MIRA INFORM REPORT

 

 

Report Date :

14.03.2014

 

IDENTIFICATION DETAILS

 

Name :

AL GURG PAINTS LLC

 

 

Formerly Known as: 

Al Gurg Leighs Paints LLC.

 

 

Registered Office :

Main Emirates Road, Industrial Area No. 13, P O Box 22334, Sharjah

 

 

Country :

United Arab Emirates 

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

22.11.1988

 

 

Com. Reg. No.:

17887, Sharjah

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

manufacturer of industrial decorative, fire protection and heavy duty coating paints.

 

 

No. of Employees

100

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

United Arab Emirates 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA

 

 

 

 

 

 

 

SUMMARY

 

Company Name                                     : AL GURG PAINTS LLC

Previously Known As                              : AL GURG LEIGHS PAINTS LLC

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 22nd November 1988

Commercial Registration Number            : 17887, Sharjah

Trade Licence Number                            : 3395

Chamber Membership Number                : 22129

Issued Capital                                        : UAE Dh 4,500,000

Paid up Capital                                      : UAE Dh 4,500,000

Total Workforce                                     : 100

Activities                                               : Manufacture of industrial decorative, fire protection and heavy duty

coating paints.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Anderjet Basu, Finance Manager

 

COMPANY NAME

 

AL GURG PAINTS LLC

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Main Emirates Road

Area                 : Industrial Area No. 13

PO Box             : 22334

Town                 : Sharjah

Country             : United Arab Emirates

Telephone         : (971-6) 5343919

Facsimile          : (971-6) 5343983

Email                : enquiries@agp.ae

 

Premises

Subject operates from a medium sized suite of offices and a factory that are owned and located in the Industrial Area of Sharjah.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       PO Box: 70024                                                                                 Rented sales office

Abu Dhabi

Tel: (971-2) 4431449

 

·       Satwa Area                                                                                       Rented sales office

Dubai

Tel: (971-4) 3442525

 

 

KEY PRINCIPALS

 

     Name                                                          Nationality                   Position

·       Essa Saleh Al Gurg                                         Emirati                        Managing Director

 

·       Sunil Gudur                                                         -                            General Manager

 

·       Anderjet Basu                                                      -                            Finance Manager

 

·       Bajit Metra                                                           -                            Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd November 1988

 

History                         : Subject began in 1988 under the name Al Gurg Leighs Paints LLC. However it changed its name to Al Gurg Paints LLC in 2009.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 17887, Sharjah

 

Trade Licence No.       : 3395 (Expires 21/11/2014)

 

Chamber Member No. : 22129

 

Issued Capital              : UAE Dh 4,500,000

 

Paid up Capital            : UAE Dh 4,500,000

 

Name of Shareholder (s)                                              Percentage

 

·       Essa Saleh Al Gurg Group LLC                                       99.978%

Al Gurg Building

Khalid Ibn Walid Road

PO Box: 325

Dubai

United Arab Emirates

Tel: (971-4) 3523708

 

·       Essa Saleh Al Gurg                                                          0.022%

 

 

AFFILIATED COMPANIES

 

·       Al Gurg Stationery LLC

Dubai

 

·       Al Gurg Fosrec LLC

Dubai

 

·       Al Gurg Building Services LLC

Dubai

 

 


OPERATIONS

 

Activities: Engaged in the manufacture of industrial decorative, fire protection and heavy duty coating paints.

 

Import Countries: United Kingdom, India and Germany.

 

International Suppliers:

 

·         Ekzonbel                                         United Kingdom

·         Raveshia Colour & Pigment               India

 

Brand Names: DULUX and OASIS

 

Operating Trend: Steady

 

Subject has a workforce of 100 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 Revenue                            UAE Dh 42,300,000                   UAE Dh 45,000,000

 

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

 

The above figures were provided by Mr Anderjet Basu, 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                              July 2006

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

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.61.02

UK Pound

1

Rs.101.65

Euro

1

Rs.85.02

 

 

INFORMATION DETAILS

 

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.