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MIRA INFORM REPORT
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Report No. : |
517071 |
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Report Date : |
28.06.2018 |
IDENTIFICATION DETAILS
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Name : |
BROTHERS STEEL INDUSTRY LLC |
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Registered Office : |
New Industrial
Area, PO Box : 6475 |
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Country : |
United Arab
Emirates |
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Financials (as on) : |
31.12.2017 (Summarized) |
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Date of Incorporation : |
31.07.2005 |
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Com. Reg. No.: |
31764 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Manufacturers of
steel products. |
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No. of Employees : |
64 |
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 (31.12.2017) |
Current Rating (01.04.2018) |
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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, 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 : BROTHERS STEEL INDUSTRY LLC
Country
of Origin :
Ajman, United Arab Emirates
Legal
Form :
Limited Liability Company - LLC
Registration
Date : 31st July 2005
Commercial
Registration Number : 31764, Ajman
Trade
Licence Number :
40965
Chamber
Membership Number : 5189
Issued
Capital :
UAE Dh 500,000
Paid
up Capital :
UAE Dh 500,000
Total
Workforce :
64
Activities : Manufacturers of steel products
Financial
Condition :
Fair
Payments : Nothing detrimental uncovered
Operating
Trend :
Steady
Person
Interviewed :
Jojin
Sakaria, Senior Accountant
COMPANY
NAME
BROTHERS
STEEL INDUSTRY LLC
ADDRESS
Registered & Physical Address
Location : New Industrial Area
PO
Box : 6475
Town : Ajman
Country : United Arab Emirates
Telephone : (971-6) 7482524
Facsimile : (971-6) 7482523
Mobile : (971-52) 6459235
Email : info@bsiuae.com
Premises
Subject
operates from a medium sized suite of offices and a factory that are rented and
located in the Industrial Area of Ajman.
KEY
PRINCIPALS
Name Nationality Position
Domini
Devassy Indian Managing
Director
Saleem Humaid Saleem Al Kammai Emirati Director
Tojan
Devassy - General
Manager
Sanish
Kumar - Accounts
Manager
Arun
Vishnu - Production
Manager
Yasser
Khan - Sales
Manager
Jojin Sakaria - Senior
Accountant
LEGAL
FORM & OWNERS
Date
of Establishment : 31st July 2005
Legal
Form : Limited Liability Company - LLC
Commercial
Reg. No. : 31764, Ajman
Trade
Licence No. : 40965
Chamber
Member No. : 5189
Issued
Capital : UAE Dh 500,000
Paid
up Capital : UAE Dh 500,000
Name of Shareholder (s) Percentage
Saleem Humaid Saleem Al Kammai 51%
Domini
Devassy 49%
AFFILIATED
COMPANIES
·
Future
Metal Contracting
Al Jaraf Industrial No. 1
Ajman
·
Brothers Scaffolding LLC
Ajman
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Brothers Scaffolding
Industry
Ajman
·
Brothers Aluminium
Scaffolding LLC
Ajman
OPERATIONS
Activities: Engaged in the manufacture
of steel products, such as scaffolding, slab support and decking systems,
access scaffolding with heavy duty cup lock
system, access scaffolding with H-frames, medium and heavy duty prop jacks, scaffolding fittings
and accessories and aluminium and steel mobile towers, as well as cable management systems, such as
cable trays, ladders and trunking.
Import
Countries : Europe and the Far East
Operating
Trend : Steady
Subject
has a workforce of 64 employees.
FINANCIAL
DATA
Financial highlights provided by local
sources are given below:
Currency:
United Arab Emirates Dirham (UAE Dh)
Year Ending 31/12/15: Year Ending 31/12/16: Year Ending 31/12/17:
SALES UAE
Dh 89,813,145 UAE Dh
76,153,124 UAE Dh
87,537,301
Local
sources consider subject’s financial condition to be Fair.
The
above figures were provided by Jojin Sakaria, Senior Accountant
BANKERS
HSBC
Bank Middle East
Main
Branch
Ajman
Tel:
(971-6) 5537222
Fax:
(971-6) 5537880
PAYMENT
HISTORY
No
complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 68.52 |
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1 |
INR 90.60 |
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Euro |
1 |
INR 79.86 |
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AED |
1 |
INR 18.72 |
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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DIV |
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Report Prepared
by : |
SUJ |
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.