MIRA INFORM REPORT

 

 

Report Date :

28.07.2014

 

IDENTIFICATION DETAILS

 

Name :

WATER SEAL INSULATION MATERIALS CONSTRUCTION CO LLC

 

 

Registered Office :

Mina Tower, Suite No. M-02 Mina Street PO Box  28364 & 24428 Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

12.09.1998

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Engaged as general construction contractors, specialising in water proofing and damp proofing, flooring  concrete repairs, acoustic insulation, structural strengthening and fabric shade structures

 

 

No. of Employees

400

 

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)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

UAE 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                                     : WATER SEAL INSULATION MATERIALS CONSTRUCTION CO LLC

Also Known As                                      : WATER SEAL COMPANY LLC

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 12th September 1998

Trade Licence Number                            : 219719

Chamber Membership Number                : 42854

Issued Capital                                        : UAE Dh 150,000

Paid up Capital                                      : UAE Dh 150,000

Total Workforce                                     : 400

Activities                                               : General construction contractors.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Sayed Mansour, Finance Manager

 

 

 

 

COMPANY NAME

 

WATER SEAL INSULATION MATERIALS CONSTRUCTION CO LLC

 

 

ALSO KNOWN AS

 

WATER SEAL COMPANY LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Mina Tower, Suite No. M-02

Street               : Mina Street

PO Box             : 28364 & 24428

Town                 : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5614181

Facsimile          : (971-6) 5618120

Mobile               : (971-55) 1056288

Email                : w_seal@emirates.net.ae

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Suburban Business Area of Sharjah.

 

Branch Offices

 

Location                                                                                           Description

 

·       Dubai                                                                                               Office premises

Tel: (971-4) 2862425

Fax: (971-4) 2862427

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Mohamed Asghar Hussain                             Pakistani                       Managing Director

 

·       Saud Abdulaziz Abdullah                               Emirati                          Director

 

·       Anjum Farooq                                                    -                              General Manager

 

·       Asheq Saeed                                                     -                              Purchasing Manager

 

·       Mohamed Sayed Khan                                       -                              Administration Manager

 

·       Sayed Mansour                                                  -                              Finance Manager

 

·       Rehan Wali                                                        -                              Technical Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th September 1998

 

Legal Form                  : Limited Liability Company - LLC

 

Trade Licence No.       : 219719

 

Chamber Member No. : 42854

 

Issued Capital              : UAE Dh 150,000

 

Paid up Capital            : UAE Dh 150,000

 

Name of Shareholder (s)                                                        Percentage

 

·       Saud Abdulaziz Abdullah                                                       51%

 

·       Mohamed Asghar Hussain                                                     49%

 

 

OPERATIONS

 

Activities: Engaged as general construction contractors, specialising in water proofing and damp proofing, flooring  concrete repairs, acoustic insulation, structural strengthening and fabric shade structures.

 

Import Countries: Europe, Australia and the United States of America.

 

International Suppliers:

 

·       Sika                                     Switzerland

·       Cetco                                   United Kingdom

·       Deneef                                 Belgium

·       Alchimica                             Greece

·       Neoferma                              Australia

·       Liquid Plastic                        United Kingdom

·       General Membrane                Italy

·       Fosroc                                 United Arab Emirates

·       Awazel                                 Saudi Arabia

·       Terraco                                 United Arab Emirates

·       Cytech                                 United Arab Emirates

·       Unimar Trading                      United Arab Emirates

·       Anwar Al Bashaier                 United Arab Emirates

·       Conmix                                United Arab Emirates

·       Grace                                   United States of America

·       Laticrete                               United States of America

·       Webac                                 United States of America

·       Borner                                  Germany

·       Volclay                                 Australia

·       BASF                                   Germany

·       Koster                                  Germany

·       Soprema                              France

 

Operating Trend: Steady

 

Subject has a workforce of approximately 400 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 Sales                                UAE Dh 62,800,000                   UAE Dh 65,000,000

 

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

 

The above figures were provided by Mr Sayed Mansour, Finance Manager

 

 

BANKERS

 

·       National Bank of Fujairah

     PO Box: 1416

     Sharjah

     Tel: (971-6) 5561100

     Fax: (971-6) 5561010

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              June 2013

Credit amount                                        50,000

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.60.14

UK Pound

1

Rs.102.22

Euro

1

Rs.81.02

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.