MIRA INFORM REPORT

 

 

Report Date :

05.09.2013

 

IDENTIFICATION DETAILS

 

Name :

EMIRATES TRADING AGENCY LLC (ETA)

 

 

Registered Office :

Ascon House Salahuddine Al Ayoubi Street Deira PO Box 5239 & 5238 Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

14.06.1983

 

 

Com. Reg. No.:

40307, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject operates several divisions like Trading & Shipping Division, Automotive Division, Contracting Division, General Trading Division, Manufacturing Division

 

 

No. of Employees :

1,200

 

 

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 :

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

 

 

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                         : EMIRATES TRADING AGENCY LLC (ETA)

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 14th June 1983

Commercial Registration Number            : 40307, Dubai

Trade Licence Number                            : 201682

Chamber Membership Number                : 10643

Issued Capital                                        : UAE Dh 45,500,000

Paid up Capital                                      : UAE Dh 45,500,000

Total Workforce                                     : 1,200

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                 : Hameed Sayed Salahuddine, General Manager

 

 

 


COMPANY NAME

 

EMIRATES TRADING AGENCY LLC (ETA)

 

 

Company ADDRESS

 

Registered & Physical Address

Building             : Ascon House

Street               : Salahuddine Al Ayoubi Street

Area                 : Deira

PO Box             : 5239 & 5238

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2140107 / 2713333 / 2729335 / 2716655 / 2139133 / 7073131 / 7073317

Facsimile          : (971-4) 2140105 / 2729863 / 2729319 / 2729761 / 2358170 / 2682574

Email                : eta@eta-ascon.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Dubai.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Khalifa Bin Howeidah Building                                                            Rented office premises

Al Falah Street

PO Box: 3532

Abu Dhabi

Tel: (971-2) 6774420

Fax: (971-2) 6723053

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Hameed Sayed Salahuddine                                                              General Manager

 

·       Khatib Ibrahim                                                                                   Finance Manager

 

·       Taymor Khan                                                                                    Administration Manager

 

·       Nour El Haq                                                                                      Manager – Trading & Shipping Division

 

·       Ismail Sayed                                                                                     Manager – Construction Division

 

·       A K Agrawal                                                                                     Manager – Mechanical Division

 

·       Anwar Pashsa                                                                                  Manager – Power Division

 

·       P H Habibullah                                                                                  Manager – Automotive Division

 

·       G S Bukhari                                                                                      Manager – Coastal Works Division

 

·       Amer Kumar Singh                                                                            Human Resources Manager

 

·       Mohamed Fahit                                                                                 Purchasing Manager

 

·       Mahboob Sobehani                                                                            Public Relations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th June 1983

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 40307, Dubai

 

Trade Licence No.       : 201682 (Expires 28/03/2013)

 

Chamber Member No. : 10643

 

Issued Capital              : UAE Dh 45,500,000

 

Paid up Capital            : UAE Dh 45,500,000

 

Name of Shareholder (s)                                                        Percentage

 

·       ETA Ascon Holding LLC                                                        99.998%

Dubai

 

·       ETA Ascon Group LLC                                                            0.002%

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

Trading & Shipping Division

Under this division, subject is engaged in many aspects of the shipping industry. The Division has evolved into a multifaceted global enterprise with a turnover exceeding US$ 700 million, handling more than 15 million tons of various commodities.

 

Its operations are performed by the following 5 departments:

 

Brokering :       The company is a leading broker for dry cargo chartering and Sale and

 

Purchase (S&P) of dry bulk carrier vessels, with 1,500 chartering fixtures and S&P deals to its credit. This department has its own ship brokerage office, Western Shipping & Trading Limited in London as well as a branch in Bangkok. It is an active member of the Baltic Exchange as well as being a member of BIMCO (Baltic and International Maritime Council). Western Shipping also undertakes shipping consultancy and post-fixture management on behalf of ETA and select clients.

 

Chartering :     The chartering department commenced operations in the mid-1970s with a 3,000 ton affreightment contract. The department today oversees the movement of over 8 million tons of cargo, of which 5 million tons are moved in vessels under its own charter.

 

Operations &    The operations department handles all loading, discharging and

Agency :          coordination with ports and customs transport and delivery. The department also undertakes ships agency in Dubai and provides ship owners and charterers with comprehensive services such as bunkering, protecting agency, crew changes, emergency repairs and surveys.

 

Projects &        The projects department specialise in the development of new business

Development : concepts. It is currently engaged in the deployment of floating cranes in Indian ports. Recently in collaboration with Shipping & Trading Associates LLC, the department acquired the floating crane Diamond of Vizag. The crane will be deployed in a variety of situations, such as the lightening of the panamax, discharging to feeder vessels at anchorage directly from the mother vessel, as well as fast loading and discharging at berths without shore handling facilities.

 

                        This department also handles asset finance matters and feasibility studies on various projects for the shipping division.

 

                        Ship     Ship Management department currently operates 6 dry bulk cargo

Management : vessels ranging from 7,000 dwt to 67,000 dwt and a floating crane. This department provides ship owners with a comprehensive vessel management programme including, pre-acquisition vessel inspection, surveys, technical advise, crewing and total vessel management.

 

                        In October 1998, ANZ Investment Bank arranged a $ 5.4 million, five year Murabaha Islamic financing facility for ETA. The funds were used for the purchase of a 64,286 dwt dry bulk carrier, named Pearl of Kuwait.

