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Report Date : |
28.06.2014 |
IDENTIFICATION DETAILS
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Name : |
MASHREQ INTERNATIONAL LLC |
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Registered Office : |
Sheikh Hamdan Building, Suite No. 111, Abu Baker Al Siddique Street, PO Box : 25018, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1986 |
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Com. Reg. No.: |
41279, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the wholesale and retail of
jewellery, watches, electrical products, timber, building materials and
engineering products. |
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No. of Employees : |
160 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
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 :
MASHREQ INTERNATIONAL LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company – LLC
Start Date :
1986
Registration Date :
21st November 1993
Commercial Registration Number :
41279, Dubai
Trade Licence Number :
232594
Chamber Membership Number :
28814
Issued Capital :
UAE Dh 10,000,000
Paid up Capital :
UAE Dh 10,000,000
Total Workforce :
160
Activities :
Wholesale and retail of jewellery, watches and electrical products.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Krishnan Rajan, Finance Manager
MASHREQ
INTERNATIONAL LLC
Registered &
Physical Address
Building : Sheikh Hamdan Building, Suite No. 111
Street : Abu Baker Al
Siddique Street
PO Box : 25018
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2626399
Facsimile : (971-4)
2629978
Mobile : (971-50)
4580063 / 6985302
Email : zenart@emirates.net.ae
/ contact@mashreqworld.com
/ rajan@mashreqworld.com
Premises
Subject operates from a large suite of offices that are rented and
located in the Suburban Business Area of Dubai.
Branch Offices
Location Description
Al Falasi Building Office
premises
Salah Uddine Road
Dubai
Tel: (971-4) 2661900
Fax: (971-4) 2997789
Al Khabeesi Area Office
premises
Dubai
Tel: (971-4) 2623377
Fax: (971-4) 2977892
Name Nationality Position
Habib Sayed Mohamed Mukrim Indian Managing
Director
Majid Saif Ahmed Al Ghurair Emirati Director
Aslam Habib - General
Manager
Qader Ali Najem Eddine - Commercial
Manager
Krishnan Rajan - Finance
Manager
Najam Eddine - Sales
Manager
Sudndar Natrajan - Marketing
Manager
Sayed Maskeen Sultan - Public
Relations Manager
Date of
Establishment : Subject’s operations
date back to 1986, however it was registered on 21st November 1993
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 41279, Dubai
Trade Licence No. : 232594
Chamber Member No. : 28814
Issued Capital : UAE Dh 10,000,000
Paid up Capital : UAE Dh 10,000,000
Name of
Shareholder (s) Percentage
Majid Saif Ahmed Al Ghurair 51%
Habib Sayed Mohamed Mukrim 49%
Subject is a member of the Al Ghurair Group, which has a turnover over
in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified range
of interests spanning real estate, finance and industry, with specialist
operations in banking, trading and shipping.
Some of the very successful industries that it operates today in the
United Arab Emirates, include the National Flour Mills Co Ltd, National Cement
Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National
Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In
the banking sector, the Ghurairs are owners of the UAE’s largest private bank,
the Dubai-based Mashreq Bank, which is one of the Group’s most successful
ventures and operates from branches both within and outside the UAE.
The Al Ghurair Group is active in London, New York, Cairo, Khartoum,
Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.
In real estate the Al Ghurair Centre has become a prominent landmark in
Dubai. It was built at a cost of more than US $ 150 million and is now home to
most of the city’s top retailers.
The Al Ghurair Group comprises the following concerns:
·
Al Ghurair Holdings (Private) Ltd
·
Gulf Extrusions Ltd
·
Arabian Aluminium Company
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Al Ghurair Publishing & Printing House
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Union Mosaic & Marble Company
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Al Ghurair Centre
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Arabian Mix
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National Cement Company Ltd
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Arabian Packing Company
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Gulf Utensils
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Gulf Import & Export Co
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House of Perfume
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Computer Intelligence and Communications Ltd
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Gulf Confectionery & Biscuit Company
·
Oman Insurance Co Limited
·
Mashreq Bank
·
Al Ghurair Enterprises
·
Al Ghurair Exchange
·
National Flour Mills Company Ltd
·
Emirates Trading Agency LLC
·
National Concrete Company Ltd
·
Masafi Mineral Water Co LLC
·
Associated Construction & Investment Co LLC
(ASCON)
·
Al Ghurair Fieness Perry & Partners
·
Pak Arab Traders
·
Al Ghurair Real Estate
·
Al Khaleej Sugar Co WLL
·
Central Electric Equipment Co LLC (CEEC)
·
National Oman Marble Company
·
Rawda Quarries Ltd
·
Ghurair Tarmac
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Oman Finance Company
·
Ghurair Crown (Engineering) Ltd
·
Al Ghurair Industries (Pvt) Ltd
·
Trans Gulf Aluminium LLC
Activities: Engaged in the wholesale and
retail of jewellery, watches, electrical products, timber, building materials
and engineering products.
Import Countries: Europe
and GCC countries.
Brand Names: ZENART, DGO, TRAZER, LEROSKY, JULIUS,
AREN DINO, XETEX, SWISCARDIN, VERONA, FUSION and EPOK
Operating Trend: Steady
Subject has a workforce of approximately 160 employees.
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:
Total Sales UAE
Dh 146,500,000 UAE Dh
151,230,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Krishnan Rajan, Finance Manager
Mashreq Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4) 2229131 / 2221134
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.
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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.60.10 |
|
|
1 |
Rs.102.40 |
|
Euro |
1 |
Rs.81.88 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NNA |
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 |
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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 |
|
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.