MIRA INFORM REPORT

 

 

Report No. :

320133

Report Date :

30.04.2015

 

IDENTIFICATION DETAILS

 

Name :

CAROLINA FABRICS LTD

 

 

Registered Office :

Sheikh Zayed Road, Jebel Ali Free Zone North, Gate No. 2, 16838, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.08.1992

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the weaving and stitching of non-clothing textiles.

 

 

No of Employees :

312

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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. 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 and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. 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                                    : CAROLINA FABRICS LTD

Country of Origin                                   : British Virgin Islands

Legal Form                                           : Branch of a Foreign Registered Corporation

Registration Date                                  : 26th August 1992

Trade Licence Number                           : 660

Chamber Membership Number               : 24925

Issued Capital                                       : UAE Dh 3,700

Paid up Capital                                     : UAE Dh 3,700

Total Workforce                                     : 312

Activities                                               : Weaving and stitching of non-clothing textiles.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Nouman Sallary, Finance Manager

 
Company name

 

CAROLINA FABRICS LTD

 

 

company ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road

Area                 : Jebel Ali Free Zone North, Gate No. 2

 

PO Box            : 16838

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8811911

Facsimile          : (971-4) 8811912

Mobile              : (971-50) 6456991

Email                : info@carolinafabgroup.com / export@carolinafabgroup.com / cfl@carolina.ae /     

                           kaleem@carolina.ae / numan@carolina.ae

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Nadeem Nishat Ahmed                                 Pakistani                       Managing Director

 

·       Mansour Nishat Ahmed                                 Pakistani                       Director

 

·       Nouman Sallary                                                   -                            Finance Manager

 

·       Rafiq Butt                                                           -                            Export Manager

 

·       Faisal Zaheer                                                       -                            Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26th August 1992

 

Legal Form                  : Subject is the United Arab Emirates registered branch of Carolina Fabrics Ltd, a

  Limited Liability Company incorporated in the British Virgin Islands.

 

  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.        : 660 (Expires 14/08/2016)

 

Chamber Member No.  : 24925

 

Issued Capital              : UAE Dh 3,700

 

Paid up Capital            : UAE Dh 3,700

 

 

OPERATIONS

 

Activities: Engaged in the weaving and stitching of non-clothing textiles.

 

Carolina’s Spinning Unit was established in March 2003 and is equipped with the latest in machinery, and has a capacity of over 28,000 spindles.

 

     In 1999 subject was approved by BVQI for ISO 9002/ 1994 certification.

 

Production Capacity: Spinning              8,000 tons per year

                                   Weaving                        27 million linear metres per year

                                   Stitching                        2 million sets per year

 

Import Countries: Pakistan, India, Far East, Europe, Turkey, USA, Australia and Egypt.

 

International Suppliers:

 

·       Lahoti Textile                        India

·       Kakani Export Ltd                 India

·       World Pack FZE                   Sharjah

·       Green Packaging Box FZE    Sharjah

 

Export Countries: United States of America, Canada, Europe, Turkey, Hong Kong and Australia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 312 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                UAE Dh 102,100,000                 UAE Dh 95,600,000

 

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

 

The above figures were provided by Mr Nouman Sallary, Finance Manager

 

 

BANKERS

 

·       Abu Dhabi Commercial Bank

Al Rigga Road

PO Box: 5550

Dubai

Tel: (971-4) 2958888 / 3228141

Fax: (971-4) 2959310 / 3279632

 

·       Banque Paribas

Twin Towers, 14th Floor

Baniyas Street

PO Box: 7233

Dubai

Tel: (971-4) 2525929

 

 

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. 63.20

UK Pound

1

Rs. 97.00

Euro

1

Rs. 69.33

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

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%)

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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.