MIRA INFORM REPORT

 

 

Report Date :

28.10.2014

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL PAINTS FACTORIES CO LLC (NPFCL)

 

 

Registered Office :

National Paints Building, 5th Industrial Square, Industrial Area No. 13, 5822 Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

20.09.1977

 

 

Com. Reg. No.:

1213, Sharjah

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Engaged in the manufacture and marketing of a wide range of paints for the following purposes - industrial, decorative, marine, automotive and furniture.

 

 

No. of Employees :

1,350

 

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 :

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 – 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                                    : NATIONAL PAINTS FACTORIES CO LLC (NPFCL)

Country of Origin                                   : Sharjah, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 20th September 1977

Commercial Registration Number           : 1213, Sharjah

Trade Licence Number                           : 3103

Chamber Membership Number               : 3725

Issued Capital                                       : UAE Dh 2,100,000

Paid up Capital                                     : UAE Dh 2,100,000

Total Workforce                                    : 1,350

Activities                                               : Manufacture and marketing of paints.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person (s) Interviewed                           : Fadi Nadaff, Financial Controller

 

 

 


COMPANY NAME

 

NATIONAL PAINTS FACTORIES CO LLC (NPFCL)

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : National Paints Building

Street               : 5th Industrial Square

Area                 : Industrial Area No. 13

 

PO Box            : 5822

 

Town                : Sharjah

Country : United Arab Emirates

 

Telephone         : (971-6) 5340111 / 5343116 / 5130000

Facsimile          : (971-6) 5340222 / 5343115

Email                : npfcl@national-paints.com / paints@emirates.net.ae / emadkh@national-paints.com

                           fadin@national-paints.com / marwahm@national-paints.com

 

Premises

 

Subject operates from a suite of offices, a warehouse and a factory covering an area of 85,000 square metres that are owned and located in the Industrial Area of Sharjah.

 

Branch Office (s)

 

     Location                                                                                                       Description

 

·       PO Box: 27455                                                                                             Sales Office & showroom

Abu Dhabi

Tel: (971-2) 6340400

Fax: (971-2) 6340411

 

·       Al Ain                                                                                                           Sales Office & showroom

Tel: (971-3) 7551313

Fax: (971-3) 7551315

 

·       Dubai                                                                                                           Sales Office & showroom

Tel: (971-4) 2651651

Fax: (971-4) 2651656

 

·       Ras Al Khaimah                                                                                            Sales Office & showroom

Tel: (971-50) 4948561
Fax: (971-7) 2332618

 

·       Fujairah Sales Office & showroom

       Tel: (971-50) 7107501
Fax: (971-9) 2223616

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                                 Position

 

·       Thamer Salim Faiq Sayegh                            Jordanian                                  Managing Director

 

·       Ibrahim Faiq Sayegh                                     Jordanian                                  Director

 

·       Michael Faiq Sayegh                                                Jordanian                                  Director

 

·       Ahmed Mohamed  Hamd Al Medfaa                Emirati                                    Director

 

·       Emad Al Huneidi                                                  -                                        Finance Manager

 

·       Fadi Nadaff                                                         -                                        Financial Controller

 

·       Fathi Trabulsi                                                       -                                        Administration Manager

 

·       Mustafa M Sulaiman                                            -                                        Commercial Manager

 

·       Loay Assaf Al Nemeh                                          -                                        Personnel Manager

 

·       Marwa H Mahmoud                                              -                                        Purchasing Manager

 

·       Ghobal Kanoshia                                                 -                                        Production Manager

 

·       Naeem Mouj                                                        -                            Marketing Manager

 

·       Abdul Raoof Fakhera                                           -                                        Sales Manager

 

·       Elias Fayad                                                         -                                        Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20th September 1977

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 1213, Sharjah

 

Trade Licence No.        : 3103

 

Chamber Member No.  : 3725

 

Issued Capital              : UAE Dh 2,100,000

 

Paid up Capital            : UAE Dh 2,100,000

 

Name of Shareholder (s)

 

·       National Paints Factory Co Ltd (NPFCO)

Abu Alanda

PO Box: 533

     Amman 11592

     Jordan

     Tel: (962-6) 4162481

     Fax: (962-6) 4162483

 

·       Ahmed Mohamed Hamd Al Medfaa

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Sayegh Brothers International Group of Companies, which consists of the following concerns:

 

·       National Paints Factory Co Ltd

Amman

 

·       National Paints Factories Co WLL

Street No. 41

New Industrial Area

PO Box: 40544

Doha

     Qatar

     Tel: (974) 4601602 / 4601603

     Fax: (974) 4600368 / 4602721

     Email: npf@qatar.net.qa

 

·       National Canning Industries Co Ltd

PO Box: 533

Amman

Jordan

 

·       United Locks Co Ltd

PO Box: 533

Amman

Jordan

 

·       National Drums Co Ltd

PO Box: 533

Amman

Jordan

 

·       Emirates Metallic Industries Co (EMIC)

Industrial Area No. 6

PO Box: 6258

Sharjah

Tel: (971-6) 5341526

Fax: (971-6) 5341265

Email: emic@emirates.net.ae

 

·       Alva Paints

Dubai

     United Arab Emirates

     Tel: (971-4) 2852685

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and marketing of a wide range of paints for the following purposes - industrial, decorative, marine, automotive and furniture.

 

In March 2000 subject’s production capacity was increased with the completion of an expansion programme that made it the largest paints factory in the Middle East. There is also a separate plant for the production of Alkyd resins on the same site, with a production capacity of 15,000 metric tonnes per annum

 

Subject is ISO 9002 certified.

 

Production Capacity:    120,000 tonnes per annum

 

Import Countries: Saudi Arabia, Europe and GCC countries

 

International Suppliers:

 

·       Transocean Marine Paint                               Netherlands

·       Dyrup Co                                                     Denmark

·       Shell Middle East                                         Dubai

·       SABIC                                                          Saudi Arabia

·       SIPCHEM                                                     Saudi Arabia

·       National Tatinium Dixoide Co (Crystal)           Saudi Arabia

 

Brand Names: PAINTCO

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,350 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 252,000,000                 UAE Dh 260,000,000

 

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

 

The above figures were provided by Mr Marwa H Mahmoud, Purchasing Manager

 

 

BANKERS

 

·       United Arab Bank

PO Box: 881

Sharjah

Tel: (971-6) 5354111

 

·       Arab Bank Plc

Al Maktoum Street

PO Box: 11364

Dubai

Tel: (971-4) 2228845

Fax: (971-4) 2285974 / 2940847

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               December 2002             May 2007

Credit amount                                       600,000                         150,000

Amount overdue                                    0                                              0

Payment terms                                      60 days                                                60 days

Payment Method                                   Letters of Credit                                    Letters of Credit

Paying record                                       No Complaints                          No Complaints

Currency                                               Euros                                       US Dollars

 

 

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.61.22

UK Pound

1

Rs.98.52

Euro

1

Rs.77.75

 

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.