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MIRA
INFORM REPORT
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Report No. : |
505380 |
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Report Date : |
28.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PRIME SEAL INSULATION GENERAL TRADING LLC |
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Registered Office : |
Sarco Warehouse No. 9, Ras Al Khor Area, |
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Country : |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
22.03.2011 |
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Com. Reg. No.: |
1073342, |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject is engaged in the import and distribution of building materials,
fibre glass products, insulation and protection materials, construction
chemicals, hardware and tools. |
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No. of Employees : |
7 |
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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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 |
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
The UAE’s dependence on oil is a significant long-term challenge,
although the UAE is one of the most diversified countries in the Gulf
Cooperation Council. 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.
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Source
: CIA |
SUMMARY
Company Name :
PRIME SEAL INSULATION GENERAL TRADING LLC
Country of Origin :
Legal Form :
Limited Liability Company - LLC
Registration Date :
22nd March 2011
Commercial Registration Number :
1073342,
Trade Licence Number :
651502
Chamber Membership Number :
191438
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
7
Activities :
Distributors of building materials, fibre glass products, insulation and
protection
materials, construction chemicals, hardware and tools
Financial Condition :
Fair
Payments :
No Complaints
Person Interviewed :
Riyas Mangaran, Finance
Manager
COMPANY NAME
PRIME SEAL INSULATION GENERAL TRADING LLC
ADDRESS
Registered &
Physical Address
Building : Sarco
Warehouse No. 9
Area : Ras Al Khor
Area
PO Box : 115 &
115563
Town :
Country :
Telephone : (971-4) 3205568
/ 3330172
Facsimile :
(971-4) 3330178
Mobile :
(971-50) 6829864 / 7556570
Email :
info@prime-field.com / riyas@prime-seal.com
Premises
Subject operates from a small suite of offices and a warehouse that are
rented and located in the Central Business Area of Dubai.
KEY PRINCIPALS
Name Nationality Position
Hashem Mumtaz Manzel Indian Managing
Director
Kootalivalampil Mohamed Yaqoub Hassan Indian Director
Mohamed Muniruddin Mohamed Indian Director
Suneermon Alavelil Abdul Hakkim Hakkim Indian Director
Yousuf Mohamed Saleh Ali Al Baadani Emirati Director
Riyas Mangaran - Finance
Manager
Fayyas Umar
- Sales
Manager
LEGAL FORM & OWNERS
Date of Establishment : 22nd
March 2011
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 1073342,
Trade Licence No. : 651502 (Expires
12/03/2019)
Chamber Member No. : 191438
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of
Shareholder (s) Percentage
Yousuf Mohamed Saleh Ali Al Baadani 51%
Hashem Mumtaz Manzel 25%
Kootalivalampil Mohamed Yaqoub Hassan 13%
Mohamed Muniruddin Mohamed 7%
Suneermon Alavelil Abdul Hakkim Hakkim 4%
Notes to the legal Form The LLC
requires a minimum of two and a maximum of 50 members. The minimum share capital
required is UAE Dh 300,000. Shareholders are only liable up to the extent of
the value of their shares. This type of company may engage in any form of
legitimate business, with the exception of insurance, banking and investment of
funds. The company is not obliged to publish its accounts. The participation of
non-Emirati in a trade or business in the United Arab Emirates is governed by
the Foreign Business Investment Law, which sets capital requirements and
requires 51 percent Emirati participation in capital and profits. It is common
for the 51 percent to be held by the UAE national on paper only with the
foreign partner(s) providing all the capital requirements for the company and
paying an annual fee to the local partner.
AFFILIATED COMPANIES
Premier Coating & Insulation Contracting
LLC
Dubai
OPERATIONS
Activities: Engaged in the import and distribution of building materials, fibre
glass products, insulation and protection materials, construction chemicals,
hardware and tools.
Import Countries:
International Suppliers:
ICP Adhesive
PMC United
States of America
GAMA Spain
Subject has a workforce of 7 employees.
FINANCIAL DATA
Financial highlights
provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/17: UAE
Dh 24,000,000
Local sources consider subject’s financial condition to be Fair.
Note: According to local Commercial Law, only
publicly listed companies are required to publish their financial information.
Financial information on other legal forms can only be obtained from the
companies / businesses directly
BANKERS
Emirates National Bank of Dubai
Baniyas Street
PO Box: 777
Dubai
Tel: (971-4) 2222241
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 Riyas Mangaran, Finance Manager
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.
Local sources report that the subject’s operating history is clear with
payment obligations met in a generally timely manner. The financial position is
satisfactory and the company is deemed a fair trade risk.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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UAE Dh |
1 |
INR 18.14 |
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 : |
TPT |
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
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.