MIRA INFORM REPORT

 

 

Report Date :

14.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ESSAR STEEL MIDDLE EAST FZE

 

 

Registered Office :

Jebel Ali Free Zone, Plot No. 540402, 261754 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

13.05.2010

 

 

Com. Reg. No.:

134731

 

 

Legal Form :

Free Zone Establishment – FZE

 

 

Line of Business :

Engaged in the manufacture of basic steel products, including hot and cold rolled steel, TMT bars, chequered plates, pre-painted sheets and shot blasted plates

 

 

No of Employees :

41

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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                                     : ESSAR STEEL MIDDLE EAST FZE

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Free Zone Establishment - FZE

Registration Date                                   : 13th May 2010

Commercial Registration Number            : 134731, Dubai

Trade Licence Number                            : 120645

Chamber Membership Number                : 182797

Issued Capital                                        : UAE Dh 142,000,000

Paid up Capital                                      : UAE Dh 142,000,000

Total Workforce                                     : 41

Activities                                               : Manufacturers of basic steel products

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Mukarjee Marinmoy, Senior Accountant

 

COMPANY NAME

 

ESSAR STEEL MIDDLE EAST FZE

 

 

company ADDRESS

 

Registered & Physical Address

 

Location            : Jebel Ali Free Zone, Plot No. 540402

 

PO Box             : 261754

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8998500

Facsimile          : (971-4) 8809913

Mobile               : (971-50) 6501204 / 6509841

Email                : tarun.lal@essar.com / sanjeev.tyagi@essar.com

 

Premises

 

Subject operates from a small suite of offices and a factory that are rented and located in the Jebel Ali Free Zone Area of Dubai.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Emaar Business Park, Building No. 4, Office No. 508                           Office premises

Sheikh Zayed Road

PO Box: 61078

Dubai

Tel: (971-4) 3649000

Fax: (971-4) 3649099

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Girish Rao                                                                                        Chief Executive Officer

 

·       Sanjeev Tyagi                                                                                   General Manager

 

·       Jay Khatri                                                                                         Finance Manager

 

·       Rohit Sachi Dave                                                                               Financial Controller

 

·       Mukarjee Marinmoy                                                                           Senior Accountant

 

·       Praful Venu Gopal                                                                             Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 13th May 2010

 

Legal Form                  : Free Zone Establishment – FZE

 

Commercial Reg. No.  : 134731, Dubai

 

Trade Licence No.       : 120645

 

Chamber Member No. : 182797

 

Issued Capital              : UAE Dh 142,000,000

 

Paid up Capital            : UAE Dh 142,000,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Essar Steel Ltd                                                                     100%

Essar House

11 Keshavrao Khadye Marg
Mahalaxmi
Mumbai - 400 034
Maharashtra

India

Tel: (91-22) 50011100 / 66601100

Fax: (91-22) 66601809

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of basic steel products, including hot and cold rolled steel, TMT

                 bars, chequered plates, pre-painted sheets and shot blasted plates.

 

Import Countries: Europe and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of 41 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                US$ 242,600,000                       US$ 250,000,000

 

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

 

The above figures were provided by Mr Mukarjee Marinmoy, Senior Accountant

 

 

BANKERS

 

·       Bank of Baroda

PO Box: 3162

Dubai

Tel: (971-4) 5531955

Fax: (971-4) 5536962

 

·       Habib Bank Ltd

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

 

 

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 company is considered to be a fair trade risk.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 61.24

UK Pound

1

Rs. 103.01

Euro

1

Rs. 81.89

 

 

INFORMATION DETAILS

 

Analysis Done by :

SMT

 

 

Report Prepared by :

DPT

 

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.