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Report Date : |
23.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ARCELORMITTAL DSTC FZCO |
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Registered Office : |
LB15604A Sheikh Zayed Road Jebel Ali Free Zone PO Box 8386 Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.12.2007 |
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Com. Reg. No.: |
111782, Dubai |
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Legal Form : |
Free Zone Company – FZCO |
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Line of Business : |
Distributors of basic steel products |
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No. of Employees : |
65 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 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
Company Name : ARCELORMITTAL DSTC FZCO
Country of Origin : Dubai, United Arab Emirates
Legal Form : Free Zone Company – FZCO
Registration Date : 1st December 2007
Commercial Registration Number : 111782, Dubai
Trade Licence Number : 103330
Chamber Membership Number : 189447
Issued Capital : UAE Dh 10,000,000
Paid up Capital : UAE Dh 10,000,000
Total Workforce : 65
Activities : Distributors of basic steel products.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Shiju Madhadavn, Finance Manager
ARCELORMITTAL DSTC FZCO
Location : LB15604A
Street : Sheikh Zayed
Road
Area : Jebel Ali
Free Zone
PO Box : 8386
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 4520538
/ 3474411
Facsimile : (971-4)
3472521
Subject operates from a medium sized suite of offices that are rented
and located in the Industrial Area of Dubai.
Name Position
· Radha Mohan Kapur Managing
Director
· Tayeb Abdulrahman
Baqer Director
· Vincent Gilbert Director
· Francois Savije Director
· Johannes Beshcivje Director
· Anant Badjayat Chief
Executive Officer
· Balasubramaian
Iyer Administration
Manager
· Shiju Madhadavn Finance
Manager
Date of
Establishment : 1st
December 2007
History : Subject began in
2007 under the name “Dubai Steel Trading FZCO”. In 2011 subject
changed its name to “Arcelormittal DSTC FZCO”.
Legal Form : Free Zone Company –
FZCO
Commercial Reg.
No. : 111782, Dubai
Trade Licence No. : 103330
Chamber Member No. : 189447
Issued Capital : UAE Dh 10,000,000
Paid up Capital : UAE Dh 10,000,000
· Arcelormittal
Netherland BV 60%
Netherlands
· A N C Holding 27%
Dubai
· R K Investment 13%
Dubai
Activities: Engaged in the import and distribution of basic steel products,
including pipes and tubes.
Import Countries: Europe and GCC countries.
Operating Trend: Steady
Subject has a workforce of 65 employees.
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 539,000,000 UAE Dh
563,000,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Shiju Madhadavn, Finance Manager
·
HSBC Bank Middle East
Deira Souk Branch
PO Box:
66
Dubai
Tel: (971-4)
2535000
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.53.51 |
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|
1 |
Rs.84.85 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
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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 |
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-- |
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.