MIRA INFORM REPORT

 

 

Report No. :

342066

Report Date :

23.09.2015

 

IDENTIFICATION DETAILS

 

Name :

DUBAI REFRESHMENTS PJSC

 

 

Registered Office :

Plot No. 354-388, Sheikh Zayed Road, Al Quoz Industrial Area, PO Box 420, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.01.1959

 

 

Com. Reg. No.:

42823

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

Engaged in the production of soft drinks and the import and distribution of general foodstuffs, beverages, heavy duty equipment and machinery.

 

 

No. of Employees :

500

 

 

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 – 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                                    : DUBAI REFRESHMENTS PJSC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Public Joint Stock Company

Start Date                                             : 1st January 1959

Registration Date                                  : 16th September 1970

Commercial Registration Number           : 42823, Dubai

Trade Licence Number                           : 300025

Chamber Membership Number               : 856

Issued Capital                                       : UAE Dh 90,000,000

Paid up Capital                                     : UAE Dh 90,000,000

Total Workforce                                     : 500

Activities                                               : Producers of soft drinks and the import and distribution of general

  foodstuffs, beverages, heavy duty equipment and machinery.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

DUBAI REFRESHMENTS PJSC

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Plot No. 354-388

Street               : Sheikh Zayed Road

Area                 : Al Quoz Industrial Area

PO Box            : 420

Town                : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 3385386 / 3393000

Facsimile          : (971-4) 3381684

Email                : dubairef@emirates.net.ae / pepsidrc@pepsidrc.ae

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Dubai.

 

Branch Offices

 

Location                                                                                                           Description

 

Dibba                                                                                                               Factory premises

Fujairah

Tel: (971-9) 2442221

Fax: (971-9) 2442226

 

Industrial Area No. 13                                                                                        Warehouse premises

Sharjah

Tel: (971-6) 5441900

 

Airport Road                                                                                                     Warehouse premises

PO Box: 5694

Ras Al Khaimah

Tel: (971-7) 2442516

Fax: (971-7) 2442517

 

 

KEY PRINCIPALS

 

Name                                                                                                               Position

 

Ahmed Bin Eisa Bin Nasser Alserkal                                                                   Chairman

 

Ali Humaid Ali Abdulla Alowais                                                                           Vice Chairman

 

Mana Mohammed Saeed Al Mulla                                                                      Managing Director

 

Ibrahim Abdulrazak Ustadi                                                                                  Director

 

Mohanad Saif Abdulrahman Al Ashram                                                               Director

 

Mohammed Hadi Ahmad Abdullah Al Husaini                                                      Director

 

Mohamed Abdulaziz Ali Abdalla Alowais                                                             Director

 

Tarek El Sakka                                                                                                   Chief Executive Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st January 1959, however subject was registered on 16th September 1970

 

Legal Form                  : Public Joint Stock Company

 

Commercial Reg. No.   : 42823, Dubai

 

Trade Licence No.        : 300025

 

Chamber Member No.  : 856

 

Issued Capital              : UAE Dh 90,000,000

 

Paid up Capital            : UAE Dh 90,000,000

 

 

Name of Shareholder (s)                                                                     Percentage

 

Sheikh Ahmed Bin Rashed Al Maktoum                                                  20.00%

 

Mohammed Obaid Al Mulla                                                                      9.96%

 

Omar Khalfan Al Qaz and Brothers                                                           5.92%

 

Juma Al Majid Abdullah                                                                           5.92%

 

Local businessmen and private investors                                                58.20%

 

 

OPERATIONS

 

 

Activities: Engaged in the production of soft drinks and the import and distribution of general foodstuffs, beverages, heavy duty equipment and machinery.

 

In 1962 the subject was appointed as the sole franchisee and distributor for Pepsi Cola International. Subject also holds the 7Up and Aquafina bottling and selling rights for the whole of the UAE.

 

Import Countries: Europe and the United States of America.

 

Brand Names: PEPSI COLA, 7UP and AQUAFINA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh 000’s)

 

Balance Sheet                                                                          31/12/14            31/12/13

 

Non-currents assets

Property, plant and equipment                                                   564,387             405,814

Intangible assets                                                                       45,664              52,451

Available for sale investments                                                    165,626             176,467

                                                                                                775,677             634,732            

 

Current assets

Inventories                                                                                70,867              75,286

Trade and other receivables                                                       104,644             92,235

Cash at bank and in hand                                                           188,004             208,799

Advances to Greenfield contractors                                           40,456              92,326                         

                                                                                                403,971             468,646

Total assets                                                                              1,179,648          1,103,378

 

Current liabilities

Trade and other payables                                                          149,418             186,179

Short term portion of term loans                                                47,204              33,281

Bank overdrafts                                                                         -                       9,843

                                                                                                196,622             229,303

 

Net current assets                                                                    

Non-current portion of term loans                                               150,013             116,966

Provision for staff terminal benefits                                           19,687              16,679

                                                                                                169,700             133,645

Total liabilities                                                                           366,322             362,948

 

Share capital                                                                             90,000              90,000

Statutory reserve                                                                       45,000              45,000

General reserve                                                                         407,665             342,182

Fair value reserve                                                                      134,543             145,384

Cash flow hedge reserve                                                           (719)                 (1,619) 

Retained earnings                                                                      136,837             119,483

Total equity                                                                               813,326             740,430            

Total equity and liabilities                                                           1,179,648          1,103,378

 

Income Statement

 

Revenue                                                                                   985,099             891,906

Cost of sales                                                                            (630,173)           (589,456)

Gross profit                                                                              354,926             302,450

Other operating income                                                             1,617                10,392

Selling and distribution expenses                                               (158,208)           (135,722)

Administrative and general expenses                                          (60,125)            (57,647)

Amortisation of intangibles                                                        (7,377)              (4,343)

Results from operating activities                                                130,833             115,130

Finance income                                                                         1,004                2,290

Finance expense                                                                       (466)                 (1,127)

Dividend income                                                                       6,780                6,770

Other income                                                                            1,618                (1,961)

Gain on sale of available for sale investments                            568                   1,881

Profit for the year                                                                      140,337             122,983

 

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

 

 

BANKERS

 

Emirates National Bank of Dubai

Baniyas Street

PO Box: 777

Dubai

Tel: (971-4) 2222241

 

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.65.63

UK Pound

1

Rs.101.73

Euro

1

Rs.73.26

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.