluminum - Bahrain''s second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In 2011 and 2012, Bahrain experienced economic setbacks as a result of domestic unrest, however, several factors indicate that the economy is beginning to recover, such as the return of the formula one race and tourist cruise ships to Bahrain. Economic policies aimed at restoring confidence in Bahrain''s economy, such as the suspension of an expatriate labor tax and frequent bailouts of Gulf Air, will make Bahrain''s foremost long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.
Source
: CIA
Company Name : AL SARRAJ JEWELLERS WLL
Country of Origin : Bahrain
Legal Form : With Limited Liability – WLL
Start Date : 1982
Registration Date : 27th June 2007
Commercial Registration Number : 65726-1
Issued Capital : BD 600,000
Paid up Capital : BD 600,000
Total Workforce : 22
Activities : Wholesalers and retailers of jewellery, diamonds and other precious stones
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
AL SARRAJ JEWELLERS WLL
Registered &
Physical Address
Building : Gold Souq
Building, 2nd Floor, Suite No. 221
Street : Sheikh
Abdullah Road
PO Box : 1341
Town : Manama
Country : Bahrain
Telephone : (973-17) 277521
/ 243328
Facsimile : (973-17)
234401
Mobile : (973-39)
666354
Email : alsarraj@batelco.com.bh
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Manama.
Branch Office (s)
Location Description
· Seef Mall Showroom
premises
Tel:
(973-17) 583337
· Gold City Showroom
premises
Tel: (973-17)
212147
Name Nationality Position
· Mohamed Hussai
Malim Indian Managing Director
· Abdul Hussain
Abdullah Abdul Hussain Sarraj Bahraini Director
· Sheikh Mansoor - Financial
Controller
· Kabir Ahmed - Sales
Manager
Date of
Establishment : 1982, however
subject was registered on 27th June 2007
Legal Form : With Limited
Liability - WLL
Commercial Reg.
No. : 65726-1
Issued Capital : BD 600,000
Paid up Capital : BD 600,000
Name of Shareholder
(s) Percentage
· Abdul Hussain
Abdullah Abdul Hussain Sarraj 51%
· Mohamed Hussai
Malim 49%
· Mali Gems &
Jewels
Manama
Tel: (973-17)
212147
Activities: Engaged in the wholesale and retail of jewellery, diamonds and other
precious stones.
Import Countries: Europe and the Far East.
Operating Trend: Steady
Subject has a workforce of 22 employees.
Financial highlights provided by local sources are given below:
Currency: Bahraini Dinar (BD)
Year
Ending 31/12/11: Year
Ending 31/12/12:
Total Sales BD
2,500,000 BD
2,750,000
Local sources consider subject’s financial condition to be Fair.
The above financial figures are based on estimations by our local
sources.
·
Bank of Bahrain & Kuwait
43 Government
Avenue
PO Box: 597
Manama
Tel: (973-17)
253388
Fax: (973-17) 275785
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
-
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.
-
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.66.89 |
|
UK Pound |
1 |
Rs.103.95 |
|
Euro |
1 |
Rs.88.09 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.