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Report No. : |
313909 |
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Report Date : |
24.03.2015 |
IDENTIFICATION DETAILS
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Name : |
FERROFAB FZE |
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Registered Office : |
Sheikh Zayed Road, Jebel Ali Free Zone, South No. 1, P O Box: 17815, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
24.07.2005 |
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Com. Reg. No.: |
713 |
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Legal Form : |
Free Zone Establishment - FZE |
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Line of Business : |
Manufacture of high
pressure vessels, associated pipe work, heat exchangers and shop fabricated
tanks as per API 12 both in carbon steel and stainless steel. |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 : FERROFAB
FZE
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Free Zone Establishment - FZE
Registration Date : 24th
July 2005
Commercial
Registration Number : 713
Trade Licence
Number : 4100
Chamber Membership
Number : 99479
Issued Capital : UAE Dh
1,000,000
Paid up Capital : UAE Dh
1,000,000
Total Workforce :
400
Activities :
Manufacture of high pressure vessels, associated pipe work, heat
exchangers and shop fabricated tanks.
Financial Condition : Fair
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Jagdish Rai, Finance Manager
FERROFAB FZE
Street : Sheikh Zayed Road
Area : Jebel Ali Free Zone, South
No. 1
PO Box : 17815
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8860071
Facsimile : (971-4) 8860070
Email : ferrofab@eim.ae
Subject operates
from a suite of offices and a factory covering an area of 500,000 square feet
that are rented and located in the Jebel Ali Free Zone, Dubai.
Name Nationality Position
·
John
Walter Moraes Indian Managing
Director
·
K
Narayana Murthy - General
Manager
·
Rajev
Bhatt - Assistant
General Manager
·
Mathew
John - Marketing
Manager
·
Manoj
Kumar - Sales
Engineer
·
Jagdish
Rai - Finance
Manager
Date of Establishment : 24th
July 2005
Legal Form :
Free Zone Establishment -
FZE
Commercial Reg. No. : 713
Trade Licence No. : 4100
Chamber Member No. : 99479
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
·
John
Walter Moraes 100%
Activities: Engaged in the manufacture of high pressure
vessels, associated pipe work, heat exchangers and shop fabricated tanks as per
API 12 both in carbon steel and stainless steel.
Subject is ISO
9001:2000 certified
Production
Capacity: Vessel manufacturing capacity - up to 20,000
ton per year
Structural Steel Fabrication capacity - 18,000 tons per year
Import
Countries: India and Europe
Principal Suppliers:
·
TAE
Forging South
Korea
·
Outkompu Sweden
·
Dillinger
Middle East Dubai
·
Arcellor
Mittal Dubai
Operating Trend: Steady
Subject has a
workforce of approximately 400 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 Sales UAE Dh
59,000,000 UAE Dh
61,300,000
Local sources
consider subject’s financial condition to be Fair.
The above figures
were provided by Mr Jagdish Rai, Finance Manager
·
Habib
Bank AG Zurich
Baniyas Road
PO Box: 3306
Dubai
Tel: (971-4) 2214535
·
Commercial
Bank of Dubai
Jebel Ali Branch
PO Box: 2668
Dubai
Tel: (971-4) 8818882
Fax: (971-4) 8812252
No complaints
regarding subject’s payments have been reported.
Credit amount 4,000 74,000
Amount overdue 0 0
Payment terms 90
days 90 days
Payment Method Letters
of Credit Letters of Credit
Paying record No
Complaints No
Complaints
Currency Euros Euros
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.62.29 |
|
|
1 |
Rs.93.02 |
|
Euro |
1 |
Rs.67.36 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.