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MIRA INFORM REPORT
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Report No. : |
487777 |
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Report Date : |
29.01.2018 |
IDENTIFICATION DETAILS
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Name : |
PRESS BOLT MIDDLE EAST MANUFACTURE OF BOLTS NUTS
LLC |
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Registered Office : |
M32 - Plot 33, Mussafah Industrial Area PO Abu Dhabi |
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Country : |
United
Arab Emirates |
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Date of Incorporation : |
09.08.2009 |
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Legal Form : |
Limited
Liability Company - LLC |
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Line of Business : |
Subject is Engaged in the manufacture of standard and speciality
bolting including fully threaded stud bolts, nuts, and bars subject to ASTM, ASME, ANFOR, BS, DIN and UNI standards. |
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No. of Employees : |
37 |
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 : PRESS
BOLT MIDDLE EAST MANUFACTURE OF BOLTS NUTS LLC
Also Known As :
PRESSBOLT MIDDLE EAST
Country
of Origin :
Abu Dhabi, United Arab Emirates
Legal
Form :
Limited Liability Company - LLC
Registration
Date : 9th
August 2009
Trade
Licence Number :
IN-1001920
Chamber
Membership Number : 470515
Issued
Capital :
UAE Dh 150,000
Paid
up Capital :
UAE Dh 150,000
Total
Workforce :
37
Activities :
Manufacture of standard and speciality bolting
Financial
Condition :
Fair
Payments :
No Complaints
Person
Interviewed :
Latif Ahmed,
Accounts Manager
Company
name and address
COMPANY
NAME: PRESS
BOLT MIDDLE EAST MANUFACTURE OF BOLTS NUTS LLC
ALSO
KNOWN AS: PRESSBOLT MIDDLE EAST
ADDRESS
Registered
& Physical Address
Location : M32 - Plot 33, Mussafah Industrial
Area
PO
Box : 802
Town : Abu Dhabi
Country : United Arab Emirates
Telephone : (971-2) 5503000
Facsimile : (971-2) 5502404
Email : info@pressboltme.ae
Premises
Subject
operates from a medium sized suite of offices and a factory that are rented and
located in the Industrial Area of Abu Dhabi.
KEY
PRINCIPALS
Name Position
Jamal Zaher Managing
Director
Kanan Kandasamy Operations
Manager
Latif Ahmed Accounts
Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 9th August 2009
Legal
Form : Limited Liability Company -
LLC
Trade
Licence No. : 1001920
Chamber
Member No. : 470515
Issued
Capital : UAE Dh 150,000
Paid
up Capital : UAE Dh 150,000
Name
of Shareholder (s) Nationality Percentage Holding
Petro Middle East LLC (PME) Emirati 51%
Abu Dhabi
Pressbolt Srl Italian 49%
Notes
to the legal Form The LLC requires a minimum of two and a maximum
of 50 members. 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
Petro
Middle East
Press
Bolt Middle East
TSS
Solid Solar Solutions
RRC
Rohr Rein Chemie
OPERATIONS
Activities: Engaged in the manufacture
of standard and speciality bolting including fully threaded stud bolts, nuts,
and bars subject to ASTM, ASME, ANFOR, BS, DIN and UNI standards.
Subject's product range includes, anchor
bolts, studbolts and nuts, hexagon bolts and nuts, socket cap screws, engineer
studs and hexagon nyloc nuts.
Import
Countries:
Europe and the Far East
Subject
has a workforce of 37 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
United Arab Emirates Dirham (UAE Dh)
Year Sale Source
Year
Ending 31/12/17: UAE
Dh 33,600,000 (given by
subject)
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
National
Bank of Abu Dhabi
Sheikh
Khalifa Street
PO
Box: 4
Abu
Dhabi
Tel:
(971-2) 6345777 / 6327113 / 6335262
Fax:
(971-2) 6336078
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 Latif Ahmed, Accounts 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.
According
to local sources, subject meets its payment obligations in a timely manner and
the company is considered to be a fair trade risk.
COUNTRY
OUTLOOK
Recent
Developments
The UAE’s economy continues to slow down as a
result of low oil prices and fiscal consolidation weighing on non-oil growth.
Overall real GDP growth is estimated at 2.3 percent in 2016, a significant drop
from the pre-2014 oil shock average of 5 percent (2010-14). Austerity measures
weakened business and consumer confidence and slower growth in credit to the
private sector. This is expected to result in lower non-oil growth estimated at
2.4 percent in 2016. Hydrocarbon GDP growth is also expected to slow down to 2
percent in 2016 from an estimated 4.6 percent in 2015. The average rate of
inflation is estimated to ease to 3.3 percent in 2016 from 4.1 percent in 2015.
