MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ECONOSTO MID EAST B.V.

 

 

Registered Office :

Dubai Investment Park No. 1 Jebel Ali Free Zone PO Box 60789 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

23.12.1985

 

 

Com. Reg. No.:

13937, Sharjah

 

 

Legal Form :

Branch of a Foreign Registered Corporation

 

 

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

 

 

No. of Employees :

140

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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                                     : 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

 

 


COMPANY NAME

 

ECONOSTO MID EAST B.V.

 

 

COMPANY ADDRESS

 

Registered & Physical Address

 

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

 

Premises

 

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

 

 

 

KEY PRINCIPALS

 

     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

 

 

LEGAL FORM & OWNERS

 

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

 

 

OPERATIONS

 

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 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 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

 

 

BANKERS

 

·       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

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  November 2001            February 2002              February 2003

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

 

 

 

 

GENERAL COMMENTS

 

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

UK Pound

1

Rs. 98.87

Euro

1

Rs. 80.05

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.