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MIRA INFORM REPORT
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Report No. : |
498775 |
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Report Date : |
17.03.2018 |
IDENTIFICATION DETAILS
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Name : |
LOVELY STAR DIAMONDS LLC |
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Registered Office : |
Gold Land Building, Suite M-7 Gold Souq, Deira PO Box 58621, 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 : |
21.10.2008 |
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Com. Reg. No.: |
1036428 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject engaged as traders of jewellery, precious metals
and stones and watches. |
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No. of Employees : |
8 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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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, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. 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 : LOVELY STAR DIAMONDS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 21st October 2008
Commercial Registration Number : 1036428, Dubai
Trade Licence Number : 617706
Chamber Membership Number : 155074
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 8
Activities : Traders of jewellery, precious metals and stones and watches
Financial Condition : Fair
Payments : Slow but Correct
Person Interviewed : Veneet Kumar, Sales Manager
COMPANY
NAME
LOVELY STAR DIAMONDS
LLC
ADDRESS
Registered &
Physical Address
Building :
Gold Land Building, Suite M-7
Area :
Gold Souq, Deira
PO Box :
58621
Town :
Dubai
Country : United Arab
Emirates
Telephone :
(971-4) 2356891 / 2356890 / 2561287
Facsimile :
(971-4) 2356891
Mobile :
(971-50) 1492393 / 4992393 / 1491393 / (971-55)
5782941
Email : lovelydiam@gmail.com
Please note that subject’s previous address was, Al Mariyam
Building, Suite No. 102, Gold Souq, Dubai.
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
· Dhavan
Kumar Jetundrah Kumar Muarakia Indian Managing
Director
·
Fardan Abdullah
Fardan Al Fardan Emirati Director
· Veneet
Kumar - Sales
Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 21st
October 2008
Legal
Form : Limited
Liability Company - LLC
Commercial
Reg. No. :
1036428, Dubai
Trade
Licence No. : 617706
(Expires 18/10/2018)
Chamber
Member No. :
155074
Issued Capital : UAE
Dh 300,000
Paid up Capital :
UAE Dh 300,000
Name
of Shareholder (s) Percentage
·
Fardan Abdullah
Fardan Al Fardan 51%
· Dhavan
Kumar Jetundrah Kumar Muarakia 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 as traders of jewellery,
precious metals and stones and watches.
Import Countries: Europe and India
International
Suppliers:
· Rosy
Blue Dubai
· Shree Laxmi Jewellery Dubai
· Kiren Gems Pvt Ltd India
Subject has a workforce of 8 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given
below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/17: UAE
Dh 19,000,000
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
·
Citibank
Khalid Bin Waleed Street
Bur Dubai
PO Box: 749
Dubai
Tel: (971-4) 2522100
Fax: (971-4) 2524942
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
Veneet Kumar, Sales Manager
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 64.87 |
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1 |
INR 90.49 |
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Euro |
1 |
INR 79.91 |
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UAE DH |
1 |
INR 17.72 |
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 : |
NIT |
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
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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.