MIRA INFORM REPORT

 

 

Report No. :

352402

Report Date :

02.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MADHU MULTI WIRES PRODUCTS FZC

 

 

Registered Office :

RAK Free Trade Zone, PO Box  : 50046, Ras Al Khaimah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.12.2004

 

 

Legal Form :

Free Zone Company - FZC

 

 

Line of Business :

Subject is engaged in the manufacture of metal wire.

 

 

No. of Employee :

23

 

 

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                                    : MADHU MULTI WIRES PRODUCTS FZC

Country of Origin                                   : Ras Al Khaimah, United Arab Emirates

Legal Form                                           : Free Zone Company - FZC

Registration Date                                  : 1st December 2004

Trade Licence Number                           : 8000038

Issued Capital                                       : UAE Dh 2,000,000

Paid up Capital                                     : UAE Dh 2,000,000

Total Workforce                                     : 23

Activities                                               : Manufacturers of metal wire.

Financial Condition                                : Fair

Operating Trend                                    : Steady

Person Interviewed                                : Manoj Kumar NC, Financial Controller

 

COMPANY NAME

 

MADHU MULTI WIRES PRODUCTS FZC

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : RAK Free Trade Zone

PO Box            : 50046

Town                : Ras Al Khaimah

Country             : United Arab Emirates

 

Telephone         : (971-7) 2668105

Facsimile          : (971-7) 2668106

Mobile              : (971-50) 6744938

Email                : madhumw@emirates.net.ae

 

Premises

 

Subject operates from a small suite of offices and a factory that are rented and located in the Free Trade Zone Area of Ras Al Khaimah.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                                Position

 

·       Madhu Agrawal                                                Indian                                    Managing Director

 

·       Navish Gupta                                                  Indian                                    Director

 

·       Avish Gupta                                                    Indian                                    Director

 

·       Manoj Kumar NC                                                 -                                        Financial Controller

 

·       Pradeep Kumar Hazar                                          -                                        Production Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st December 2004

 

Legal Form                  : Free Zone Company - FZC

 

Trade Licence No.        : 8000038

 

Issued Capital              : UAE Dh 2,000,000

 

Paid up Capital            : UAE Dh 2,000,000

 

Name of Shareholder (s)

 

·       Madhu Agrawal

 

·       Navish Gupta

 

·       Avish Gupta

 

 

AFFILIATED COMPANIES

 

·       Madhu Multi Trading LLC

PO Box: 20395

Al Musalla Tower, Office No. 1502

Bur Dubai

Dubai

Tel: (971-4) 3547882

Fax: (971-4) 3547883

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of metal wire.

Subject’s products include:

Galvanized Binding Wire: 18 Gauge (1.20mm) to 20 Gauge (.90mm)
Low Carbon Hard Drawn Wire: 0.6mm to 4.0mm
Low Carbon Black Annealed Wire: 0.9mm to 4.0mm
High Carbon Wire (with Carbon % of 0.65%): 1.5mm to 4.0mm
MS Round Bards as per ASTM A 36- 2mm to 8mm.
PVC Coated Blue Laundry Hangers
Powder Coated Blue/White/ Gold Wire Hangers
Safety Shoes
Boiler Suits Full/Half Sleeves
Coveralls with Customized Logos
Spectacles - Clear, Grey, Green
Goggles – Anti-fog & Dust
Gloves
Traffic Cones
Reflective Jackets
Warning Tapes/Lights
First Aid Kits

Annual Production Capacity: 6,000 metric tonnes

 

Import Countries: Europe and the Far East.

 

Local Suppliers:

 

·       Emirate Steel            Abu Dhabi

·       Qatar Steel               Dubai

 

Export Countries: Bahrain, Oman, and Qatar

 

Operating Trend: Steady

 

Subject has a workforce of 23 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 46,200,000                   UAE Dh 48,000,000

 

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

 

The above figures were provided by Mr Manoj Kumar NC, Financial Controller

 

 

BANKERS

 

·       Habib Bank Ltd

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

 

 

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.66.52

UK Pound

1

Rs.100.44

Euro

1

Rs.70.44

UAE DH

1

Rs. 18.12

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 


 

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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