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MIRA INFORM REPORT
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Report No. : |
502562 |
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Report Date : |
11.04.2018 |
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. PO Box 12928,
Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
13.03.1988 |
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Com. Reg. No.: |
43636 |
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Legal Form : |
Limited
Liability Company - LLC |
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Line of Business : |
Subject
Engaged in the wholesale and retail of jewellery and precious stones,
necklace sets, bangles, bracelets, chains,
earrings, pendants, rings and coins |
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No. of Employees : |
400 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 from the oil and gas sector to 30%.
Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.
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Source
: CIA |
SUMMARY
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
Activities :
Wholesaler and retailer of jewellery and precious stones
Financial
Condition : Good
Payments :
Slow but Correct
COMPANY
NAME
JOY ALUKKAS JEWELLERY LLC
PREVIOUSLY
KNOWN AS:
ALUKKAS JEWELLERY LLC
ADDRESS
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 / 2522922
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
ax:
(971-4) 3379188
KEY
PRINCIPALS
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
LEGAL
FORM & OWNERS
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
Name
of Shareholder (s) Percentage
Jassim
Mohamed Ibrahim Abdullah Al Hasawi 51%
Joy
Alukkas Holding Inc 49%
British
Virgin Islands
Notes to the legal Form The LLC requires a minimum of two and a
maximum of 50 members. The minimum share capital required is UAE Dh 300,000.
Shareholders are only liable up to the extent of the value of their shares.
This type of company may engage in any form of legitimate business, with the
exception of insurance, banking and investment of funds. The company is not
obliged to publish its accounts. The participation of non-Emirati in a trade or
business in the United Arab Emirates is governed by the Foreign Business
Investment Law, which sets capital requirements and requires 51 percent Emirati
participation in capital and profits. It is common for the 51 percent to be
held by the UAE national on paper only with the foreign partner(s) providing
all the capital requirements for the company and paying an annual fee to the
local partner.
AFFILIATED
COMPANIES
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
Fax:
971-4) 2295331
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
OPERATIONS
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
Subject
has a workforce of approximately 400 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
United Arab Emirates Dirham (UAE Dh)
Year SALES
Year
Ending 31/03/14: UAE
Dh 1,164,812,000
Year
Ending 31/03/15: UAE
Dh 1,037,000,000
Year
Ending 31/03/16: UAE
Dh 933,016,000
Year
Ending 31/03/17: UAE
Dh 960,000,000
Local
sources consider subject’s financial condition to be Good.
Note: According to local Commercial Law, only
publicly listed companies are required to publish their financial information.
Financial information on other legal forms can only be obtained from the
companies / businesses directly
BANKERS
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
PAYMENT
HISTORY
No
complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
During
the course of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web searches
- Local Registry office
- Interview with Mr Joby Chen,
Assistant Finance Manager
The
subject and its shareholders/owners have been searched in the following
databases; Office of Foreign Assets Control (OFAC), United Nations Security
Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List,
EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse
could be found on the exact names listed within the report.
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.
COUNTRY
OUTLOOK
The economy continues to experience a slowdown in economic
growth as a result of low oil prices. Real GDP achieved sustained growth of
over 6 % per year in recent decades, with oil surpluses invested into the
non-oil economy. In particular, the country has managed to develop the Dubai
financial and real-estate centres, international airline hubs in Dubai and Abu
Dhabi, and sports-tourism in a number of Emirates as well as light
manufacturing and transport and retail trade services. However, since June
2014, it has been affected by the plummeting of global oil prices which has
resulted in a drop-in hydrocarbon exports and revenues. While it managed to
sustain growth rates of 4.6% in 2014, growth in 2015 is estimated to have
declined to 3.4%.
Fiscal and external balances are deteriorating and
macro-financial risks are increasing. A drop-in hydrocarbon revenues coupled
with expansionary fiscal policy has pushed the fiscal balance down from a
surplus of 10.4% of GDP in 2013 to a 5% surplus in 2014 and to an estimated
deficit of -4.3% of GDP by end-2015. The fiscal deficit of 2015 is the first
since the financial crisis of 2009 when the real estate bubble in Dubai burst.
The current account surplus fell from 18.4% of GDP in 2013 to 13.7% of GDP in
2014 and to a mere 0.2% of GDP by end-2015.
Monetary policy is tightening, as is liquidity in
the banking system. The Central Bank raised the interest rate on its
certificates of deposit by 25 basis points in December 2015 in response to the
United States’ Federal Reserve rate increase. It is expected to continue mirroring
the Fed’s interest rate hikes. At the same time, reduced government deposits
are resulting in reduced liquidity in the banking sector.
The growth outlook is one of slow recovery,
averaging 2.5 % between 2016 and 2018. Oil production will increase as a result
of investment in oilfield development. Non-hydrocarbon growth will rise as
megaproject implementation ramps up ahead of Dubai’s hosting of Expo 2020, and
as the lifting of sanctions on Iran translates into increased commerce, trade,
and investment between Iran and the UAE (particularly Dubai). These
developments will jointly help to narrow the current account deficit from an
estimated deficit of –1.7% of GDP in 2016 to a forecasted deficit of -0.2% of
GDP in 2018.
Fiscal policy will continue to tighten, but
ensuring fiscal sustainability will require additional policy measures to cut
spending, develop new revenue streams, and manage fiscal risks. The UAE
government has reported that it will
be implementing a value-added tax (VAT) at the
latest by 2018, along with other GCC countries. It is also considering the
introduction of a corporate tax. This will help improve the fiscal balance.
Other consolidation measures are needed, including a reduction in electricity
and water subsidies and a gradual slowdown in the implementation of GRE’s
(Government Related Entities) megaprojects.
Key
Economic Indicators 2014 2015 2016* 2017*
Real
GDP Growth (%) 4.6
3.4 2.0 2.4
Inflation
Rate (%) 2.3
4.1 3.1 3.4
Fiscal
Balance (% of GDP)
5.0 -4.3 -5.2 -2.1
Current
Account Balance (% of GDP) 13.7 0.2 -1.7 -0.4
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.94 |
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|
1 |
INR 91.75 |
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Euro |
1 |
INR 79.90 |
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UAE DH |
1 |
INR 17.76 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.