MIRA INFORM REPORT

 

 

Report Date :

16.01.2013

 

IDENTIFICATION DETAILS

 

Name :

UNION PAPER MILLS (ITIHAD)

 

 

Registered Office :

Plot No. 29B Sheikh Zayed Road Al Quoz Industrial Area No. 3 PO Box     41 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

03.06.1987

 

 

Com. Reg. No.:

42410, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Manufacture of paper and paper products. Subject also collects and recycles waste paper materials.

 

 

No. of Employees :

420

 

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 :

Good

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                                     : UNION PAPER MILLS (ITIHAD)

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 3rd June 1987

Commercial Registration Number                        : 42410, Dubai

Trade Licence Number                            : 300338

Chamber Membership Number                : 12255

Issued Capital                                        : UAE Dh 10,000,000

Paid up Capital                                      : UAE Dh 10,000,000

Total Workforce                                     : 420

Activities                                               : Manufacture of paper and paper products. Subject also collects and

                                                              recycles waste paper materials.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 

COMPANY NAME

 

 UNION PAPER MILLS (ITIHAD)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Plot No. 29B

Street               : Sheikh Zayed Road

Area                 : Al Quoz Industrial Area No. 3

 

PO Box             : 41

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 3393339 / 2666300

Facsimile          : (971-4) 3393931 / 2667454

Email                : upm@emirates.net.ae / wm@upm.ae

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Mohamed Abdullah Haji Yousuf Khoory              Indian                         Managing Director

 

·       Abdul Hamid Khoory                                         Indian                         Director

 

·       Salahuddine Sharafi                                         Emirati                        Director

 

·       Ghandi Durai Swamy                                -                            General Manager

 

·       Motasim Eddine Mazher                                       -                            Sales Manager

 

·       Shabir Haideri                                                      -                            Administration Manager

 

·       Mohamed Imtiaz                                                  -                            Finance Manager

 

·       Abdul Hamid Abdul Karim                                     -                            Administrative Officer

LEGAL FORM & OWNERS

 

Date of Establishment  : 3rd June 1987

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 42410, Dubai

 

Trade Licence No.       : 300338 (Expires 25/04/2013)

 

Chamber Member No. : 12255

 

Issued Capital              : UAE Dh 10,000,000

 

Paid up Capital            : UAE Dh 10,000,000

 

Name of Shareholder (s)

 

·       Mohamed Abdullah Haji Yousuf Khoory & Co

PO Box: 41

     Dubai

     Tel: (971-4) 2666300 / 2223271

     Fax: (971-4) 2661642 / 2221702

 

·       Salahuddine Sharafi

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of paper and paper products, such as liner boards.

 

The mill produces fluting medium and test liner papers for the manufacture of corrugated cartons. As well  as unbleached core board for use by core pipe manufacturers.

 

     Subject also collects and recycles waste paper materials.

 

Production Capacity : 110,000 tonnes per annum

 

Import Countries: Denmark, Switzerland and the United Kingdom.

 

International Suppliers:

 

·       Grundfos International                        Denmark

·       DSS Filtration                                   Denmark

·       Hawker Siddeley                               United Kingdom

·       Godwins Pumps                                United Kingdom

·       GWF Gas & Water Meter                  Switzerland

 

Export Countries: Saudi Arabia, Oman, Qatar, Bahrain, Republic of Yemen, Ethiopia, Jordan, Syria, Pakistan, Sri Lanka and India.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 420 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                UAE Dh 192,000,000                  UAE Dh 202,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              February 2003

Credit amount                                        45,000

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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.87.69

Euro

1

Rs.72.85

 

 

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.