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Report Date : |
08.11.2014 |
IDENTIFICATION DETAILS
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Name : |
AFRICAN COMMODITIES DMCC |
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|
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Registered Office : |
Plot No. 11, AG Tower, Level 22, Office A2 E & L, Jumeirah Lakes Towers,
Street : Sheikh Zayed Road, PO Box: 113709, Town: Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
31.07.2004 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in the Import and Distribution of steel, iron and other metal
products and chemicals |
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No of Employees : |
15 |
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 |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 $10 billion loan
from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce,
and growing inflation pressures are significant long-term challenges. The UAE's
strategic plan for the next few years focuses on diversification and creating
more opportunities for nationals through improved education and increased
private sector employment.
|
Source
: CIA |
Company Name :
AFRICAN COMMODITIES DMCC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company
Registration Date :
31st July 2004
Trade Licence Number :
30066
Membership Number :
0070
Issued Capital :
US$ 54,795
Paid up Capital :
US$ 54,795
Total Workforce :
15
Activities :
Distributors of steel, iron and other metal products and chemicals.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
AFRICAN COMMODITIES DMCC
Registered & Physical Address
Location : Plot No. 11,
AG Tower, Level 22, Office A2 E & L, Jumeirah Lakes Towers
Street : Sheikh Zayed
Road
PO Box : 113709
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 4408200
/ 4408215 / 4408209
Facsimile : (971-4)
4475211
Mobile : (971-50)
2804952 / 6518348
Email : vishal.aggarwal@afdmcc.com
/ ekta.gupta@afdmcc.com / a.narang@afdmcc.com
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Dubai.
Name Position
Raj Kumar Gupta Managing
Director
Anil Narang Assistant
Finance Manager
Vishal Agrawal Investment
Relations Manager
Omar Farooq Sales
Manager
Date of Establishment : 31st
July 2004
Legal Form : Limited Liability
Company
Trade Licence No. : 30066
Membership No. : 0070
Issued Capital : US$ 54,795
Paid up Capital : US$ 54,795
Name of Shareholder (s) Percentage
Trans Global Group Investment Ltd 100%
British Virgin Islands
Parco Enterprises Nigeria Ltd
Lagos
Nigeria
Activities: Engaged in the import and distribution of steel, iron and other metal
products and chemicals.
Import Countries: Europe and the Far East.
Operating Trend: Steady
Subject has a workforce of 15 employees.
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
Balance Sheet 31/12/10 31/12/09
Non-current assets
Property, plant and equipment 4,138,745 2,561,826
Investment properties 323,581 -
Current assets
Inventories 2,051,189 7,900,246
Trade and other receivables 83,872,579 66,732,683
Cash 115,659 63,027
Other current financial assets 22,066 5,003,967
86,061,493 79,699,923
Current liabilities
Bank borrowings (25,902,987) (22,246,215)
Trade and other payables (11,276,918) (4,791,513)
(37,179,905) (27,037,728)
Net current assets 48,881,588 52,662,195
Non-current liabilities
Staff-end-of service gratuity (55,321) (30,377)
53,288,593 55,193,644
Share capital 54,795 54,795
Retained earnings 52,307,832 50,536,057
Equity funds 52,362,627 50,590,852
Shareholders’ current account 925,966 4,602,792
53,288,593 55,193,644
Statement of Income
Sales 300,104,214 302,602,834
Cost of sales (269,333,885) (271,093,424)
Gross profit 30,770,329 31,509,410
Other operating income 861,883 419,093
Staff costs (1,141,616) (558,529)
Depreciation expense (297,485) (63,789)
Other operating expenses (269,608) (151,315)
Provision for doubtful debts - (8,165)
Impairment loss - (507,740)
Profit from operating activities 29,923,503 30,638,965
Interest income 71,567 34,141
Finance costs (1,223,295) (1,167,494)
Profit for the year 28,771,775 29,505,612
Turnover for the year ending 31st December 2012 was US$
439,073,000. Full financial figures for the year ending 31st
December 2013 were not made available.
Local sources consider subject’s financial condition to be Good.
HSBC Bank Middle East
Deira Souk Branch
PO Box: 66
Dubai
Tel: (971-4) 2535000
No complaints regarding subject’s payments have been reported.
Date of transaction January
2014
Credit amount 500,000
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
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.61.52 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.76.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.