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Report Date : |
23.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ECONOSTO MID EAST B.V. |
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Registered Office : |
Dubai Investment Park No. 1 Jebel Ali Free Zone PO Box 60789 Dubai |
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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 : |
23.12.1985 |
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Com. Reg. No.: |
13937, Sharjah |
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Legal Form : |
Branch of a Foreign Registered Corporation |
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Line of Business : |
Subject is engaged in the manufacture and distribution of tubes, pipes
and fittings, valves, gauges, filters & strainers, pressure and temperature
gauges, gaskets and sealing products, hoses and couplings, engineering
plastics, emission control systems, rubber products, expansion joints and
pipe support systems |
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No. of Employees : |
140 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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UAE |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source
: CIA |
Company Name : ECONOSTO MID EAST B.V.
Country of Origin : Netherlands
Legal Form : Branch of a Foreign Registered Corporation
Registration Date : 23rd December 1985
Commercial Registration Number : 13937, Sharjah
Trade Licence Number : 19614
Chamber Membership Number : 14870
Issued Capital : UAE Dh 200,000
Paid up Capital : UAE Dh 200,000
Total Workforce : 140
Activities : Manufacture and distribution of industrial supplies.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Gopal Vijay, Finance Manager
ECONOSTO MID EAST B.V.
Location : Dubai
Investment Park No. 1
Area : Jebel Ali Free
Zone
PO Box : 60789
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 8062800
Facsimile : (971-4)
8854501
Mobile : (971-50)
6460429 / 4814846
Email : econosto@econosto.co.ae
/ vijay@econosto.ae
Subject operates from a medium sized suite of offices, a warehouse and a
factory that are rented and located in the Industrial Area of Sharjah.
Branch Office (s)
Econosto Mid East B.V. also operates from the
following sites in the United Arab Emirates:
· PO Box: 70187
Abu Dhabi
Tel: (971-2)
6334500
Fax: (971-2)
6334501
Mob: (971-50)
6265935
Email: econauh@emirates.net.ae
· PO Box: 3115
Sharjah
Tel:
(971-6) 5686471
Fax:
(971-6) 5686472
Name Position
· Obaid Mohamed Al
Shamsy Managing
Director
· Christiano
Frietman General
Manager
· Christine Murthy Chief
Financial Officer
· Gopal Vijay Finance
Manager
· Premi Martis Administration
Manager
· N Shrinath Product
Manager
· Riyaz Chota Logistics
Manager
· Fabian Hoehn Purchasing
Manager
· Savio Lewis Quality
Control Manager
· Debra Benadi Human
Resources Manager
· Rami Jabali Regional
Manager
Date of
Establishment : 23rd
December 1985
Legal Form : Subject is the
United Arab Emirates registered branch of S H V Holdings NV, a Limited
Liability Company
incorporated in the Netherlands.
Econosto
Mid East B.V. in the United Arab Emirates, operates as a Branch of a Foreign
Registered
Corporation with its registered office located at the following address:
S H
V Holdings NV
Rijnkade 1
3511 LC Utrecht
The
Netherlands
Tel:
(31-30) 2338833
Fax:
(31-30) 2338304
A Branch
of a Foreign Registered Corporation is not a legal entity in its own right.
Responsibility for payments lays in the hands of the company where it is
originally
registered.
Under these circumstances, we strongly advise that any international
trade credit should
only
be written under the name of the main company where the subject holds its registered office, in this case the
Netherlands.
Commercial Reg.
No. : 13937, Sharjah
Trade Licence No. : 19614
Membership No. :
14870
Issued Capital : UAE Dh 200,000
Paid up Capital : UAE Dh 200,000
Activities: Subject is engaged in the manufacture and distribution of tubes, pipes
and fittings, valves, gauges, filters & strainers, pressure and temperature
gauges, gaskets and sealing products, hoses and couplings, engineering
plastics, emission control systems, rubber products, expansion joints and pipe
support systems. Subject also provides onshore and offshore oilfield services.
The company’s clients are based in the
following sectors: HVAC, Plumbing and fire fighting, oil and gas, chemical and
petrochemical, shipbuilding and repair, mechanical engineering, water and
wastewater management.
Subject has been awarded certification to
ISO 9002.
Import Countries: Switzerland, Spain, Italy, the Netherlands,
Germany, the United Kingdom and the United States of America
International Suppliers:
· Straub Switzerland
· Bac Spain
· Bonetti Italy
· Vovosider Italy
· Grassair The Netherlands
· Vankleeuwen The Netherlands
· Tower Engineering The United States of America
Brand Names: ECON, HOFLAND, NOVUS and ECONGRAPH
Operating Trend: Steady
Subject has a workforce of approximately 140 employees.
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 235,423,360 UAE Dh
238,801,277
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr. Gopal Vijay, Finance Manager
·
ABN Amro Bank
Al Zayani Building
PO Box: 1971
Sharjah
Tel: (971-6) 5355021
·
Royal Bank of Scotland
Client Services
Dept, 4th Floor
Khalid Bin Waleed
Road
Bur Dubai
Dubai
No complaints regarding subject’s payments have been reported.
Credit amount 185,000 300,000 300,000
Amount overdue 0 0 0
Payment terms 60
days 90 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints Still pending
Currency Deutsch
Marks US Dollars US Dollars
Econosto Mid East B.V. has been trading since 1985 and is engaged in the
manufacture and distribution of a wide range of industrial supplies.
According to local sources, subject has gained a good reputation for the
quality of its products and is deemed a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.57 |
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|
1 |
Rs. 98.87 |
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Euro |
1 |
Rs. 80.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.