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MIRA INFORM REPORT
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Report No. : |
484583 |
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Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
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Name : |
JASHANMAL NATIONAL CO LLC |
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Formerly Known As : |
JASHANMAL NATIONAL CO (UAE) |
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Registered Office : |
Al Barsha Area No. 1, 316 Road, PO Box: 1545 & 3926, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
1956 |
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Com. Reg. No.: |
45956, Dubai |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject’s operations are performed through the following divisions ·
Retail Division · Wholesale Division · Carlton Cards Division |
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No. of Employees : |
1,118 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
US$ 4,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 $20 billion bailout from the UAE Central Bank and Abu Dhabi Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.
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Source : CIA |
SUMMARY
Company Name : JASHANMAL NATIONAL CO LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Start Date : 1956
Registration Date : 1st February 1976
Commercial Registration Number : 45956, Dubai
Trade Licence Number : 500715
Chamber Membership Number : 4314
Issued Capital : UAE Dh 40,000,000
Paid up Capital : UAE Dh 40,000,000
Total Workforce : 1,118
Activities : Subject operates several divisions (see below for details)
Financial Condition : Good
Payments : Regular
Operating Trend : Steady
Recommended Credit Limit : US$ 4,000,000
COMPANY
NAME
JASHANMAL NATIONAL CO LLC
ADDRESS
Registered & Physical
Address
Location : Al Barsha Area
No. 1, 316 Road
PO Box :
1545 & 3926
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 4174800
/ 2666633
Facsimile : (971-4)
4174825
Mobile : (971-50)
6115112
Email : info@jashanmal-uae.com / gmjnc@jashanmal.ae / bking@jashanmal.ae /
Please note that subject’s previous address was, Lotus Building,
Salahuddin Street, Deira, Dubai.
Premises
Subject operates from a large suite of offices and a warehouse that are
rented and located in the Suburban Business Area of Dubai.
Branch Office (s)
Location Description
·
Level 1, Marina Mall, Shop No. 26 Department
store
PO Box: 1545
Dubai
Tel: (971-4)
3928078
·
Al Dhiyafah Street Department
store
Jumeirah
Dubai
Tel:
(971-4) 2452196
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The Centre Department
store
Muraggabat, Deira
Dubai
Tel:
(971-4) 2693659
·
Wafi Mall Department
store
Bur Dubai
Dubai
Tel: (971-4)
3244800
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Abu Dhabi Mall Building Department
store
Al Istiqlal Street
PO Box: 316
Abu Dhabi
Tel: (971-2)
6335569 / 6456454
Fax: (971-2)
6338322
·
Sheikh Zayed Al Nahyyan Building Department
store
Sheikh Khalifa Bin
Zayed Street
Al Ain Main Street
PO Box: 1372
Al Ain
Tel: (971-3)
7513151
·
Sharjah Warehouse
premises
Tel: (971-6)
5724175 / 5374185 / 5731527
KEY
PRINCIPALS
Name Nationality Position
·
Gangu Batra Indian Managing Director
& Chief Executive
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Mohan Jashanmal
Indian Director
& General Manager
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Sheikh Suroor Bin Sultan Al Dhahiry Emirati Director
· Abdullah Mohamed Al Mazrui
Emirati Director
· Mohamed Al Fandi Al Mazrui Emirati Director
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Abdulrahim E Galadari Emirati Director
· Abdullah Bin Sultan Al Suleiman
Emirati Director
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Atma Jashanmal
Indian Director
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Tony Jashanmal
Indian Director
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Bharat Jashanmal
Bahraini Director
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Sharif Nawabjan - Finance
Manager
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Brian King - Wholesale
Manager
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Sabastain D’ Souza - Retail
Manager
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Samir Salem Lamki - Public
Relations Manager
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Karan Sharama - Accounts Manager
·
Manish Das - Chief
Operating Officer
LEGAL
FORM & OWNERS
Date of
Establishment : Subject’s
operations date back to 1956, however it was registered on 1st
February 1976
History : Subject was
established in 1956 as a Limited Liability Partnership under the name of
“Jashanmal
National Co (UAE)”.
In July 1991, and following an amendment to
the UAE commercial law
regulating companies partly owned by foreign parties, subject was
re-organised and
re-registered as a Limited Liability Company – LLC under the new name of
“Jashanmal National Co LLC”.
