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Report Date : |
06.10.2014 |
IDENTIFICATION DETAILS
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Name : |
7 CS DIAMOND
& JEWELLERY TRADING LLC |
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Formerly Known As : |
ROSY BLUE TRADING LLC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
08.06.2005 |
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Com. Reg. No.: |
74478, |
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Legal Form : |
Limited Liability
Company - LLC |
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Line of Business : |
Engaged in the import and distribution of jewellery, diamonds and
other precious stones. |
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No of Employees : |
18 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
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
|
Source
: CIA |
Company Name : 7 CS DIAMOND & JEWELLERY TRADING LLC
Country of Origin :
Legal Form :
Limited Liability Company - LLC
Registration Date : 8th
June 2005
Commercial Registration
Number : 74478,
Trade Licence
Number : 570141
Chamber Membership
Number : 98143
Issued Capital : UAE Dh
300,000
Paid up Capital : UAE Dh
300,000
Total Workforce : 18
Activities :
Import and distribution of jewellery, diamonds and other precious stones.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Prabhu Radha Krishnan, Finance Manager
7 CS DIAMOND &
JEWELLERY TRADING LLC
Building :
Area : Gold Souq,
Deira
PO Box : 54303
Town :
Country :
Telephone : (971-4) 2252221
/ 2350442 / 2202099 / 2995914
Facsimile : (971-4)
2269442 / 2518530 / 2995916
Email : rao.veggdi@7cs.com / prabhu.r@7cs.com
Please note that subject’s previous address was,
Subject operates from a small suite of offices and a showroom that are
rented and located in the Central Business Area of Dubai.
Branch Offices
Location Description
· New
Tel: (971-4)
2552797
Fax: (971-4)
2132820 / 2518530
Name Nationality Position
· Nader Nazim
Nasruddin Lebanese Managing
Director
· Arshad Mehta Indian Director
· Rihan Mehta Indian Director
· Prabhu Radha Krishnan - Finance
Manager
· Arun Bhatnagar - Branch
Manager
· Sunil Mahesvari - Accountant
· Vadi Valu - Financial
Controller
· Golda Rodriguez - Administration
Executive
Date of
Establishment : 8th
June 2005
History : Subject began in
2005 under the name “Rosy Blue Trading LLC”. However on 1st September
2014 it changed its name to “7 Cs Diamond
& Jewellery Trading LLC”.
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 74478,
Trade Licence No. : 570141 (Expires 07/06/2015)
Chamber Member No. : 98143
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
· Gulf Future
Investment LLC 51%
Khalid Al Attar
Tower
· 7 CS Euroasia FZE 49%
PO Box: 54303
Tel:
(971-4) 2995914
Fax:
(971-4) 2995916
Activities: Engaged in the
import and distribution of jewellery, diamonds and other precious stones.
Import Countries: Europe
and the
Operating Trend: Steady
Subject has a workforce of 18 employees.
Financial highlights provided by local sources are given below:
Currency:
Year
Ending 31/12/12: Year Ending
31/12/13:
Total Sales US$
268,330,000 US$
292,150,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Prabhu Radha Krishnan, Finance Manager
·
Emirates National Bank of
PO Box:
777
Tel:
(971-4) 2222241
No complaints regarding subject’s payments have been reported.
According to local sources subject is making steady progress in the
local business market and nothing detrimental has been reported regarding the
manner in which payments are fulfilled. As such the company is considered to be
a fair trade risk.
DIAMOND INDUSTRY –
-
From time immemorial,
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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 –
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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,
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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.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
|
Report Prepared
by : |
SMN |
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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.