MIRA INFORM REPORT

 

 

Report No. :

495042

Report Date :

28.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HASSAN GEMS LLC

 

 

Registered Office :

Mohamed Mahmood Al Dalal Building, Ground Floor, Al Khaleej Street, Al Ras, Gold Souq, Deira, P O Box: 21892 & 28948, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

13.12.1993

 

 

Com. Reg. No.:

47354, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Import, Trading and Export of Diamonds and Precious Stones.

 

 

No. of Employees :

20

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

 

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

United Arab Emirates

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

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.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : HASSAN GEMS LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 13th December 1993

Commercial Registration Number           : 47354, Dubai

Trade Licence Number                           : 232456

Chamber Membership Number               : 28974

Issued Capital                                       : UAE Dh 300,000

Paid up Capital                                     : UAE Dh 300,000

Total Workforce                                                : 20

Activities                                               : Import, trading and export of diamonds and precious stones

Financial Condition                                : Fair

Payments                                             : No Complaints

Operating Trend                                    : Steady

Person Interviewed                                : Sayed Mazhar Hussain, Managing Director

 

 

COMPANY NAME

 

HASSAN GEMS LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Mohamed Mahmood Al Dalal Building, Ground Floor

Street               : Al Khaleej Street

Area                 : Al Ras, Gold Souq, Deira

PO Box                        : 21892 & 28948

Town                : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2268645 / 2256399 / 2255108

Facsimile          : (971-4) 2262346

Mobile              : (971-50) 6518025 / 8010333

Email                : hgems@emirates.net.ae

 

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

 

·       Sayed Mazhar Hussain                                     Indian                                    Managing Director

 

·       Ali Rashid Obaid Saeed Al Jarwan                    Emirati                       Director

 

·       Majid Dozali                                                        -                            Sales Manager

 

·       Noshad Ali                                                          -                            Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 13th December 1993

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 47354, Dubai

 

Trade Licence No.        : 232456 (Expires 22/07/2018)

 

Chamber Member No.  : 28974

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                              Percentage

 

·       Ali Rashid Obaid Saeed Al Jarwan                                  51%

 

·       Sayed Mazhar Hussain                                                   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.

 

 

AFFILIATED COMPANIES

 

·       Hassan Jewellery Co LLC

PO Box: 28948

Dubai

Tel: (971-4) 2255108

Fax: (971-4) 2262346

 

·       Hassan Gems & Jewellery Pvt Ltd (Nikhaar)

Bangalore

     India

 

 

OPERATIONS

 

Activities: Engaged in the import, trading and export of diamonds and precious stones.

 

Import Countries: Europe and South Africa

 

Local Suppliers:

 

·       Keiran Gems

·       Rosy Blue

 

Operating Trend: Steady

 

Subject has a workforce of 20 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

Year                                                     Sales                           

 

Year Ending 31/12/14:                           UAE Dh 59,260,000                  

 

Year Ending 31/12/15:                           UAE Dh 60,000,000                  

 

Year Ending 31/12/16:                           UAE Dh 61,000,000      

 

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

 

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

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

     Tel: (971-4) 2229131 / 2221134

 

 

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 Sayed Mazhar Hussain, Managing Director, on 14/12/17

 

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.

 

According to local sources, subject meets its payment obligations in a timely manner and 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

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.85

UK Pound

1

INR 90.58

Euro

1

INR 79.97

UAE Dh

1

INR 17.73

 

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

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)

 

 

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.