MIRA INFORM REPORT

 

 

Report Date :

06.05.2013

 

IDENTIFICATION DETAILS

 

Name :

PETROCHEM MIDDLE EAST FZE

 

 

Registered Office :

Sheikh Zayed Road, Roundabout No. 7 Jebel Ali Free Zone, Lob No. 4, Office No. 4G-18 PO Box17028 & 23910 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.06.1995

 

 

Com. Reg. No.:

130

 

 

Legal Form :

Free Zone Establishment - FZE

 

 

Line of Business :

Import, export, marketing and distribution of chemicals.

 

 

No. of Employees :

120

 

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 :

Good

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

UAE

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

SUMMARY

 

Company Name                                     : PETROCHEM MIDDLE EAST FZE

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Free Zone Establishment - FZE

Registration Date                                   : 20th June 1995

Commercial Registration Number            : 130

Trade Licence Number                            : 7177

Chamber Membership Number                : 34479

Issued Capital                                        : UAE Dh 2,000,000

Paid up Capital                                      : UAE Dh 2,000,000

Total Workforce                                     : 120

Activities                                               : Import, export, marketing and distribution of chemicals.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Hussaini Wasi, Finance Manager

 


COMPANY NAME

 

PETROCHEM MIDDLE EAST FZE

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road, Roundabout No. 7

Area                 : Jebel Ali Free Zone, Lob No. 4, Office No. 4G-18

 

PO Box             : 17028 & 23910

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8839222 / 8835871

Facsimile          : (971-4) 8834133

Email                : logistics@petrocheme.com / info@petrocheme.com

 

Premises

 

Subject operates from a suite of offices and warehousing facilities with a storage capacity of 11,000 metric tonnes that are rented and located in the Jebel Ali Free Zone.

 

Branch Offices

 

     Location                                                                                           Description

 

·       Dubai                                                                                               Office premises

Tel: (971-4) 3329192

Fax: (971-4) 3329200

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Yogesh Mehta                                                                                  Managing Director

 

·       Hussaini Wasi                                                                                  Finance Manager

 

·       Venu Gopal Nayar                                                                             Sales Manager

 

·       Satyabrata Mukherjee                                                                        Terminal Manager

 

·       Nazir Batri                                                                                        Logistics Manager

 

·       Ramesh Mahjan                                                                                Operations Manager

 

·       Udaya Kumar                                                                                    IT Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20th June 1995

 

Legal Form                  : Free Zone Establishment – FZE

 

Commercial Reg. No.  : 130

 

Trade Licence No.       : 7177

 

Chamber Member No. : 34479

 

Issued Capital              : UAE Dh 2,000,000

 

Paid up Capital            : UAE Dh 2,000,000

 

Name of Shareholder (s)                                                 Percentage

 

·       Petrochem Gulf Holdings Ltd                                          100%

     Bermuda

 

 

AFFILIATED COMPANIES

 

·       Petrochem Middle East LLC

City Tower II, Office No. 1603

Sheikh Zayed Road

PO Box: 23910

Dubai

Tel: (971-4) 3329192

Fax: (971-4) 3329200

Email: sales@petrocheme.com

Membership No. 34789

 

 

OPERATIONS

 

Activities: Engaged in the import, export, marketing and distribution of chemicals, raw materials, oil field supplies,

industrial solvents, paints and varnishes, as well as construction chemicals. Subject has a product range of over 180 types of chemicals and exports over 120,000 metric tonnes per annum.

 

The company are distributors for:

 

-  ARCO Chemicals                                    -  Petro SA

-  Cray Valley                                             -  Lyondell

-  KAO Chemicals                                      -  Anupam

-  Tego Chemie                                          -  Merisol

-  Sasol Solvents                                        -  Petro SA

-  Borealis BP                                            -  Polimeri Europa

-  Reliance India                                         -  Shell

 

Subject is ISO 9001 & 4001 accredited.

 

Import Countries: Europe, Asia and the United States of America

 

Export Countries: Subject exports chemicals to approximately 25 countries throughout the GCC region, Middle East, India, Asia and Europe.

 

Operating Trend: Steady

 

Subject has a workforce of 120 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 940,000,000                  UAE Dh 1,000,000,000

 

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

 

The above figures were provided by Mr Hussaini Wasi, Finance Manager

 

 

BANKERS

 

·       The Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

Acc No. 01-70935945-01

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

     Acc No. 020-154795-100 & 020-154795-001

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Petrochem Middle East FZE was established in 1995 and specialises in the import, export, marketing and distribution of various chemicals. It deals with a number of well known international suppliers and exports over 120,000 metric tonnes of products per annum.

 

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.53.95

UK Pound

1

Rs.83.80

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.