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Report Date : |
10.01.2014 |
IDENTIFICATION DETAILS
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Name : |
GULF PETROCHEM FZC |
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Registered Office : |
Hamriyah Free Zone, Plot No. 2, PO Box : 41506, Sharjah |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
01.04.1998 |
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Com. Reg. No.: |
837 |
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Legal Form : |
Free Zone Company |
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Line of Business : |
Subject is engaged in the processing and refining of lubricants, oils,
greases and bitumen |
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No. of Employees : |
225 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
Company Name :
GULF PETROCHEM FZC
Country of Origin :
Sharjah, United Arab Emirates
Legal Form :
Free Zone Company – FZC
Start Date :
1st April 1998
Commercial Registration Number : 837
Trade Licence Number :
7
Issued Capital :
UAE Dh 300,000,000
Paid up Capital :
UAE Dh 300,000,000
Total Workforce :
225
Activities :
Processing and refining of lubricants, oils and greases.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Nitin Jain, Financial Controller
GULF PETROCHEM FZC
Registered &
Physical Address
Location : Hamriyah Free
Zone, Plot No. 2
PO Box : 41506
Town : Sharjah
Country : United Arab
Emirates
Telephone : (971-6) 5263773
/ 7488140
Facsimile : (971-6)
5263778 / 7487483
Mobile : (971-55) 2245123 / 2245213
Email : mail@gulfpetrochem.com
/ gepco@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices and a refinery
that are rented and located in the Hamriyah Free Zone.
Name Nationality Position
Ashok Goyel Indian Managing Director
Sudair Goyel Indian Director
Manen Goyel Indian Director
Prerit Goyel Indian Director
Geraled Babu - Administration
Manager
Narindira Modi
- Finance
Manager
Niraj Kumar - Commercial
Manager
Nitin Jain - Financial
Controller
Date of Establishment : 1st April 1998
History : Subject began in 1998 as a Free Zone Establishment but re-registered as a Free Zone Company on 19th December 2006
Legal Form : Free Zone Company
- FZC
Commercial Reg. No. : 837
Trade Licence No. : 7
Issued Capital : UAE Dh 300,000,000
Paid up Capital : UAE Dh 300,000,000
Name of
Shareholder (s) Percentage
Ashok Goyel 28.169%
Sudair Goyel 28.169%
Prerit Goyel 21.831%
Manen Goyel 21.831%
Vishwaa Carriers LLC
Fujairah
Activities: Engaged in the
processing and refining of lubricants, oils, greases and bitumen.
Subject activities
include storage, leasing and bunkering services.
Gulf Petrochem Group is a leading player in
oil space, specializing in Oil Trading & Bunkering, Oil Refining, Grease
Manufacturing, Oil Storage Terminals, Bitumen Manufacturing, and Shipping &
Logistics. It operates a 60,000 cubic meters facility in Hamriyah Free Zone,
Sharjah capable of storing various grades of oils and owns three vessels with a
combined capacity of 17,000 cubic meters to service bulk shipments.
Subject is still in the process of
completing its storage facilities which will be located in Fujairah.
