MIRA INFORM REPORT

 

 

Report Date :

12.01.2013

 

IDENTIFICATION DETAILS

 

Name :

BOROUGE PTE LTD

 

 

Registered Office :

Sheikh Khalifa Energy Complex, Borouge Tower, Gate No. 2 Corniche Road

Khalidiya PO Box 6951 Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.08.1999

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

Line of Business :

Sales and marketing of high performance polyolefin products

 

 

No. of Employees :

270

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Branch of a Foreign Registered Corporation

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)

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                                     : BOROUGE PTE LTD

Country of Origin                                    : Singapore

Legal Form                                            : Branch of a Foreign Registered Corporation

Registration Date                                   : 25th August 1999

Trade Licence Number                            : 1001590

Chamber Membership Number                : 79110

Issued Capital                                        : UAE Dh 8,000,000

Paid up Capital                                      : UAE Dh 8,000,000

Total Workforce                                     : 270

Activities                                               : Sales and marketing of high performance polyolefin products

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Kasha T Harris, Financial Controller

 

COMPANY NAME

 

BOROUGE PTE LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Sheikh Khalifa Energy Complex, Borouge Tower, Gate No. 2

Street               : Corniche Road

Area                 : Khalidiya

 

PO Box             : 6951

 

Town                 : Abu Dhabi

Country             : United Arab Emirates

 

Telephone         : (971-2) 6070602 / 6070888 / 6073000 / 6070807 / 6070524

Facsimile          : (971-2) 6070666 / 6070999 / 6070889

Email                : info@borouge.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdulaziz Al Hajiri                                                                             Chief Executive Officer

 

·       Sultan Ali Al Fahimi                                                                           Senior Vice President

 

·       Salim Al Khamsi                                                                               Senior Vice President

 

·       Hussain Sultan Lootah                                                                       Senior Vice President

 

·       Khalfan Al Muhairi                                                                             Marketing Manager

 

·       Fadel Al Hamili                                                                                 Administration Manager

 

·       Thomas Boeson                                                                                Finance Manager

 

·       Kasha T Harris                                                                                  Financial Controller

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th August 1999

 

Legal Form                  : Subject is the United Arab Emirates registered branch of Borouge Pte Ltd, a Limited Liability

  Company incorporated in Singapore

 

  Borouge Pte Ltd in the United Arab Emirates, operates as a Branch of a Foreign Registered

  Corporation with its registered office located at the following address:

 

  Borouge Pte Ltd

  438A Alexandra Road

  No. 08-01 Alexandra Technopark

  Singapore 119967

  Tel: (65) 6275 4100

  Fax: (65) 6377 1233

  Email: sales.singapore@borouge.com

 

  A Branch of a Foreign Registered Corporation is not a legal entity in its own right.

  Responsibility for payments lays in the hands of the company where it is originally

  registered.

 

  Under these circumstances, we strongly advise that any international trade credit should

  only be written under the name of the main company where the subject holds its registered

  office, in this case Singapore.

 

Trade Licence No.       : 1001590

 

Chamber Member No. : 79110

 

Issued Capital              : UAE Dh 8,000,000

 

Paid up Capital            : UAE Dh 8,000,000

 

 

AFFILIATED COMPANIES

 

·       Borouge Abu Dhabi Polymer Ltd

PO Box: 6925

Abu Dhabi

Mem No. 76107

 

 

OPERATIONS

 

Activities: Subject specialises in the sales and marketing of high performance polyolefin products, as well as bimodal

high, medium, and linear low-density polyethylene. Borouge’s products are used in applications for plastic film and moulding packaging as well as industrial and domestic pipes.

 

Borouge’s target markets include the Middle East, East Africa, the Indian subcontinent, Northeast Asia, Southeast Asia, and Asia Pacific.

 

Import Countries: The Far East and Europe

 

Operating Trend: Steady

 

Subject has a workforce of approximately 270 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 685,000,000                  UAE Dh 700,000,000

 

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

 

The above figures were provided by Mr Kasha T Harris, Financial Controller

 

BANKERS

 

·       Bank of Baroda

Abu Dhabi

Tel: (971-2) 6330244

 

·       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.

 

 

GENERAL COMMENTS

 

Borouge Pte Ltd was established in August 1999 and specialises in the sales and marketing of high performance polyolefin and polyethylene products.

 

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.54.54

UK Pound

1

Rs.88.05

Euro

1

Rs.72.29

 

 

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

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.