MIRA INFORM REPORT

 

 

Report Date :

31.10.2013

 

IDENTIFICATION DETAILS

 

Name :

JBF RAK LLC

 

 

Formerly Known As :

JBF RAK FZ LLC

 

 

Registered Office :

Al Jazera Al Hamra Area, P O Box 6574, Ras Al Khaimah

 

 

Country :

United Arab Emirates  

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.05.2007

 

 

Com. Reg. No.:

29204, Ras Al Khaimah

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of PET resin and films for bottles

 

 

No. of Employees :

570

 

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 :

Good

Payment Behaviour :

Regular 

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

 

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                                     : JBF RAK LLC

Country of Origin                                    : Ras Al Khaimah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 1st May 2007

Commercial Registration Number            : 29204, Ras Al Khaimah

Industrial Licence Number                       : 10RZ4 11070787

Chamber Membership Number                : 72357

Issued Capital                                        : UAE Dh 237,159,000

Paid up Capital                                      : UAE Dh 237,159,000

Total Workforce                                     : 570

Activities                                               : Manufacture of PET resin and films for bottles

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Prakash Raval, Finance Manager

 

 

 

COMPANY NAME

 

JBF RAK LLC

 

 

Company ADDRESS

 

Registered & Physical Address

Location            : Al Jazera Al Hamra Area

PO Box             : 6574

Town                 : Ras Al Khaimah

Country             : United Arab Emirates

Telephone         : (971-7) 2447269 / 2447289

Facsimile          : (971-7) 2447202 / 2447279 / 2446620

Mobile               : (971-50) 4874175

Email                : cba@jbfrak.ae / prakashraval@jbfrak.ae

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Cheerag P Arya                                                                                Managing Director

·       Rohit Maindwali                                                                                 General Manager

·       Antonea D'souza                                                                               Purchasing Manager

·       Prakash Raval                                                                                   Finance Manager

·       Gangadar S Poojar                                                                            Assistant Finance Manager

·       Gopal Krishna                                                                                   Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st May 2007 (Production began in July 2007)

 

History                         : Subject began in 2007 under the name “JBF RAK FZ LLC”. However in 2008 it changed its name to “JBF RAK LLC”.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 29204, Ras Al Khaimah

 

Industrial Licence No.  : 10RZ4 11070787

 

Chamber Member No. : 72357

 

Issued Capital              : UAE Dh 237,159,000

 

Paid up Capital            : UAE Dh 237,159,000

 

Name of Shareholder (s)                                                      Percentage

·       Ras Al Khamaih Investment Authority (RAKIA)             51%

 

·       JBF Global Pte Ltd                                                                49%

Singapore

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of PET resin and films for bottles.

 

JBF RAK produces 360,000 TPA of finest Bottle Grade PET Resin, and 72,000 TPA of BOPET Film under the brand name ARYAPET.

 

Import Countries: India, China, Italy and Germany

 

Operating Trend: Steady

 

Subject has a workforce of approximately 570 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                                Year Ending 31/12/11:                Year Ending 31/12/12:

 

Total Revenue                            US$ 663,569,446                       US$ 554,883,385

 

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

 

The above figures were provided by Mr Prakash Raval, 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

 

·       HSBC Bank Middle East

PO Box: 9

Ras Al Khaimah

Tel: (971-7) 2330200

 

·       Mashreq Bank

PO Box: 700

Ras Al Khaimah

Tel: (971-7) 2037216

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services institution, announced in February 2012 that it had closed a UAE Dh 275 million (US$ 75M) syndicated Islamic financing facility for JBF RAK LLC, a subsidiary of JBF Industries.

 

This marks the debut Islamic finance facility for JBF RAK, a specialist polymer manufacturer focused on PET polymer resin chips (chips) and BOPET film products (films). It is a leader in the Middle East region with a market share of over 20% in chips and film products.

 

The financing will be used to expand JBF RAK production in Ras Al Khaimah including the purchase of new machinery and equipment and to optimize its debt profile by introducing Islamic term funding.

 

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.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.