MIRA INFORM REPORT

 

 

Report No. :

334951

Report Date :

03.08.2015

 

IDENTIFICATION DETAILS

 

Name :

DANUBE BUILDING MATERIALS FZCO

 

 

Registered Office :

Plot No. EWTA 105, Warehouse S10834, Sheikh Zayed Road, Roundabout No. 5/6, Jebel Ali Free Zone, PO Box 18022, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

13.07.2003

 

 

Com. Reg. No.:

137

 

 

Legal Form :

Free Zone Company

 

 

Line of Business :

Subject is engaged in the import and distribution of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and mdf boards. subject’s product range consists of 15,000 items.

 

 

No. of Employees :

180

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. 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                                    : DANUBE BUILDING MATERIALS FZCO

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Free Zone Company - FZCO

Registration Date                                  : 13th July 2003

Commercial Registration Number           : 137

Trade Licence Number                           : 2914

Chamber Membership Number               : 79246

Issued Capital                                       : UAE Dh 1,000,000

Paid up Capital                                     : UAE Dh 1,000,000

Total Workforce                                    : 180

Activities                                               : Distributors of building materials and construction equipment

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Rama Swamy, Finance Manager

 


COMPANY NAME

 

DANUBE BUILDING MATERIALS FZCO

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Plot No. EWTA 105, Warehouse S10834

Street               : Sheikh Zayed Road, Roundabout No. 5/6

Area                 : Jebel Ali Free Zone

PO Box            : 18022

Town                : Dubai

Country : United Arab Emirates

Telephone         : (971-4) 8871234 / 8872800 / 8085599 / 3073104

Facsimile          : (971-4) 8871235 / 8872225 / 8816409 / 3073150

Mobile              : (971-50) 4580593

Email                : info@aldanube.com / reception@aldanube.com / sales@aldanubee.com /

                           ramaswamy@aldanubee.com

 

Premises

 

Subject operates from a suite of offices and a warehouse covering an area of 225,000 square metres that are rented and located in the Jebel Ali Free Zone.

 

 

KEY PRINCIPALS

 

Name                                                               Nationality                    Position

 

Sajan Rizwan Askar Ali                                       Indian                         Managing Director

 

Anis Askar Ali Sajan                                             Indian                                    Director

 

Tamim Hussian                                                        -                             General Manager

 

Ansari Tamim Ansari                                                -                             Commercial Manager

 

Rama Swamy                                                           -                            Finance Manager

 

Terry Thomas                                                           -                            Assistant Finance Manager

 

 


LEGAL FORM & OWNERS

 

Date of Establishment  : 13th July 2003

 

Legal Form                  : Free Zone Company – FZCO

 

Commercial Reg. No.   : 137

 

Trade Licence No.        : 2914

 

Chamber Member No.  : 79246

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

Name of Shareholder (s)                                               Percentage

 

Sajan Rizwan Askar Ali                                                      50%

 

Anis Askar Ali Sajan                                                           50%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Danube Group of companies, which includes the following concerns:

 

Al Danube Building Materials Trading Co LLC

Rashid Abdullah Al Reshaidan Building

Al Rigga Street

Al Muraqqabat

PO Box: 50804

Dubai

Tel: (971-4) 2256512 / 2256514

Fax: (971-4) 2255412

Email: aldanube@emirates.net.ae

 

Danube Dekor FZCO

Sheikh Zayed Road

Jebel Ali Free Zone

PO Box: 18022

Dubai

Tel: (971-4) 8871234

Fax: (971-4) 8871235

 

Danube Ceiling Factory LLC

Sharjah

 

Arabian Gulf Wood Industries LLC

Sharjah

 

Al Bustan General Trading FZCO

Dubai

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and MDF boards. Subject’s product range consists of 15,000 items.

 

Danube has supplied products for prestigious projects including Emaar projects such as Emirates Hills, the Burj Al Arab, Shangrila Hotel, Grand Hyatt, and a private palace in Muscat

 

Import Countries: Europe, China and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of 180 employees. The Danube Group employs approximately 350 people.

 

 

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 1,840,000,000               UAE Dh 1,965,000,000

 

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

 

The above figures were provided by Mr Rama Swamy, Finance Manager

 

 

BANKERS

 

HSBC Bank Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 2535000

 

Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

 

United Arab Bank

Jebel Ali Free Zone

PO Box: 16823

Jebel Ali

Dubai

Tel: (971-4) 8816445

Fax: (971-4) 8816845

Acc No. 282 7600 81016

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Danube Building Materials FZCO was registered in July 2003 and is a leading supplier of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and MDF boards.

 

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.64.00

UK Pound

1

Rs.99.84

Euro

1

Rs.70.16

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.