MIRA INFORM REPORT

 

 

Report Date :

18.07.2014

 

IDENTIFICATION DETAILS

 

Name :

BUOY SAIL TRADING EST

 

 

Registered Office :

Al Yousefi Building, Jamal Abdul Nasser Street, Corniche Buhira Area, PO Box: 25714, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.08.1997

 

 

Com. Reg. No.:

2068, Sharjah

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Subject is engaged in ship management services and the import and distribution of iron and steel scrap metals including non-ferrous materials such as factory rejects and scrap elements of aluminium, aluminium products such as foil and cans, coppers and brasses. The material is accumulated, containerized and exported.

 

 

No. of Employees :

26

 

 

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 – 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

 

 

 

 

SUMMARY

 

Concern Name                                       : BUOY SAIL TRADING EST

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Sole Proprietorship

Registration Date                                   : 4th August 1997

Commercial Registration Number            : 2068, Sharjah

Trade Licence Number                            : 219055

Chamber Membership Number                : 40312

Invested Capital                                     : UAE Dh 481,650

Total Workforce                                     : 26

Activities                                               : Ship management services and the import and distribution of iron and steel scrap metals.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Monoj Kumar, Financial Controller

CONCERN NAME

 

 BUOY SAIL TRADING EST

 

 

concern ADDRESS

 

Registered & Physical Address

Building             : Al Yousefi Building

Street               : Jamal Abdul Nasser Street

Area                 : Corniche Buhira Area

PO Box             : 25714

Town                 : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5539131

Facsimile          : (971-6) 5599608

Email                : buoy@emirates.net.ae / kuldip@buoy.ae  / operations@buoy.ae

 

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Sharjah.

 

 

KEY PRINCIPALS

 

Name                                                   Nationality                   Position

 

Sanjiv Ratan Khanna                                 Indian                         Proprietor & General Manager

 

Naveen Sunny                                              -                            Assistant General Manager

 

Thomas Baby                                               -                            Operations Manager

 

Monoj Kumar                                                -                            Financial Controller

 

Joby Beny                                             -                                   Administration Executive

 

Mohamed Narjas                                    -                                   Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           4th August 1997

 

Legal Form      :                       Sole Proprietorship

 

Commercial Reg. No.  :           2068, Sharjah

 

Trade Licence No.       :           219055 (Expires 01/08/2014)

 

Chamber Member No. :           40312

 

Invested Capital           :           UAE Dh 481,650

 

Mr Sanjiv Ratan Khanna is the sole proprietor of the business. Mr Sanjiv Khanna is an Indian national who operates in Sharjah under the local sponsorship of Mr Salim Bin Salim Bin Khalis.

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Buoy Group, which is a diversified group of companies extensively involved in the field of trading of ferrous and non-ferrous scrap, cash buying of scrap ships, ship chartering and ship management.

 

The Buoy Group comprises the following concerns:

 

Surbh Steel FZE

Hamriyah Free Zone

Sharjah

United Arab Emirates

Tel: (971-6) 5539131

Fax: (971-6) 5599608

 

Buoy Chartering & Trading Limited Offshore

St Vincent and the Grenadines

 

Buoyancy Traders Private Limited

Delhi

India

 

Buoy Shipping Agency

Bhavnagar

India

 

 

OPERATIONS

 

Activities:                     Engaged in ship management services and the import and distribution of iron and steel scrap metals including non-ferrous materials such as factory rejects and scrap elements of aluminium, aluminium products such as foil and cans, coppers and brasses. The material is accumulated, containerized and exported.

 

Import Countries:         India, Jordan, Kuwait, Denmark and the United Kingdom.

 

Operating Trend:         Steady

 

Subject has a workforce of 26 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                    Year Ending 31/12/11:              Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                    UAE Dh 658,950,000                  UAE Dh 527,933,000                  UAE Dh 550,000,000

 

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

 

The above figures were provided by Mr Monoj Kumar, Financial Controller

 

 

BANKERS

 

Bank of Baroda

PO Box: 1671

Sharjah

Tel: (971-6) 5684231

Fax: (971-6) 5681025

 

 

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 concern is considered to be a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.14

UK Pound

1

Rs.103.00

Euro

1

Rs.81.33

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.