MIRA INFORM REPORT

 

 

Report Date :

31.08.2014

 

IDENTIFICATION DETAILS

 

Name :

AFRICAN COMMODITIES DMCC

 

 

Registered Office :

Plot No. 11, AG Tower, Level 22, Office A2 E & L, Jumeirah Lakes Towers, Street : Sheikh Zayed Road, PO Box: 113709, Town: Dubai

 

 

Country :

United Arab Emirates          

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

31.07.2004

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the Import and Distribution of steel, iron and other metal products and chemicals

 

 

No of Employees :

15

 

 

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 :

Satisfactory

 

 

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)

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

 

Company Name                                     : AFRICAN COMMODITIES DMCC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company

Registration Date                                   : 31st July 2004

Trade Licence Number                            : 30066

Membership Number                              : 0070

Issued Capital                                        : US$ 54,795

Paid up Capital                                      : US$ 54,795

Total Workforce                                     : 15

Activities                                               : Distributors of steel, iron and other metal products and chemicals.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 

COMPANY NAME

 

AFRICAN COMMODITIES DMCC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Plot No. 11, AG Tower, Level 22, Office A2 E & L, Jumeirah Lakes Towers

Street               : Sheikh Zayed Road

 

PO Box             : 113709

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 4408200 / 4408215 / 4408209

Facsimile          : (971-4) 4475211

Mobile               : (971-50) 2804952 / 6518348

Email                : vishal.aggarwal@afdmcc.com / ekta.gupta@afdmcc.com / a.narang@afdmcc.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

            Name                                                                                        Position

 

Raj Kumar Gupta                                                                       Managing Director

 

Anil Narang                                                                               Assistant Finance Manager       

 

Vishal Agrawal                                                                           Investment Relations Manager

 

Omar Farooq                                                                             Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 31st July 2004

 

Legal Form      : Limited Liability Company

 

Trade Licence No.       : 30066

 

Membership No.          : 0070

 

Issued Capital             : US$ 54,795

 

Paid up Capital            : US$ 54,795

 

Name of Shareholder (s)                                                       Percentage

 

Trans Global Group Investment Ltd                                              100%

British Virgin Islands

 

 

AFFILIATED COMPANIES

 

Parco Enterprises Nigeria Ltd

Lagos

Nigeria

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of steel, iron and other metal products and chemicals.

 

Import Countries: Europe and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of 15 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

Balance Sheet                                                             31/12/10                        31/12/09

 

Non-current assets

Property, plant and equipment                                         4,138,745                      2,561,826

Investment properties                                                     323,581             -

 

Current assets

Inventories                                                                     2,051,189                      7,900,246

Trade and other receivables                                             83,872,579                    66,732,683

Cash                                                                             115,659                         63,027

Other current financial assets                                          22,066                          5,003,967

                                                                                    86,061,493                    79,699,923

 

Current liabilities

Bank borrowings                                                            (25,902,987)                  (22,246,215)

Trade and other payables                                                (11,276,918)                  (4,791,513)

                                                                                    (37,179,905)                  (27,037,728)

 

Net current assets                                                         48,881,588                    52,662,195

 

Non-current liabilities

Staff-end-of service gratuity                                             (55,321)                        (30,377)

                                                                                    53,288,593                    55,193,644

 

Share capital                                                                 54,795                          54,795

Retained earnings                                                          52,307,832                    50,536,057

Equity funds                                                                  52,362,627                    50,590,852

Shareholders’ current account                                         925,966                         4,602,792

                                                                                    53,288,593                    55,193,644

 

Statement of Income

 

Revenue                                                                        300,104,214                  302,602,834

Cost of sales                                                                 (269,333,885)                (271,093,424)

Gross profit                                                                   30,770,329                    31,509,410

 

Other operating income                                                  861,883                         419,093

Staff costs                                                                     (1,141,616)                    (558,529)

Depreciation expense                                                     (297,485)                       (63,789)

Other operating expenses                                               (269,608)                       (151,315)

Provision for doubtful debts                                             -                                   (8,165)

Impairment loss                                                             -                                   (507,740)

Profit from operating activities                                          29,923,503                    30,638,965

Interest income                                                              71,567                          34,141

Finance costs                                                                (1,223,295)                    (1,167,494)

Profit for the year                                                           28,771,775                    29,505,612

 

Turnover for the year ending 31st December 2012 was US$ 439,073,000. Full financial figures for the year ending 31st December 2013 were not made available.

 

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

 

 

BANKERS

 

HSBC Bank Middle East

Deira Souk Branch

            PO Box: 66

            Dubai

            Tel: (971-4) 2535000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 January 2014

Credit amount                                        500,000

Amount overdue                                     0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Euros

 

 

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.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SHG

 

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.