 

·         Automotive Division

 

This division is also known as the “Computerised Auto Repair & Services Division (C.A.R.S)” and provides car servicing and computerised engine tuning, as well as car body components and car accessories, such as batteries, tyres and headlights.

 

·         Contracting Division

 

Under this division, subject provides contracting services for electro-mechanical projects as well as power and control systems. Its operations are performed by the following :

 

Electro              The Electro-mechanical department specialises in building projects

Mechanical      requiring advanced engineering skills and technical expertise. Its

Dept. :              activities cover the supply and installation of air-conditioning units,

electrical, sanitary, plumbing, fire alarm and security systems. The department’s past contracts include residential, commercial and industrial buildings, hospitals, universities, airports, as well as electrical power, communication and defence projects. It has also contributed to major landmarks in the cities of Dubai and Abu Dhabi such as Ruler’s Diwan, Etisalat Building, Citi Bank Regional Head Office in Dubai, Municipality head office in Abu Dhabi, the Dubai International Airport, the Forte Grant Hotel in Abu Dhabi and Jumeirah Beach Hotel.

 

Power &           The power & Control Systems department is engaged in the

Control             manufacture, testing and commissioning of low voltage switchgear and

Systems :         control panels.

 

                        Current            Subject was awarded two contracts from the Dubai Electricity & Water

Contracts :       Authority (DEWA) for the construction of three 132/33-KV substations and the supply and installation of cabling on the Qusais project. The larger of the contracts (valued at UAE Dh 256 million) calls for the construction of 132-KV at Qusais, Burj Nahar and Nasr Club. It also includes the supply and installation of 80 kilometres of 132-KV cabling. The company’s other contract is for the cabling package associated with the Qusais north substation. Valued at over UAE Dh 90 million the order involves the supply and installation of 132-KV cabling.

 

                        In August 1999, ETA announced the award of a turnkey contract to supply and install two 13.8 MW fuel oil generators for Fujairah Cement Industries. The two units are to be supplied by US-based Caterpillar International Power Systems.

 

                        ETA has been awarded the mechanical and electrical packages for the retail and apartment areas in the existing Al Ghurair Centre.   

 

·         General Trading Division

 

This division is engaged in the import and distribution of a wide range of general merchandise, specialising in fire fighting equipment, filters and strainers, building materials, clinker and cement, limestone, ores and minerals, fertilisers and chemicals.

 

·         Manufacturing Division

 

Subject operates a number of production plants that come under the umbrella of the Manufacturing Division, including the following:

 

New Materials  Launched in 1993, New Materials Division introduces new building

Division:           materials to the Construction Industry in UAE through extensive foreign collaborations.

 

                        A tie-up with the world leader in composite panel manufacturing M/s Mitsubishi Chemical Functional  Products, Inc.,  Japan  consolidates the strong technical base of the  division in carrying-out the  cladding  works with  Alpolic, Alook-Ex, Stainless Steel and Titanium composite cladding material for both internal and exterior of the buildings.

 

                        This department has executed so far cladding works exceeding 450,000 square metres in and around the UAE.

 

Ascon Marble   ASCON Marble and Granite imports quality marble and granite from Italy,

and Granite:    Spain, India, and Brazil. It was founded in 1993 and specialises in the field of supply and fixing of marble and granite catering to the needs of builders and contractors. It employs more than 200 craftsmen and 20 staff.

 

                        It has recently won a prestigious project in Abu Dhabi, The Conference Palace Hotel, which was worth more than UAE Dh 200,000,000.

 

Import Countries: United States of America, India, the Far East and Europe

 

International Suppliers:

 

·       Philips TDS for Computers                             The Netherlands

·       Vassa Controls OY                                       Finland

·       Waagner-Biro AG                                          Austria

·       Alusuisse Singen GmbH                                Germany

·       Hoppecke Batteries                                       Germany

·       Koba Batteries                                              Korea

·       Diax (Poppy) Chemicals Ltd                           Japan

·       Mitsubishi                                                     Japan

·       Gaira Bevel Gears Ltd                                    India

·       Titan Watch Company                                   India

·       Composite (Superlite) Ltd                               United States of America

·       President Chemicals & Solvent Co                  United States of America

·       Promask Maskin Tape                                   United States of America

·       Westinghouse Electric                                   United States of America

·       Dover Elevators                                             United States of America

·       Trane Co                                                      United States of America

·       Oracle Corp                                                  United States of America

·       Dainichi Nippon Cables                                  United States of America

 

Export Countries: Oman, Bahrain, Saudi Arabia, Iran, Pakistan, CIS, Ghana, and African countries

 

Subject has a workforce of approximately 1,200 employees.

 

 

FINANCIAL DATA

 

Companies registered in Dubai, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 


BANKERS

 

·       HSBC Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 3535000

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222241

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  July 2005                                  July 2007

Amount overdue             0                                              0

Payment terms                          30 days                                     180 days

Payment Method                       Letters of Credit                         Letters of Credit

Paying record                            No Complaints                           No Complaints

Currency                                   Pounds Sterling                         Pounds Sterling

 

 

GENERAL COMMENTS

 

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.67.02

UK Pound

1

Rs.104.31

Euro

1

Rs.88.23

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.