|
Report No. : |
323391 |
|
Report Date : |
27.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAMAS LLC |
|
|
|
|
Registered Office : |
Damas Building, Building No. 2, M Block No. 3, 1st Floor,
Jumeirah Lakes Towers, PO Box 1522, Dubai |
|
|
|
|
Country : |
United
Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
09.09.1978 |
|
|
|
|
Com. Reg. No.: |
41717 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Engaged in the import and distribution of jewellery and precious
stones. |
|
|
|
|
No. of Employees : |
2,500 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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, 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 diversification and creating more opportunities for nationals through
improved education and increased private sector employment.
|
Source
: CIA |
Company Name :
DAMAS LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
9th September 1978
Commercial Registration Number :
41717, Dubai
Trade Licence Number :
200444
Chamber Membership Number : 4784
Issued Capital :
UAE Dh 500,000,000
Paid up Capital :
UAE Dh 500,000,000
Total Workforce : 2,500
Activities :
Distributors of jewellery and precious stones.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Sriatas Subramanyan, Chief Financial
Officer
DAMAS LLC
Registered &
Physical Address
Location : Damas
Building, Building No. 2, M Block No. 3, 1st Floor, Jumeirah Lakes
Towers
PO Box :
1522
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 4459000
/ 4459540 / 4459512 / 2255206
/ 4459496 / 4459152
Facsimile : (971-4)
4459509 / 4459015 / 4245970 / 2290242
Mobile : (971-50)
3510218
Email : damas@eim.ae
/ mahmoudF@damasjewellery.com
Please note that subject’s previous address was, New Gold Centre
Building, 3rd Floor, Al Khor Street, Al Ras, Deira, Dubai. Subject
moved to the above address in January 2010.
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 Offices
Subject has branch offices located throughout Dubai, Ajman, Al Ain,
Fujairah, Ras Al Khaimah and Umm Al Quwain.
Name Position
Anan Khalil Fayyad Managing
Director
Sanjay Kalasi Director
Mahmoud Fayez Khalil Government
Relations Manager
Sriatas Subramanyan Chief
Financial Officer
Venkat Esan Natrajan Finance
Manager
Jan Miller Human
Resources Manager
Kevin Rayyan Sales
Manager
R Prashant Financial
Controller
Jacques Dome Group
Financial Controller
Date of Establishment : 9th
September 1978
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 41717, Dubai
Trade Licence No. : 200444
Chamber Member No. : 4784
Issued Capital : UAE Dh
500,000,000
Paid up Capital : UAE Dh 500,000,000
Name of
Shareholder (s) Percentage
Damas International Limited 99.99%
Dubai
Damas SPV Jewellery LLC 0.01%
Dubai
Damas Jewellery LLC
Gold Centre
Al Khor Street
Al Ras
PO Box: 1522
Dubai
Tel: (971-4) 2266036 / 2266222 / 2254300
Fax: (971-4) 2263789 / 2263404 / 2252259
Damascus Jewellery LLC
Gold Centre
Al Khor Street
Al Ras
PO Box: 1522
Dubai
Tel: (971-4) 2263682
Fax: (971-4) 2263789
Activities: Engaged in the import and distribution of jewellery and precious stones.
Import Countries: Europe and the United States of America.
International
Suppliers:
Graph Diamonds United
Kingdom
Kiran Jewels United
States of America
Operating Trend: Steady
Subject has a workforce of approximately 2,500 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year Ending 31/12/13: Year Ending 31/12/14:
Total Sales UAE
Dh 2,684,508,000 UAE Dh
2,389,677,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Sriatas Subramanyan, Chief Financial Officer
Mashreq Bank Plc
Deira Branch
PO Box: 1250
Dubai
Tel: (971-4) 2229131 / 2221134
National Bank of Ras Al Khaimah
Al Maktoum Street
PO Box: 1531
Dubai
Tel: (971-4) 2226291
Fax: (971-4) 2281312
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.63.85 |
|
|
1 |
Rs.98.38 |
|
Euro |
1 |
Rs.69.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.