MIRA INFORM REPORT

Report No. :	353842
Report Date :	16.12.2015

IDENTIFICATION DETAILS

Name :	UNIVERSAL FINE JEWELLERY FZE
Registered Office :	Saif Zone, Executive Suite No. Q1-05-068/A, P O Box: 9032, Sharjah
Country :	United Arab Emirates
Financials (as on) :	31.12.2014
Date of Incorporation :	10.06.2010
Legal Form :	Free Zone Establishment - FZE
Line of Business :	Importers and Traders of Polished Diamonds and Studded Jewellery.
No. of Employees :	8

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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, 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

UNIVERSAL FINE JEWELLERY FZE

IDENTIFICATION & CONTACT DETAILS
1) Name (s):
Organization Official Name		:	UNIVERSAL FINE JEWELLERY FZE
2) Registered Address:
Address		:	Saif Zone, Executive Suite No. Q1-05-068/A
Town		:	Sharjah
Country		:	United Arab Emirates
PO Box		:	9032
Phone (s)		:	(971-6) 5489884
			971-4 3325667
Facsimile		:	(971-6) 5489884
			(971-6) 5489201
Mobile		:	(971-55) 5834284
			(971-56) 5621617
Email		:	universaljewelery@gmail.com
			admin@universalfine.com
3) Operational Address & Contact Details:
Address		:	Saif Zone, Executive Suite No. Q1-05-068/A
Town		:	Sharjah
Country		:	United Arab Emirates
PO Box		:	9032
Phone (s)		:	(971-6) 5489884
			971-4 3325667
Facsimile		:	(971-6) 5489884
			(971-6) 5489201
Mobile		:	(971-55) 5834284
			(971-56) 5621617
Email		:	universaljewelery@gmail.com
			admin@universalfine.com
LEGAL FORM & INCORPORATION (REGISTRATION) DETAILS
Legal Form - Category		:	Free Zone Establishment - FZE
Date of Registration		:	10th June 2010
Trade License Number		:	8249
Expiry Date		:	06/09/2015
KEY FACTS
Operational Status		:	Steady
Financial Condition		:	Good
Primary Business Activity		:	Importers and traders of polished diamonds and studded jewellery.
Number of Employees		:	8
Capital		:	UAE Dh 150,000
Note:
Engaged as importers and traders of polished diamonds and studded jewellery.
CAPITAL DETAILS
Issued Capital:
No of Shares			No of Shares		Amount
N/A			N/A		UAE Dh 150,000
Paid Up Capital:
No of Shares			No of Shares		Amount
N/A			N/A		UAE Dh 150,000
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
			Year Ending 31/12/13		Year Ending 31/12/14
Total Revenue			US$ 60,000,000		US$ 66,000,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Jobin Jose Varghese, Managing Director
BANKERS
1	Name			Standard Chartered Bank
	Address			Khalid Bin Waleed Street
	PO Box			999 Dubai
	Tel			(971-4) 2520455
2	Name			Abu Dhabi Commercial Bank
	Address			Al Rigga Road
	PO Box			5550 Dubai
	Tel			(971-4) 2958888
				(971-4) 3228141
	Fax			(971-4) 2959310
				(971-4) 3279632
3	Name			National Bank of Fujairah
	PO Box			2979 Dubai
	Tel			(971-4) 3971700
				(971-4) 5078300
	Fax			(971-4) 3979100
				(971-4) 3973922
BRANCH OFFICES
1	Address			Dubai Airport Free Zone
	City/Country			Dubai
	Description			Office premises
SHAREHOLDERS
1	Name			Jobin Jose Varghese
	Country			India
	Percentage			100%
SENIOR MANAGEMENT
Sr.No	Name			Nationality	Dsignation
1	Jobin Jose Varghese			Indian	Managing Director
2	Sonu Mehta			n/a	Sales Manager
INTERNATIONAL TRADE ACTIVITY MARKETS
Sr.No	Country			Activity
1	Europe			Import
2	Far East			Import
International Suppliers:
Sr.No	Name			Country
1	Fire Star International Pvt Ltd			India
2	Empire Gems			Sharjah
PREMISES
Subject operates from a small suite of offices that are rented and located in the Saif Zone Area of Sharjah.
PAYMENT
Regular
ADVERSE DATA
Performance Defaults		:	No record found
Payment Defaults		:	No record found
Adverse Press Coverage		:	No record found
Litigations		:	No record found
Former Business Relationships		:	No record found
INVESTIGATOR'S COMMENTS
Person Interviewed : Jobin Jose Varghese, Managing Director
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 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th 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 30^th 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.67.04
UK Pound	1	Rs.101.67
Euro	1	Rs.73.93
UAE Dh	1	Rs.18.23

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	NIT

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%)

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