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Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
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Name : |
ALOK INTERNATIONAL (MIDDLE EAST) FZE |
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Registered Office : |
Office No. 6WA
629, P O Box 54917, Dubai |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
01.08.2011 |
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Legal Form : |
Free Zone Establishment |
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Line of Business : |
Subject is an integrated textile manufacturing company
covering the entire textile value chain, in cotton and cotton blends, from
spinning to home textiles/garments and in polyester from textile grade chips
to yarn. |
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No. of Employees : |
05 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
Company Name : ALOK INTERNATIONAL (MIDDLE EAST) FZE
Country of Origin : Dubai, United Arab Emirates
Legal Form : Free Zone Establishment - FZE
Registration Date : 1st August 2011
Trade Licence Number : 2094
Chamber Membership Number : 197997
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Total Workforce : 5
Activities : Distributors of textiles
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
ALOK INTERNATIONAL
(MIDDLE EAST) FZE
Registered &
Physical Address
Location : Office No. 6WA 629
PO Box : 54917
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2602736
Facsimile : (971-4) 2602738
Email : anil@alokme.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Dubai.
Name Nationality Position
·
Anil
Krishnamurthy Indian Managing
Director
Date of Establishment : 1st
August 2011
Legal Form :
Free Zone Establishment -
FZE
Trade Licence No. : 2094
(Expires 31/07/2014)
Chamber Member No. : 197997
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Name of Shareholder
(s) Percentage
·
Alok
Industries Ltd 100%
India
Activities: Engaged in the import and distribution of
textiles.
Alok International (Middle East) FZE,
a 100 per cent wholly owned subsidiary of Indian Textile Major, Alok Industries
Limited (“Alok”), has successfully closed a US$150 million syndicated Murabaha
facility. The facility marked the first such transaction that involved an
Indian corporate availing financing under a syndicated Shari’a compliant
structure through its subsidiary in the UAE.
The facility has been structured
under a commodity Murabaha transaction to provide liquidity to Alok and secured
by export receivables. Noor Islamic Bank PJSC and Warba Bank KSC acted as the
Mandated Lead Arrangers. The other participants in the facility included the
Commercial Bank International PSC and United Arab Bank PJSC.
Noor Islamic Bank also acted as the
bookrunner, structuring bank, documentation bank, investment agent and security
agent. The disbursal took place on 18th September 2013.
Alok, with revenues over US$2
billion, is listed on the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE) in India.
Alok is an integrated textile manufacturing
company covering the entire textile value chain, in cotton and cotton blends,
from spinning to home textiles/garments and in polyester from textile grade
chips to yarn. Alok is one of the major textile exporters of India, exporting
textile products to global brands, retailers, importers and converter
countries. The company has manufacturing units that are strategically situated
at Navi Mumbai, Vapi and Silvassa, in the States of Gujarat and Maharashtra.
Import
Countries: Europe and the
Far East
Subject has a
workforce of 5 employees.
Companies
registered in Dubai, 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.
·
Emirates
National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222241
No complaints
regarding subject’s payments have been reported.
Local sources report
that the subject’s operating history is clear with payment obligations met in a
generally timely manner. The financial position is satisfactory and the company
is deemed a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.