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Report No. : |
353841 |
|
Report Date : |
12.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
UNIQUE DIAMOND AND JEWELLERY FZC |
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|
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Registered Office : |
Ajman Free Zone, Building No. C1, Office No. 620, PO Box : 40387,
Ajman |
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|
|
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Country : |
United Arab Emirates |
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|
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Financials (as on) : |
31.03.2015 |
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|
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Date of Incorporation : |
25.02.2008 |
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Legal Form : |
Free Zone Company - FZC |
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Line of Business : |
Subject engaged in the import and distribution of
diamonds, jewellery and other precious stones |
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No. of Employee : |
15 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
No complaints |
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|
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis of 2008, 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 and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.
|
Source
: CIA |
Company Name :
UNIQUE DIAMOND AND JEWELLERY FZC
Country of Origin :
Ajman, United Arab Emirates
Legal Form :
Free Zone Company - FZC
Start Date :
25th February 2008
Trade Licence Number :
3339
Issued Capital :
US$ 2,533,970
Paid up Capital :
US$ 2,533,970
Total Workforce :
15
Activities :
Distributors of diamonds, jewellery and other precious stones.
Financial Condition :
Good
Payments :
No Complaints
Operating Trend :
Steady
Person Interviewed :
Chetan Chouhan, Finance Manager
UNIQUE DIAMOND AND
JEWELLERY FZC
Location : Ajman Free
Zone, Building No. C1, Office No. 620
PO Box : 40387
Town : Ajman
Country : United Arab
Emirates
Telephone : (971-6) 7479667
/ 5234975
Facsimile : (971-6)
7479665 / 5234974
Mobile : (971-56)
6965347
Email : jayesh@uniquediamondjewellery.com
/ uniquediamondjewellery@gmail.com
accounts@uniquediamondjewellery.com
Please note that subject’s previous address was, Ajman Free Zone, SM Office
CL-703B. Subject moved to the above address in 2011.
Subject operates from a small suite of offices that are rented and
located in the Ajman Free Zone.
Name Nationality Position
· Jayesh Amratlal Doshi Indian Managing Director
· Chetan Chouhan - Finance
Manager
Date of
Establishment : 25th
February 2008
History :
Subject
began in 2008 as a Free Zone Establishment but re-registered as a Free Zone
Company on 25th February 2011.
Legal Form : Free Zone Company
- FZC
Trade Licence No. : 3339
Issued Capital : US$ 2,533,970
Paid up Capital : US$ 2,533,970
· Panera
Assets Inc 99%
British
Virgin Islands
· Ideal Star Consultants
Ltd 1%
British Virgin
Islands
· Unique Diamond & Jewellery FZC (BRANCH)
Building No. 4W-A, Office No. G-26
Dubai Airport Free Zone
Dubai
Tel: (971-4) 2314010 / 2314011
Fax: (971-4) 2314012
Activities: Engaged in the import and distribution of
diamonds, jewellery and other precious stones.
Import Countries: India and Thailand.
Operating Trend: Steady
Subject has a workforce of 15 employees.
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
Year Ending 31/03/13: Year Ending 31/03/14: Year Ending 31/03/15:
Total Sales US$
336,335,747 US$
300,000,000 US$
309,457,661
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Chetan Chouhan, Finance Manager
·
Mashreq Bank Plc
PO Box: 11
Ajman
Tel: (971-6) 7422440
Fax: (971-6) 7426690
·
Standard Chartered Bank
Al Boorj Avenue
PO Box: 5
Sharjah
Tel:
(971-6) 5357788
Fax:
(971-6) 5543604
·
Abu Dhabi Commercial Bank
Mina Road
PO Box: 4377
Sharjah
Tel: (971-6)
5737000
Fax: (971-6)
5725331
·
Abu Dhabi Commercial Bank
Al Rigga Road
PO Box: 5550
Dubai
Tel: (971-4)
2958888 / 3228141
Fax: (971-4)
2959310 / 3279632
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.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
UAE DH |
1 |
Rs. 18.28 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
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Report Prepared
by : |
ASH |
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.