Import Countries: Europe
and GCC countries
Operating Trend: Steady
Subject has a workforce of approximately 225 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Balance Sheet 31/12/08 31/12/09
31/12/10
Liabilities
Share Capital 100,000,000
100,000,000 160,462,000
Retained Earnings (Loss) 16,147,373
48,140,192 115,374,198
Shareholders Current Account 166,393
- -
Shareholders Loan - 35,900,000
-
Total Equity 116,313,766
184,040,192 275,836,198
Non Current Liabilities
Vehicle Loan 521,542
667,603 496,848
Term Loan 5,166,666
11,051,011 26,788,496
Employees' End of Service Benefits 193,982
353,744 490,559
Total Non-Current Liabilities 5,882,190
12,072,358 27,775,903
Current Liabilities
Accounts Payable 7,585,350
31,456,869 13,997,084
Borrowings from Banks & Financial
Institutions 52,199,271
78,421,472 194,908,560
Current Portion of Long Term Debt (Vehicle
Loan +
Term Loan) 5,585,078
4,596,799 8,283,611
Advances from Customers 848,168
2,276,851 327,772
Provision & Accrued Expenses 731,018
1,074,667 2,174,907
Other Payables 458,575
1,379,531 -
Amount due to Related Parties 1,145,192
- -
Total Current Liabilities 68,552,652
119,206,189 219,691,934
TOTAL LIABILITIES & EQUITY 190,748,608
315,318,739 523,304,035
Assets
Fixed Assets
Property, Plant & Equipment 140,398,086 131,915,285 166,794,760
Total Fixed Assets 140,398,086
131,915,285 166,794,760
Investments
Investment in Subsidiaries -
25,400,000 69,630,734
Total Investments -
25,400,000 69,630,734
Current Assets
Cash and Balance with Banks 839,189
2,976,429 5,057,259
Inventories 16,468,037
29,210,330 54,623,818
Fixed Deposit with Banks 526,083
540,515 546,115
Trade Receivables 16,248,621
110,110,504 159,927,928
Other Receivables 16,268,592 7,434,906 39,529,592
Amount Due from Related Parties -
7,730,770 27,193,829
Total Current Assets 50,350,522
158,003,454 286,878,541
TOTAL ASSETS 190,748,608
315,318,739 523,304,035
Profit & Loss Account
Revenues 529,627,604 774,220,583 1,327,160,571
Total Operating Income 529,627,604
774,220,583 1,327,160,571
Cost of Sales (501,401,408)
(721,180,590) (1,229,158,130)
Total Direct Expenditure (501,401,408)
(721,180,590) (1,229,158,130)
Gross Profit (Loss) 28,226,196
53,039,993 98,002,441
Administrative Expenses
Professional, Visa, Taxes & Legal
Expenses (971,295)
(1,146,171) (1,319,760)
Salaries & Other Related Benefits (3,256,595)
(5,308,328) (7,149,471)
Vehicle Maintenance (304,021)
(147,865) (130,824)
Printing & Stationery (72,385)
(21,236) (153,208)
Repairs & Maintenance (211,687)
(69,645) (100,043)
Foreign Exchanges Loss -
(224,855) (257,778)
Utilities (24,682)
(14,058) (1,400)
Communication (277,218) (256,041) (296,861)
Travelling & Conveyance (376,937)
(162,892) (304,447)
Charity and Donation (51,640)
(113,230) (22,936)
Rent (250,013)
(396,709) (687,458)
Directors Remuneration (1,800,000) (1,800,000) (1,200,000)
Office Expenses (90,435)
(8,548) (55,906)
Bank Charges (885,855)
(3,079,206) (3,234,201)
Miscellaneous (426,994)
(5,019) (15,891)
Selling and Marketing Expenses
Advertisement & Business Promotion (849,638)
(1,022,383) (1,038,616)
Rebate & Discount (488,465)
(478,728) (293,245)
Carriage Outward & Distribution (529,458)
(603,956) (3,336,294)
Profit Before Interest & Depreciation 17,358,878
38,181,123 78,404,102
Depreciation (1,773,468)
(1,841,830) (3,315,621)
Operating Profit After Depreciation 15,585,410
36,339,293 75,088,481
Other Income 621,429
747,524 1,015,268
Loss on Sale of Property, Plant &
Equipment - (25,874) -
Earnings Before Interest & Tax 16,206,839
37,060,943 76,103,749
Less: Interest (2,610,503)
(5,068,124) (8,869,743)
Earnings Before Tax 13,596,336
31,992,819 67,234,006
Profit After Tax 13,596,336
31,992,819 67,234,006
Net Profit After Tax and Extraordinary
Items 13,596,336
31,992,819 67,234,006
Plus / (Minus) Retained Earnings / (Loss) B/F
2,551,037 16,147,373 48,140,192
Retained Earnings (Loss) C/F 16,147,373
48,140,192 115,374,198
Local sources consider subject’s financial condition to be Good.
Total sales for the year ending 31st December 2011 was UAE Dh
2,203,504,684 and for the ending 31st December 2012 it was UAE Dh
3,900,000,000.
HSBC Bank Middle East
PO Box: 25
Sharjah
Tel: (971-6) 5537222
Fax: (971-6) 5537880
Bank of Baroda
PO Box: 1671
Sharjah
Tel: (971-6) 5687082
No complaints regarding subject’s payments have been reported.
Established in 1998, Gulf Petrochem FZC is involved in the processing
and refining of lubricants, oils, greases and bitumen.
Subject’s head office and grease plant caught fire on 2nd of
April 2011. As a result they had to move to temporary premises.
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.62.18 |
|
|
1 |
Rs.102.31 |
|
Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.