MIRA INFORM REPORT

 

 

Report Date :

20.11.2012

 

IDENTIFICATION DETAILS

 

Name :

ETA MELCO ELEVATOR CO LLC

 

 

Registered Office :

ETA Star House Salahuddine Street Al Mateena, Deira PO Box      11058 Dubai

 

 

 

 

Country :

United Arab Emirates

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Year of Establishment :

1975

 

 

 

 

Com. Reg. No.:

40884, Dubai

 

 

 

 

Legal Form :

Limited Liability Company - LLC

 

 

 

 

Line of Business :

Import, distribution, installation, maintenance and repair of elevators and  escalators

 

 

 

 

No. of Employees :

1,750

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

UAE

A2

A2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

UAE - 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 based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE 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. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, 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. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

sUMMARY

 

Company Name                         : ETA MELCO ELEVATOR CO LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Start Date                                             : 1975

Registration Date                                   : 5th October 1981

Commercial Registration Number            : 40884, Dubai

Trade Licence Number                            : 206731

Chamber Membership Number                : 8451

Issued Capital                                        : UAE Dh 10,000,000

Paid up Capital                                      : UAE Dh 10,000,000

Total Workforce                                     : 1,750

Activities                                               : Import, distribution, installation, maintenance and repair of elevators        and escalators

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Salem Khan, Assistant Finance Manager

 

 

 

COMPANY NAME

 

ETA MELCO ELEVATOR CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : ETA Star House

Street               : Salahuddine Street

Area                 : Al Mateena, Deira

 

PO Box             : 11058

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2359595

Facsimile          : (971-4) 2725121 / 2359783 / 2359782

Mobile               : (971-50) 2885196

Email                : etamelco@eta-ascon.com / etamelco@etamelcom.com

 

Premises

 

Subject operates from a large suite of offices and a warehouse that are leased and located in the Industrial Area of Dubai.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Gulf Air Building                                                                                Office premises

PO Box: 11058

Dubai

Tel: (971-4) 2716655 / 2715109

 

·       PO Box: 3967                                                                                   Office premises

Abu Dhabi

Tel: (971-2) 6349534

Fax: (971-2) 6347282

 

 

KEY PRINCIPALS

 

     Name                                                          Nationality                   Position

 

·       Sayed Mohamed Salahuddin                             Indian                         Managing Director

 

·       Abdullah Bin Ahmed Al Ghurair                        Emirati                        Director

 

·       Ahmed Miran                                                  Emirati                        Director

 

·       S Shankran                                                         -                            General Manager

 

·       Khaja Moeen Eddine                                            -                            Finance Manager

 

·       Natrajan Shanker                                                 -                            Marketing Manager

 

·       Abdulaziz Mohamed                                             -                            Maintenance Manager

 

·       Shiva Kumar                                                        -                            Installations Manager

 

·       Salem Khan                                                         -                            Assistant Finance Manager

 

·       Ahmed Kabir                                            -                            Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1975, however it was registered on 5th October 1981

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 40884, Dubai

 

Trade Licence No.       : 206731 (Expires 21/09/2012)

 

Chamber Member No. : 8451

 

Issued Capital              : UAE Dh 10,000,000

 

Paid up Capital            : UAE Dh 10,000,000

 

Name of Shareholder (s)                                               Percentage

 

·       ETA Ascon Group Co LLC                                              70%

Dubai

 

·       Mitsubishi Corp Ltd                                                        30%

     Japan

OPERATIONS

 

Activities: Engaged in the import and distribution of elevators, escalators and related spare parts.

 

     Subject is sole agents for Mitsubishi Elevators & Escalators.

 

Subject also offers installation, maintenance and repair of elevators and escalators. It has approximately 8,000 elevators under comprehensive maintenance contracts.

 

The company's installations at the Emirates Tower, Burj Al Arab and the new terminal at the Dubai International Airport were rated among the world's best projects by the top international elevators mgazine "The Elevator World."

800 units per year are being sold in the UAE by ETA-Melco and the company has a market share of around 55 percent.

Subject obtained the prestigious ISO-9001 Certificate in 1999.

 

Import Countries: Japan, Germany and Sweden

 

International Suppliers:

 

·       Mitsubishi Electric Corporation           Japan

·       Alcan Singen GmbH                          Germany

·       Besam AB                                        Sweden

 

Export Countries: Qatar, Oman, Kuwait, Turkey, Sri Lanka, Maldives, India, Bangladesh and Russia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,750 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                UAE Dh 1,070,128,124               UAE Dh 1,119,611,693

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Salem Khan, Assistant Finance Manager

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

     Tel: (971-4) 2229131 / 2221134

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              July 2008

Credit amount                                        150,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

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.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.97

UK Pound

1

Rs.87.50

Euro

1

Rs.70.16

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.