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MIRA INFORM REPORT
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Report No. : |
492233 |
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Report Date : |
20.02.2018 |
IDENTIFICATION DETAILS
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Name : |
HOT
PACK CO |
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Registered Office : |
Retaj Building, Shop No. 6C, Salwa Road, Al Jazeera Complex, PO Box
23243 |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
29.04.2009 |
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Com. Reg. No.: |
42042 |
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Legal Form : |
With Limited Liability - WLL |
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Line of Business : |
Subject is engaged in the import and distribution of disposable
packaging and tissue products |
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No. of Employees : |
35 |
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 :
HOT PACK CO
Country
of Origin :
Qatar
Legal
Form :
With Limited Liability - WLL
Registration
Date : 29th
April 2009
Commercial
Registration Number : 42042,
Doha
Issued
Capital :
QR 200,000
Paid
up Capital :
QR 200,000
Total
Workforce :
35
Activities :
Distributors of disposable packaging and tissue products
Financial
Condition :
Fair
Payments :
No Complaints
Operating
Trend :
Steady
COMPANY
NAME
HOT PACK CO
ADDRESS
Registered
& Physical Address
Building : Retaj Building, Shop No. 6C
Street : Salwa Road
Area : Al Jazeera Complex
PO
Box : 23243
Town : Doha
Country : Qatar
Telephone : (974) 44162027 / 44500478
Facsimile : (974) 44162028
Email : qatar@hotpack.ae / retail.qatar@hotpackuae.com
Please
note that subject’s previous address was, Industrial Area 44, Doha.
Premises
Subject
operates from a medium sized suite of offices and a showroom that are rented
and located in the Central Business Area of Doha.
KEY
PRINCIPALS
Name Nationality Position
Abdul
Jabbar Puthiyaveettil Indian Managing
Director
Juma
Khamees Al Murkhi Qatari Director
Mohamed
Hussain Puthiyaveettil - General
Manager
Aref
K Rahmanm - Sales
Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 29th April 2009
Legal
Form : With Limited Liability - WLL
Commercial
Reg. No. : 42042, Doha
Issued
Capital : QR 200,000
Paid
up Capital : QR 200,000
Name
of Shareholder (s)
Abdul
Jabbar Puthiyaveettil
Juma
Khamees Al Murkhi
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.
AFFILIATED
COMPANIES
H
Pack Packaging UK Ltd
United
Kingdom
Hotpack
Global Company
Saudi
Arabia
Hotpack
Packaging
Oman
Hotpack
Plastic Trading Co WLL
Kuwait
Hotpack
Trading Co WLL
Bahrain
Hotpack
Packaging LLC
United
Arab Emirates
Majed
Plastic Trading LLC
United
Arab Emirates
Majed
Plastic Cont Trd LLC
United
Arab Emirates
Hotpack
Packaging
United
Arab Emirates
Hotpack
Packaging Ind LLC
United
Arab Emirates
OPERATIONS
Activities: Engaged in the import and
distribution of disposable packaging and tissue products.
Import
Countries:
Europe and the Far East
Operating
Trend:
Steady
Subject
has a workforce of 35 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
Qatari Riyals (QR)
Year sales
Year
Ending 31/12/15: QR
16,280,000
Year
Ending 31/12/16: QR
16,500,000
Year
Ending 31/12/17: QR
17,000,000
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
Doha
Bank Ltd
PO
Box: 3818
Doha
Tel:
(974) 4435444
Fax:
(974) 4416631 / 4410625
GENERAL
COMMENTS
During
the course of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
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
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 63.91 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.17 |
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QAR |
1 |
INR 17.75 |
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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VIV |
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Report Prepared
by : |
KET |
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
·
Promoters
/ Management background
·
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.