Sustained low oil prices have led fiscal and
external balances to deteriorate, despite significant fiscal consolidation
efforts. Authorities have managed some fiscal consolidation by raising
electricity and water tariffs, removing fuel subsidies and scaling back capital
transfers to Government Related Entities (GREs). Abu Dhabi reduced reliance on
government deposits and issued a US$5 billion Eurobond in April. Despite these
measures, the drop in hydrocarbon revenues has pushed the fiscal balance down
from a comfortable surplus of 10.4 percent of GDP in 2013 to an estimated
deficit of 2.1 percent in 2015 and 3.5 percent in 2016. The Abu Dhabi and Dubai
sovereign wealth funds have recorded lower returns (3 percent y-o-y fall in
2015 net profits) resulting from global volatility. The current account surplus
also fell from 19.1 percent of GDP in 2013 to 3.3 percent in 2015 and an
estimated 1.3 percent of GDP in 2016.
Monetary policy is tightening, as is liquidity in
the banking system. The Central bank raised its policy rate by 25 basis points
in December in response to the US Federal Reserve rate increase and is expected
to continue mirroring the Fed’s rate movements. Reduced government deposits are
resulting in lower liquidity in the banking sector with deposit growth decelerating
to 1.8 percent y-o-y at end-March 2016. A recent Credit Sentiment Survey
revealed that banks are increasingly unwilling to lend, especially to SME’s.
Dubai’s property market continues to soften but does not pose a systemic risk.
Average real estate residential prices fell by 11 percent in 2015. Increased
supply and weakening demand amidst financial tightening resulting from low oil
prices have led to office rents falling by up to 10 percent in Q1 2016.
Nevertheless, continued demand in established free zone developments is
sustaining non-oil growth and the real estate loan portfolio remains resilient.
The UAE is yet to fully develop its capacity for a
comprehensive measurement and analysis of household welfare across its seven
Emirates. Each Emirate has an independent statistics agency, and while the
federal level statistical bureau was established in 2009, the harmonization of
methods and statistical agendas for a country-level welfare measurement is yet
to be accomplished.
Outlook
Growth is expected to slowly recover, reaching 3
percent in 2018. Oil production is expected to rise due to investments in
oilfield development. Non-oil growth is also projected to rebound (i) as the
expected improvement in oil prices and its positive effects on confidence and
financial conditions dampen the effects of fiscal consolidation; (ii) as
megaproject implementation ramps up ahead of Dubai’s hosting of Expo 2020; and
(iii) as the lifting of sanctions on Iran translates into increased trade.
Fiscal and external balances are expected to improve over the medium term; with
a reversal of the fiscal deficit expected and a rebound in the current account
surplus to 3.2 percent of GDP by 2018.
Progress in economic diversification, large buffers
and safe haven status have strengthened the resilience of the economy. The UAE
is expected to implement a GCC-wide value added tax (VAT) by 2018, and is
considering increasing excise taxes and introducing corporate tax. Despite
pressures key investment areas will be maintained, as evident by the recently
announced nuclear energy project. Abu Dhabi’s aerospace manufacturing has
secured contracts with Airbus and Boeing, underscoring its commitment to
diversification. New bankruptcy and investment laws are also being prepared
with a potential positive impact on investment. In addition, as anxiety looms
over the impact of UK’s decision to leave the EU, according to a survey of
financial investment professionals Dubai’s competitiveness as a financial hub
is not expected to be affected.
Risks and
Challenges
However, macro financial risks are increasing; the
financial management of GRE’s megaprojects on the domestic side, and further
sustained drop in oil prices on the external side. In an environment of low oil
prices, macro financial risks could be exacerbated by declining liquidity in
the banking system, increased volatility in the stock markets, and disruptive
declines in the real estate sector. Further, imprudent management of Dubai’s
megaprojects could be a source of macro financial risks for its GREs, its
banks, and ultimately the government. In this context, the recent hike in
interest rates in the US could lead to a tightening of financial markets and
increase the costs of financing.
Structural reforms are needed to support the move
towards a knowledge based economy as envisaged by Vision 2021. Easing SME
access to finance and innovation financing should be a priority. Reforming
labour admissions policies is key for private sector job creation since under
the current sponsorship system expatriate labour mobility is limited leading to
large scale importation of expatriate workers, wages below marginal
productivity and lower incentives to upgrade skills. This in turn negatively
affects productivity, technology choice, and contributes to making nationals
uncompetitive in the private sector.
Key
Economic Indicators 2014 2015 2016* 2017* 2018*
Real
GDP Growth (%) 3.1
3.8 2.3 2.5 3.0
Inflation
Rate (%) 2.3
4.1 3.3 2.8 3.1
Current
Account Balance (% of GDP) 10.1 3.3 1.3
3.0 3.2
Fiscal
Balance (% of GDP) 5.0 -2.1 -3.5 -1.3 0.2
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.50 |
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1 |
INR 90.92 |
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Euro |
1 |
INR 79.07 |
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UAE Dh |
1 |
INR 17.33 |
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 : |
DNS |
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.