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MIRA INFORM REPORT
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Report No. : |
487238 |
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Report Date : |
19.01.2018 |
IDENTIFICATION DETAILS
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Name : |
JEWELCRAFT
JEWELLERY LLC |
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Registered Office : |
Khalid Al Attar
Building, Plot No. 113-386, 3rd Floor, Office No. 305, Al Soor
Street, Al Daghaya, Gold Souk, Deira, P O Box: 58671, 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 : |
02.06.2008 |
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Com. Reg. No.: |
1029896, Dubai |
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Legal Form : |
Limited Liability
Company - LLC |
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Line of Business : |
Import and
distribution of jewellery, precious stones, watches, crystal products and
gift items. |
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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 : |
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 |
SUMMARY
Company Name : JEWELCRAFT
JEWELLERY LLC
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date : 2nd
June 2008
Commercial
Registration Number : 1029896,
Dubai
Trade Licence
Number : 611873
Chamber Membership
Number : 139923
Issued Capital : UAE Dh
300,000
Paid up Capital : UAE Dh
300,000
Total Workforce :
3
Activities :
Distributors of jewellery, precious stones and gift items
Financial Condition : Fair
Payments :
No Complaints
Operating Trend : Steady
Person Interviewed : Rushabhkumar
Rameshbhai Shah, Director
COMPANY
NAME
JEWELCRAFT
JEWELLERY LLC
ADDRESS
Registered & Physical
Address
Location : Khalid Al Attar Building, Plot No.
113-386, 3rd Floor, Office No. 305
Street : Al Soor Street
Area : Al Daghaya, Gold Souk, Deira
PO Box : 58671
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2261421
Facsimile : (971-4) 2261421
Mobile : (971-50) 9932387 / (971-55)
1071590
Email : jewelcraftjewellery@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
·
Manoj
Mahendra Shah Indian Managing Director
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Rushabhkumar
Rameshbhai Shah Indian Director
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Khalid
Abdul Rahman Ahmed Abdul Rahman Bahlooq Emirati Director
LEGAL
FORM & OWNERS
Date of Establishment : 2nd
June 2008
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 1029896,
Dubai
Trade Licence No. : 611873
(Expires 31/05/2018)
Chamber Member No. : 139923
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s) Percentage
·
Khalid
Abdul Rahman Ahmed Abdul Rahman Bahlooq 51%
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Manoj
Mahendra Shah 25%
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Rushabhkumar
Rameshbhai Shah 24%
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
jewellery, precious stones, watches, crystal products and gift
items.
Import
Countries: Hong Kong and India
International Suppliers:
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Beauty
Gems HK Ltd Hong Kong
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Sudaram Export India
Clients:
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Brilliant
Gems LLC
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Precious
Gems LLC
Export countries: India, United States of America and Hong
Kong and China
Operating Trend: Steady
Subject has a
workforce of 3 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
20,000,000
Year Ending
31/12/15: UAE Dh
20,800,000
Year Ending 31/12/16: UAE Dh 22,000,000
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
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Commercial
Bank of Dubai
Baniyas Street
Deira
PO Box: 1709
Dubai
Tel: (971-4) 2227121 / 2253222
Fax: (971-4) 2220943 / 2254565
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 Rushabhkumar Rameshbhai Shah,
Director, on 16/10/17
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.
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 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 63.84 |
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1 |
INR 88.28 |
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Euro |
1 |
INR 77.88 |
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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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DIV |
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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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.