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MIRA INFORM REPORT
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Report No. : |
492318 |
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Report Date : |
20.02.2018 |
IDENTIFICATION DETAILS
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Name : |
RAKHA AL KHALEEJ
INTERNATIONAL LLC (RAI) |
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Registered Office : |
National Bank of
Umm Al Quwain Building, 7th Floor, Suite 701, Khalid Ibn Al
Waleed Street, Bur Dubai, P O Box: 55157, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
12.06.1990 |
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Com. Reg. No.: |
45177, Dubai |
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Legal Form : |
Limited Liability
Company - LLC |
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Line of Business : |
Import and
distribution of chemicals, including polyethylene, polypropylene,
polystyrene, acrylonitrile, polyvinyl chloride, ethylene vinyl acetate, polyethylene
terephthalate, polycarbonates, plastic compounds and master batches. |
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No. of Employees : |
16 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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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United Arab Emirates |
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 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 : RAKHA AL
KHALEEJ INTERNATIONAL LLC (RAI)
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date : 12th
June 1990
Commercial Registration
Number : 45177, Dubai
Trade Licence
Number : 223075
Chamber Membership
Number : 19407
Issued Capital : UAE Dh
3,000,000
Paid up Capital : UAE Dh
3,000,000
Total Workforce :
16
Activities :
Distributors of chemicals
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
Person Interviewed : Aravindh Rajaram, Internal Auditor
COMPANY
NAME
RAKHA AL KHALEEJ
INTERNATIONAL LLC (RAI)
ADDRESS
Registered & Physical
Address
Building : National Bank of Umm Al Quwain
Building, 7th Floor, Suite 701
Street : Khalid Ibn Al
Waleed Street
Area : Bur Dubai
PO Box : 55157
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 3977999
Facsimile : (971-4) 3972555
Mobile : (971-50) 4549985 / 6242821 / 4555298
Email : rakha@emirates.net.ae / rai@rai-uae.com / aravindh@rai-uae.com / seetha@rai-uae.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Dubai.
KEY
PRINCIPALS
Name Nationality Position
·
Saeed
Mohamed Saeed Al Sayed Hamid Al Naqeeb Kuwaiti Managing
Director
·
Tariq
Saeed Mohamed Saeed Al Sayed Hamid Al Naqeeb Kuwaiti Director
·
Arul
Dhasan - General
Manager
·
Seetharaman
Kabvisari - Finance
Manager
·
Karthik
Nurnida - Commercial
Manager
·
Jaimon
George - Sales
Manager
·
Aravindh Rajaram - Internal
Auditor
·
Arul Dasan - Business
Development Manager
LEGAL
FORM & OWNERS
Date of Establishment : 12th
June 1990
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 45177, Dubai
Trade Licence No. : 223075
(Expires 10/06/2018)
Chamber Member No. : 19407
Issued Capital : UAE Dh 3,000,000
Paid up Capital : UAE Dh 3,000,000
Name of
Shareholder (s) Percentage
·
Saeed
Mohamed Saeed Al Sayed Hamid Al Naqeeb 85%
·
Tariq
Saeed Mohamed Saeed Al Sayed Hamid Al Naqeeb 15%
AFFILIATED
COMPANIES
·
Specialised
System Co
Safat
Kuwait
·
Polydist
Middle East LLC
Dubai
OPERATIONS
Activities: Engaged in the import and distribution of chemicals,
including polyethylene, polypropylene, polystyrene, acrylonitrile, polyvinyl
chloride, ethylene vinyl acetate, polyethylene terephthalate, polycarbonates,
plastic compounds and master batches.
ISO 9001
certification obtained in 1996 and renewed in 2011.
Import
Countries: Kuwait, India,
Thailand, China and Saudi Arabia.
International Suppliers:
·
Petrochemical International Corporation (PIC) Kuwait
· Equate Kuwait
· Supreme
Petrochemical India
· ACG Chemical Thailand
· Basel Saudi Saudi
Arabia
· SABIC Saudi
Arabia
Operating Trend: Steady
Subject has a
workforce of 16 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending
31/12/16: UAE Dh
1,400,000,000
Year Ending
31/12/17: UAE Dh
1,500,000,000
Local sources
consider subject’s financial condition to be Good.
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) 2222555
Fax: (971-4) 2221110
PAYMENT
HISTORY
subject’s payments
have been reported to be regular
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 Aravindh Rajaram, Internal Auditor
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
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 63.91 |
|
|
1 |
INR 90.31 |
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Euro |
1 |
INR 80.71 |
|
UAE Dh |
1 |
INR 17.54 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
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.