MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

BUOY SAIL TRADING EST

 

 

Registered Office :

Al Yousefi Building, Jamal Abdul Nasser Street, Corniche Buhira Area, P O Box 25714, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.08.1997

 

 

Com. Reg. No.:

2068, Sharjah

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Engaged in ship management services and the import and distribution of iron and steel scrap metals including non-ferrous materials such as factory rejects and scrap elements of aluminium, aluminium products such as foil and cans, coppers and brasses.

 

 

No. of Employees :

26

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

Concern Name                                      : BUOY SAIL TRADING EST

Country of Origin                                   : Sharjah, United Arab Emirates

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 4th August 1997

Commercial Registration Number           : 2068, Sharjah

Trade Licence Number                           : 219055

Chamber Membership Number               : 40312

Invested Capital                                    : UAE Dh 481,650

Total Workforce                                     : 26

Activities                                               : Ship management services and the import and distribution of iron and

steel scrap metals.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Monoj Kumar,             Financial Controller

 

 

 

CONCERN NAME

 

BUOY SAIL TRADING EST

 

 

concern ADDRESS

 

Registered & Physical Address

Building            : Al Yousefi Building

Street               : Jamal Abdul Nasser Street

Area                 : Corniche Buhira Area

PO Box            : 25714

Town                : Sharjah

Country             : United Arab Emirates

Telephone         : (971-6) 5539131

Facsimile          : (971-6) 5599608

Email                : buoy@emirates.net.ae / kuldip@buoy.ae / operations@buoy.ae

 

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Sharjah.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

·       Sanjiv Ratan Khanna                            Indian                                    Proprietor & General Manager

·       Naveen Sunny                                                     -                            Assistant General Manager

·       Thomas Baby                                                      -                            Operations Manager

·       Monoj Kumar                                                       -                            Financial Controller

·       Joby Beny                                                          -                            Administration Executive

·       Mohamed Narjas                                                 -                            Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 4th August 1997

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.   : 2068, Sharjah

 

Trade Licence No.        : 219055 (Expires 01/08/2014)

 

Chamber Member No.  : 40312

 

Invested Capital           : UAE Dh 481,650

 

Mr. Sanjiv Ratan Khanna is the sole proprietor of the business. Mr Sanjiv Khanna is an Indian national who operates in Sharjah under the local sponsorship of Mr Salim Bin Salim Bin Khalis.

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Buoy Group, which is a diversified group of companies extensively involved in the field of trading of ferrous and non-ferrous scrap, cash buying of scrap ships, ship chartering and ship management.

 

The Buoy Group comprises the following concerns:

 

·       Surbh Steel FZE

Hamriyah Free Zone

Sharjah

United Arab Emirates

Tel: (971-6) 5539131

Fax: (971-6) 5599608

 

·       Buoy Chartering & Trading Limited Offshore

St Vincent and the Grenadines

 

·       Buoyancy Traders Private Limited

Delhi

India

 

·       Buoy Shipping Agency

Bhavnagar

     India

 

 

OPERATIONS

 

Activities: Engaged in ship management services and the import and distribution of iron and steel scrap metals

     including non-ferrous materials such as factory rejects and scrap elements of aluminium, aluminium

     products such as foil and cans, coppers and brasses. The material is accumulated, containerized and

     exported.

 

Import Countries: India, Jordan, Kuwait, Denmark and the United Kingdom.

 

Operating Trend: Steady

 

Subject has a workforce of 26 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:               Year Ending 31/12/13:

 

Total Revenue               UAE Dh 658,950,000                 UAE Dh 527,933,000                 UAE Dh 550,000,000

 

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

 

The above figures were provided by Mr Monoj Kumar, Financial Controller

 

 

BANKERS

 

·       Bank of Baroda

PO Box: 1671

     Sharjah

     Tel: (971-6) 5684231

     Fax: (971-6) 5681025

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

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 concern is considered to be a fair trade risk.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

kar

 

 

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%)

 

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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.