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 45956, Dubai
Trade Licence No. : 500715 (Expires
15/07/2018)
Chamber Member No. : 4314
Issued Capital : UAE Dh 40,000,000
Paid up Capital : UAE Dh 40,000,000
Name of Shareholder (s)
·
Gangu Batra
·
Mohan Jashanmal
·
Sheikh Suroor Bin Sultan Al Dhahiry
·
Abdullah Mohamed Al Mazrui
·
Mohamed Al Fandi Al Mazrui
·
Abdulrahim E Galadari
·
Abdullah Bin Sultan Al Suleiman
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Atma Jashanmal
·
Tony Jashanmal
·
Bharat Jashanmal
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
·
Jashanmal & Sons WLL
PO Box: 16
Manama
Bahrain
Tel: (973-17)
225431
Fax: (973-17)
223247
Established in
1935
CR No. 8153
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Jashanmal & Sons Management Services
PO Box: 16
Manama
Bahrain
Established in
1980
CR No. 10467
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Jashanmal & Partners
PO Box: 5138 &
99
Safat
Kuwait
Tel: (965)
25312090
Fax: (965)
25333889
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Overseas Courier Services (Bahrain) Ltd
PO Box: 16
Manama
Bahrain
Established in
1982
CR No. 12365
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Rifai & Jashanmal WLL
PO Box: 5138
Kuwait
Established in
1933
CR No. 234
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Fragrance & Beauty Co
PO Box: 16
Manama
Bahrain
Established in
1979
CR No. 9606
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Emirates Markets & Stores (Pvt) Ltd
Al Ghurair Centre
Deira
Dubai
United Arab
Emirates
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Jashanmal & Co (For Printed Materials)
PO Box: 1545
Dubai
United Arab Emirates
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Sigma Production & Services
PO Box: 3555
Abu Dhabi
United Arab
Emirates
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Sigma Chemicals (SICHEM)
Hamdan Street
PO Box: 3555
Abu Dhabi
United Arab
Emirates
Tel: (971-2)
2651561
Fax: (971-2)
2314007
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Emirates Mud Services
PO Box: 3555
Abu Dhabi
United Arab
Emirates
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Sigma Specialised Engineering & Construction
PO Box: 3555
Abu Dhabi
United Arab Emirates
Tel: (971-2) 5393228
OPERATIONS
Activities: Subject’s operations are performed through the following divisions:
· Retail Division
The Retail
Division operates a chain of four department stores and stand alone international
franchises. The stores carry reputed brands of Pens, Cameras, Luggage, Leather,
Fashion, Accessories, Shoes, Linen, Houseware, Crystal, Glass, China, Giftware,
Books, Household and Kitchen Appliances.
Jashanmal holds the franchise for "MEXX" the leading international
fashion house of Europe. The company now has four "MEXX" boutiques,
which are located in large prestigious shopping malls.
In November 1997,
Jashanmal opened the first Burberry store in Dubai. This is the first store in
the Middle East franchised by Burberry of London. Located at "City
Centre" the largest shopping mall in downtown Dubai, Burberry is owned and
operated by Jashanmal.
Jashanmal had been retailing Clarks Shoes in the Gulf for over 35 years. In
1998, Jashanmal were appointed exclusive regional distributor for Clarks Shoes,
and operate a shoe warehouse in the Jebel Ali Free Zone in Dubai that supplies
the regional requirement of all retail customers. Three Clarks stand-alone
stores and four shop-in-shops are in the region now and more are planned.
In November 1998, Jashanmal entered into an agreement with Warnaco Inc. of USA
for the exclusive regional distribution of Calvin Klein underwear and leather
accessories for men in the lower GCC countries.
In 1999 this relationship was expanded to include distribution of Olga, Warners
and Body Slimmers range of intimate apparel. With this, Jashanmal developed the
concept of stand-alone underwear stores named "INNERLINES". The first
store opened in 2000 at the Deira City Centre in Dubai, followed by a second in
Abu Dhabi and a third in Sharjah.
· Wholesale Division
The Wholesale Division is responsible for the
Distribution and Marketing of a number of major International brands. It
currently distributes and services over 2500 retailers in the UAE apart from
the main Seaports and Duty-Free Shops at various International Airports in the
UAE, Muscat and Doha. In Bahrain the company service over 100 retailers and in
Kuwait over 500 retailers. The wholesale division generates 65% of sales.
Jashanmal's warehousing facilities consist of
over 106,100 square feet in Dubai and 22,500 square feet in Abu Dhabi, a
substantial portion climate controlled.
The division also operates bonded duty-free
warehouses consisting of 24,000 sq.ft. located in the Duty-Free Zone, out of
which 5,550 sq.ft. is temperature controlled.
A fleet of 44
commercial vehicles is used for transportation to all the markets in the UAE,
Oman and Qatar.
· Carlton Cards
Division
In 1999, Jashanmal
acquired Carlton Cards Gulf, and became the regional franchisee of American
Greetings Corp., the largest greeting cards company in the world. Carlton Cards
Gulf operates 8 stand-alone stores in UAE and Oman and widely distributes
greeting cards to all major supermarkets, gas stations and gift stores in the
UAE, Oman, Qatar, Bahrain and Kuwait.
Import Countries: Subject imports products from all over the world,
particularly the United Kingdom, the Republic of Ireland, Switzerland, Hong
Kong and the United States of America
International Suppliers:
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Clarks Overseas Shoes Ltd United Kingdom
·
Ronson International Corp United Kingdom
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Max Factor United
Kingdom
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Hoover Plc United
Kingdom
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Grosvenor of London Ltd United Kingdom
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A.T. Cross Ltd Republic
of Ireland
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Tobler & Suchard Chocolates Switzerland
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Yashica Hong Kong Co Ltd Hong Kong
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Alladdin Plastics Inc United States of America
Operating Trend: Steady
Subject has a workforce of approximately 1,118 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/15: UAE
Dh 750,000,000
Year Ending 31/12/16: UAE
Dh 795,000,000
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
·
Banque Paribas
Main Branch
PO Box: 7233
Dubai
Tel: (971-4)
2525929
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Emirates Bank International Ltd
Beniyas Road
PO Box: 2923
Dubai
Tel: (971-4)
2256256
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Commercial Bank of Dubai Ltd
Al Maktoum Street
PO Box: 2668
Dubai
Tel: (971-4)
2226132
·
Standard Chartered Bank
Khalid Bin Waleed
Street
PO Box: 999
Dubai
Tel: (971-4)
2520455
PAYMENT
HISTORY
Regular
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.
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
revenue 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 63.47 |
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|
1 |
INR 86.15 |
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Euro |
1 |
INR 75.92 |
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UAE Dh |
1 |
INR 17.37 |
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 : |
SYL |
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.