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MIRA INFORM REPORT
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Report No. : |
503079 |
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Report Date : |
12.04.2018 |
IDENTIFICATION DETAILS
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Name : |
RIGHT SPICES AND GRAINS WLL |
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Registered Office : |
Zone 57, Street No. 35, Gate No. 83B, PO Box: 201643, Doha |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
03.09.2012 |
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Com. Reg. No.: |
57188 |
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Legal Form : |
With Limited Liability – WLL |
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Line of Business : |
Subject is engaged in the import, distribution and packing of spices
and grains |
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No. of Employees : |
15 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Qatar |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
QATAR - ECONOMIC OVERVIEW
Qatar’s oil and natural gas resources are the country’s main economic engine and government revenue source, driving Qatar’s high economic growth and per capita income levels, robust state spending on public entitlements, and booming construction spending, particularly as Qatar prepares to host the World Cup in 2022. Although the government has maintained high capital spending levels for ongoing infrastructure projects, low oil and natural gas prices in recent years have led the Qatari Government to tighten some spending to help stem its budget deficit.
Qatar’s reliance on oil and natural gas is likely to persist for the foreseeable future. Proved natural gas reserves exceed 25 trillion cubic meters - 13% of the world total and, among countries, third largest in the world. Proved oil reserves exceed 25 billion barrels, allowing production to continue at current levels for about 56 years. Despite the dominance of oil and natural gas, Qatar has made significant gains in strengthening non-oil sectors, such as manufacturing, construction, and financial services, leading non-oil GDP to steadily rise in recent years to just over half the total.
Following trade restriction imposed by Saudi Arabia, the UAE, Bahrain, and Egypt in 2017, Qatar established new trade routes with other countries to maintain access to imports.
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Source : CIA |
SUMMARY
Company Name : RIGHT SPICES AND GRAINS WLL
Country of Origin : Qatar
Legal Form : With Limited Liability - WLL
Registration Date : 3rd September 2012
Commercial Registration Number : 57188
Issued Capital : QR 200,000
Paid up Capital : QR 200,000
Total Workforce : 15
Activities : Import, distribution and packing of spices and grains
Financial Condition : Fair
Payments : No complaints
Operating Trend : Steady
Person Interviewed : Hassan Abdul Ghani Abdullah Abdul Ghani, Managing Director
COMPANY
NAME
RIGHT SPICES AND GRAINS WLL
ADDRESS
Registered & Physical
Address
Location : Zone 57,
Street No. 35, Gate No. 83B
PO Box :
201643
Town : Doha
Country : Qatar
Mobile :
(974) 55020720
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Doha.
KEY
PRINCIPALS
Name Nationality Position
·
Hassan Abdul Ghani
Abdullah Abdul Ghani Qatari Managing Director
LEGAL
FORM & OWNERS
Date of
Establishment : 3rd
September 2012
Legal Form : With Limited
Liability - WLL
Commercial Reg.
No. : 57188
Issued Capital : QR 200,000
Paid up Capital : QR 200,000
Name of Shareholder (s)
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Hassan Abdul Ghani
Abdullah Abdul Ghani
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Unnamed Indian National
Notes to the legal Form
Under the Qatari Commercial Companies Law a WLL may be formed by a
minimum of 2 and a maximum of 50 natural or legal persons, whose liability is
limited to their shares in the company’s capital. It can be established in
almost all sectors of the economy (excluding banking, insurance and financial
investment on behalf of others), has no minimum
capital requirement, and is one of the easiest ways for a foreign shareholder
to establish a legal presence in Qatar. However, there are foreign investment
restrictions. Law No. (13) of 2000, Regulating Non-Qatari Capital Investment in
Economic Activity (Foreign Investment Law) requires a Qatari citizen to hold at
least 51% of the share capital of an WLL. Shareholders' profit shares do not
have to be proportionate to the equity shareholding. It cannot issue shares to the public.
OPERATIONS
Activities: Engaged in the import, distribution
and packing of spices and grains.
Import Countries: Europe and the Far East
Operating Trend: Steady
Subject has a workforce of 15 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: Qatari Riyals (QR)
Year Sales
Year Ending 31/12/15: QR
13,280,000
Year Ending 31/12/16: QR
13,600,000
Year Ending 31/12/17: QR
14,000,000
Local sources consider subject’s financial condition to be Fair.
Note:
According to Qatari Commercial Law, only Public Shareholding Companies
(Listed on the Qatar Stock Market) are required to publish their financial information. Financial
information on other legal forms can only be obtained from the companies /
businesses directly
BANKERS
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Arab Bank Ltd
Al Saad Street
PO Box: 3058
Doha
Tel: (974) 44426555 / 44426560
Fax: (974) 44447218
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
- Interview with Hassan Abdul Ghani Abdullah Abdul Ghani, Managing Director
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
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.
COUNTRY
OUTLOOK
Recent Developments
Like its GCC neighbours, Qatar appears to be
entering a period of slower growth. GDP growth eased to 3.6 percent in 2015 (from
4.2 percent in 2014), with output in the hydrocarbon sector broadly flat.
