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Report No. : |
306588 |
|
Report Date : |
11.02.2015 |
IDENTIFICATION DETAILS
|
Correct Name : |
CAROLINA FABRICS
LTD |
|
|
|
|
Registered Office : |
Sheikh Zayed
Road, Jebel Ali Free Zone North, Gate No. 2, P O Box 16838, Dubai |
|
|
|
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Country : |
United Arab Emirates |
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|
|
|
Financials (as on) : |
31.12.2014 |
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|
|
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Date of Incorporation : |
26.08.1992 |
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Legal Form : |
Branch of a Foreign Registered Corporation |
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Line of Business : |
Engaged in the weaving and stitching of Non-Clothing Textiles |
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No of Employees : |
312 (Approximately) |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. In April 2004, the UAE signed a Trade and Investment
Framework Agreement with Washington and in November 2004 agreed to undertake
negotiations toward a Free Trade Agreement with the US; however, those talks
have not moved forward. The country's Free Trade Zones - offering 100% foreign
ownership and zero taxes - are helping to attract foreign investors. The global
financial crisis, 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. The UAE Central Bank and Abu Dhabi-based banks
bought the largest shares. In December 2009 Dubai received an additional $10
billion loan from the emirate of Abu Dhabi. 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
diversification and creating more opportunities for nationals through improved
education and increased private sector employment.
|
Source
: CIA |
Company Name : CAROLINA FABRICS LTD
Country of Origin : British Virgin Islands
Legal Form : Branch of a Foreign Registered Corporation
Registration Date : 26th August 1992
Trade Licence Number : 660
Chamber Membership Number : 24925
Issued Capital : UAE Dh 3,700
Paid up Capital : UAE Dh 3,700
Total Workforce : 312 (Approximately)
Activities : Weaving and stitching of non-clothing textiles.
Financial Condition : Good
Payments : Regular
Operating Trend : Steady
Person Interviewed : Nouman Sallary, Finance Manager
CAROLINA FABRICS LTD (Correct Name)
Registered &
Physical Address
Street : Sheikh Zayed Road
Area : Jebel Ali Free Zone North,
Gate No. 2
PO Box : 16838
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8811911
Facsimile : (971-4) 8811912
Mobile : (971-50) 6456991
Email : info@carolinafabgroup.com / export@carolinafabgroup.com / cfl@carolina.ae /
kaleem@carolina.ae
/ numan@carolina.ae
Premises
Subject operates
from a large suite of offices and a factory that are rented and located in the
Jebel Ali Free Zone.
Name Nationality Position
·
Nadeem
Nishat Ahmed Pakistani Managing Director
·
Mansour
Nishat Ahmed Pakistani Director
·
Nouman
Sallary - Finance
Manager
·
Rafiq
Butt - Export
Manager
·
Faisal
Zaheer - Purchasing Manager
Date of Establishment : 26th
August 1992
Legal Form :
Subject is the United Arab
Emirates registered branch of Carolina Fabrics Ltd, a
Limited Liability Company
incorporated in the British Virgin Islands.
A Branch of a Foreign
Registered Corporation is not a legal entity in its own right.
Responsibility for payments lays
in the hands of the company where it is originally
registered.
Under these circumstances, we
strongly advise that any international trade credit should
only be written under the name
of the main company where the subject holds its registered office, in this case
the British Virgin Islands.
Trade Licence No. : 660
(Expires 14/08/2016)
Chamber Member No. : 24925
Issued Capital : UAE Dh 3,700
Paid up Capital : UAE Dh 3,700
Activities: Engaged in the weaving and stitching of
non-clothing textiles.
Carolina’s Spinning Unit was established in March 2003 and is equipped with the latest in machinery, and has a capacity of over 28,000 spindles.
In 1999 subject was approved by BVQI for ISO 9002/ 1994 certification.
Production
Capacity: Spinning 8,000 tons per year
Weaving 27 million linear metres per year
Stitching 2 million sets per year
Import
Countries: Pakistan, India,
Far East, Europe, Turkey, USA, Australia and Egypt.
International Suppliers:
·
Lahoti Textile India
·
Kakani Export Ltd India
·
World Pack FZE Sharjah
·
Green Packaging Box FZE Sharjah
Export
Countries: United States of
America, Canada, Europe, Turkey, Hong Kong and Australia.
Operating Trend: Steady
Subject has a
workforce of approximately 312 employees.
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 Revenue UAE Dh 102,100,000 UAE Dh 95,600,000
Local sources
consider subject’s financial condition to be Good.
The above figures
were provided by Mr Nouman Sallary, Finance Manager
·
Abu
Dhabi Commercial Bank
Al Rigga Road
PO Box: 5550
Dubai
Tel: (971-4) 2958888 / 3228141
Fax: (971-4) 2959310 / 3279632
·
Banque
Paribas
Twin Towers, 14th Floor
Baniyas Street
PO Box: 7233
Dubai
Tel: (971-4) 2525929
Regular
Please note that
the correct name of the subject is “Carolina Fabrics Ltd” and not “Carino
Fabrics Ltd”.
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.61.96 |
|
UK Pound |
1 |
Rs.94.41 |
|
Euro |
1 |
Rs.70.20 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.