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Report No. : |
355429 |
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Report Date : |
26.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
GULF PETROCHEM
FZC |
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|
|
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Registered Office : |
Hamriyah Free Zone, Plot No. 2, P O Box: 41506, Sharjah |
|
|
|
|
Country : |
United Arab Emirates |
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|
|
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
01.04.1998 |
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|
|
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Com. Reg. No.: |
837 |
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|
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Legal Form : |
Free Zone Company – FZC |
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Line of Business : |
· Subject is engaged in the processing and refining of lubricants, oils, greases and bitumen. · Subject activities include storage, leasing and bunkering services. |
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No. of Employees : |
225 |
RATING & COMMENTS
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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 |
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Payment Behaviour : |
Regular |
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|
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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 |
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Very High |
C1 |
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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 |
Company Name : GULF
PETROCHEM FZC
Country of Origin : Sharjah,
United Arab Emirates
Legal Form :
Free Zone Company – FZC
Start Date : 1st
April 1998
Commercial Registration Number : 837
Trade Licence
Number : 7
Issued Capital : UAE Dh
1,230,000,000
Paid up Capital : UAE Dh
1,230,000,000
Total Workforce :
225
Activities :
Processing and refining of lubricants, oils and greases.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Vishal
D’Souza, Senior Accountant
GULF PETROCHEM FZC
Location : Hamriyah Free Zone, Plot No. 2
PO Box : 41506
Town : Sharjah
Country : United Arab Emirates
Telephone : (971-6) 5263773 / 7488140
Facsimile : (971-6) 5263778 / 7487483
Mobile : (971-55) 2245123 / 2245213
Email : mail@gulfpetrochem.com / gepco@emirates.net.ae
Subject operates
from a medium sized suite of offices and a refinery that are rented and located
in the Hamriyah Free Zone.
Name Nationality Position
·
Ashok Goyel Indian Managing Director
·
Sudair
Goyel Indian Director
·
Manen Goyel Indian Director
·
Prerit Goyel Indian Director
·
Thangapandian
Srinivasalu - Director
·
Brij
Mohan Bansal - Director
·
Ayush
Goyel - Director
·
Geraled
Babu - Administration
Manager
·
Narindira
Modi - Finance
Manager
·
Niraj Kumar - Commercial
Manager
·
Nitin Jain - Financial
Controller
·
Vishal
D’Souza - Senior
Accountant
Date of Establishment : 1st
April 1998
History : Subject began in 1998 as a Free Zone
Establishment but re-registered as a Free Zone
Company on 19th December 2006
Legal Form :
Free Zone Company - FZC
Commercial Reg. No. : 837
Trade Licence No. : 7
Issued Capital : UAE Dh 1,230,000,000
Paid up Capital : UAE Dh 1,230,000,000
·
Ashok Goyel 28.169%
·
Sudair
Goyel 28.169%
·
Prerit Goyel 21.831%
·
Manen Goyel 21.831%
·
Vishwaa Carriers LLC
Fujairah
·
Gulf Petrochem
SA
Geneva
Switzerland
·
Gulf
Petrochem Limited
London
United Kingdom
·
Gulf
Petrochem India Pvt Ltd
Mumbai
India
·
Gulf
Petrochem Pvt Ltd
New Delhi
India
·
Gulf
Petrochem PTE Ltd
Singapore
·
Aspam
Energy (T) Ltd
Dar El Salaam
Tanzania
·
Gulf Petrochem
Energy Services Ltd
Lagos
Nigeria
·
Gulf
Petrochem
Kenya
·
Gulf
Petrochem Latin America (GPLAM) Corp
Panama
Activities: Engaged in the processing and refining of
lubricants, oils, greases and bitumen.
Subject activities include
storage, leasing and bunkering services.
Gulf Petrochem Group is a leading player in oil space, specializing in
Oil Trading & Bunkering, Oil Refining, Grease Manufacturing, Oil Storage
Terminals, Bitumen Manufacturing, and Shipping & Logistics. It operates a
60,000 cubic meters facility in Hamriyah Free Zone, Sharjah capable of storing
various grades of oils and owns three vessels with a combined capacity of
17,000 cubic meters to service bulk shipments.
Subject is still in
the process of completing its storage facilities which will be located in
Fujairah.
