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MIRA
INFORM REPORT
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Report No. : |
506798 |
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Report Date : |
28.04.2018 |
IDENTIFICATION DETAILS
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Name : |
VERIGOLD JEWELLERY DMCC |
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Registered Office : |
Unit No. AU-18-J, |
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Country : |
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Financials (as on) : |
31.03.2017 (Consolidated) |
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Date of Incorporation : |
14.12.2014 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the import and distribution of
jewellery, precious stones, watches and clocks. |
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No. of Employees : |
3 |
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 : |
Satisfactory |
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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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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
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 : VERIGOLD JEWELLERY DMCC
Country of Origin :
Legal Form : Limited Liability Company
Registration Date : 14th December 2014
Trade Licence Number : 086073
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 3
Activities : Distributors of jewellery, precious stones, watches and clocks
Financial Condition : Fair
Payments : Slow but Correct
Operating Trend : Steady
COMPANY NAME
VERIGOLD JEWELLERY DMCC
ADDRESS
Registered & Physical Address
Location :
Unit No. AU-18-J,
PO Box :
26884
Town :
Country :
Telephone :
(971-4) 5586554
Mobile :
(971-55) 7034616
Email :
sales.dubai@verigold.com
Premises
Subject operates from a small suite of offices that are rented
and located in the Central Business Area of Dubai.
KEY PRINCIPALS
Name Position
· Pratik
Praful Shah Managing
Director
LEGAL FORM & OWNERS
Date
of Establishment : 14th
December 2014
Legal
Form : Limited
Liability Company
Trade Licence
No. :
086073
Issued Capital : UAE
Dh 300,000
Paid up Capital :
UAE Dh 300,000
Name of Shareholder (s) Percentage
· Renaissance
Jewellery Ltd 10
AFFILIATED COMPANIES
Name Percentage
Held
· Renaissance
Jewellery DMCC 65%
OPERATIONS
Activities: Engaged in the import and distribution
of jewellery, precious stones, watches and clocks.
Import Countries: Europe and the
Operating Trend: Steady
Subject has a workforce of 3 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given
below:
Currency:
Consolidated
Balance Sheet 31/03/17 31/03/16
Assets
Non-current assets
Property, plant and equipment 1,241,206 28,307
Intangible assets 59,472 -
1,300,678 28,307
Current assets
Inventories 3,045,228 283,530
Trade and other receivables 6,624,567 7,044,081
Available for sale investment 5,603,513 -
Prepayments 69,278 16,334
Cash and cash equivalents 799,850 274,936
16,142,436 7,618,881
Total assets 17,443,114 7,647,188
Equity and liabilities
Equity
Share capital 81,800 81,800
Accumulated profits 4,241,682 1,201,178
Investment revaluation reserve 276,328 -
Equity funds 4,599,810 1,282,978
Non-controlling interest (210,220) -
Total equity 4,389,590 1,282,978
Current liabilities
Bank borrowings 2,461,079 -
Trade and other payables 10,592,445 6,364,210
13,053,524 6,364,210
Total equity and liabilities 17,443,114 7,647,188
Consolidated
Statement of Income
Sales 50,754,577 13,399,869
Cost of sales (46,905,610) (11,720,923)
Gross profit 3,848,967 1,678,946
Other income 313,951 73
Expenses (1,019,306) (455,343)
Finance charges paid to bank (32,674) -
Profit for the year 3,110,938 1,223,676
Local sources consider subject’s financial condition to be
Fair.
BANKERS
·
PO
Box: 1080
Tel:
(971-4) 2953000
Fax: (971-4)
2954111
PAYMENT HISTORY
Slow but Correct
GENERAL COMMENTS
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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UAE DH |
1 |
INR 18.14 |
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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VIV |
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Report Prepared
by : |
NIT |
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.