MIRA INFORM REPORT

 

 

Report No. :

355762

Report Date :

22.12.2015

 

IDENTIFICATION DETAILS

 

Name :

REDA INDUSTRIAL MATERIALS FZE

 

 

Registered Office :

Warehouse No. RA08ZA06, Sheikh Zayed Road, Jebel Ali Free Zone, PO Box 18177, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

23.07.2002

 

 

Legal Form :

Free Zone Establishment

 

 

Line of Business :

Engaged in the import and distribution of industrial chemicals and equipment.

 

 

No. of Employees :

19

 

 

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                                    : REDA INDUSTRIAL MATERIALS FZE

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Free Zone Establishment - FZE

Registration Date                                  : 23rd July 2002

Trade Licence Number                           : 3444

Chamber Membership Number               : 70538

Issued Capital                                       : UAE Dh 1,000,000

Paid up Capital                                     : UAE Dh 1,000,000

Total Workforce                         : 19

Activities                                               : Distributors of industrial chemicals and equipment.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Basheer Hamour, Financial Controller

COMPANY NAME

 

REDA INDUSTRIAL MATERIALS FZE

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Warehouse No. RA08ZA06

Street               : Sheikh Zayed Road

Area                 : Jebel Ali Free Zone

PO Box            : 18177

Town                : Dubai

Country : United Arab Emirates

Telephone         : (971-4) 8835930 / 8831400 / 8832800 / 8815027 / 3325100

Facsimile          : (971-4) 8831500 / 8815036

Mobile              : (971-50) 4520945

Email                : reda@emirates.net.ae / bashir.hammour@redachem.com / faisal.izhar@redachem.com

                          malek.saad@redachem.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Karim Ismail Samadi                                                                              Managing Director

 

Malik Saad                                                                                            Finance Manager

 

Faisal Izhar                                                                                            Commercial Manager

 

Basheer Hamour                                                                                    Financial Controller

 

S Ahmed Abdelsalam                                                                            Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 23rd July 2002

 

Legal Form                  : Free Zone Establishment - FZE

 

Trade Licence No.        : 3444

 

Chamber Member No.  : 70538

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

Name of Shareholder (s)                                           Percentage

 

Reda Industrial Material Holding Ltd                               100%

PO Box: 17137

Dubai

Tel: (971-4) 8831400

Fax: (971-4) 8831500

 

 

AFFILIATED COMPANIES

 

Reda Chem Gulf FZE

PO Box: 41932

Hamriyah Free Zone

Sharjah

Tel: (971-6) 5261618

Fax: (971-6) 5261614

 

Reda Industrial Materials LLC

PO Box: 15004

Dubai

Tel: (971-4) 3325100

Fax: (971-4) 3325200

 

Organic Processing & Technology FZE

Jebel Ali Free Zone

Dubai

 

Reda Materials & Equipment LLC

PO Box: 47200

Abu Dhabi

Tel: (971-2) 6334830

Fax: (971-2) 6334831

 

Redachem Gulf FZE

PO Box: 41932

Sharjah

Tel: (971-6) 5260310

Fax: (971-6) 5260311

OPERATIONS

 

Activities: Engaged in the import and distribution of industrial chemicals and equipment.

 

Import Countries: Germany and Mexico

 

International Suppliers:

 

Eravhem Mexico SA                  Mexico

Wacker                                     Germany

Baerlocker                                 Germany

BASF                                       Germany

 

Operating Trend:                      Steady

 

Subject has a workforce of 19 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 115,000,000                 UAE Dh 118,500,000

 

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

 

The above figures were provided by Mr Basheer Hamour, Financial Controller

 

 

BANKERS

 

Commercial Bank of Dubai

Baniyas Street

Deira

PO Box: 1709

Dubai

Tel: (971-4) 2227121 / 2253222

Fax: (971-4) 2220943 / 2254565

 

 

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.66.32

UK Pound

1

Rs.98.98

Euro

1

Rs.72.13

UAE Dh

1

Rs.18.05

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

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