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MIRA INFORM REPORT
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Report No. : |
487554 |
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Report Date : |
25.01.2018 |
IDENTIFICATION DETAILS
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Name : |
GULF APPARELS LLC |
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Registered Office : |
Murshid Bazaar, Deira, PO Box: 46473 & 11096, 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 : |
09.01.2005 |
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Com. Reg. No.: |
71649, Dubai |
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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 readymade
garments and textiles |
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No. of Employees : |
24 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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.
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Source
: CIA |
SUMMARY
Company Name : GULF APPARELS LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 9th January 2005
Commercial Registration Number : 71649, Dubai
Trade Licence Number : 564697
Chamber Membership Number : 93712
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 24
Activities : Distributors of readymade garments and textiles
Financial Condition : Fair
Payments : No complaints
Operating Trend : Steady
COMPANY
NAME
GULF APPARELS LLC
ADDRESS
Registered & Physical
Address
Location : Murshid Bazaar, Deira
PO Box : 46473 & 11096
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 3204960 / 3213222
Facsimile : (971-4) 3204961 / 3213000
Mobile : (971-50)
7587246 / 4698523
Email : info@gulfapparals.ae
Premises
Subject operates from a small suite of offices and a warehouse that are
rented and located in the Suburban Business Area of Dubai.
Branch Offices
Location Description
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Al Aweer Industrial Area Warehouse
premises
Ras Al Khor
Dubai
Tel: (971-4) 3213222
KEY
PRINCIPALS
Name Nationality Position
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Harish Bahwgwani Indian Managing
Director
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Vashdev Mulchandani Indian Director
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Narender Murlidhar Mulchandani Indian Director
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Hadher Bakhit Rashed Al Jumairi Emirati Director
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Abdul Muheed - Financial
Controller
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Bhart Raj Bala - Accountant
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Ramesh Mulchandani - Sales
Manager
LEGAL
FORM & OWNERS
Date of
Establishment : 9th
January 2005
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 71649, Dubai
Trade Licence No. : 564697 (Expires
08/01/2019)
Chamber Member No. : 93712
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s) Percentage
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Hadher Bakhit Rashed Al Jumairi 51%
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LTC Gulf Holdings Ltd 24%
British Virgin Islands
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Vashdev Mulchandani 15%
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Narender Murlidhar Mulchandani 10%
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.
OPERATIONS
Activities: Engaged in the import and distribution of readymade garments and
textiles.
Import Countries: India and China
International
Suppliers:
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Esquire Textile India
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Chung Chong Textile China
Operating Trend: Steady
Subject has a workforce of 24 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/14: UAE
Dh 20,000,000
Year Ending 31/12/15: UAE
Dh 22,000,000
Year Ending 31/12/16: UAE
Dh 24,250,000
Year Ending 31/12/17: UAE
Dh 26,600,000
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
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HSBC Bank Middle East
Deira Souk Branch
PO Box:
66
Dubai
Tel:
(971-4) 2535000
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
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.64 |
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1 |
INR 89.32 |
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Euro |
1 |
INR 78.45 |
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UAE Dh |
1 |
INR 17.32 |
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.