MIRA INFORM REPORT

 

 

Report No. :

343934

Report Date :

09.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SIROYA JEWELLERS LLC

 

 

Registered Office :

The Gold Center, 1st Floor, Suite 27 Al Khor Street New Gold Souq, Zone No. 5, Deira, P O Box: 16067

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

06.11.1992

 

 

Com. Reg. No.:

42492, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Retailers of Jewellery.

 

 

No. of Employees :

65

 

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

SIROYA JEWELLERS LLC

 

 

IDENTIFICATION & CONTACT DETAILS

 

1) Name (s):

Organization Official Name

:

SIROYA JEWELLERS LLC

 

2) Registered Address:

Address

:

The Gold Center, 1st Floor, Suite 27 Al Khor Street New Gold Souq, Zone No. 5, Deira

PO Box

:

16067

Phone (s)

:

(971-4) 2265678

 

 

(971-4) 2254254

 

 

(971-4) 2264447

 

 

(971-4) 2996936

Facsimile

:

(971-4) 2251840

 

 

(971-4) 2266387

Email

:

siroya@emirates.net.ae

Mobile

 

(971-50) 6542020

 

 

(971-55) 2741000

Country

:

United Arab Emirates

 

3) Operational Address & Contact Details:

Address

:

The Gold Center, 1st Floor, Suite 27 Al Khor Street New Gold Souq, Zone No. 5, Deira

PO Box

:

16067

Phone (s)

:

(971-4) 2265678

 

 

(971-4) 2254254

 

 

(971-4) 2264447

 

 

(971-4) 2996936

Facsimile

:

(971-4) 2251840

 

 

(971-4) 2266387

Email

:

siroya@emirates.net.ae

Mobile

 

(971-50) 6542020

 

 

(971-55) 2741000

Country

:

United Arab Emirates

 

 

LEGAL FORM & INCORPORATION (REGISTRATION) DETAILS

 

 

Legal Form - Category

:

Limited Liability Company - LLC

Date of Registration

:

6th November 1992

Trade License Number

:

229396

Expiry Date

:

n/a

Commercial Registration Number

:

42492, Dubai

 

 

OTHER REGISTRATION/ MEMBERSHIPS

 

Chember of Commerce

:

25536

Expiry Date

:

n/a

 

 

KEY FACTS

 

Operational Status

:

Steady

Financial Condition

:

Good

Primary Business Activity

:

Retailers of Jewellery (1)

Number of Employees

:

65

Capital

:

UAE Dh 300,000

Note: 1

Retailers of jewellery, specialising in 21K & 22K jewellery pieces, as well as dealing in rough, cut and  polished diamonds, precious stones like emeralds and rubies.

 

 

CAPITAL DETAILS

 

Issued Capital:

NO OF SHARES

VALUE OF SHARE

AMOUNT

N/A

N/A

UAE Dh 300,000

 

Paid Up Capital:

NO OF SHARES

 

AMOUNT

N/A

N/A

UAE Dh 300,000

 

 

FINANCIAL SUMMARY

 

N/A

 

 

FINANCIAL DATA

 

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 Revenue

UAE Dh 550,000,000

UAE Dh 568,000,000

Local sources consider subject’s financial condition to be Good.

The above figures were provided by Mr Chandra Prakash Siroya, Managing Director

 

 

BRANCH OFFICE

 

1

Address

Hamil Bin Khadim Al Ghaith Building Al Khaleej Street Dubai

 

Tel

(971-4) 2261313

 

Fax

(971-4) 2251840

 

Description

Rented retail outlet

 

2

Address

Mirza Hussain Al Fardan Building Al Mussalla Street Al Souq Al Kabeer, Bur Dubai Dubai

 

Tel

(971-4) 3511001

 

Fax

(971-4) 3511002

 

Description

Rented retail outlet

 

 

BANKER

 

1

Name

Standard Chartered Bank

 

Address

Khalid Bin Waleed Street Mankhool Branch

 

PO Box

999 Dubai

 

Tel

(971-4) 2520455

 

Fax

n/a

 

2

Name

Habib Bank Ltd

 

Address

Murshid Bazaar

 

PO Box

888 Dubai

 

Tel

(971-4) 2221281

 

Fax

(971-4) 2284631

 

3

Name

National Bank of Ras Al Khaimah

 

Address

n/a

 

PO Box

1531 Dubai

 

Tel

(971-4) 2226291

 

Fax

(971-4) 2281312

 

 

SHAREHOLDERS

 

S. No.

Name of Shareholders

Country

No. of Shares

1

Sheikh Majud Hamad Al Qassimi

Emirati

51%

2

Chandra Prakash Siroya

Indian

25%

3

Ashok Siroya

Indian

24%

Total Share

100%

 

 

SENIOR MANAGEMENT

 

S. No.

Name

Nationality

Dsignation

1

Chandra Prakash Siroya

Indian

Managing Director

2

Ashok Siroya

Indian

Director

3

Sheikh Majud Hamad Al Qassimi

Emirati

Director

4

H R Banfna

n/a

Finance Manager

5

Rajesh Jain

n/a

Commercial Manager

6

 Jayan Thakkar

n/a

Sales Manager

 

 

AFFILIATED COMPANIES

 

1

Name

2

Happy Umbrella FZC Ras Al Khaimah

3

Belgium Diamond Jewellery LLC Dubai

4

Kunal Gold Industrial Factory Ltd Dubai

5

Al Basti International Dubai

6

Bali Bullion Trading FZC Hamriyah Sharjah

7

Bullion & Gems Trading FZC Hamriyah Sharjah

 

 

INTERNATIONAL TRADE ACTIVITY MARKETS

 

Sr.No

Country

Activity

1

Bahrain

Import

2

India

Import

3

Italy

Import

4

Turkey

Import

5

Singapore

Import

6

Malaysia

Import

 

International Suppliers:

 

Name

 

 

 

 

 

Country

 

 

1

Awesome Export Ltd

 

2

Modern Impex

 

 

 

 

India

 

 

3

Uni Gold Pvt Ltd

 

 

 

PREMISES

 

Subject operates from a medium sized suite of offices and a showroom that are rented and located in the Central Business Area of Dubai.

 

 

PAYMENT

 

No complaints regarding subject’s payments have been reported.

 

 

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   : Chandra Prakash Siroya, Managing Director

Siroya Jewellers LLC specialises in 21K & 22K jewellery pieces, as well as dealing in rough, cut and polished diamonds, precious stones like emeralds and rubies.

The company is owned by members of the Siroya family who have many years experience in the jewellery industry and are respected businessmen in the local community.

 

 

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.65.16

UK Pound

1

Rs.99.78

Euro

1

Rs.73.33

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.