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Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DAMAS LLC |
|
|
|
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Registered Office : |
Damas Building, Building No. 2, M Block No. 3, 1st Floor,
Jumeirah Lakes Towers PO Box 1522 Dubai |
|
|
|
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Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2013 |
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|
|
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Date of Incorporation : |
09.09.1978 |
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Com. Reg. No.: |
41717, Dubai |
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|
|
Legal Form : |
Limited Liability Company - LLC |
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|
|
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Line of Business : |
Engaged in the import and distribution of jewellery and precious stones |
|
|
|
|
No. of Employees |
2,500 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
UAE |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 : DAMAS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 9th September 1978
Commercial Registration Number : 41717, Dubai
Trade Licence Number : 200444
Chamber Membership Number : 4784
Issued Capital : UAE Dh 500,000,000
Paid up Capital : UAE Dh 500,000,000
Total Workforce : 2,500
Activities : Distributors of jewellery and precious stones.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Sriatas Subramanyan, Chief Financial Officer
DAMAS LLC
Location : Damas
Building, Building No. 2, M Block No. 3, 1st Floor, Jumeirah Lakes
Towers
PO Box : 1522
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 4459000
/ 4459540 / 4459512 / 2255206
Facsimile : (971-4)
4459509 / 4459015 / 4245970 / 2290242
Mobile : (971-50)
3510218
Email : damas@eim.ae
/ mahmoudF@damasjewellery.com
Please note that subject’s previous address was, New Gold Centre
Building, 3rd Floor, Al Khor Street, Al Ras, Deira, Dubai. Subject
moved to the above address in January 2010.
Subject operates from a large suite of offices and a showroom that are
rented and located in the Central Business Area of Dubai.
Branch Offices
Subject has branch offices located throughout
Dubai, Ajman, Al Ain, Fujairah, Ras Al Khaimah and Umm Al Quwain.
Name Position
· Anan Khalil Fayyad Managing
Director
· Sanjay Kalasi Director
· Mahmoud Fayez
Khalil Government
Relations Manager
· Sriatas Subramanyan Chief
Financial Officer
· Venkat Esan Natrajan Finance
Manager
· Jan Miller Human
Resources Manager
· Kevin Rayyan Sales
Manager
Date of
Establishment : 9th
September 1978
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 41717, Dubai
Trade Licence No. : 200444
Chamber Member No. : 4784
Issued Capital : UAE Dh
500,000,000
Paid up Capital : UAE Dh 500,000,000
· Damas
International Limited 99.99%
Dubai
· Damas SPV
Jewellery LLC 0.01%
Dubai
· Damas Jewellery
LLC
Gold Centre
Al Khor Street
Al Ras
PO Box: 1522
Dubai
Tel: (971-4) 2266036 / 2266222 / 2254300
Fax: (971-4) 2263789 / 2263404 / 2252259
· Damascus Jewellery
LLC
Gold Centre
Al Khor Street
Al Ras
PO Box: 1522
Dubai
Tel: (971-4)
2263682
Fax: (971-4)
2263789
Activities: Engaged in the import and distribution of jewellery and precious
stones.
Import Countries: Europe and the Far East.
Operating Trend: Steady
Subject has a workforce of approximately 2,500 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 2,309,229,000 UAE Dh
2,684,508,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Sriatas Subramanyan, Chief Financial Officer
·
Mashreq Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4)
2229131 / 2221134
·
National Bank of Ras Al Khaimah
Al Maktoum Street
PO Box: 1531
Dubai
Tel: (971-4) 2226291
Fax: (971-4) 2281312
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.
-
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.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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.