MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

UNION CHEMICAL FACTORY

 

 

Registered Office :

New Industrial Area, P O Box: 2715, Ajman

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

25.07.2004

 

 

Com. Reg. No.:

170, Ajman

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Manufacture of Lubricants, Oils and Greases.

 

 

No. of Employees :

25

 

 

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 – 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

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                                    : UNION CHEMICAL FACTORY

Country of Origin                                   : Ajman, United Arab Emirates

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 25th July 2004

Commercial Registration Number           : 170, Ajman

Trade Licence Number                           : 12819

Chamber Membership Number               : 7558

Invested Capital                                    : UAE Dh 500,000

Total Workforce                                     : 25

Activities                                               : Manufacture of lubricants, oils and greases.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Shamim Al Zaman, Finance Manager

COMPANY NAME

 

UNION CHEMICAL FACTORY

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : New Industrial Area

 

PO Box            : 2715

 

Town                : Ajman

Country             : United Arab Emirates

 

Telephone         : (971-6) 7437722 / 7439502

Facsimile          : (971-6) 7435069

Email                : unionchemicalfactory@gmail.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Sharjah Industrial Area                                                                      Sales office & warehouse premises

     PO Box: 40319

     Sharjah

     Tel: (971-6) 5421002

     Fax: (971-6) 5421003

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ahmed Habib Hassan                                                                       Proprietor & General Manager

 

·       Mohamed Habib Hassan                                                                   Assistant General Manager

 

·       Mohamed Nahidhi                                                                             Production Manager

 

·       Shamim Al Zaman                                                                            Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th July 2004

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.   : 170, Ajman

 

Trade Licence No.        : 12819

 

Chamber Member No.  : 7558

 

Invested Capital           : UAE Dh 500,000

 

Mr Ahmed Habib Hassan is the sole proprietor of the business.

 

 

AFFILIATED COMPANIES

 

·       Al Mehdar Distilled Water Factory

PO Box: 40319

Sharjah

Tel: (971-6) 5421002

       Fax: (971-6) 5421003

 

·       Super Star General Trading LLC

Dubai

Tel: (971-4) 2732738

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of lubricants, oils and greases.

 

Import Countries: Europe and the United States of America

 

Brand Names: SUPERSTAR and ALLIED

 

Operating Trend: Steady

 

Subject has a workforce of 25 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 65,000,000                   UAE Dh 67,250,000

 

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

 

The above figures were provided by Mr Shamim Al Zaman, Finance Manager

 

 

BANKERS

 

·       Commercial Bank of Dubai

Immigration Road

PO Box: 677

Sharjah

Tel: (971-6) 5740666

Fax: (971-6) 5740044

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

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.61.87

UK Pound

1

Rs.97.23

Euro

1

Rs.77.21

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.