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Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
AVEREX GENERAL
TRADING CO LLC |
|
|
|
|
Registered Office : |
Deira 43433,
Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
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Date of Incorporation : |
04.06.2008 |
|
|
|
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Com. Reg. No.: |
1030140, Dubai |
|
|
|
|
Legal Form : |
Limited Liability Company – LLC |
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|
|
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Line of Business : |
Engaged in the
import and distribution of diamonds and jewellery. |
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|
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No. of Employees : |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Poor |
|
Payment Behaviour : |
-- |
|
Litigation : |
-- |
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) |
|
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 |
Company Name : AVEREX
GENERAL TRADING CO LLC
Country of Origin : Dubai,
United Arab Emirates
Legal Form : Limited
Liability Company – LLC
Registration Date : 4th
June 2008
Commercial
Registration Number : 1030140,
Dubai
Trade Licence
Number : 612109
Chamber Membership
Number : 140930
Issued Capital : UAE Dh
300,000
Paid up Capital : UAE Dh
300,000
Total Workforce : 3
Activities :
Distributors of diamonds and jewellery
Financial Condition : Undetermined
Payments :
Nothing detrimental uncovered
AVEREX GENERAL
TRADING CO LLC
Location : Deira
PO Box : 43433
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2353755
Facsimile : (971-4) 2353757
Mobile : (971-50) 3959095
Email : glx_inv@eim.ae
Subject operates from
a small suite of offices that are rented and located in the Central Business
Area of Dubai.
Name Nationality Position
·
Afroz
Fatta Indian Managing
Director
Date of Establishment : 4th
June 2008
Legal Form :
Limited Liability Company –
LLC
Commercial Reg. No. : 1030140,
Dubai
Trade Licence No. : 612109
(Expires 03/06/2015)
Chamber Member No. : 140930
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
·
Unnamed
local sponsor 51%
·
Afroz
Fatta 49%
Activities: Engaged in the import and distribution of
diamonds and jewellery.
Subject has a
workforce of 3 employees.
Companies registered
in Dubai, United Arab Emirates are not legally required to make their accounts
public and no financial information was released by the company or submitted by
outside sources.
·
HSBC
Bank Middle East
Deira Souk Branch
PO Box: 66
Dubai
Tel: (971-4) 2535000
No complaints
regarding subject’s payments have been reported.
Please note that in
May 2014 multi-crore hawala racket accused Afroz Fatta made Rs 40 lakh-Rs 50 lakh
a day in January-February this year in commission for sending money outside
India, said enforcement directorate (ED) while opposing his bail plea on
Tuesday in the metropolitan court. Fatta's bail hearing has been postponed to
June 4 after his counsel sought time to file reply to ED's charges.
"Based on
audio recordings we have found that Fatta was getting 3% commission for every
hawala transaction. In one such telephone conservation tapped by ED, it has
been found that a person named Tariq had called Fatta asking to deliver Rs 1
crore in Hong Kong if he deposited the money in Bangalore with Fatta,"
said an ED official.
Sources said that
ED has also found the involvement of Surat-based Bilal Haroon Gilani in the Rs
5,000 crore hawala racket run by Fatta and Mumbai-based trader Madan Lal Jain.
"Gilani is the right-hand man of Fatta and we are investigating his
involvement. He is also a hawala operator," said an ED official.
Fatta had 49% stake
in two companies in Dubai, Averex General Trading Company and Oceanic Venture
which are also under ED's investigation. "Fatta was also planning to open
a bank in the Caribbean as the evidence recovered by us indicates," said
an ED official.
Earlier, Surat
police conducted searches at the residence and offices of Jain in Surat and
Mumbai and arrested one person for forgery. "Jain has also been issued
summons and once we establish his link, he may also be arrested," added
the ED official. Till now, over 30 people's statements have been recorded in
the hawala racket.
ED had arrested
Fatta on May 21 and he was sent to three-day ED remand. Sources said that the
hawala racket could be of more than Rs 7,000 crore as the investigations are
still on. Fatta had sent over Rs 4,500 crore through the dummy companies
created by him to Hong Kong and UAE in January and February this year.
Please note that we
were unable to make direct contact with the subject during the course of this
investigation.
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.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
PDT |
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.