MIRA
INFORM REPORT
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Report Date : |
19th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
AL GHURAIR IRON & STEEL LLC |
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Registered Office : |
Musaffah Industrial Area 106065, Abu
Dhabi, United Arab Emirates |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
13th May 2006 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Engaged in production of iron and steel. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
US$ 200,000 |
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Status : |
New
Company |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
SUMMARY
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Company Name |
AL GHURAIR IRON & STEEL LLC |
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Country of Origin |
Abu Dhabi, United Arab Emirates |
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Legal Form |
Limited Liability Company - LLC |
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Registration Date |
13th May 2006 |
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Trade Licence Number |
94995 |
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Membership Number |
150372 |
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Issued Capital |
UAE Dh 300,000 |
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Paid up Capital |
UAE Dh 300,000 |
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Total Workforce |
50 |
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Line of Business |
Subject will be engaged in the production of iron and steel. |
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Financial Condition |
Undetermined |
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Payments |
Nothing detrimental uncovered |
COMPANY NAME
AL GHURAIR IRON & STEEL LLC
ADDRESS
Registered & Physical Address
Location : Musaffah Industrial Area
PO Box : 106065
Town : Abu Dhabi
Country : United Arab Emirates
Telephone : (971-2) 4454935
Facsimile : (971-2) 4454946
Email : mail@agis.ae
Premises
Subject is in the process of constructing a UAE Dh 300 Million Cold Rolling & Galvanised Steel plant.
Branch Office (s)
Location Description
PO Box 55409 Rented office premises
Dubai
Tel: (971-4) 2243870
Fax: (971-4) 2243871
KEY PRINCIPALS
Majid Saif Ahmed Al Ghurair Managing Director
K.S.M. Ahamed Mubarak Director
Ahmed Husain Lafir Director
Raman Madhok General Manager
Sanjeev Tyagi Plant Manager
B.S.Shetty Commercial Manager
LEGAL FORM & OWNERS
Date of Establishment : 13th May 2006
Legal Form : Limited Liability Company - LLC
Trade Licence No. : 94995 (Valid until 12/05/2007)
Membership No. : 150372
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s)
Majid Saif Ahmed Al Ghurair
K.S.M. Ahamed Mubarak
Ahmed Husain Lafir
Note to the Legal Form
A Limited Liability Company (LLC) is defined in the Company Law as a company incorporated with not less than two and not more than fifty shareholders, each responsible only for the liabilities of the company to the extent of their share participation in the capital of the company.
The Company Law provides that the capital of a Limited Liability Company (LLC) should not be less than UAE Dh 150,000, which should be divided into equal shares of a value not less than UAE Dh 100 each.
This type of company may engage in any form of legitimate business, with the exception of insurance, banking and investment of funds.
Non UAE Participation
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.
Under this arrangement the above ownership may not reflect the actual profit distribution within the company, as the company may have internal management agreements in place that provides full management of the company in return for a share of the company’s assets and profits. This internal relationship may or may not be recognised by law depending on the way the internal agreement is made.
LINE OF BUSINESS
Operations:
Subject is in the process of constructing a UAE Dh 300 Million Cold Rolling & Galvanised Steel plant. It is the
first such facility in the UAE and is designed to produce 350,000 tonnes of Hot
Rolled and Pickled & Oiled steel products. 50,000 tonnes of production
would be salable Cold Rolled Full Hard steel and 200,000 tonnes Galvanised
material and the balance 1000,000 as HRPO.
Production is set to commence in September 2007.
Import Countries: Austria and India
International Suppliers:
Andritz AG Austria
Subject has a workforce of approximately 50 employees, however this will increase as completion of the production facilities nears.
FINANCIAL HIGHLIGHTS
Subject is a newly formed business and as a result financial information is not currently available.
BANKERS
National Bank of Abu Dhabi
Sheikh Khalifa Street
PO Box : 4
Abu Dhabi
Tel : (971-2) 6345777 / 6327113 / 6335262
Fax : (971-2) 6336078
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000
Investigations undertaken in Abu Dhabi did not reveal any sign of payment defaults or delays during initial trading stages, and subject is believed to meet its payment obligations in a timely manner, nevertheless, and in view of the company’s infancy and the lack of a more consistent payment and financial record, a measure of caution is advisable and a close monitoring of subject’s business development is recommended.
Maximum suggested credit figure: US$ 200,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |