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Report No. : |
323113 |
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Report Date : |
23.05.2015 |
IDENTIFICATION DETAILS
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Name : |
AL ARBASH JEWELLERY CO WLL |
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Registered Office : |
Al Arbash Complex, Ground Floor, Shop No. 12, Abdullah Al Salem
Street, Old Gold Market, Mubarakiya Area, PO Box: 5823 & 1116 Safat 13012 |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
17.08.1982 |
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Com. Reg. No.: |
33322 |
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Legal Form : |
With Limited Liability – WLL |
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Line of Business : |
Wholesalers and retailers of jewellery, diamonds and stones |
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No. of Employee : |
15 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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) |
|
Kuwait |
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 |
KUWAIT - ECONOMIC OVERVIEW
Kuwait has a geographically small, but wealthy, relatively
open economy with crude oil reserves of about 102 billion barrels - more than
6% of world reserves. Kuwaiti officials plan to increase oil production to 4
million barrels per day by 2020. Petroleum accounts for over half of GDP, 94%
of export revenues, and 89% of government income. For the last decade, high oil
prices have generated budget surpluses despite increasing budget expenditures,
particularly on wage hikes for public sector employees. Despite Kuwait’s
dependence on oil, the government has cushioned itself against the impact of
lower oil prices by continuous saving of at least 10% of government revenue in
the Fund for Future Generations. Kuwait has done little to diversify its
economy, in part, due to a poor business climate and an acrimonious
relationship between the National Assembly and the executive branch that has
stymied most economic reforms. In 2010, Kuwait passed its first long-term economic
development plan in almost twenty-five years. While the government planned to
spend up $104 billion over four years to diversify the economy away from oil,
attract more investment, and boost private sector participation in the economy,
many of the projects did not materialize because of the tenuous political
situation.
|
Source
: CIA |
Company Name :
AL ARBASH JEWELLERY CO WLL
Country of Origin :
Kuwait
Legal Form :
With Limited Liability - WLL
Registration Date :
17th August 1982
Commercial Registration Number :
33322
Chamber Membership Number :
12200
Issued Capital :
KD 100,000
Paid up Capital :
KD 100,000
Total Workforce : 15
Activities :
Wholesalers and retailers of jewellery, diamonds and stones
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
AL ARBASH JEWELLERY CO WLL
Registered &
Physical Address
Building :
Al Arbash Complex, Ground Floor, Shop No. 12
Street : Abdullah Al Salem
Street
Area : Old Gold
Market, Mubarakiya Area
PO Box : 5823 & 1116
Town : Safat 13012
Country : Kuwait
Telephone : (965) 22461643
/ 22461642 / 22404519 / 22432827 / 22432836 / 22403403 / 22405405
Facsimile : (965) 22421849
/ 22403404
Email : alarbashbunasser@hotmail.com
Premises
Subject operates from a small suite of offices that are owned and
located in the Central Business Area of Safat.
Name Position
Badr Mohamed Nasser Al Arbash Managing
Director
Nasser Mohamed Nasser Al Arbash Director
Jawad Mohamed Nasser Al Arbash Director
Hana Mohamed Nasser Al Arbash Director
Wafa Mohamed Nasser Al Arbash Director
Abeer Mohamed Nasser Al Arbash Director
Azara Mohamed Nasser Al Arbash Director
Amal Mohamed Nasser Al Arbash Director
Ibtisam Mohamed Nasser Al Arbash Director
Itidaal Mohamed Nasser Al Arbash Director
Fadil Habib Sales
Manager
Date of Establishment : 17th
August 1982
Legal Form : With Limited
Liability - WLL
Commercial Reg. No. : 33322
Chamber Member No. : 12200
Issued Capital : KD 100,000
Paid up Capital : KD 100,000
Name of
Shareholder (s)
Badr Mohamed Nasser Al Arbash
Nasser Mohamed Nasser Al Arbash
Jawad Mohamed Nasser Al Arbash
Hana Mohamed Nasser Al Arbash
Wafa Mohamed Nasser Al Arbash
Abeer Mohamed Nasser Al Arbash
Azara Mohamed Nasser Al Arbash
Amal Mohamed Nasser Al Arbash
Ibtisam Mohamed Nasser Al Arbash
Itidaal Mohamed Nasser Al Arbash
Activities: Engaged in the wholesale and retail of jewellery, diamonds and stones.
Import Countries: Europe and the Far East
Operating Trend: Steady
Subject has a workforce of 15 employees.
Financial highlights provided by local sources are given below:
Currency: Kuwaiti Dinars (KD)
Year Ending 31/12/13: Year Ending 31/12/14:
Total Sales KD
5,800,000 KD 6,100,000
Local sources consider subject’s financial condition to be Fair.
The above financial figures are based on estimations by our local
sources.
Bank of Kuwait & the Middle East KSC
Abdullah Al Salem Street
Darwaza Abdul Razzak
PO Box: 71
Safat 13001
Tel: (965) 22459771
Fax: (965) 22461430
No complaints regarding subject’s payments have been reported.
Please note that the correct name of the subject is “Al Arbash Jewellery
Co WLL” and not “Al Arbash Jewellers”.
Local sources report that the subject’s operating history is clear with
payment obligations met in a generally timely manner. The financial position is
satisfactory and the company is deemed 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.70 |
|
|
1 |
Rs.98.92 |
|
Euro |
1 |
Rs.70.67 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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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 |
|
-- |
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.