Import
Countries: Europe and GCC
countries
International
Suppliers:
·
India
Oil Corporation India
·
Surya
Energy FZE Sharjah
· Renish Petroleum Dubai
Operating Trend: Steady
Subject has a
workforce of approximately 225 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Balance Sheet 31/12/08 31/12/09
31/12/10
Liabilities
Share Capital 100,000,000
100,000,000 160,462,000
Retained Earnings
(Loss) 16,147,373
48,140,192 115,374,198
Shareholders
Current Account 166,393
- -
Shareholders Loan
- 35,900,000
-
Total Equity 116,313,766
184,040,192 275,836,198
Non Current
Liabilities
Vehicle Loan 521,542
667,603 496,848
Term Loan 5,166,666
11,051,011 26,788,496
Employees' End of
Service Benefits 193,982
353,744 490,559
Total Non-Current
Liabilities 5,882,190
12,072,358 27,775,903
Current
Liabilities
Accounts Payable 7,585,350
31,456,869 13,997,084
Borrowings from
Banks & Financial Institutions 52,199,271
78,421,472 194,908,560
Current Portion
of Long Term Debt (Vehicle Loan +
Term Loan) 5,585,078 4,596,799 8,283,611
Advances from
Customers 848,168
2,276,851 327,772
Provision &
Accrued Expenses 731,018
1,074,667 2,174,907
Other Payables 458,575
1,379,531 -
Amount due to
Related Parties 1,145,192
- -
Total Current
Liabilities 68,552,652
119,206,189 219,691,934
TOTAL LIABILITIES & EQUITY 190,748,608
315,318,739 523,304,035
Assets
Fixed Assets
Property, Plant
& Equipment 140,398,086
131,915,285 166,794,760
Total Fixed
Assets 140,398,086
131,915,285 166,794,760
Investments
Investment in
Subsidiaries -
25,400,000 69,630,734
Total Investments
-
25,400,000 69,630,734
Current Assets
Cash and Balance
with Banks 839,189
2,976,429 5,057,259
Inventories 16,468,037 29,210,330 54,623,818
Fixed Deposit
with Banks 526,083
540,515 546,115
Trade Receivables 16,248,621
110,110,504 159,927,928
Other Receivables
16,268,592
7,434,906 39,529,592
Amount Due from
Related Parties -
7,730,770 27,193,829
Total Current
Assets 50,350,522
158,003,454 286,878,541
TOTAL ASSETS 190,748,608
315,318,739 523,304,035
Profit &
Loss Account
Revenues 529,627,604
774,220,583 1,327,160,571
Total Operating
Income 529,627,604
774,220,583 1,327,160,571
Cost of Sales (501,401,408)
(721,180,590) (1,229,158,130)
Total Direct
Expenditure (501,401,408)
(721,180,590) (1,229,158,130)
Gross Profit
(Loss) 28,226,196
53,039,993 98,002,441
Administrative Expenses
Professional,
Visa, Taxes & Legal Expenses (971,295)
(1,146,171) (1,319,760)
Salaries &
Other Related Benefits (3,256,595)
(5,308,328) (7,149,471)
Vehicle
Maintenance (304,021)
(147,865) (130,824)
Printing &
Stationery (72,385)
(21,236) (153,208)
Repairs &
Maintenance (211,687)
(69,645) (100,043)
Foreign Exchanges
Loss -
(224,855) (257,778)
Utilities (24,682)
(14,058) (1,400)
Communication (277,218)
(256,041) (296,861)
Travelling &
Conveyance (376,937)
(162,892) (304,447)
Charity and
Donation (51,640)
(113,230) (22,936)
Rent (250,013)
(396,709) (687,458)
Directors
Remuneration (1,800,000)
(1,800,000) (1,200,000)
Office Expenses (90,435)
(8,548) (55,906)
Bank Charges (885,855)
(3,079,206) (3,234,201)
Miscellaneous (426,994)
(5,019) (15,891)
Selling and
Marketing Expenses
Advertisement
& Business Promotion (849,638)
(1,022,383) (1,038,616)
Rebate &
Discount (488,465)
(478,728) (293,245)
Carriage Outward
& Distribution (529,458)
(603,956) (3,336,294)
Profit Before
Interest & Depreciation 17,358,878
38,181,123 78,404,102
Depreciation (1,773,468)
(1,841,830) (3,315,621)
Operating Profit
After Depreciation 15,585,410
36,339,293 75,088,481
Other Income 621,429
747,524 1,015,268
Loss on Sale of
Property, Plant & Equipment -
(25,874) -
Earnings Before Interest & Tax 16,206,839
37,060,943 76,103,749
Less: Interest (2,610,503)
(5,068,124) (8,869,743)
Earnings Before
Tax 13,596,336
31,992,819 67,234,006
Profit After Tax 13,596,336
31,992,819 67,234,006
Net Profit After
Tax and Extraordinary
Items 13,596,336
31,992,819 67,234,006
Plus / (Minus) Retained
Earnings / (Loss) B/F 2,551,037
16,147,373 48,140,192
Retained Earnings (Loss) C/F 16,147,373
48,140,192 115,374,198
Local sources
consider subject’s financial condition to be Good.
Total revenue for
the year ending 31st December 2011 was UAE Dh 2,203,504,684 and for
the ending 31st December 2012 it was UAE Dh 3,900,000,000. Figures
for the year ending 31st December 2013 were not available. Figures
for the year ending 31st December 2014 were UAE Dh 7,300,000,000.
·
HSBC
Bank Middle East
PO Box: 25
Sharjah
Tel: (971-6) 5537222
Fax: (971-6) 5537880
·
Bank of
Baroda
PO Box: 1671
Sharjah
Tel: (971-6) 5687082
Regular
Please note that the
correct name of the subject is “Gulf Petrochem FZC” and not “Gulf Petrochem
FZE”.
Subject’s head
office and grease plant caught fire on 2nd of April 2011. As a
result they had to move to temporary premises.
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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
UAE Dh |
1 |
Rs.18.00 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.