MIRA INFORM REPORT

 

 

Report Date :

13.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SKY JEWELLERY LLC

 

 

Registered Office :

Gold Centre, Suite No. 321, Al Khor Street, Al Ras Area, Deira, P O Box 4005, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013 (Consolidated)

 

 

Date of Incorporation :

12.09.1989

 

 

Com. Reg. No.:

46634, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the import and distribution of jewellery, diamonds and other precious stones.

 

 

No. of Employees

45

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

SUMMARY

 

Company Name                                    : SKY JEWELLERY LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 12th September 1989

Commercial Registration Number           : 46634, Dubai

Trade Licence Number                           : 220739

Chamber Membership Number               : 17057

Issued Capital                                       : UAE Dh 300,000

Paid up Capital                                     : UAE Dh 300,000

Total Workforce                         : 45

Activities                                               : Distributors of jewellery and precious stones

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Reejesh Kumar, Financial Controller

 

COMPANY NAME

 

SKY JEWELLERY LLC

 

 

COMPANY ADDRESS

 

Registered & Physical Address

Building                        : Gold Centre, Suite No. 321

Street               : Al Khor Street

Area                 : Al Ras Area, Deira

PO Box            : 4005

Town                : Duai

Country : United Arab Emirates

Telephone         : (971-4) 2253734 / 2250109 / 2352610

Facsimile          : (971-4) 2254594 / 2352650 / 2254599

Email                : info@skygroup.org / response@skyjewellery.com / reejesh@skygroup.org

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Central Business Area of Dubai.

 

Branch Offices

 

Location                                                                                                       Description

 

·       Dubai Mall                                                                                                    Showroom premises

Dubai

Tel: (971-4) 4343109

 

·       Dubai Festival City                                                                                       Showroom premises     

Dubai

Tel: (971-4) 2328485

 

·       Gold Souq                                                                                                   Showroom premises

Main Street

Dubai

Tel: (971-4) 2352955

 

·       Gold Centre                                                                                                  Showroom premises

Dubai

Tel: (971-4) 2328485

 

·       Karama Centre                                                                                              Showroom premises

Dubai

Tel: (971-4) 3356970

 

·       Bur Dubai                                                                                                     Showroom premises

Dubai

Tel: (971-4) 3599150

 

·       Al Fahidi Street                                                                                             Showroom premises

Dubai

Tel: (971-4) 3537264

 

·       Global Village                                                                                               Showroom premises     

Dubai

Tel: (971-4) 4370342

 

·       Delma Centre                                                                                               Showroom premises

Hamdan Street

Abu Dhabi

Tel: (971-2) 6341141

 

·       Rolla Square                                                                                                Showroom premises                 

Sharjah

Tel: (971-6) 5623399

 

·       Khansaheb Building                                                                                      Showroom premises                 

Sharjah

Tel: (971-6) 5356272

 

 

KEY PRINCIPALS

 

     Name                                                                       Nationality                    Position

 

·       Babu John G John                                                    Indian                           Managing Director

 

·       Akash Jacob John                                                    Indian                           Director

 

·       Amith Varghese John                                                Indian                           Director

 

·       Jacob Palothombathu John                                      Indian                           Director

 

·       Darwish Askar Ismail Mohamed Al Askar                    Emirati                          Director

 

·       Cyric Varghese                                                              -                              General Manager

 

·       Harri Harran                                                                   -                              Finance Manager

 

·       Reejesh Kumar                                                             -                              Financial Controller

 

·       Naleef Fardin                                                                 -                              Commercial Manager

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th September 1989

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 46634, Dubai

 

Trade Licence No.        : 220739 (Expires 04/09/2014)

 

Chamber Member No.  : 17057

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Darwish Askar Ismail Mohamed Al Askar                                51%

 

·       Babu John G John                                                                25%

 

·       Akash Jacob John                                                                  8%

 

·       Amith Varghese John                                                              8%

 

·       Jacob Palothombathu John                                                    8%

 

 

AFFILIATED COMPANIES

 

·       Sky Jewellery WLL

Doha

Qatar

 

·       Sky Jewellery LLC

Muscat

Oman

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of jewellery, diamonds and other precious stones.

 

Import Countries: Europe and the Far East.

 

Brand Names: CIAGA, ANGELINA, AGNESI, CARISTO, HERITAGE, IQ and ISHWARIYA

 

Operating Trend: Steady

 

Subject has a workforce of 45 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/12:               Year Ending 31/12/13:

 

Consolidated Total Sales           UAE Dh 1,050,000,000               UAE Dh 1,200,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Reejesh Kumar, Financial Controller

 

 

BANKERS

 

·       Bank of Baroda

PO Box: 3162

Dubai

Tel: (971-4) 5531955

Fax: (971-4) 5536962

 

 

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.62.44

UK Pound

1

Rs.98.18

Euro

1

Rs.77.38

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.