MIRA INFORM REPORT

 

 

Report Date :

29.11.2013

 

IDENTIFICATION DETAILS

 

Name :

ARC INTERNATIONAL MIDDLE EAST LLC

 

 

Registered Office :

Ras Al Khaimah Highway PO Box 3248 Ras Al Khaimah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

December 1998

 

 

Com. Reg. No.:

16459, Ras Al Khaimah

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Subject is a Producers of glass products

 

 

No. of Employees :

1,400

 

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 :

Regular

Litigation :

--

 

 

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

 

 

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 country 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. 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                                     : ARC INTERNATIONAL MIDDLE EAST LLC

Trading As                                             : RAK GLASS LLC

Country of Origin                                    : Ras Al Khaimah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : December 1998

Commercial Registration Number            : 16459, Ras Al Khaimah

Trade Licence Number                            : 13282

Chamber Membership Number                : 3504

Issued Capital                                        : UAE Dh 68,350,000

Paid up Capital                                      : UAE Dh 68,350,000

Total Workforce                                     : 1,400

Activities                                               : Producers of glass products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                 : Belraj Kumar, Finance Manager

 


 

COMPANY NAME

 

ARC INTERNATIONAL MIDDLE EAST LLC

 

 

TRADING AS

 

RAK GLASS LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Ras Al Khaimah Highway

PO Box             : 3248

Town                 : Ras Al Khaimah

Country             : United Arab Emirates

 

Telephone         : (971-7) 2446600

Facsimile          : (971-7) 2446611

Mobile               : (971-50) 6470120 / 5876689 / (971-52) 9094112

Email                : rakglass@emirates.net.ae / infas@arc-intl.com / info@arc-intl.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Sheikh Saud Bin Saqer Al Qassimi                                                     Chairman

 

·       Gallauiem Befouegieres                                                                     President

 

·       Gullaumie Cocquempot                                                                      General Manager

 

·       G Stephan                                                                                        Export Manager

 

·       Sanathan Namibyar                                                                           Administration Manager

 

·       Belraj Kumar                                                                                     Finance Manager

 

·       Barath Basan                                                                                    Chief Financial Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : December 1998

 

History                         : Subject was originally established in 1998 under the name of “Al Manal Glass Co LLC” but

  changed its name to the current style of “RAK Glass LLC” in June 2002.

 

  In April 2004, the French based “Arc International” acquired an 80% share in the subject’s

  ownership and the company was renamed under the current style of “Arc International

  Middle East LLC”, trading as “RAK Glass LLC”

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 16459, Ras Al Khaimah

 

Trade Licence No.       : 13282

 

Chamber Member No. : 3504

 

Issued Capital              : UAE Dh 68,350,000

 

Paid up Capital            : UAE Dh 68,350,000

 

Name of Shareholder (s)                                                 Percentage

 

·       Arc International                                                             80%

6 Place des Etats-Unis

     75116 Paris

     France

     Tel: (33-1) 47237219

     Fax: (33-1) 47202284

     Email: paris@arc-intl.com

 

·       Sheikh Saud Bin Saqer Al Qassimi                                  20%

 

 

AFFILIATED COMPANIES

 

·       Ras Al Khaimah Ceramics Co

Ajman Dubai Highway

Al Jezirah Area

PO Box: 4714

Ras Al Khaimah

Tel: (971-7) 2445046

Fax: (971-7) 2445270

Email: rakceram@emirates.net.ae

 

·       Al Hamra Fort Hotel

PO Box: 1468

Ras Al Khaimah

Tel: (971-7) 2446666

Fax: (971-7) 2446677

Email: hamfort@emirates.net.ae

 

·       Arc International Middle East LLC

Sama Tower, 5th Floor, Suite No. 502B-503B

Sheikh Zayed Road

PO Box: 122675

Dubai

Tel: (971-4) 6470278 / 3561111 / 3595323

Fax: (971-4) 3592021

 

 

OPERATIONS

 

Activities: Subject began production in December 1998 of opal glass tableware. In March 2000 it started producing  flint glass products as a part of its expansion into this allied field. The company manufacture a wide variety of dinner sets, plates, bowls, cups & saucers, glasses, oval platters, available in contemporary and elegant designs

 

The company’s products range from plain white to elegantly designed opal glass collection, which caters to the high specific and general needs of the tableware industry. As well as having a wide collection of flint glass beverage ware which suits the requirements of households as well as the foodservice industry.

 

Production Capacity : 70 tonnes per day

 

Import Countries: Europe and GCC countries

 

Export Countries: Subject exports to more than 55 countries located across the world, including Europe, South Africa  and Venezuela.

 

Subject has a workforce of approximately 1,400 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 362,500,000                  UAE Dh 388,000,000

 

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

 

The above figures were provided by Mr Belraj Kumar, Finance Manager

 

 

BANKERS

 

·       National Bank of Ras Al Khaimah

NBRAK Building

PO Box: 5300

Ras Al Khaimah

Tel: (971-7) 2221127

     Fax: (971-7) 2224202

 

·       United Arab Bank

Al Sabah Street

PO Box: 615

Ras Al Khaimah

Tel: (971-7) 2333556

Fax: (971-7) 2330922

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              November 2006                        October 2008

Credit amount                                        150,000                                     550,000

Amount overdue                                     0                                              0

Payment terms                                      60 days                                     180 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               US Dollars                                 Euros

 

 

 

GENERAL COMMENTS

 

Incorporated in 1998, subject is the only state of the art company producing opal glassware in the Middle East & Gulf Co-operation Council (GCC) countries. It specialises in the manufacture of opal and flint glass tableware and is currently producing 70 tonnes per day.

 

Subject was previously known as “Al Manal Glass Co LLC” but changed its name to “RAK Glass LLC” in June 2002. In April 2004, the French based “Arc International” acquired an 80% share in the subject’s ownership and the company was renamed under the current style of “Arc International Middle East LLC”, trading as “RAK Glass LLC”

 

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.62.39

UK Pound

1

Rs.101.80

Euro

1

Rs.84.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.