MIRA INFORM REPORT

 

 

Report Date :

04.12.2014

 

IDENTIFICATION DETAILS

 

Name :

ARABIAN CAN INDUSTRY LLC

 

 

Registered Office :

Plot No. 599,  Sheikh Zayed Road, 7th Interchange Jebel Ali Industrial Area No. 1, P O Box 26595, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.04.1998

 

 

Com. Reg. No.:

50829, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacturing 70gm to 5kg tin cans and containers as well as printed and lacquered sheet metal.

 

 

No of Employees :

220 (Approximately)

 

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 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                                     : ARABIAN CAN INDUSTRY LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 4th April 1998

Commercial Registration Number            : 50829, Dubai

Trade Licence Number                            : 504669

Chamber Membership Number                : 48850

Issued Capital                                        : UAE Dh 58,800,000

Paid up Capital                                      : UAE Dh 58,800,000

Total Workforce                                     : 220

Activities                                               : Manufacture of tin cans and containers as well as printed and

lacquered sheet metal

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Shezad Akhtar, Financial Controller

 

COMPANY NAME

 

ARABIAN CAN INDUSTRY LLC

 

 

company ADDRESS

 

Registered & Physical Address

Location            : Plot No. 599

Street               : Sheikh Zayed Road, 7th Interchange

Area                 : Jebel Ali Industrial Area No. 1

PO Box             : 26595

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 8801166

Facsimile          : (971-4) 8801087

Mobile               : (971-50) 5518466 / 2422606

Email                : aci@arabiancan.com / zahid@arabiancan.com

 

Premises

Subject operates from a large suite of offices and a factory that are owned and located in the Jebel Ali Free Zone.

 

 

KEY PRINCIPALS

 

     Name                                                          Nationality                   Position

 

·       Majid Saif Ahmed Al Ghurair                            Emirati                        Managing Director

 

·       Mohamed Saif Ahmed Al Ghurair                      Emirati                        Director

 

·       Saif Ahmed Al Ghurair                                     Emirati                        Director

 

·       Hani Al Kamash                                                  -                             General Manager

 

·       Zahid Mahmoud                                                  -                             Finance Manager

 

·       Shezad Akhtar                                                   -                             Financial Controller

 

·       Saji Joseph                                                         -                             Accounts Manager

 

·       Mohandaz Nair                                                    -                             Purchasing Manager

 

·       Asaad Al Rahman                                               -                             Accountant

 

·       Afroz Hadi                                                          -                             Marketing Manager

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 4th April 1998

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 50829, Dubai

 

Trade Licence No.       : 504669 (Expires 20/03/2015)

 

Chamber Member No. : 48850

 

Issued Capital              : UAE Dh 58,800,000

 

Paid up Capital            : UAE Dh 58,800,000

 

 

Name of Shareholder (s)                                              Percentage

·       Saif Ahmed Al Ghurair                                                    98%

·       Majid Saif Ahmed Al Ghurair                                             1%

·       Mohamed Saif Ahmed Al Ghurair                                       1%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Al Ghurair Group, which has a turnover over in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified range of interests spanning real estate, finance and industry, with specialist operations in banking, trading and shipping.

 

Some of the very successful industries that it operates today in the United Arab Emirates, include the National Flour Mills Co Ltd, National Cement Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In the banking sector, the Ghurairs are owners of the UAE’s largest private bank, the Dubai-based Mashreq Bank, which is one of the Group’s most successful ventures and operates from branches both within and outside the UAE.

 

The Al Ghurair Group is active in London, New York, Cairo, Khartoum, Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.

 

In real estate the Al Ghurair Centre has become a prominent landmark in Dubai. It was built at a cost of more than US $ 150 million and is now home to most of the city’s top retailers.

 

The Al Ghurair Group comprises the following concerns:

 

·       Al Ghurair Holdings (Private) Ltd

 

·       Gulf Extrusions Ltd

 

·       Arabian Aluminium Company

 

·       Al Ghurair Publishing & Printing House

 

·       Union Mosaic & Marble Company

 

·       Al Ghurair Centre

 

·       Arabian Mix

 

·       National Cement Company Ltd

 

·       Arabian Packing Company

 

·       Gulf Utensils

 

·       Gulf Import & Export Co

 

·       House of Perfume

 

·       Computer Intelligence and Communications Ltd

 

·       Gulf Confectionery & Biscuit Company

 

·       Oman Insurance Co Limited

 

·       Mashreq Bank

 

·       Al Ghurair Enterprises

 

·       Al Ghurair Exchange

 

·       National Flour Mills Company Ltd

 

·       National Concrete Company Ltd

 

·       E.T.A P.C.S Switchgear Manufacturing LLC

 

·       Associated Construction & Investment Co LLC (ASCON)

 

·       Al Ghurair Fieness Perry & Partners

 

·       Pak Arab Traders

 

·       Al Ghurair Real Estate

 

·       Al Khaleej Sugar Co WLL

 

·       Central Electric Equipment Co LLC (CEEC)

 

·       National Oman Marble Company

 

·       Rawda Quarries Ltd

 

·       Ghurair Tarmac

 

·       Oman Finance Company

 

·       Ghurair Crown (Engineering) Ltd

 

·       Al Ghurair Industries (Pvt) Ltd

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of 70gm to 5kg tin cans and containers as well as printed and lacquered

                 sheet metal.

 

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

 

International Suppliers:

 

·         Tin Plate of India Ltd (TATA)              India

·         Al Basti Ink LLC                                           Dubai

 

Clients:

 

·         Al Marai Co                                                 Saudi Arabia

·         Tayseer Arar Food Industry Co                      Dubai

 

Operating Trend: Steady

 

Subject has a workforce of approximately 220 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

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

 

Total Revenue                            UAE Dh 120,000,000                  UAE Dh 110,000,000

 

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

 

The above figures were provided by Mr Shezad Akhtar, Financial Controller

 

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

     Tel: (971-4) 2229131 / 2221134

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1998, subject belongs to the well know Al Ghurair group of companies and is involved in the manufacture of tin cans and containers, printed and lacquered sheet metal.

 

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.61.89

UK Pound

1

Rs.96.83

Euro

1

Rs.76.57

 

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%)

 

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.