3decades

MIRA INFORM REPORT

Report No. :	506301
Report Date :	26.04.2018

IDENTIFICATION DETAILS

Name :	MACROTRADE GLOBAL LIMITED

Registered Office :	Jebel Ali Free Zone, P O Box 123506, Dubai

Country :	United Arab Emirates

Date of Incorporation :	02.01.2018

Legal Form :	Limited Liability Offshore Company

Line of Business :	Subject is engaged in the import and distribution of agricultural commodities, rice, vegetables, ferrous and non-ferrous metals and machinery.

No. of Employees :	1

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

New Business

No recommendation can be done due to business in infancy stage

Status :	New Business

Payment Behaviour :	Unknown

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

United Arab Emirates

Risk Category

ECGC

Classification

Insignificant

Low Risk

Moderately Low Risk

Moderate Risk

Moderately High Risk

High Risk

Very High Risk

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 from the oil and gas sector to 30%.

Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.

The UAE’s dependence on oil is a significant long-term challenge. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.

Source : CIA

SUMMARY

Company Name : MACROTRADE GLOBAL LIMITED

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Offshore Company

Registration Date : 2^nd January 2018

Trade Licence Number : 195220

Issued Capital : UAE Dh 50,000

Paid up Capital : UAE Dh 50,000

Total Workforce : 1

Activities : Distribution of agricultural commodities, rice, vegetables, ferrous and

non-ferrous metals and machinery

Financial Condition : Undetermined

Payments : Unknown

Person Interviewed : Tarun Maheshwari, Managing Director

COMPANY NAME

MACROTRADE GLOBAL LIMITED

ADDRESS

Registered & Physical Address

Location : Jebel Ali Free Zone

PO Box : 123506

Town : Dubai

Country : United Arab Emirates

Mobile : (971-55) 6197720

Email : info@macrotradeglobal.com

Premises

Subject operates from a small suite of offices that are rented and located in the Jebel Ali Free Zone Area of Dubai.

KEY PRINCIPALS

Name Nationality Position

Tarun Maheshwari Indian Managing Director

LEGAL FORM & OWNERS

Date of Establishment : 2^nd January 2018

Legal Form : Limited Liability Offshore Company

Trade Licence No. : 195220

Issued Capital : UAE Dh 50,000

Paid up Capital : UAE Dh 50,000

Name of Shareholder (s) Nationality Percentage Holding

Tarun Maheshwari Indian 100%

OPERATIONS

Activities: Engaged in the import and distribution of agricultural commodities, rice, vegetables, ferrous and non-ferrous metals and machinery.

Import Countries: Europe and the Far East

Subject has a workforce of 1 employee.

FINANCIAL DATA

Subject is a newly formed business and as a result financial information is not currently available.

BANKERS

Emirates National Bank of Dubai

Baniyas Street

PO Box: 777

Dubai

Tel: (971-4) 2222241

PAYMENT HISTORY

Unknown

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 Tarun Maheshwari, Managing Director

In view of subject’s infancy, extensive payment and financial are not available, therefore dealings are recommended to be on secured terms, and a close monitoring of subject’s business development is advisable.

COUNTRY OUTLOOK

The economy continues to experience a slowdown in economic growth as a result of low oil prices. Real GDP achieved sustained growth of over 6 % per year in recent decades, with oil surpluses invested into the non-oil economy. In particular, the country has managed to develop the Dubai financial and real-estate centres, international airline hubs in Dubai and Abu Dhabi, and sports-tourism in a number of Emirates as well as light manufacturing and transport and retail trade services. However, since June 2014, it has been affected by the plummeting of global oil prices which has resulted in a drop-in hydrocarbon exports and revenues. While it managed to sustain growth rates of 4.6% in 2014, growth in 2015 is estimated to have declined to 3.4%.

Fiscal and external balances are deteriorating and macro-financial risks are increasing. A drop-in hydrocarbon revenues coupled with expansionary fiscal policy has pushed the fiscal balance down from a surplus of 10.4% of GDP in 2013 to a 5% surplus in 2014 and to an estimated deficit of -4.3% of GDP by end-2015. The fiscal deficit of 2015 is the first since the financial crisis of 2009 when the real estate bubble in Dubai burst. The current account surplus fell from 18.4% of GDP in 2013 to 13.7% of GDP in 2014 and to a mere 0.2% of GDP by end-2015.

Monetary policy is tightening, as is liquidity in the banking system. The Central Bank raised the interest rate on its certificates of deposit by 25 basis points in December 2015 in response to the United States’ Federal Reserve rate increase. It is expected to continue mirroring the Fed’s interest rate hikes. At the same time, reduced government deposits are resulting in reduced liquidity in the banking sector.

The growth outlook is one of slow recovery, averaging 2.5 % between 2016 and 2018. Oil production will increase as a result of investment in oilfield development. Non-hydrocarbon growth will rise as megaproject implementation ramps up ahead of Dubai’s hosting of Expo 2020, and as the lifting of sanctions on Iran translates into increased commerce, trade, and investment between Iran and the UAE (particularly Dubai). These developments will jointly help to narrow the current account deficit from an estimated deficit of –1.7% of GDP in 2016 to a forecasted deficit of -0.2% of GDP in 2018.

Fiscal policy will continue to tighten, but ensuring fiscal sustainability will require additional policy measures to cut spending, develop new revenue streams, and manage fiscal risks. The UAE government has reported that it will

be implementing a value-added tax (VAT) at the latest by 2018, along with other GCC countries. It is also considering the introduction of a corporate tax. This will help improve the fiscal balance. Other consolidation measures are needed, including a reduction in electricity and water subsidies and a gradual slowdown in the implementation of GRE’s (Government Related Entities) megaprojects.

Key Economic Indicators 2014 2015 2016* 2017*

Real GDP Growth (%) 4.6 3.4 2.0 2.4

Inflation Rate (%) 2.3 4.1 3.1 3.4

Fiscal Balance (% of GDP) 5.0 -4.3 -5.2 -2.1

Current Account Balance (% of GDP) 13.7 0.2 -1.7 -0.4

* Forecast

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.70
UK Pound	1	INR 93.14
Euro	1	INR 81.43
UAE Dh	1	INR 18.19

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.