MIRA INFORM REPORT

 

 

Report Date :

01.08.2013

 

IDENTIFICATION DETAILS

 

Name :

ARABIAN PACKAGING COMPANY LLC (APC)

 

 

Registered Office :

Saif Ahmed Al Ghurair Building, Salah Al Din Street, Deira, Hor Al Anz, PO Box: 10337, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1982

 

 

Com. Reg. No.:

40354

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

Corrugated Boxes Division, Flexible Packaging Division

 

 

No. of Employees :

375

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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. 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. 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                                     : ARABIAN PACKAGING COMPANY LLC (APC)

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Start Date                                             : 1982

Registration Date                                   : 12th February 1984

Commercial Registration Number            : 40354, Dubai

Trade Licence Number                            : 300177

Chamber Membership Number                : 10476

Issued Capital                                        : UAE Dh 45,000,000

Paid up Capital                                      : UAE Dh 45,000,000

Total Workforce                                     : 375

Activities                                               : Subject operates through several divisions (see below for details)

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Iqbal Mohamed, Finance Manager

 

 

 


COMPANY NAME

 

ARABIAN PACKAGING COMPANY LLC (APC)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Saif Ahmed Al Ghurair Building

Street               : Salah Al Din Street

Area                 : Deira, Hor Al Anz

PO Box             : 10337

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2623377

Facsimile          : (971-4) 2851972 / 2851973

Mobile               : (971-50) 5542864

Email                : arabpack@emirates.net.ae / info@arabpack.com

 

Premises

 

Subject operates from a medium sized suite of offices that are owned and located in the Central Business Area of Dubai.

 

Branch Office (s)

 

Location                                                                                              Description

 

Street No. 215/3                                                                                    Owned office, warehouse & factory

Al Ramool, Rashidya                                                                              covering an area of 10,000 square

PO Box: 10337                                                                                     metres

Dubai

Tel: (971-4) 2858658 / 2854400

Fax: (971-4) 2855578

 

Sheikh Zayed Road                                                                                Rented factory

Jebel Ali Industrial Area No. 2

Tel: (971-4) 8802555 / 8801588

Fax: (971-4) 8802225

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Mohamed Saif Al Ghurair                                                            Managing Director

 

Ahmed Saif Al Ghurair                                                                Director

 

Abdel Moneim Salem                                                                 Director

 

Huzifa Mohsin                                                                            Marketing Manager

 

M Kevin                                                                         Production Manager

 

Iqbal Mohamed                                                                          Finance Manager

 

Mohamed Zuhaib                                                                       Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was established in 1982 and was registered on 12th February 1984

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 40354, Dubai

 

Trade Licence No.       : 300177

 

Chamber Member No. : 10476

 

Issued Capital              : UAE Dh 45,000,000

 

Paid up Capital            : UAE Dh 45,000,000

 

Name of Shareholder (s)                                         Percentage

 

Saif Al Ghurair Group Co                                                99%

 

Al Ghurair Private Co                                            1%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Al Ghurair Group, which has a turnover over in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified range of interests spanning real estate, finance and industry, with specialist operations in banking, trading and shipping.

 

Some of the very successful industries that it operates today in the United Arab Emirates, include the National Flour Mills Co Ltd, National Cement Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National Mosaic Tiles and Al Ghurair Publishing and Printing. In the banking sector, the Ghurairs are owners of the UAE’s largest private bank, the Dubai-based Mashreq Bank, which is one of the Group’s most successful ventures and operates from branches both within and outside the UAE.

 

The Al Ghurair Group is active in London, New York, Cairo, Khartoum, Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.

 

In real estate the Al Ghurair Centre has become a prominent landmark in Dubai. It was built at a cost of more than US $ 150 million and is now home to most of the city’s top retailers.

 

The Al Ghurair Group comprises the following concerns:

 

Al Ghurair Holdings (Private) Ltd

Gulf Extrusions Ltd

Arabian Aluminium Company

Al Ghurair Publishing & Printing House

Union Mosaic & Marble Company

Al Ghurair Centre

Arabian Mix

National Cement Company Ltd

Emirates Trading Agency LLC (ETA)

Gulf Utensils

Gulf Import & Export Co

House of Perfume

Computer Intelligence and Communications Ltd

Gulf Confectionery & Biscuit Company

Oman Insurance Co Limited

Mashreq Bank

Al Ghurair Enterprises

Al Ghurair Exchange

National Flour Mills Company Ltd

National Concrete Company Ltd

Masafi Mineral Water Co LLC

Associated Construction & Investment Co LLC (ASCON)

Al Ghurair Fieness Perry & Partners

Pak Arab Traders

Al Ghurair Real Estate

Al Khaleej Sugar Co WLL

Central Electric Equipment Co LLC (CEEC)

National Oman Marble Company

Rawda Quarries Ltd

Ghurair Tarmac

Oman Finance Company

Ghurair Crown (Engineering) Ltd

Al Ghurair Industries (Pvt) Ltd

 

 

OPERATIONS

 

Activities:                     Subject’s operations are performed through the following divisions:

 

Corrugated Boxes Division

 

Engaged in the manufacture of corrugated cardboard boxes and die cut trays with a production capacity of 50,000 tonnes per annum.

 

Drinking cartons accounts for 70 percent of subject’s production capacity. The company’s products are also used

for packaging fruit and vegetables.

 

Flexible Packaging Division

 

Engaged in printing and electronic cylinder engraving. It is capable of printing on a variety of substrates like OPP,

PET, nylon, Alfoil, cellophane and paper.

 

The division also manufactures and converts all kinds of flexible material - monofilms, laminates (multilayer films),

shrink films, soap wrappers and labels.

 

                                     Subject was ISO 9002 certified on 16th March 1996.

 

Production Capacity:   80,000 tonnes

 

Import Countries:         Canada, South Africa, Russia, Germany, France and Switzerland

 

Export Countries:         Saudi Arabia, Oman, Bahrain, Kuwait, Iran, Pakistan, India, Sudan and various African countries

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 375 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

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

 

Total Sales                                UAE Dh 348,769,000                  UAE Dh 315,381,607

 

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

 

The above figures were provided by Mr Iqbal Mohamed, Finance Manager

 

 

BANKERS

 

Citibank

Al Maktoum Street

Deira

PO Box: 749

Dubai

Tel: (971-4) 5074121

Fax: (971-4) 2238922

 

Commercial Bank of Dubai

Baniyas Street

Deira

PO Box: 1709

Dubai

Tel: (971-4) 2227121 / 2253222

Fax: (971-4) 2220943 / 2254565

 

Bank of Oman Ltd

PO Box: 125

Dubai

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Arabian Packaging Company LLC (APC) has been in business for over 30 years and is well established in the local business community. It has two divisions covering the manufacture of corrugated cardboard boxes and die cut trays, as well as printing and electronic cylinder engraving.

 

The company is part of the very well known and financially strong Al Ghurair Group that has a diversified range of interests spanning real estate, finance and industry, with specialist operations in banking, trading and shipping.

 

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.61.11

UK Pound

1

Rs.92.97

Euro

1

Rs.80.93

 

 

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.