MIRA INFORM REPORT

 

 

Report No. :

312250

Report Date :

17.03.2015

 

IDENTIFICATION DETAILS

 

Name :

GREEN CREST INDUSTRIES (ME) LTD

 

 

Registered Office :

Sheikh Zayed Road, Jebel Ali Free Zone, P O Box: 16790, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.12.1991

 

 

Legal Form :

Free Zone Company

 

 

Line of Business :

Manufacture of Polypropylene Bags, Plastic Sheets and LDPE/HDPE Shopping Bags.

 

 

No. of Employees :

125

 

 

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 :

Moderate

 

 

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 – 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

 

 

SUMMARY

 

Company Name                                    : GREEN CREST INDUSTRIES (ME) LTD

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Free Zone Company

Registration Date                                  : 26th December 1991

Trade Licence Number                           : 582

Chamber Membership Number               : 22788

Issued Capital                                       : UAE Dh 1,000,000

Paid up Capital                                     : UAE Dh 1,000,000

Total Workforce                                     : 125

Activities                                               : Manufacture of polypropylene bags, plastic sheets and LDPE/HDPE

                                                              shopping bags

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Khalid Tariq, Finance Manager

 


COMPANY NAME

 

GREEN CREST INDUSTRIES (ME) LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road

Area                 : Jebel Ali Free Zone

 

PO Box            : 16790

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8815255 / 8817675 / 8815178

Facsimile          : (971-4) 8816533 / 8819091

Mobile              : (971-50) 6567763

Email                : gr123@emirates.net.ae / info@gcplast.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Arshad Farooq                                                                                 Managing Director

 

·       Amjad Farooq                                                                                  Director

 

·       Ahmed Amjad Farooq                                                                       General Manager

 

·       Mohamed Sultan Gulam                                                                    Sales Manager

 

·       Mohamed Umar                                                                                Administration Manager

 

·       Khalid Tariq                                                                                      Finance Manager

 

·       Mohamed Rizwan                                                                             Public Relations Manager

 

·       William Loretta                                                                                  Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26th December 1991

 

Legal Form                  : Free Zone Company

 

Trade Licence No.        : 582 (Expires 25/12/2015)

 

Chamber Member No.  : 22788

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

Name of Shareholder (s)

 

·       Arshad Farooq

 

·       Amjad Farooq

 

 

AFFILIATED COMPANIES

 

·       Daikool Industries Ltd

Dubai

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of polypropylene bags, plastic sheets and LDPE/HDPE shopping bags.

The company specialises in producing the following products:

Polypropylene woven Sacks
Fabric sheets
PP film/bags
LDPE /HDPE carrier bags with 6 colour printing viz. vest styled, punched out handle, patch handle
Wicketer bags for bread packaging/Bakery bags
Heavy duty garbage bags and dustbin liner

The machinery ranges are as follows:

Raffia tape manufacturing extruder plant – Austria, England made
Circular weaving machine 6 shuttle – Austria made
Automatic sack conversion line – Austria, Taiwan
Flexographic Printing machine - Austria
Blown Film extruder – Germany, Taiwan
Bag making machine – Germany, Taiwan
Bread making bag machine – Taiwan
Automatic bag making machines - Taiwan
6 colour - Roll-to-Roll - Flexographic printing machine - Taiwan

 

Production Capacity: 30,000,000 PP (Polypropylene) woven sacks per annum; it has a total capacity of more than 400 Metric Tons of Polypropylene and Polyethylene bags combined.

 

Import Countries: Taiwan, Korea, Indonesia, Qatar, Oman, Saudi Arabia and Europe

 

Suppliers:

 

·         QAPCO                              Qatar

·         Borouge Pte Ltd                  Abu Dhabi

·         Oman Polyprolene Co         Oman

·         Rakha Al Kahleej Co            Dubai

·         SABIC                                Saudi Arabia

 

Clients:

 

·       Oman Flour Co                     Oman

 

Export Countries: Oman and Qatar

 

Brand Names: GCI

 

Operating Trend: Steady

 

Subject has a workforce of approximately 125 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 35,506,971                   UAE Dh 34,437,517

 

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

 

The above figures were provided by Mr Khalid Tariq, Finance Manager

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

Fax: (971-4) 2233784

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   October 2005                            January 2008

Credit amount                           137,000                         200,000

Amount overdue                        0                                              0

Payment terms                          180 days                                   180 days

Payment Method                       Letters of Credit                                    Letters of Credit

Paying record                           No Complaints                          No Complaints

Currency                                   Pounds Sterling                                    Euros

 

 

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.62.82

UK Pound

1

Rs.92.83

Euro

1

Rs.66.17

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.