|
Report Date : |
21.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CAROLINA FABRICS
LTD |
|
|
|
|
Registered Office : |
Sheikh Zayed
Road, Jebel Ali Free Zone, 16838 Dubai |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.08.1992 |
|
|
|
|
Legal Form : |
Branch of a
Foreign Registered Corporation |
|
|
|
|
Line of Business : |
Spinning, weaving
and stitching of non-clothing textiles. |
|
|
|
|
No. of Employees : |
800 |
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 : |
No complaints |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
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 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 : CAROLINA
FABRICS LTD
Country of Origin : British
Virgin Islands
Legal Form :
Branch of a Foreign Registered Corporation
Registration Date : 26th
August 1992
Trade Licence
Number : 660
Chamber Membership
Number : 24925
Issued Capital : UAE Dh
3,700
Paid up Capital : UAE Dh
3,700
Total Workforce : 800
Activities : Spinning, weaving and stitching of
non-clothing textiles.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Amjad Kaleem,
Finance Manager
CAROLINA FABRICS
LTD
Street : Sheikh Zayed Road
Area : Jebel Ali Free Zone
PO Box : 16838
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8862332 / 8816332
Facsimile : (971-4) 8862331 / 8816625
Email : info@carolinafabgroup.com / export@carolinafabgroup.com / cfl@carolina.ae
Subject operates
from a large suite of offices and a factory that are rented and located in the
Jebel Ali Free Zone.
Name Nationality Position
·
Nadeem
Nishat Ahmed Pakistani Managing Director
·
Mansour
Nishat Ahmed Pakistani Director
·
Amjad
Kaleem - Finance
Manager
·
Nouman
Sallary - Administration
Manager
·
Shahid
Anis - Export
Manager
·
Yahya
Sarwar Choutan - Purchasing
Manager
Date of Establishment : 26th
August 1992
Legal Form :
Subject is the United Arab
Emirates registered branch of Carolina Fabrics Ltd, a
Limited Liability Company
incorporated in the British Virgin Islands.
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 the British
Virgin Islands.
Trade Licence No. : 660
Chamber Member No. : 24925
Issued Capital : UAE Dh 3,700
Paid up Capital : UAE Dh 3,700
Activities: Engaged in the spinning, weaving and
stitching of non-clothing textiles.
Carolina’s Spinning Unit was established in March 2003 and is equipped with the latest in machinery, and has a capacity of over 28000 spindles.
In 1999 subject was approved by BVQI for ISO 9002/ 1994 certification.
Production
Capacity: Spinning 8,000 tons per year
Weaving 27 million linear metres per year
Stitching 2 million sets per year
Import
Countries: Pakistan, India,
Far East, Europe, Turkey, USA, Australia and Egypt.
Export
Countries: United States of
America, Canada, Europe, Turkey, Hong Kong and Australia.
Operating Trend: Steady
Subject has a
workforce of approximately 800 employees.
Financial
highlights provided by local sources are given below:
Currency: United
States Dollars (US$)
Year
Ending 31/12/10: Year Ending
31/12/11:
Total Sales US$ 52,000,000 US$ 53,800,000
Local sources
consider subject’s financial condition to be Good.
The above figures
were provided by Mr Amjad Kaleem, Finance Manager
·
Standard
Chartered Bank
Khalid Bin Waleed Street
PO Box: 999
Dubai
Tel: (971-4) 2520455
·
United
Bank Ltd
Murshid Bazaar Branch
PO Box: 1000
Dubai
Tel: (971-4) 2282025 / 2223191
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.54.37 |
|
|
1 |
Rs.82.07 |
|
Euro |
1 |
Rs.70.03 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.