MIRA INFORM REPORT

 

 

 

 

Report Date :

10.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SILVER ROCK ELECTRIC CO LLC (SREC)

 

 

Registered Office :

Al Musafah Industrial Area MW 5, Plot 4 & 5, P O Box  73111, Abu Dhabi

 

 

Country :

United Arab Emirates 

 

 

Financials (as on) :

31.12.2012

 

 

Year of Establishments:

1992

 

 

Com. Reg. No.:

29549, Abu Dhabi

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         wholesaler and retailer of heavy electrical equipment and related accessories, including power generators, transformers, switchgear, circuit breakers and panels

·         Subject also specialises in the assembly and installation of electrical switchboards and substation units

 

 

No. of Employees :

48

 

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 :

Satisfactory

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)

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 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                                    : SILVER ROCK ELECTRIC CO LLC (SREC)

Also Known As                                     : SR ELECTRIC COMPANY LTD

Country of Origin                                   : Abu Dhabi, United Arab Emirates

Legal Form                                           : Limited Liability Company – LLC

Start Date                                             : 1992

Registration Date                                  : 25th April 1995

Commercial Registration Number           : 29549, Abu Dhabi

Trade Licence Number                           : 46325

Chamber Membership Number               : 19166

Issued Capital                                       : UAE Dh 1,000,000

Paid up Capital                                     : UAE Dh 1,000,000

Total Workforce                                     : 48

Activities                                               : Assembly, installation, wholesale and retail of heavy electrical

   equipment.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Zakaria Joseph, Finance Manager

 


COMPANY NAME

 

SILVER ROCK ELECTRIC CO LLC (SREC)

 

 

ALSO KNOWN AS

 

SR ELECTRIC COMPANY LTD

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Al Musafah Industrial Area MW 5, Plot 4 & 5

PO Box            : 73111

Town                : Abu Dhabi

Country             : United Arab Emirates

 

Telephone         : (971-2) 5510977

Facsimile          : (971-2) 5510974

Email                : srec@emirates.net.ae

 

Please note that subject’s previous address was, Al Rumaithy Building, Mina Road, Abu Dhabi.

 

Premises

Subject operates from a medium sized suite of offices, a warehouse and a showroom that are rented and located in the Industrial Area of Abu Dhabi.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Jebel Ali Free Zone                                                                           Rented warehouse premises

Dubai

     Tel: (971-4) 8811964

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Mohan Joseph                                               Indian                         Managing Director

 

·       Sumit Mohan                                                       -                            Executive Director

 

·       Zakaria Joseph                                                    -                            Finance Manager

 

·       Leonard Peters                                                    -                            Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations began in 1992, however it was registered on 25th April 1995

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 29549, Abu Dhabi

 

Trade Licence No.        : 46325 (Expires 14/01/2014)

 

Chamber Member No.  : 19166

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

Name of Shareholder (s)                                               Percentage

·       Heirs of the late Khalfan Al Amimi                                51%

·       Mohan Joseph                                                             49%

 

 

AFFILIATED COMPANIES

 

·       Al Razi Pharmaceuticals Co LLC

PO Box: 285

Abu Dhabi

Tel: (971-2) 326671 / 341745

Fax: (971-2) 339451 / 310975

 

·       Silver Sands Electrical Est

Al Rumaithy Building

Mina Road

PO Box: 73111

Abu Dhabi

Tel: (971-2) 6728210

 

·       Green Field Agricultural Est

Al Ain

 

 


OPERATIONS

 

Activities: Engaged in the wholesale and retail of heavy electrical equipment and related accessories, including

                 power generators, transformers, switchgear, circuit breakers and panels. Subject’s clients include

   ADWEA and DEWA as well as the Ministry of Defence.

 

     Subject also specialises in the assembly and installation of electrical switchboards and substation

    units.

 

Import Countries: India, Spain, South Africa, Saudi Arabia, China and Malaysia.

 

International Suppliers:

 

·       Pronutex Bilbao                                Spain

·       Prontec SA                                      Spain

·       Imefy                                               Spain

·       Ormazabal                                        Spain

·       Inael                                                 Spain

·       Linegear                                           South Africa

·       S & A Abahsain Co Ltd                     Saudi Arabia

·       Shanghai Cables Co                         China

·       Tamco                                             Malaysia

·       Brass Copper & Alloys Ltd                India

·       Chandra Protec                                India

·       Darshana Industries                          India

·       Rico Transformers                            India

·       Crompton Greaves Ltd                      India

 

Clients:

 

·       Marjan Electric Co                            Oman

 

Operating Trend: Steady

 

Subject has a workforce of 48 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 Revenue                           UAE Dh 38,820,000                   UAE Dh 41,500,000

 

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

 

The above figures were provided by Mr Zakaria Joseph, Finance Manager

 

 

BANKERS

 

·       National Bank of Abu Dhabi

Sheikh Khalifa Street

PO Box: 4

Abu Dhabi

Tel: (971-4) 5335262

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.92

UK Pound

1

Rs.99.45

Euro

1

Rs.83.92

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.