MIRA INFORM REPORT

 

 

Report Date :

13.06.2014

 

IDENTIFICATION DETAILS

 

Name :

MS STEEL INTERNATIONAL FZCO

 

 

Registered Office :

Warehouse No FZS 1, AK02, Jebel Ali Free Zone, P O Box 49851, Dubai

 

 

Country :

United Arab Emirates 

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

07.09.2005

 

 

Com. Reg. No.:

1750, Dubai

 

 

Legal Form :

Free Zone Company

 

 

Line of Business :

Engaged in the import and distribution of metals, including steel and copper

 

 

No of Employees :

16

 

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 – 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

Company Name                                    : MS STEEL INTERNATIONAL FZCO

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Free Zone Company - FZCO

Registration Date                                  : 7th September 2005

Commercial Registration Number           : 1750, Dubai

Trade Licence Number                           : 6440

Issued Capital                                       : UAE Dh 600,000

Paid up Capital                                     : UAE Dh 600,000

Total Workforce                                     : 16

Activities                                               : Distributors of metals, including steel and copper.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Sanjay Agrawal, Director

 

 

 


COMPANY NAME

 

MS STEEL INTERNATIONAL FZCO

 

 

COMPANY ADDRESS

 

Registered & Physical Address

Location           : Warehouse No FZS 1, AK02

Area                 : Jebel Ali Free Zone

PO Box                        : 49851

Town                : Dubai

Country : United Arab Emirates

Telephone         : (971-4) 8809931

Facsimile          : (971-4) 8809935

Mobile              : (971-50) 6407998 / 6508647

Email                : msteel@emirates.net.ae

 

Premises

Subject operates from a small suite of offices and a warehouse that are rented and located in the Jebel Ali Free Zone, Dubai.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Banks Building, 2nd Floor, Office No. 212                                           Rented office premises

Banks Street

Bur Dubai

Dubai

Tel: (971-4) 3592080

Fax: (971-4) 3594441

Mob: (971-50) 3442450

Email: gsmllc@emirates.net.ae

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

·       Dinesh Chandra Agarwal                                  Indian                                    Managing Director

·       Sanjay Agarwal                                                    -                            Director

·       Basant Bhinge                                                     -                            Finance Manager

·       Sunil Menon                                                        -                            Sales Manager

·       D Banarjee                                                          -                            Administration Manager

·       Janeth Fernandes                                                -                            Administrative Secretary

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 7th September 2005

 

Legal Form                  : Free Zone Company - FZCO

 

Commercial Reg. No.   : 1750, Dubai

 

Trade Licence No.        : 6440

 

Issued Capital              : UAE Dh 600,000

 

Paid up Capital            : UAE Dh 600,000

 

 

Name of Shareholder(s)                                                       Percentage

·       Dinesh Chandra Agarwal                                                       67%

·       Sanjay Agarwal                                                                     33%

 

 

AFFILIATED COMPANIES

 

·       JSM International LLC

     Khalid Ibn Al Walid Street (Bank Street)

     PO Box: 49851

     Dubai

     Tel: (971-4) 3592080

     Fax: (971-4) 3594441

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of metals, including steel and copper.

 

Import Countries: China, Korea, Japan, Ukraine, CIS, Turkey and India.

 

Operating Trend: Steady

 

Subject has a workforce of 16 employees.

 


FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

Currency: United States Dollars (US$)

 

Balance Sheet                                                                      31/12/11                                   31/12/10

 

Assets

Non-current assets

Property, plant and equipment                                             2,694,927                                 1,350,169

Total non-current assets                                                      2,694,927                                 1,350,169

 

Current assets

Inventories                                                                        23,881,813                                 7,613,019

Trade receivables                                                              13,992,276                                 6,164,149

Advances, deposits and other receivables                           6,002,228                                    942,512

Fixed deposit                                                                     1,221,703                                 1,120,000

Cash and bank balances                                                      2,736,831                                 1,052,602                

Total current assets                                                           47,764,851                               16,892,282

 

Total assets                                                                      50,459,778                               18,242,451

 

Equity and Liabilities

Shareholders’ equity

Share capital                                                                         163,260                                    163,260

Retained earnings                                                              15,666,990                               12,056,805

Shareholders’ current account                                              1,029,038                                 1,029,038

Total shareholders’ equity                                                  16,859,288                               13,249,103

 

Non-current liabilities

Bank borrowings – non-current portion                                    220,567                                      42,817

Employees’ end of service benefits                                          89,633                                      51,509

Total non-current liabilities                                                      310,200                                      94,326

 

Current liabilities

Trade and other payable                                                    14,692,739                                 2,556,079

Bank borrowings                                                               18,597,551                                 2,342,943

Total current liabilities                                                        33,290,290                                 4,899,022

 

Total liabilities                                                                 33,600,490                                 4,993,348

 

Total shareholders’ equity and liabilities                          50,459,778                               18,242,451

 

Income Statement                                                                31/12/11                                   31/12/10

 

Revenue                                                                          271,450,524                              148,398,457

Cost of sales                                                                (260,683,600)                            (142,304,140)

 

Gross profit                                                                      10,766,924                                 6,094,317

 

Managerial remuneration                                                       (300,000)                                  (300,000)

Other income                                                                         230,433                                       8,612

Selling and distribution expenses                                       (1,920,561)                                  (976,282)

Administrative expenses                                                    (3,239,334)                               (2,136,806)

Finance costs                                                                   (1,972,277)                                  (617,518)

 

Profit for the year                                                               3,610,185                                 2,072,323

 

Revenue for the year ending 31st December 2012 was US$ 340,000,000.

 

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

 

 

BANKERS

 

·       Standard Chartered Bank

Khalid Bin Waleed Street

PO Box: 999

Dubai

     Tel: (971-4) 2520455

 

·       Banque Cantonale Vaudoise

1001 Lausanne

Switzerland

Tel: (41-21) 2121000

 

·       National Bank of Fujairah (PSC)

PO Box: 2979

Dubai

Tel: (971-4) 3971700 / 5078300

Fax: (971-4) 3979100 / 3973922

 

·       Emirates NBD Bank (PJSC)

Baniyas Street

       PO Box: 777

       Dubai

       Tel: (971-4) 2222241

 

·       HSBC Bank Middle East Limited

       Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

·       Mashreq Bank (PJSC)

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

 

·       BNP Paribas (Suisse) SA

Switzerland

 

·       Habib Bank AG

Zurich AG

Bur Dubai

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 2005, subject is involved in the import and distribution of metals, including steel and copper.

 

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.59.33

UK Pound

1

Rs.99.68

Euro

1

Rs.80.30

 

 

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.