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MIRA INFORM REPORT
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Report No. : |
493318 |
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Report Date : |
23.02.2018 |
IDENTIFICATION DETAILS
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Name : |
JANVI DIAMONDS LLC |
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Registered Office : |
Royal Diamond Building, 1st Floor, Office No. 108 Al Dhagaya, Gold Souq, Deira PO Box 57944 Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
08.11.2006 |
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Com. Reg. No.: |
1001377 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject engaged in the import and distribution of precious
stones, specialising in loose diamonds and diamond jewellery as well as raw
materials used for jewellery making. |
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No. of Employees : |
5 |
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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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. 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 : JANVI DIAMONDS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 8th November 2006
Commercial Registration Number : 1001377, Dubai
Trade Licence Number : 587737
Chamber Membership Number : 112473
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 5
Activities : Distributors of precious stones, specialising in loose diamonds and
diamond jewellery as well as raw materials used for jewellery making
Financial Condition : Fair
Payments : Slow but Correct
Operating Trend : Steady
Person Interviewed : Chirag Kumar Ashok Bhai Kani, Sales Executive
COMPANY
NAME
JANVI DIAMONDS LLC
ADDRESS
Registered &
Physical Address
Building :
Royal Diamond Building, 1st
Floor, Office No. 108
Area : Al
Dhagaya, Gold Souq, Deira
PO Box :
57944
Town :
Dubai
Country : United Arab
Emirates
Telephone :
(971-4) 2354624
Facsimile :
(971-4) 3452750 / 2354625
Mobile :
(971-50) 2269258 / (971-55) 2012777 / 9389965
Email : janvidiamonds@gmail.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 Nationality Position
· Jiknish
Ramjibhai Pipalia Indian Managing Director
·
Qais Ali
Shahab Emirati Director
· Mani Davish - Sales
Manager
· Chirag Kumar Ashok Bhai Kani - Sales
Executive
· Chatin Ramdaz - Sales
Executive
· Mukesh Kumar - Sales
Executive
· Vijay Kumar - Accountant
LEGAL
FORM & OWNERS
Date
of Establishment : 8th
November 2006
Legal
Form : Limited
Liability Company - LLC
Commercial
Reg. No. :
1001377, Dubai
Trade
Licence No. :
587737 (Expires 07/11/2018)
Chamber
Member No. :
112473
Issued Capital : UAE
Dh 300,000
Paid up Capital :
UAE Dh 300,000
Name of Shareholder (s) Percentage
·
Qais Ali
Shahab 51%
·
Jiknish Ramjibhai Pipalia 49%
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.
OPERATIONS
Activities: Engaged in the import and distribution
of precious stones, specialising in loose diamonds and diamond jewellery as well as raw materials used for
jewellery making.
Import Countries: Europe and India
International Suppliers:
·
Deepak
Diamonds India
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Shital
Manufacturing India
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Shish Jewels India
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Shish Jewels India
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Navadya Impex India
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Kieran
Diamonds India
Operating Trend: Steady
Subject has a workforce of 5 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given
below:
Currency: United States Dollars (US$)
Year Sales
Year Ending 31/12/16: US$
14,251,876
Year Ending 31/12/17: US$
14,800,000
Local sources consider subject’s financial condition to be
Fair.
BANKERS
·
Habib Bank Ltd
Trade
Service Centre
Murshid
Bazaar
PO
Box: 888
Dubai
Tel:
(971-4) 2221281
Fax:
(971-4) 2284631
·
Mashreq Bank Plc
Deira
Branch
PO
Box: 1250
Dubai
Tel:
(971-4) 2229131 / 2221134
PAYMENT
HISTORY
Slow but Correct
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 Chirag Kumar Ashok Bhai Kani, Sales
Executive
Janvi Diamonds LLC commenced operations in November 2006 and
is engaged in the import and distribution of precious stones, specialising in
loose diamonds and diamond jewellery as well as raw materials used for
jewellery making.
According to local sources subject is making steady progress in the local business market and nothing detrimental has been reported regarding 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 65.05 |
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1 |
INR 90.41 |
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Euro |
1 |
INR 79.83 |
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UAE DH |
1 |
INR17.64 |
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 : |
TRU |
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
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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.