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Report No. : |
343874 |
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Report Date : |
06.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SHRENUJ DMCC |
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Registered Office : |
41 D Al Mas Tower, Jumeirah Lakes Towers, Sheikh Zayed Road, P O Box: 120485, Dubai |
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|
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
24.07.2005 |
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Legal Form : |
Limited Liability Company |
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|
|
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Line of Business : |
Traders of Cut
Diamonds and Jewellery. |
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|
|
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No. of Employees : |
15 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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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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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 – 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 |
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High |
B2 |
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Very High |
C1 |
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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 $20 billion bailout from the UAE Central Bank and Abu
Dhabi-emirate government that was refinanced in March 2014. Dependence on oil,
a large expatriate workforce, and growing inflation pressures are significant
long-term challenges. The UAE's strategic plan for the next few years focuses
on diversification and creating more opportunities for nationals through
improved education and increased private sector employment.
|
Source
: CIA |
Company Name : SHRENUJ
DMCC
Country of Origin : Dubai, United
Arab Emirates
Legal Form :
Limited Liability Company
Registration Date : 24th
July 2005
Trade Licence
Number : 30243, DMCC
Issued Capital : US$ 3,054,496
Paid up Capital : US$ 3,054,496
Total Workforce : 15
Activities :
Traders of cut diamonds and jewellery
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
SHRENUJ DMCC
Building : 41 D Al Mas Tower,
Jumeirah Lakes Towers
Street : Sheikh Zayed Road
PO Box : 120485
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2259552 / 2295683 / 2295976 /
4357242
Facsimile : (971-4) 2295684 / 2295973 / 4357658
Email : shrenujdmcc@shrenuj.com / smitkothari@shrenuj.com
Please note that
subject’s previous address was, Gold Land Building, 1st Floor, Suite
106, Al Daghaya, Deira, Dubai.
Please also note that
the correct PO Box number is 120485 and not 120486.
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Dubai.
Name Position
·
Apoorva
Prakash Doshi Managing
Director
·
Smit Kothari General
Manager
·
Arapit Shah Finance
Manager
Date of Establishment : 24th
July 2005
Legal Form :
Limited Liability Company
Trade Licence No. : 30243, DMCC
Issued Capital : US$ 3,054,496
Paid up Capital : US$ 3,054,496
·
Shrenuj & Co Ltd 100%
405 Dharam Palace, 100 - 103 N. S. Patkar Marg
Mumbai - 400 007
India
Tel: (91-22) 66373500
Fax: (91-22)
23632982
Subject is a member of the Shrenuj Group of Companies, which includes
the following concerns:
Name Country Incorporated
·
Alija International Pty Ltd Australia
·
Shrenuj
NV Belgium
· Shrenuj (Shanghai) Diamond Co. Ltd China
· Jomard SAS (JV) France
· Shrenuj GmbH Germany
· Inter-gems (HK) Limited Hong
Kong
· SWA Trading Company (JV) Israel
· Copem & Shrenuj (JV) Italy
· Shrenuj Japan Corporation Japan
· Shrenuj USA United
States of America
· Global Marine Diamond Company Inc United States of America
· Astral USA Inc United States of America
·
Shrenuj
Botswana (Pty) Ltd Botswana
Activities: Engaged as traders of cut diamonds and
jewellery.
Import
Countries: India and Europe
Operating Trend: Steady
Subject has a
workforce of 15 employees.
Financial
highlights provided by local sources are given below:
Currency: United
States Dollars (US$) & Indian Rupees (INR)
Balance Sheet 31/03/14 31/03/13
31/03/14 31/03/13
US$ US$ INR INR
ASSETS
Non-current assets
Property, plant
and equipment 4,340,879
4,518,223 260,105,470 270,731,922
Investment in a
subsidiary 855,000
855,000 51,231,600 51,231,600
Investments 10,000 10,000 599,200 599,200
5,205,879 5,383,223 311,936,270 322,562,722
Current assets
Inventories 24,029,460 20,122,664 1,439,845,243 1,205,750,027
Trade and other
receivables 82,742,610 73,591,654 4,957,937,191 4,409,611,908
Prepayments 259,419 205,282 15,544,386 12,300,497
Due from related
parties 1,269,266 95,648 76,054,419 5,731,228
Cash and bank
balances 6,829,909 4,885,134 409,248,147 292,717,229
115,130,664 98,900,382 6,898,629,387 5,926,110,889
TOTAL ASSETS 120,336,543 104,283,605 7,210,565,657 6,248,673,612
EQUITY AND LIABILITIES
Equity
Share capital 3,054,496 3,054,496 183,025,400 183,025,400
Accumulated
profits 39,286,798 31,428,661 2,354,064,936 1,883,205,367
Total equity 42,341,294 34,483,157 2,537,090,336 2,066,230,767
Non-current liabilities 6,273,514 7,739,206 375,908,959 463,733,224
Current liabilities
Trade and other
payables 27,464,688 24,478,788 1,645,684,105 1,466,768,977
Due to related
parties 333,400 1,333,400 19,977,328 79,897,328
Bank borrowings 43,923,647 36,249,054 2,631,904,928 2,172,043,316
71,721,735 62,061,242 4,297,566,361 3,718,709,621
TOTAL EQUITY AND LIABILITIES 120,336,543 104,283,605 7,210,565,657 6,248,673,612
Statement of
Income
Sales 245,215,347 190,315,955 14,693,303,592 11,403,732,024
Cost of sales (230,427,364) (177,159,794) (13,807,207,651)(10,615,414,856)
Gross profit 14,787,983 13,156,161 886,095,941 788,317,167
Other income 39,958 5,704 2,394,283 341,784
Expenses (4,445,836) (4,270,736) (266,394,493) (255,902,501)
Profit from operations 10,382,105 8,891,129 622,095,732 532,756,450
Interest income
from banks 78,566 32,781 4,707,675 1,964,238
Finance cost paid
to a related party (287,141) (29,358) (17,205,489) (1,759,131)
Finance cost paid
to banks (2,315,393) (2,005,746) (138,738,349) (120,184,300)
Profit for the year 7,858,137 6,888,806 470,859,569 412,777,256
Local sources
consider subject’s financial condition to be Good.
Figures for the
year ending 31st March 2015 are not yet available.
·
Habib
Bank AG Zurich
Baniyas Road
PO Box: 3306
Dubai
Tel: (971-4) 2214535
No complaints
regarding subject’s payments have been reported.
During the course of
this investigation nothing detrimental was uncovered regarding the manner in
which payment obligations are fulfilled. The operating history is clear and the
financial situation is satisfactory. As such we are of the opinion that the
subject is 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.
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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 –
-
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.65.29 |
|
|
1 |
Rs.99.31 |
|
Euro |
1 |
Rs.73.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
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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.