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MIRA INFORM REPORT
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Report No. : |
483591 |
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Report Date : |
06.01.2018 |
IDENTIFICATION DETAILS
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Name : |
AL LIALI JEWELLERY CO LLC |
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Registered Office : |
Dubai Metals & Commodities Centre, Jewellery & Gemplex Bldg 1,
Level 2, Office 1, Sheikh Zayed Road, PO 39282, Dubai |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
04.05.1999 |
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Com. Reg. No.: |
52727,
Dubai |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject
is engaged in the wholesale and retail
of jewellery items and diamonds, as well as watches and spare parts. |
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No. of Employees : |
150 |
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 : |
No Complaints |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 |
Company
name and SUMMARY
Company
Name :
AL LIALI JEWELLERY CO LLC
Country
of Origin :
Dubai, United Arab Emirates
Legal
Form :
Limited Liability Company - LLC
Start
Date :
4th May 1999
Registration
Date : 15th
July 2001
Commercial
Registration Number : 52727,
Dubai
Trade
Licence Number :
510439
Chamber
Membership Number : 64932
Issued
Capital :
UAE Dh 300,000
Paid
up Capital :
UAE Dh 300,000
Total
Workforce :
150
Activities :
Wholesale and retail of jewellery items and diamonds, as well as watches
and spare parts
Financial
Condition :
Good
Payments :
No Complaints
Operating
Trend :
Steady
Company
name and address
COMPANY
NAME: AL
LIALI JEWELLERY CO LLC
ADDRESS
Registered
& Physical Address
Building : Dubai Metals & Commodities
Centre, Jewellery & Gemplex Bldg 1, Level 2, Office 1
Street : Sheikh Zayed Road
PO
Box : 39282
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 3688500
Facsimile : (971-4) 3688501
Mobile :
(971-50) 4271742 / 2813027 / (971-56) 1285464
Email : allialy@emirates.net.ae
/ info@allialijewellery.com
/ chandradave@allialijewellery.com
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.
Branch
Office (s)
Subject
operates 18 showrooms located throughout the country, including the following:
Location Description
Jumaira
Centre Rented
showroom premises
Jumaira
Road
PO
Box: 233
Dubai
Tel:
(971-4) 3420909 / 3445055
Fax:
(971-4) 3420330
Gold
Souq Rented
showroom premises
Deira
Dubai
Tel:
(971-4) 3595164
Spinneys
Centre Rented
showroom premises
Al
Rifaa Street
Al
Souq Al Kabir
PO
Box: 39282
Dubai
Tel:
(971-4) 3478235
Golden
Diamond Park Rented
showroom premises
Jebel Ali Free Zone
Dubai
Tel: (971-4) 8836684
Mall
of Emirates Rented
showroom premises
Dubai
Tel:
(971-4) 3414080
Porto
Vechhio Village Rented
showroom premises
Mercato
Dubai
Tel:
(971-4) 3445055
Burjuman Rented
showroom premises
Dubai
Tel:
(971-4) 3510075
Egypt
Court Rented
showroom premises
Ibn
Battuta Mall
Dubai
Tel:
(971-4) 3685384
Shop
No. 95 Rented
showroom premises
Madinat
Jumeirah
Dubai
Tel:
(971-4) 3686220
Jewellery
Court Rented
showroom premises
Al
Ain Mall
Al
Ain
Tel:
(971-3) 7519630
Meadows
Town Centre Rented
showroom premises
Dubai
Tel:
(971-4) 3689930
Jebel
Ali Golf Resort & Spa Rented
showroom premises
Dubai
Tel:
(971-4) 8836684
Hilton
Beach Resort Rented
showroom premises
Ras
Al Khaimah
Tel:
(971-7) 2260380
Bahrain Rented
showroom premises
Tel:
(973-17) 178160
KEY
PRINCIPALS
Name Nationality Position
Anuraag
Sinha Indian Managing
Director
Raed
Ahmad Baker Emirati Director
Oofrish
Contrack - Marketing
Manager
Chandra Dave - Finance
Manager
Malvin
Oly Vera - Financial
Controller
Rajeev
Menon - Brand
Manager
LEGAL
FORM & OWNERS
Date
of Establishment : Subject started trading on
4th May 1999, however it registered on 15th July 2001
Legal
Form : Limited Liability Company - LLC
Commercial
Reg. No. : 52727, Dubai
Trade
Licence No. : 510439 (Expires
03/05/2018)
Chamber
Member No. : 64932
Issued
Capital : UAE Dh 300,000
Paid
up Capital : UAE Dh 300,000
Name
of Shareholder (s) Percentage
Raed
Ahmad Baker 51%
Anuraag
Sinha 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 thevalue 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 wholesale
and retail of jewellery items and diamonds, as well as watches and spare parts.
Import
Countries:
Europe and South Africa
Brand
Names: MEMORIES, AFFAIR, PETITE, BRASEEL, SAKURA, LASSEL
and ASMI
Operating
Trend:
Steady
Subject
has a workforce of 150 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
United Arab Emirates Dirham (UAE Dh)
Year Revenue Source
Year
Ending 31/12/14: UAE
Dh 98,750,000 (estimated)
Year
Ending 31/12/15: UAE
Dh 101,200,000 (estimated)
Year
Ending 31/12/16: UAE
Dh 104,500,000 (estimated)
Year
Ending 31/12/17: UAE
Dh 108,000,000 (estimated)
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) 2222241
PAYMENT
HISTORY
No
complaints regarding subject’s payments have been reported.
Date
of transaction June
2002
Credit
amount 50,000
Amount
overdue 0
Payment
terms 60 days
Payment
Method Letters of
Credit
Paying
record No
Complaints
Currency US Dollars
GENERAL
COMMENTS
During
the course of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
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 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 63.38 |
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1 |
INR 86.02 |
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Euro |
1 |
INR 76.50 |
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UAE DH |
1 |
INR 17.25 |
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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NIS |
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Report Prepared
by : |
DNS |
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.