MIRA INFORM REPORT

 

 

Report Date :

27.05.2014

 

IDENTIFICATION DETAILS

 

Name :

JRD INTERNATIONAL

 

 

Registered Office :

Sheikh Zayed Road, Jebel Ali Free Zone, 17627

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

14.02.2001

 

 

Legal Form :

Subject is the United Arab Emirates registered branch of Zep International Ltd, a Limited Liability Company incorporated in the British Virgin Island

 

 

Line of Business :

Engaged in the manufacture and distribution of plastics products, including disposable cutlery, doors and windows, bottles and containers, buckets and pots, caps and lids, sheets and utensils

 

 

No. of Employees

340

 

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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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                                     : JRD INTERNATIONAL

Country of Origin                                    : British Virgin Islands

Legal Form                                            : Branch of a Foreign Registered Corporation

Registration Date                                   : 14th February 2001

Trade Licence Number                            : 2476

Chamber Membership Number                : 59263

Total Workforce                                     : 340

Activities                                               : Manufacturers and distributors of plastic products.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Michael Gregory, Financial Manager

 


COMPANY NAME

 

JRD INTERNATIONAL

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road

Area                 : Jebel Ali Free Zone

 

PO Box             : 17627

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8811867 / 8872867

Facsimile          : (971-4) 8811865

Email                : info@jrddubai.com / jrddubai@emirates.net.ae / zepintl@emirates.net.ae

 

Premises

 

Subject operates from a medium sized suite of offices and a factory that are rented and located in the Jebel Ali Free Zone Area of Dubai.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Anupam Lunavat                                                                               Managing Director

 

·       Michael Gregory                                                                                Financial Manager

 

·       Sheikh Fareed                                                                                  Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th February 2001

 

Legal Form                  : Subject is the United Arab Emirates registered branch of Zep International Ltd, a Limited

  Liability Company incorporated in the British Virgin Islands.

 

  JRD International in the United Arab Emirates, operates as a Branch of a Foreign

  Registered Corporation.

 

  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 British Virgin Islands.

 

Trade Licence No.       : 2476 (Expires 13/05/2014)

 

Chamber Member No. : 59263

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and distribution of plastics products, including disposable cutlery, doors and windows, bottles and containers, buckets and pots, caps and lids, sheets and utensils.

 

In October 2012 JRD International has invested Dh300 million ($80 million) in RMD Board – a composite

polypropylene board manufacturing plant that could change construction systems and the way people

dress-up interiors – both office and residences.

     The RMD Board manufacturing plant – a division of JRD International – has started production. The plant,

built on a 40,000 square metre plot of land in the Jebel Ali Free Zone, has created 700 jobs.  This plant will

service the GCC region as well as Africa and CIS.
  
     “By next year, this plant will reach 110,000 metric tonnes per year processing capacity of polypropylene.

That will make it the largest single-site manufacturing plant of rigid extrusion of polypropylene in the world,”

said Anupam Lunavat, managing director of JRD International. “The company plans to reach global

production of half a million metric tonnes per annum by 2016.”

     “When in full production, RMD Board will not only help UAE reduce its dependence on imported plywood,

particle board and MDF but also raise exports of manufactured products,” Lunavat says.

     RMD Board’s wall panels and false ceilings – which currently come in 300 different designs and textures –

will soon be available in over a thousand designs.

     RMD wall panels could also reduce imports of conventional wall panels if local interiors fit-out companies

utilise the locally manufactured RMD wall panels and false ceilings.

     According to the GRMC Advisory Services, the GCC wall-paneling market is poised to decline from $6.64

billion in 2011 to $5.28 billion in 2015, due to a slowdown in construction activities in parts of the region.

Lunavat said his company is also planning to invest up to Dh1.5 billion ($400 million) in international

expansion which will see the company build 80 lines in seven countries within the next four years.

     “Within the next four years, we will set up similar plants in emerging economies such as the BRIC nations

and Turkey and North America,” he said.

     The many offerings by RMD Board are all water proof, termite resistant, fire retardant, durable, light-weight

and 100 per cent recyclable. The use of polypropylene in these engineered products replaces the use of

wood. 

     These properties make them suitable for both interior and exterior applications such as construction site-

fencing, flooring, wall paneling, shuttering, outdoor advertising, billboards, etc.

     The shuttering services market in the GCC was estimated at $8.68 billion in 2010, which is expected to

reach $9.32 billion in 2015, according to GRMC Advisory Services, a research organisation.


     “Our RMD Board can save the contractors a lot of money as RMD Shuttering can be reused as many as

    200 times,” Mr. Lunavat says.

 

Import Countries: Europe and GCC Countries

 

Operating Trend: Steady

 

Subject has a workforce of approximately 340 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 109,600,000                  UAE Dh 115,000,000

 

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

 

The above figures were provided by Mr Michael Gregory, Financial Manager

 

 

BANKERS

 

·       Commercial Bank of Dubai

Mankhool Street

PO Box: 2668

Dubai

Tel: (971-4) 3523355

Fax: (971-4) 3527655 / 2524796

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222555

     Fax: (971-4) 2221110

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              February 2014

Credit amount                                        100,000

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.58.58

UK Pound

1

Rs.98.66

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.