MIRA INFORM REPORT

 

 

Report Date :

28.11.2012

 

IDENTIFICATION DETAILS

 

Name :

AL GHURAIR IRON & STEEL LLC

 

 

Registered Office :

Mussafah Industrial Area, ICAD City, Plot No. 11, 12, FR6, 13 F2, PO Box: 106065, Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

13.05.2006

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Operators of a cold rolling and galvanised steel plant.

 

 

No. of Employees :

350

 

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 :

Satisfactory

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

(31.03.2011)

Current Rating

(30.06.2012)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 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                         : AL GHURAIR IRON & STEEL LLC

Country of Origin                                    : Abu Dhabi, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 13th May 2006

Trade Licence Number                            : 94995

Chamber Membership Number                : 150372

Issued Capital                                        : UAE Dh 104,800,000

Paid up Capital                                      : UAE Dh 104,800,000

Total Workforce                                     : 350

Activities                                               : Operators of a cold rolling and galvanised steel plant.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Sunil Nambiar, Finance Manager

 

 

 

COMPANY NAME

 

AL GHURAIR IRON & STEEL LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Mussafah Industrial Area, ICAD City, Plot No. 11, 12, FR6, 13 F2

PO Box             : 106065

Town                 : Abu Dhabi

Country             : United Arab Emirates

 

Telephone         : (971-2) 5500929 / 6593400

Facsimile          : (971-2) 5500949 / 5522949

Email                : mail@agis.ae / info@agis.ae

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Abu Dhabi.

 

 

Branch Office (s)

 

            Location                                                                                              Description

 

Salah Udddine Road                                                                               Rented office premises

PO Box: 1

Dubai

Tel: (971-4) 2623377

Fax: (971-4) 2623388

 

 

KEY PRINCIPALS

 

            Name                                                   Nationality                   Position

 

Majid Saif Ahmed Al Ghurair                                 Emirati                        Chairman

 

Ahmed Husain Lafir                                              Indian                          Managing Director

 

Saeed Saif Al Ghurair                                         Emirati                          Director

 

Hideki Ogawa                                                    Japanese                      Director

 

Abu Baker Hussain                                                   -                            Chief Executive Officer

 

B S Shetty                                                               -                            Commercial Manager

 

Gosh Amitava                                                           -                            Operations Manager

 

Sunil Nambiar                                                           -                            Finance Manager          

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 13th May 2006

 

Legal Form                  : Limited Liability Company - LLC

 

Trade Licence No.       : 94995 (Expires 10/07/2013)

 

Chamber Member No. : 150372

 

Issued Capital              : UAE Dh 104,800,000

 

Paid up Capital            : UAE Dh 104,800,000

 

Name of Shareholder (s)                                                          Percentage

 

SAG Investment & Trading LLC                                                   80%

United Arab Emirates

 

Nippon Steel Corporation                                                            20%

Japan

 

 

AFFILIATED COMPANIES

 

Trade Link LLC

Dubai

United Arab Emirates

Tel: (971-4) 2219086

 

 

OPERATIONS

 

Activities: Operators of a UAE Dh 300 Million cold rolling and 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 and oiled steel products. 50,000 tonnes of production would be saleable cold rolled full hard steel and 200,000 tonnes galvanised material and the balance 1000,000 as HRPO.

 

Production capacity is expected to double by 2013 by adding another galvanising line in the same complex.

 

Import Countries: Japan, Korea, Australia, Austria and India

 

International Suppliers:

 

Andritz AG                    Austria

 

Operating Trend: Steady

 

Subject has a workforce of approximately 350 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/03/10:              Year Ending 31/03/11:

 

Total Sales                                UAE Dh 608,413,127                  UAE Dh 619,044,893

 

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

 

The above figures were provided by Mr Sunil Nambiar, Finance Manager

 

 

BANKERS

 

National Bank of Abu Dhabi

Sheikh Khalifa Street

PO Box: 4

Abu Dhabi

Tel: (971-2) 6345777 / 6327113 / 6335262

Fax: (971-2) 6336078

 

HSBC Bank Middle East

PO Box: 242

Abu Dhabi

Tel: (971-2) 8004440 / 6147259

Fax: (971-2) 6331564

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 June 2006

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.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.