Growth in the latter has fallen sharply since
2012 in line with stagnating production, in large measure due to a self-imposed
moratorium on additional output from the North Field. More recently, the oil
price slump has also taken a toll. Nominal GDP fell 20 percent in 2015, due to
deteriorating terms of trade, while non-hydrocarbon sector growth slowed to 7.6
percent (vs. 11 percent in 2014) on weaker
consumer confidence, fiscal adjustment and
tighter banking sector liquidity.
Large fiscal and current account surpluses
have vanished. Hydrocarbon revenues account for some 90 percent of fiscal
receipts and the bulk of export earnings. With low oil prices persisting, the
current account surplus has narrowed sharply, from over 30 percent of GDP in
2011-12 to 8 percent in 2015.
With fiscal revenues falling sharply amid
continued fiscal outlays related to the staging of the 2022 World Cup, the
general government fiscal balance has shifted into deficit and is projected to
reach 12.1 percent in 2016. Policy shifts to prioritize capital spending on
projects deemed critical to economic diversification and the World Cup were
reflected in the shelving of major “non-essential” projects (notably the US$6.4
billion Al Karaana petrochemicals complex in 2015). It is estimated that
government spending on new construction and
transport contracts fell by 92 percent (y/y) in Q1 2016.
The government has begun to rationalize
subsidies, allowing fuel prices to more closely track global prices. It is also
developing new revenue sources, including through planning for a value added
tax.
Large buffers are anchoring confidence amid
rising debt issuance. Qatar’s SWF is estimated to hold US$256 billion in
assets. Instead of drawing upon the SWF to fund the fiscal deficit, the
government
has issued QR 4.6 billion and US$9 billion in
debt markets thus far in 2016. Indications are that no new money has been
allocated to the SWF this year, with new investments to be funded through asset
sales or dividend income.
By and large, though, fiscal policy tends to
be pro-cyclical in Qatar with the country needing fiscal frameworks to insulate
the budget from commodity price volatility. The country could benefit from
cross governmental planning, coordination,
and public investment management of non-hydrocarbon projects.
Monetary policy remains accommodative but
banking liquidity is tight. The central bank chose not to mirror the US Fed’s
policy rate hike in December 2015. But with further tightening by the Fed
likely,
it will eventually need to follow suit given
the currency peg. Banking sector solvency indicators and capital buffers remain
healthy; however both deposit and credit growth have slowed.
Living standard monitoring and analysis
should contribute to better design of social policies, including their
targeting, especially in light of the recent rise in utility tariffs and the
elimination of subsidies.
Outlook
Qatar is projected to continue growing at a
moderate pace. Qatar is in the second year of a US$200 billion infrastructure
upgrade ahead of hosting the World Cup, which should support activity,
particularly in construction, transport and services. GDP growth is projected
at 2.1 percent in 2016, and should gradually rise 3.7 percent in 2018. Natural
gas production has plateaued, and is expected
to decline. However, the 1.4 billion cubic feet per day Barzan gas project –
the last project approved before the North Field moratorium – is set for start
in 2016 with full output expected in 2017. This should offset some of the
anticipated production decline.
Fiscal and CA balances should gradually
improve. As gas production increases and oil prices recover, export earnings
should recover. The CA deficit will stay elevated during the forecast period,
reflecting FIFA related capital imports before gradually narrowing to 3.2
percent of GDP in 2018. The fiscal deficit will narrow, also helped by savings
in current expenditures and subsidy reforms, but is expected to remain large at
close to 9 percent in 2018 (general government basis).
Risks and
Challenges
Key downside risks include depressed global
oil and gas prices, which lead to a slower than expected improvement in fiscal
balances at a time when the GCC region as a whole is tapping international investors for funds to finance fiscal short
falls. Room to cut capital spending is limited given contractual obligations
regarding FIFA.
Other risks include volatility in global financial
markets, or regional instability that disrupts oil and gas production and/or
capital inflows. Over the medium term,
growing competition and the emergence of a
global spot market in gas prices could pose a challenge to Qatar’s dominance in
global LNG markets.
In light of the uncertain medium term outlook
for the gas sector later this decade and beyond, the development of the
non-hydrocarbon sector is of even greater importance. Qatar’s investment driven
growth strategy over the past decade has yet
to deliver benefits in terms of greater productivity growth, even as
bottlenecks have been visible in the form of overheating pressures, congestion
and pollution, and demographic imbalances. To diversify Qatar will have to
raise the productivity of its investment, in both human and physical capital,
and undertake structural reforms to improve the business environment.
Key Economic Indicators 2014 2015 2016* 2017* 2018*
Real GDP Growth (%) 4.0 3.6 2.1 3.6 3.7
Inflation Rate (%) 3.1 1.9 0.0 0.0 0.0
Current Account Balance (% of GDP) 24.0 8.4 -1.1 -5.6
-3.2
Financial & Capital Account (% of GDP) -19.7 17.1 30.0
26.8 17.1
Fiscal Balance (% of GDP) 35.9 10.3 -12.1 -11.7
-8.9
Primary Balance (% of GDP) 38.0 11.9 -10.1 -9.2 -6.3
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.13 |
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1 |
INR 92.51 |
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Euro |
1 |
INR 80.59 |
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QAR |
1 |
INR 17.92 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.