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MIRA INFORM REPORT
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Report No. : |
507087 |
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Report Date : |
08.05.2018 |
IDENTIFICATION DETAILS
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Name : |
DAMAS JEWELLERY LLC |
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Registered Office : |
Damas Building, Block 3, 1st Floor, Jumeirah
Lakes Towers PO Box 1522 Dubai |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
19.03.1980 |
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Com. Reg. No.: |
41342 |
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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 watches. |
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No. of Employees : |
280 |
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 (30.09.2017) |
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 : DAMAS JEWELLERY LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 19th March 1980
Commercial Registration Number : 41342, Dubai
Trade Licence Number : 208495
Chamber Membership Number : 6460
Issued Capital : UAE Dh 50,000,000
Paid up Capital : UAE Dh 50,000,000
Total Workforce : 280
Activities : Wholesale and retail of jewellery items and watches.
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
Person Interviewed : Mahmoud Khalil, Public Relations Manager
COMPANY
NAME
DAMAS JEWELLERY LLC
ADDRESS
Registered & Physical
Address
Location :
Damas Building, Block 3, 1st Floor, Jumeirah Lakes Towers
PO Box :
1522
Town :
Dubai
Country :
United Arab Emirates
Telephone :
(971-4) 4459000 / 4459462 / 4270554 / 2264849
Facsimile :
(971-4) 4459015 / 4459565 / 4459520
Mobile :
(971-50) 3510218
Email : damas@emirates.net.ae
/ mahmood@damasjewellery.com
/ sanjayk@damasjewellery.com
/ corporate@damasjewellery.com
/ niginm@damasjewellery.com
Premises
Subject operates from a medium sized suite of offices and a showroom
that are owned and located in the Central Business Area of Dubai.
Branch Office (s)
Subject operates approximately 75
retail showrooms located in the major shopping malls and 5 star hotels
throughout Dubai and the United Arab Emirates, including the following
locations:
Location Description
· Hamdan
Street Rented
showroom premises
Old
Souk
Abu
Dhabi
Tel:
(971-2) 6227220
Fax:
(971-2) 6227143
· Abu
Dhabi Mall Rented
showroom premises
Nadi
Seyahi Street
Abu
Dhabi
Tel: (971-2)
6450700
Fax:
(971-2) 6455507
· Ajman
City Centre Rented
showroom premises
Ajman
Tel:
(971-6) 7480307
Fax:
(971-6) 7482252
· Al Ain
Mall Rented
showroom premises
· Fujairah Rented
showroom premises
Tel:
(971-9) 2233557
Fax:
(971-9) 2233559
· Manar
Mall Rented
showroom premises
· Old
Souk Rented
showroom premises
Sharjah
Tel:
(971-6) 5743875
Fax:
(971-6) 5726192
KEY
PRINCIPALS
Name Position
· Anan Fakhruddine Chief
Executive Officer
· Jack Dome Chief
Financial Officer
· John
Roy Operations
Manager
· Ms
Deepa Abra Assistant
Finance Manager
· Robin Sabastian Logistics
Manager
· Nigin Mathew Legal
Advisor
·
Mahmoud Khalil Public
Relations Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 1907,
however subject was registered on 19th March 1980
Legal
Form : Limited
Liability Company - LLC
Commercial
Reg. No. :
41342, Dubai
Trade
Licence No. :
208495 (Expires 14/03/2019)
Chamber
Member No. : 6460
Issued Capital : UAE
Dh 50,000,000
Paid up Capital :
UAE Dh 50,000,000
Name of Shareholder (s) Percentage
· Damas LLC 99.998%
New
Gold Centre Building, 3rd Floor
Al Khor Street
Al Ras, Deira
PO Box: 1522
Dubai
Tel: (971-4) 2255206 / 2263682 / 2254300
Fax: (971-4) 2290242 / 2252259 / 2254256
Email:
damas@eim.ae
· Damas SPV Jewellery LLC 0.002%
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
Name Country
of Incorporation
· Damascus
Jewellery LLC Dubai,
United Arab Emirates
· Mukund
Jewellery LLC Dubai, United Arab
Emirates
· Ocean
Jewellery LLC Dubai,
United Arab Emirates
· Dhanak
Jewellery LLC Dubai,
United Arab Emirates
· Armaan
Jewellery LLC Dubai,
United Arab Emirates
· Damas
Jewellery DMCC Dubai,
United Arab Emirates
· Gem
Universe LLC Oman
· Universe
Jewellers Ltd United
States of America
· Royal
Jewellers Inc United
States of America
· 7816
3rd Avenue LLC United
States of America
· Damas
Company WLL Bahrain
· Islanders
Demas Pvt. Ltd Maldives
· DIT
group SpA Italy
· Damas
Egypt SAE Egypt
· Diminco
Damas Diamond Manufacturing DMCC Dubai,
United Arab Emirates
· Soir
Jewellery Pvt. Ltd India
· Damas
(Thailand) Co. Ltd Thailand
· Damas
& Al Ghannam jewellery Co WLL Kuwait
· Damas
Southhall Limited UK United
Kingdom
· Damas
UK Limited UK United
Kingdom
· Damas
Dis Ticaret A.S. Turkey
· Al
Nahrain Jewellers Factory LLC Dubai,
United Arab Emirates
OPERATIONS
Activities: Engaged in the wholesale and retail of
jewellery items and watches.
Import Countries: Europe and the Far East.
Brand Names: CARRERA, LAURENTIA, BARAKA, MIKIMOTO, FOPE, CHIMENTO,
FABERGE, POMELLATO,
ROBERTO
COIN, SCAVIA, CHANEL, BELL & ROSS, OMEGA, WALTHAM, MONTEGA and
VACHERON CONSTANTIN
Subject has a workforce of approximately 280 employees.
FINANCIAL
DATA
Companies registered in Dubai, United Arab Emirates are not
legally required to make their accounts public and no financial information was
released by the company or submitted by outside sources.
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.
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
Mahmoud Khalil, Public Relations Manager
Established in 1980, the company operates approximately 75
retail showrooms located in the major shopping malls and 5 star hotels
throughout Dubai, and stocks many well known and leading brand names.
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 67.11 |
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1 |
INR 90.85 |
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Euro |
1 |
INR 80.12 |
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UAE DH |
1 |
INR 18.27 |
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 : |
TRU |
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.