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Report No. : |
306918 |
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Report Date : |
05.02.2015 |
IDENTIFICATION DETAILS
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Name : |
JOY ALUKKAS
JEWELLERY LLC |
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Formerly Known As : |
ALUKKAS JEWELLERY LLC |
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Registered Office : |
New Century City Tower, 9th Floor, Deira, P O Box: 12928, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.11.1988 |
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Com. Reg. No.: |
43636, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged as
Wholesaler and Retailer of jewellery
and Precious Stones, Necklace Sets, Bangles, Bracelets, Chains, Earrings,
Pendants, Rings and Coins. |
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No. of Employees : |
400 (Approximately) |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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United Arab Emirates |
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 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 : JOY
ALUKKAS JEWELLERY LLC
Previously Known As :
ALUKKAS JEWELLERY LLC
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date : 13th
November 1988
Commercial
Registration Number : 43636,
Dubai
Trade Licence
Number : 217959
Chamber Membership
Number : 9635
Issued Capital : UAE Dh
300,000
Paid up Capital : UAE Dh
300,000
Total Workforce : 400
(Approximately)
Activities :
Wholesaler and retailer of jewellery and precious stones.
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
Person Interviewed : Joby Chen, Assistant Finance Manager
JOY ALUKKAS
JEWELLERY LLC
ALUKKAS JEWELLERY
LLC
Registered &
Physical Address
Building : New Century City Tower, 9th Floor
Area : Deira
PO Box : 12928
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2522900
Facsimile : (971-4) 2255933
Mobile : (971-50) 6252623 / 6518173
Email : alukkas@alukkas.com / finance@joyalukkas.com
/ thomas@joyalukkas.com
Please note that
subject’s previous address was, Gold Centre (Gold Land Building), 3rd
Floor, Al Khor Street, Al Ras, Deira, Dubai.
Premises
Subject operates
from a large suite of offices and a showroom that are rented and located in the
Central Business Area of Dubai.
Branch Office (s)
Location Description
·
Hamel Bin Khadim Alghiath Building Rented
showroom premises
Al Daghaya Street
Dubai
Tel:
(971-4) 2290076
Fax:
(971-4) 2269735
·
Development Board Building Rented
showroom premises
Al Nahda Road
Dubai
Tel:
(971-4) 2635270 / 2631573
·
Lulu Shopping Mall Rented
showroom premises
Al Nahda Road
Dubai
Tel:
(971-4) 2988590
Fax:
(971-4) 2988580
·
Karama Centre Rented
showroom premises
Zaabeel Street
Dubai
Tel:
(971-4) 3379183
Fax:
(971-4) 3379188
Name Nationality Position
·
Joy
Varghese Alukkas Indian Managing
Director
·
Jassim
Mohamed Ibrahim Abdullah Al Hasawi Emirati Director
·
Justin
Sunny - Administration Manager
·
Jibin
Tom - Commercial
Manager
·
Thomas
Sackarya - Finance
Manager
·
Joby
Chen - Assistant
Finance Manager
Date of Establishment : 13th
November 1988
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 43636, Dubai
Trade Licence No. : 217959
Chamber Member No. : 9635
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
·
Jassim
Mohamed Ibrahim Abdullah Al Hasawi 51%
·
Joy Varghese
Alukkas 49%
·
Alukkas
Gulf FZCO
Gold & Diamond Park
Jebel Ali Free Zone
Dubai
·
House of Alukkas LLC
Gold Centre
Al Khor
Street
PO Box:
112454
Dubai
Tel:
(971-4) 2291300
Email: houseofalukkas@hotmail.com
· Alukkas Wedding
Centre
Main Road
Angamaly
India
Tel: (91-484) 2452999
Fax: (91-484) 2456299
· Joy Alukkas Traders
(India)Pvt Ltd
St Louis Commercial Complex
10/815/28
Erinjery Angadi
Thrissur-680001
India
Tel: (91-487) 2445444
Fax: (91-487) 2446555
· Joy Alukkas Jewellery WLL
PO Box: 1897
Muscat
Oman
Tel: (968) 24797212
Fax: (968) 24797181
· Joy Alukkas Jewellery WLL
PO Box: 22717
Doha
Qatar
Tel: (974) 44786844
Fax: (974) 44786838
· Joy Alukkas Jewellery WLL
PO Box: 3008
Safat
Kuwait
Tel: (965) 22494845
/ 22475959
Fax: (965) 22494842
· Joy Alukkas Diamonds LLC
PO Box: 27847
Sharjah
Tel: (971-6) 5749919
Fax: (971-6) 5639626
· Joy Alukkas Jewellery WLL
PO Box: 11492
Manama
Bahrain
Tel: (973-17) 229914
Fax: (973-17) 229924
· Joy Alukkas Jewellery LLC
PO Box: 11659
Ras Al Khaimah
Tel: (971-7) 2283221
Fax: (971-7) 2270207
· Joy Alukkas Jewellery LLC
PO Box: 71659
Abu Dhabi
Tel: (971-2) 6331377
Fax: (971-2) 6319835
· Alukkas Exchange
PO Box: 171468
Dubai
Tel: (971-4) 3535469
Fax: (971-4) 3535683
Activities: Engaged in the wholesale and retail of
jewellery and precious stones, necklace sets, bangles, bracelets, chains,
earrings, pendants, rings and coins.
Import Countries: Europe and the Far East
Brand Names: MAYOORI, FLORENTINA and ZENINA
Operating Trend: Steady
Subject has a
workforce of approximately 400 employees.
Financial
highlights provided by local sources are given below:
Currency: United Arab
Emirates Dirham (UAE Dh)
Year
Ending 31/12/12: Year Ending
31/12/13:
Total Sales UAE Dh 1,371,000,000 UAE Dh 1,398,000,000
Local sources
consider subject’s financial condition to be Good.
The above figures
were provided by Mr Joby Chen,
Assistant Finance Manager
·
Emirates
National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222555
Fax: (971-4) 2221110
·
Mashreq
Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4) 2229131 / 2221134
Fax: (971-4) 2233784
·
Standard
Chartered Bank
Khalid Bin Waleed Street
PO Box: 999
Dubai
Tel: (971-4) 2520455
Regular
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
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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.
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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, 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.
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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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.68 |
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|
1 |
Rs.93.53 |
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Euro |
1 |
Rs.70.75 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.