MIRA INFORM REPORT

 

 

Report No. :

337551

Report Date :

26.08.2015

 

IDENTIFICATION DETAILS

 

Name :

JOTUN POWDER COATINGS UAE LLC

 

 

Registered Office :

Plot No. 200B, Abu Dhabi Road, Al Quoz Industrial Area, P O Box: 51033, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

14.12.1989

 

 

Com. Reg. No.:

40096, Dubai

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Manufacture of paint and varnishes, including decorative paints, marine and protective coatings and powder coatings.

 

 

No. of Employees :

90

 

 

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 – 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 of 2008, 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 economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : JOTUN POWDER COATINGS UAE LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 14th December 1989

Commercial Registration Number           : 40096, Dubai

Trade Licence Number                           : 300419

Chamber Membership Number               : 17883

Issued Capital                                       : UAE Dh 3,000,000

Paid up Capital                                     : UAE Dh 3,000,000

Total Workforce                                     : 90

Activities                                               : Manufacturers of paint and varnishes.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Ms Rosdale, Accountant

 


COMPANY NAME

 

JOTUN POWDER COATINGS UAE LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Plot No. 200B

Street               : Abu Dhabi Road

Area                 : Al Quoz Industrial Area

 

PO Box            : 51033

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 3472515

Facsimile          : (971-4) 3472815

Email                : powder@jotun.co.ae / jyoti.chokshi@jotun.ae

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Anwar Bin Ali Bin Sultan                                Omani                           Managing Director

 

·       Sheikh Hamdan Bin Rashid Al Maktoum         Emirati                          Director

 

·       Hans Monsbaken                                               -                              General Manager

 

·       Jyoti Chokshi                                                    -                              Finance Manager

 

·       Serena Gonsalves                                             -                              Commercial Manager

 

·       Ms Rosdale                                                       -                              Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th December 1989

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.   : 40096, Dubai

 

Trade Licence No.        : 300419 (Expires 16/08/2016)

 

Chamber Member No.  : 17883

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

Name of Shareholder (s)                                         Percentage

 

·       Sheikh Hamdan Bin Rashid Al Maktoum                     51%

 

·       Jotun AS                                                                  47%

Hystadvn 167

3248 Sandefjord

Norway

Tel: (47) 33457000

 

·       Taweel International Holding Ltd                                  2%

Jebel Ali Free Zone

Dubai

 

 

AFFILIATED COMPANIES

 

Jotun UAE Ltd (LLC) is a member of the well-known Jotun A/S of Norway, which is one of the world’s leading industrial and heavy duty marine paints and coatings manufacturers and suppliers. The group operates in 5 continents and in over 40 countries.

 

The Jotun Group in the Middle East includes the following concerns :

 

·       Jotun UAE Ltd (LLC)

     Jotun Building

     Airport Road

     Rashidiya, Al Quoz Industrial Area

     PO Box: 3671

     Dubai

     United Arab Emirates

     Tel: (971-4) 2857651 / 3395000

     Fax: (971-4) 2859051 / 3380666

     Email: jotunadh@emirates.net.ae

 

·       Jotun Abu Dhabi LLC

     Al Salam Street

     PO Box: 3714

     Abu Dhabi

     Tel: (971-2) 6771697

     Fax: (971-2) 6781710

     Email: jotunadh@emirates.net.ae

 

·       Jotun (Muscat) LLC

Rusayl Industrial Estate

PO Box: 1672

Muscat

Oman

Tel: (968) 24626100

 

·       Red Sea Paints Co Ltd

PO Box: 34698

Jeddah 21478

Saudi Arabia

Tel: (966-12) 6361271

Fax: (966-12) 6362483

 

·       Ratinjat Saudia Co Ltd

PO Box: 34698

Jeddah 21478

Saudi Arabia

Tel: (966-12) 6361271

Fax: (966-12) 6362483

 

·       Corro-Coat Saudi Arabia Ltd

PO Box: 10830

Dammam 31443

Saudi Arabia

Tel: (966-13) 8121259

Fax: (966-13) 8121226

 

·       Jotun Powder Coatings UAE (LLC)

PO Box: 51033

Dubai

United Arab Emirates

Tel: (971-4) 3472515

Fax: (971-4) 3472815

 

·       Jotun Saudi Arabia Ltd

Al Gosaibi Building

PO Box: 2038

Jeddah 21451

Saudi Arabia

Tel: (966-12) 6532968

 

·       Jotun Polymer Inc

Jebel Ali Free Zone

Dubai

United Arab Emirates

Tel: (971-4) 8835215

Fax: (971-4) 8835887

 

·       Jotun Paints

Al Moayyed Building

Manama

Bahrain

Tel: (973-17) 533944

Fax: (973-17) 533482

 

·       Jotun Paints

Industrial Zone

Ismailia

Egypt

Tel: (20-64) 327860

Fax: (20-64) 320946

 

·       Hepworth Plastic Gulf (HPG)

Al Ramoul Industrial Area

PO Box: 2345

Dubai

United Arab Emirates

Tel: (971-4) 2852670

Fax: (971-4) 2857553

 

·       Bin Ham Hepworth Plastic Gulf

PO Box: 6820

Abu Dhabi

United Arab Emirates

Tel: (971-2) 5727585

 

·       Ajay Enterprises-Hepworth Plastic Gulf

PO Box: 1667

Jeddah

Saudi Arabia

Tel: (966-12) 6990890

 

·       Y.K. Al Moayyed & Sons Hepworth Plastic Gulf

PO Box: 143

Manama

Bahrain

     Tel: (973-17) 211518

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of paint specialising in thermosetting powder coatings.

     Subject’s range consists of two main areas:

 

     -  Corrosion protection systems primarily for oil and gas pipelines and reinforcement steel.

     -  Decorative powder coatings intended to give an attractive finish to mass produced

        industrial goods.

 

Import Countries: Europe and the United States of America.

 

Operating Trend: Steady

 

Subject has a workforce of 90 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 75,000,000                   UAE Dh 77,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222241

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

Established in 1989, subject is involved in the manufacture of paint and varnishes, including decorative paints, marine and protective coatings and powder coatings.

 

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.66.71

UK Pound

1

Rs.105.10

Euro

1

Rs.77.11

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.