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Report Date : |
01.07.2014 |
IDENTIFICATION DETAILS
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Name : |
JBF RAK LLC |
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Registered Office : |
Al Jazera Al Hamra Area, PO Box : 6574, Ras Al Khaimah |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.05.2007 |
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Com. Reg. No.: |
29204, Ras Al Khaimah |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the manufacture of PET resin and films for
bottles. |
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No. of Employees : |
570 |
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 |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
Company Name :
JBF RAK LLC
Country of Origin :
Ras Al Khaimah, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
1st May 2007
Commercial Registration Number :
29204, Ras Al Khaimah
Industrial Licence Number :
10RZ4 11070787
Chamber Membership Number :
72357
Issued Capital :
UAE Dh 237,159,000
Paid up Capital :
UAE Dh 237,159,000
Total Workforce :
570
Activities :
Manufacture of PET resin and films for bottles
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed :
Prakash Raval, Finance Manager
JBF RAK LLC
Registered &
Physical Address
Location : Al Jazera Al
Hamra Area
PO Box : 6574
Town : Ras Al
Khaimah
Country : United Arab
Emirates
Telephone : (971-7) 2447269
/ 2447289
Facsimile : (971-7)
2447202 / 2447279 / 2446620
Mobile : (971-50)
4874175
Email : cba@jbfrak.ae
/ prakashraval@jbfrak.ae
Premises
Subject operates from a large suite of offices that are rented and
located in the Industrial Area of Ras Al Khaimah.
Name Position
Cheerag P Arya Managing
Director
Rohit Maindwali General
Manager
Antonea D'souza Purchasing Manager
Prakash Raval Finance
Manager
Gangadar S Poojar Assistant
Finance Manager
Gopal Krishna Export
Manager
Date of Establishment : 1st May 2007 (Production
began in July 2007)
History : Subject began in 2007 under the name “JBF
RAK FZ LLC”. However in 2008 it
changed its name
to “JBF RAK LLC”.
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 29204, Ras Al Khaimah
Industrial Licence No. : 10RZ4 11070787
Chamber Member No. : 72357
Issued Capital : UAE Dh 237,159,000
Paid up Capital : UAE Dh 237,159,000
Name of
Shareholder (s) Percentage
Ras Al Khamaih Investment Authority (RAKIA) 51%
JBF Global Pte Ltd 49%
Singapore
Activities: Engaged in the
manufacture of PET resin and films for bottles.
JBF RAK produces
360,000 TPA of finest Bottle Grade PET Resin, and 72,000 TPA of BOPET Film
under the brand name ARYAPET.
Import Countries: India,
China, Italy and Germany
Operating Trend: Steady
Subject has a workforce of approximately 570 employees.
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$
554,883,385 US$
586,704,109
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Prakash Raval,
Finance Manager
National Bank of Ras Al Khaimah
NBRAK Building
PO Box: 5300
Ras Al Khaimah
Tel: (971-7) 2221127
Fax: (971-7) 2224202
HSBC Bank Middle East
PO Box: 9
Ras Al Khaimah
Tel: (971-7) 2330200
Mashreq Bank
PO Box: 700
Ras Al Khaimah
Tel: (971-7) 2037216
No complaints regarding subject’s payments have been reported.
Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic
financial services institution, announced in February 2012 that it had closed a
UAE Dh 275 million (US$ 75M) syndicated Islamic financing facility for JBF RAK
LLC, a subsidiary of JBF Industries.
This marks the debut Islamic finance facility for
JBF RAK, a specialist polymer manufacturer focused on PET polymer resin chips
(chips) and BOPET film products (films). It is a leader in the Middle East
region with a market share of over 20% in chips and film products.
The financing will be used to expand JBF RAK
production in Ras Al Khaimah including the purchase of new machinery and
equipment and to optimize its debt profile by introducing Islamic term funding.
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.60.09 |
|
|
1 |
Rs.102.33 |
|
Euro |
1 |
Rs.82.01 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NNA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.