MIRA
INFORM REPORT
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Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
RAK STEEL LLC |
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Registered Office : |
Al Gail Area, PO Box 6578, Ras Al Khaimah |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
December 2005 |
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Com. Reg. No.: |
4714, Ras Al Khaimah |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Manufacture of Steel Deformed Reinforcement Bars (Rebars). |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name : RAK STEEL LLC
Country of Origin : Ras Al Khaimah, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : December 2005
Commercial Registration Number : 4714, Ras Al Khaimah
Industrial Licence Number : 055
Issued Capital : UAE Dh 50,000,000
Paid up Capital : UAE Dh 50,000,000
Total Workforce : 100
Line of Business : Manufacture of steel deformed reinforcement bars (rebars).
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
COMPANY NAME
RAK STEEL LLC
ADDRESS
Registered & Physical Address
Location : Al Gail Area
PO Box : 6578
Town : Ras Al Khaimah
Country : United Arab
Emirates
Telephone : (971-7) 2585459
Facsimile : (971-7) 2585465
Email : gm@raksteel.com
Premises
Subject operates from a medium sized suite of offices and a factory that
are rented and located in the Industrial Area of Ras
Al Khaimah.
KEY PRINCIPALS
· Dr Khater Massad Chairman
· Ajay
Agrawal General
Manager
· Rajesh
Puri Plant
Manager
LEGAL FORM & OWNERS
Date of
Establishment : December 2005
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg.
No. : 4714, Ras Al
Khaimah
Industrial Licence
No. : 055
Issued Capital : UAE Dh 50,000,000
Paid up Capital : UAE Dh 50,000,000
Name of Shareholder (s)
· Sandeep
Rao
· Subbara
Madhav Rao
· RAK
Investment Authority (RAKIA)
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 300,000, 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: The mill produces 500,000 tonnes per annum 8mm to 40 mm diameter steel
deformed
reinforcement bars (REBARS) to international
British and American standards. Production began in December 2007.
Import Countries: China and India
Subject has a workforce of approximately 100 employees.
FINANCIAL HIGHLIGHTS
Companies registered in the 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
·
HSBC Bank Middle East
Corniche Road
PO Box: 9
Ras Al Khaimah
Tel: (971-7)
2333544
Fax: (971-7)
2330200
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Rak Steel LLC is a relatively new business with operations
commencing in December 2005. It is engaged in the manufacture of steel deformed
reinforcement bars (rebars).
According to local sources subject is making steady
progress in the local business market and nothing detrimental has been reported
regarding the manner in which payments are fulfilled. As such the company is
considered to be a fair trade risk.
Maximum suggested credit figure: US$ 250,000
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. |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)