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Report Date : |
26.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SHRENUJ DMCC |
|
|
|
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Registered Office : |
41 D Al Mas
Tower, |
|
|
|
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Country : |
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|
|
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Financials (as on) : |
31.03.2014 |
|
|
|
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Date of Incorporation : |
24.07.2005 |
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|
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Legal Form : |
Limited Liability Company |
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|
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Line of Business : |
Engaged as
traders of cut diamonds and jewellery. |
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|
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No. of Employees : |
15 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
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
|
Source
: CIA |
Company Name : SHRENUJ DMCC
Country of Origin :
Legal Form : Limited
Liability Company
Registration Date : 24th
July 2005
Trade Licence
Number : 30243, DMCC
Issued Capital : US$ 3,054,496
Paid up Capital : US$ 3,054,496
Total Workforce : 15
Activities :
Traders of cut diamonds and jewellery
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
SHRENUJ DMCC
Building : 41 D Al Mas Tower,
Street :
PO Box : 120485
Town :
Country :
Telephone : (971-4) 2259552 / 2295683 / 2295976 /
4357242
Facsimile : (971-4) 2295684 / 2295973 / 4357658
Email : shrenujdmcc@shrenuj.com / smitkothari@shrenuj.com
Please note that
subject’s previous address was,
Subject operates from
a small suite of offices that are rented and located in the Central Business
Area of Dubai.
Name Position
·
Apoorva
Prakash Doshi Managing
Director
·
Smit Kothari General
Manager
·
Arapit Shah Finance
Manager
Date of Establishment : 24th
July 2005
Legal Form :
Limited Liability Company
Trade Licence No. : 30243, DMCC
Issued Capital : US$ 3,054,496
Paid up Capital : US$ 3,054,496
·
Shrenuj & Co Ltd 100%
405 Dharam Palace, 100 - 103 N. S. Patkar Marg
Mumbai - 400 007
Tel: (91-22) 66373500
Fax: (91-22)
23632982
Subject is a member of the Shrenuj Group of Companies, which includes
the following concerns:
Name Country Incorporated
·
Alija International Pty Ltd
·
· Shrenuj
(
· Jomard
SAS (JV)
· Shrenuj
GmbH
· Inter-gems
(HK) Limited
· SWA Trading
Company (JV)
· Copem
& Shrenuj (JV)
· Shrenuj
Japan Corporation
· Shrenuj
· Global Marine Diamond Company Inc
· Astral USA Inc
·
Shrenuj
Activities: Engaged as traders of cut diamonds and
jewellery.
Import
Countries:
Operating Trend: Steady
Subject has a
workforce of 15 employees.
Financial highlights
provided by local sources are given below:
Currency:
Balance Sheet 31/03/14 31/03/13
31/03/14 31/03/13
US$ US$ INR INR
ASSETS
Non-current assets
Property, plant
and equipment 4,340,879
4,518,223 260,105,470 270,731,922
Investment in a
subsidiary 855,000
855,000 51,231,600 51,231,600
Investments 10,000 10,000 599,200 599,200
5,205,879 5,383,223 311,936,270 322,562,722
Current assets
Inventories 24,029,460 20,122,664 1,439,845,243 1,205,750,027
Trade and other
receivables 82,742,610 73,591,654 4,957,937,191 4,409,611,908
Prepayments 259,419 205,282 15,544,386 12,300,497
Due from related
parties 1,269,266 95,648 76,054,419 5,731,228
Cash and bank
balances 6,829,909 4,885,134 409,248,147 292,717,229
115,130,664 98,900,382 6,898,629,387 5,926,110,889
TOTAL ASSETS 120,336,543 104,283,605 7,210,565,657 6,248,673,612
EQUITY AND LIABILITIES
Equity
Share capital 3,054,496 3,054,496 183,025,400 183,025,400
Accumulated
profits 39,286,798 31,428,661 2,354,064,936 1,883,205,367
Total equity 42,341,294 34,483,157 2,537,090,336 2,066,230,767
Non-current liabilities 6,273,514 7,739,206 375,908,959 463,733,224
Current liabilities
Trade and other
payables 27,464,688 24,478,788 1,645,684,105 1,466,768,977
Due to related
parties 333,400 1,333,400 19,977,328 79,897,328
Bank borrowings 43,923,647 36,249,054 2,631,904,928 2,172,043,316
71,721,735 62,061,242 4,297,566,361 3,718,709,621
TOTAL EQUITY AND LIABILITIES 120,336,543 104,283,605 7,210,565,657 6,248,673,612
Statement of
Income
Sales 245,215,347 190,315,955 14,693,303,592 11,403,732,024
Cost of sales (230,427,364) (177,159,794) (13,807,207,651)(10,615,414,856)
Gross profit 14,787,983 13,156,161 886,095,941 788,317,167
Other income 39,958 5,704 2,394,283 341,784
Expenses (4,445,836) (4,270,736) (266,394,493) (255,902,501)
Profit from operations 10,382,105 8,891,129 622,095,732 532,756,450
Interest income
from banks 78,566 32,781 4,707,675 1,964,238
Finance cost paid
to a related party (287,141) (29,358) (17,205,489) (1,759,131)
Finance cost paid
to banks (2,315,393) (2,005,746) (138,738,349) (120,184,300)
Profit for the year 7,858,137 6,888,806 470,859,569 412,777,256
Local sources
consider subject’s financial condition to be Good.
·
Habib
Bank AG
PO Box: 3306
Tel: (971-4) 2214535
No complaints regarding
subject’s payments have been reported.
During the course
of this investigation nothing detrimental was uncovered regarding the manner in
which payment obligations are fulfilled. The operating history is clear and the
financial situation is satisfactory. As such we are of the opinion that the
subject is a fair trade risk.
DIAMOND INDUSTRY –
-
From time immemorial,
-
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,
-
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.61.02 |
|
|
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.77.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.