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Report Date : |
31.08.2013 |
IDENTIFICATION DETAILS
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Name : |
EMIRATES STEEL INDUSTRIES (ESI) |
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Formerly Known As : |
EMIRATES IRON & STEEL FACTORY (EISF) |
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Registered Office : |
Corniche Road Mussafah Industrial Area PO Box 9022 Abu Dhabi |
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Country : |
United Arab Emirates |
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Year of Incorporation : |
1998 |
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Legal Form : |
Public Joint Stock Company |
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Line of Business : |
Manufacture of reformed steel bars. |
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No. of Employees : |
600 |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
|
UAE |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 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
Company Name : EMIRATES STEEL INDUSTRIES (ESI)
Also Known As : EMIRATES IRON & STEEL FACTORY (EISF)
Country of Origin : Abu Dhabi, United Arab Emirates
Legal Form : Public Joint Stock Company
Registration Date : 1998
Trade Licence Number : 1005740
Chamber Membership Number : 217434
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Total Workforce : 600
Activities : Manufacture of reformed steel bars.
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
Person Interviewed : Mubarak Al Mansouri, Marketing Manager
EMIRATES STEEL INDUSTRIES (ESI)
ALSO KNOWN AS: EMIRATES IRON & STEEL FACTORY (EISF)
Street : Corniche
Road
Area : Mussafah
Industrial Area
PO Box : 9022
Town : Abu Dhabi
Country : United Arab
Emirates
Telephone : (971-2) 5511187
/ 5072134
Facsimile : (971-2)
5510911 / 5515113
Email : info@emiratesteel.com
/ inquiry@emiratesteel.com
/ inquiry@esi-steel.com
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Abu Dhabi.
Name Position
· Suhail Mubarak Al
Amry Chairman
· Saeed Ghumran Al
Romaithi General
Manager
· Juma Al Mansouri Commercial
Manager
· Masoud Abu Dayaki Finance
Manager
· Abdulaziz Al Amiri Public
Relations Manager
· Mubarak Al
Mansouri Marketing
Manager
· A N Venkat Sales
Manager
Date of
Establishment : 1998 (Commercial
production began in October 2001)
Legal Form : Public Joint Stock
Company
Trade Licence No. : 1005740 (Expires 16/10/2013)
Chamber Member No. : 217434
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
· General Holding
Corporation 100%
PO Box: 4499
Abu Dhabi
Tel: (971-2)
6144444
Fax: (971-2)
6312857
Email: info@ghc.ae
General
Holding Corporation is wholly owned by the Abu Dhabi government.
· Abu Dhabi Basic
Industries Corporation (ADBIC)
Abu Dhabi
Activities: The company specialises in manufacturing high yield reformed steel bars
(or rebar), in sizes 10mm to
32mm in diameter and 12 meters in length,
direct reduced iron, steel billets, heavy sections, wire rod, and rebar in
coil.
The company has been involved in prestigious
projects such as the Emirates Palace Hotel in Abu Dhabi, the Corniche
Development project, the Dubai Airport Expansion project, the Dubai Marina
Towers, Shangri La Hotel in Dubai, the Four Seasons Hotel in Doha and water and
power projects in Sharjah and Fujairah amongst others.
With a view to achieve
the strategic ambitions set by GHC and the Government of Abu Dhabi, Emirates
Steel has initiated an expansion program based on a phased approach:
In January 2006, the
Company launched its Phase 1 Expansion program involving the purchase and construction of a 1.6 million MTPA Direct
Reduction Plant (DRP), a 1.4 million MTPA Steel Melt Plant (SMP), a 0.62 million
MTPA Rebar Rolling Mill (RM2), a 0.48 million MTPA Wire Rod and Coil Rolling
Mill (RM3), together with associated infrastructure and facilities.
In February 2008,
Emirates Steel launched its Phase 2A Expansion program comprising a 1.6 million
MTPA DRP, 1.4 million MTPA SMP, and associated infrastructure and facilities.
In November 2009, the
Company launched its Phase 2B Expansion program comprising a 1 million MTPA
Heavy Sections Rolling Mill (RM4).
Phase 1 was successfully completed in June
2009; Phase 2A was completed in April 2011, while Phase 2B was commissioned in
December 2011. For further growth, Emirates Steel is
considering a number of
potential Greenfield investment
opportunities and acquisitions.
Import Countries: Europe and Asia
Subject has a workforce of approximately 600 employees.
Companies registered in Abu Dhabi, 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.
·
National Bank of Abu Dhabi
Sheikh Khalifa
Street
PO Box: 4
Abu Dhabi
Tel: (971-2)
6345777 / 6327113 / 6335262
Fax: (971-2)
6336078
No complaints regarding subject’s payments have been reported.
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.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
|
26-40 |
B |
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 |
|
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.