MIRA INFORM REPORT

 

 

Report Date :

27.08.2014 

 

IDENTIFICATION DETAILS

 

Name :

WESTCON MIDDLE EAST LIMITED

 

 

Registered Office :

Sheikh Zayed Road, JAFZA Showroom No. 109 Jebel Ali South, Jebel Ali Free Zone PO Box 17124 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

14.07.1993

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

Line of Business :

Subject is engaged in the import and distribution of data networking products, fibre optics and telecommunications equipment. Subject also provides critical infrastructure, enterprise mobility portfolio, security portfolio and unified communications portfolio solutions.

 

 

No. of Employees

45

 

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 :

Branch of a foreign registered corporation

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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                                     : WESTCON MIDDLE EAST LIMITED

Country of Origin                                    : British Virgin Islands

Legal Form                                            : Branch of a Foreign Registered Corporation

Registration Date                                   : 14th July 1993

Trade Licence Number                            : 819

Chamber Membership Number                : 27696

Issued Capital                                        : UAE Dh 3,700,000

Paid up Capital                                      : UAE Dh 3,700,000

Total Workforce                                     : 45

Activities                                               : Import and distribution of data networking products, fibre optics and

                                                              telecommunications equipment

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Vijay Peter, Financial Manager

 

 

COMPANY NAME

 

WESTCON MIDDLE EAST LIMITED

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road, JAFZA Showroom No. 109

Area                 : Jebel Ali South, Jebel Ali Free Zone

PO Box             : 17124

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8839888

Facsimile          : (971-4) 8839353

Email                : marketing.ae@westcon.com / vijay.peter@westcongroup.com

 

Please note that subject’s previous address was, Warehouse No. JB6, 8th Roundabout, Sheikh Zayed Road, Jebel Ali Free Zone, Dubai.

 

Premises

 

Subject operates from a medium sized suite of offices and a warehouse that are rented and located in the Jebel Ali Free Zone, Dubai.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Steve Lockie                                                                                     Managing Director

 

·       Vijay Peter                                                                                       Financial Manager

 

·       Sheer Ali Khan                                                                                  Sales Manager

 

·       Jibu John                                                                                          Credit Manager

 

·       Tushar Chowla                                                                                  Marketing Manager

 

·       Venkat Subramaniam                                                                        Commercial and Operations Manager

 

·       Jerald Mathew                                                                                   Procurement Manager

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th July 1993

 

Legal Form                  : Subject is the United Arab Emirates registered branch of On Line Distribution Ltd, a Limited

  Liability Company incorporated in the British Virgin Islands.

 

  Westcon Middle East Limited in the United Arab Emirates, operates as a Branch of a

  Foreign Registered Corporation.

 

  A Branch of a Foreign Registered Corporation is not a legal entity in its own right.

  Responsibility for payments lays in the hands of the company where it is originally

  registered.

 

  Under these circumstances, we strongly advise that any international trade credit should

  only be written under the name of the main company where the subject holds its registered

  office, in this case the British Virgin Islands.

 

Trade Licence No.       : 819 (Expires 28/02/2015)

 

Chamber Member No. : 27696

 

Issued Capital              : UAE Dh 3,700,000

 

Paid up Capital            : UAE Dh 3,700,000

 

 

AFFILIATED COMPANIES

 

·       Comstor Middle East

Dubai

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of data networking products, fibre optics and telecommunications equipment. Subject also provides critical infrastructure, enterprise mobility portfolio, security portfolio and unified communications portfolio solutions.

 

Import Countries: United States of America, Europe and Asia

 

International Suppliers:

 

·       Motorola       United Kingdom

·       Juniper         United Kingdom

 

Operating Trend: Steady

 

Subject has a workforce of 45 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                                Year Ending 28/02/13:                Year Ending 28/02/14:

 

Total Sales                                US$ 89,180,000                        

US$ 109,096,000

 

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

 

The above figures were provided by Mr Vijay Peter, Financial Manager

 

 

BANKERS

 

·       Habib Bank AG Zurich

Baniyas Road

PO Box: 3306

Dubai

Tel: (971-4) 2214535

 

 

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.60.50

UK Pound

1

Rs.100.33

Euro

1

Rs.79.91

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.