MIRA INFORM REPORT

 

 

Report No. :

354864

Report Date :

15.12.2015

 

IDENTIFICATION DETAILS

 

Name :

JBF RAK LLC

 

 

Registered Office :

Al Jazera Al Hamra Area, P O Box: 6574, Ras Al Khaimah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

01.05.2007 (Production Began in July 2007)

 

 

Com. Reg. No.:

29204, Ras Al Khaimah

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Manufacture of PET Resin and Films for Bottles.

 

 

No. of Employees :

570

 

 

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 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                                    : JBF RAK LLC

Country of Origin                                   : Ras Al Khaimah, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 1st May 2007

Commercial Registration Number           : 29204, Ras Al Khaimah

Industrial Licence Number                      : 10RZ4 11070787

Chamber Membership Number               : 72357

Issued Capital                                       : UAE Dh 237,159,000

Paid up Capital                                     : UAE Dh 237,159,000

Total Workforce                                     : 570

Activities                                               : Manufacture of PET resin and films for bottles

Financial Condition                                : Good

Payments                                             : Regular

Operating Trend                                    : Steady

Person Interviewed                                : Prakash Raval, Finance Manager

 

 


COMPANY NAME

 

JBF RAK LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Al Jazera Al Hamra Area

 

PO Box            : 6574

 

Town                : Ras Al Khaimah

Country             : United Arab Emirates

 

Telephone         : (971-7) 2447269 / 2447289 / 2047100

Facsimile          : (971-7) 2447202 / 2447279 / 2446620

Mobile              : (971-50) 4874175 / 5401514

Email                : cba@jbfrak.ae / prakashraval@jbfrak.ae

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Industrial Area of Ras Al Khaimah.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Cheerag P Arya                                                                                Managing Director

 

·       Rohit Maindwali                                                                                General Manager

 

·       Antonea D'souza                                                                              Purchasing Manager

 

·       Prakash Raval                                                                                  Finance Manager

 

·       Gangadar S Poojar                                                                           Assistant Finance Manager

 

·       Gopal Krishna                                                                                  Export Manager

 

 


LEGAL FORM & OWNERS

 

Date of Establishment  : 1st May 2007 (Production began in July 2007)

 

History                         : Subject began in 2007 under the name “JBF RAK FZ LLC”. However in 2008 it changed its

  name to “JBF RAK LLC”.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 29204, Ras Al Khaimah

 

Industrial Licence No.  : 10RZ4 11070787

 

Chamber Member No.  : 72357

 

Issued Capital              : UAE Dh 237,159,000

 

Paid up Capital            : UAE Dh 237,159,000

 

Name of Shareholder (s)                                                      Percentage

 

·       Ras Al Khaimah Investment Authority (RAKIA)                        51%

 

·       JBF Global Pte Ltd                                                               49%

Singapore

 

 

AFFILIATED COMPANIES

 

·       JBF Bahrain SPC

Manama

Bahrain

 

·       JBF Global Europe BVBA

Belgium

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of PET resin and films for bottles.

 

JBF RAK produces 360,000 TPA of finest Bottle Grade PET Resin, and 102,000 TPA of BOPET Film  under the brand name ARYAPET.

 

Import Countries: India, China, Italy, Belgium, Germany, Saudi Arabia and South Korea.

 

International Suppliers:

 

·       SABIC                                              Saudi Arabia

·       Samsung C & T Corporation              South Korea

·       Hyosing Corporation                         South Korea

·       Mitsui                                               Belgium

 

Operating Trend: Steady

 

Subject has a workforce of approximately 570 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                    Year Ending 31/03/13:               Year Ending 31/03/14:               Year Ending 31/03/15:

 

Total Sales                    US$ 586,704,109                       US$ 800,000,000                       US$ 860,000,000

 

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

 

The above figures were provided by Mr Prakash Raval, Finance Manager

 

 

BANKERS

 

·       National Bank of Ras Al Khaimah

NBRAK Building

PO Box: 5300

Ras Al Khaimah

Tel: (971-7) 2221127

Fax: (971-7) 2224202

 

·       HSBC Bank Middle East

PO Box: 9

Ras Al Khaimah

Tel: (971-7) 2330200

 

·       Mashreq Bank

PO Box: 700

Ras Al Khaimah

Tel: (971-7) 2037216

 

 

PAYMENT HISTORY

 

Regular

 

 

GENERAL COMMENTS

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services institution, announced in February 2012 that it had closed a UAE Dh 275 million (US$ 75M) syndicated Islamic financing facility for JBF RAK LLC, a subsidiary of JBF Industries.

This marks the debut Islamic finance facility for JBF RAK, a specialist polymer manufacturer focused on PET polymer resin chips (chips) and BOPET film products (films). It is a leader in the Middle East region with a market share of over 20% in chips and film products.

The financing will be used to expand JBF RAK production in Ras Al Khaimah including the purchase of new machinery and equipment and to optimize its debt profile by introducing Islamic term funding.

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.66.99

UK Pound

1

Rs.101.78

Euro

1

Rs.73.47

UAE Dh

1

Rs.18.26

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

 

 

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.