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MIRA INFORM REPORT
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Report No. : |
494337 |
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Report Date : |
01.03.2018 |
IDENTIFICATION DETAILS
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Name : |
STEEL MONT TRADING DWC LLC |
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Registered Office : |
Office No. 0467, Building E, Business Park, Dubai World Central, PO Box
282228, Dubai |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
25.04.2015 |
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Com. Reg. No.: |
3442 |
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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 metals, minerals,
chemicals and related products, mining and metallurgical equipment, lifting
and conveying machinery. |
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No. of Employees : |
25 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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,
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 :
STEEL MONT TRADING DWC LLC
Country
of Origin :
Dubai, United Arab Emirates
Legal
Form :
Limited Liability Company – LLC
Registration
Date : 25th
April 2015
Commercial
Registration Number : 3442
Chamber
Membership Number : 269225
Issued
Capital :
UAE Dh 300,000
Paid
up Capital :
UAE Dh 300,000
Total
Workforce :
25
Activities :
Distributors of metals, minerals, chemicals and related products, mining
and metallurgical equipment, lifting and
conveying machinery
Financial
Condition :
Undetermined
Payments :
Unknown
Person
Interviewed :
Christopher Varghese, Managing Director
COMPANY NAME
STEEL
MONT TRADING DWC LLC
ADDRESS
Registered & Physical Address
Building : Office No. 0467, Building E
Area : Business Park, Dubai World
Central
PO
Box : 282228
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 4574411
Facsimile : (971-4) 5516671
Email : info@steelmont.ae
Premises
Subject
operates from a medium sized suite of offices that are rented and located in
the Central Business Area of Dubai.
KEY
PRINCIPALS
Name Position
Christopher
Varghese Managing
Director
Rajesh
Kumar Saraiya Chief
Executive Officer
Konstantin
Kozlovskyi Logistics
Manager
LEGAL FORM
& OWNERS
Date of Establishment : 25th
April 2015
Legal Form : Limited Liability
Company – LLC
Commercial Reg. No. : 3442
Chamber Member No. : 269225
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name
of Shareholder (s)
Christopher
Varghese
Steel
Mont Trading Ltd
63
Kings Cross Road
London
WC1X 9LN
United
Kingdom
Tel:
(44-207) 2038491
Fax:
(44-207) 2036701
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 metals, minerals, chemicals and related products,
mining and metallurgical equipment, lifting and conveying machinery.
Subject
are suppliers for Industrial finished and semi-finished steel, minerals and
carbon such as coke, coal, CPC, and iron ore of superior grades., The subject
also provides services within the steel industry and includes steel surface
finishing, de-coiling, levelling and cutting to length.
Subject
is ISO 9001:2008 accredited.
Import Countries: Germany, United
Kingdom, India and China
Export Countries: Germany, Italy,
Turkey and India
Subject
has a workforce of 25 employees.
FINANCIAL
DATA
Companies
registered in Dubai, United Arab Emirates are not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
BANKERS
Commercial
Bank of Dubai
Al Ittihad Street
Deira
Dubai
Tel: (971-4) 2112700
Fax: (971-4) 2112717
Emirates National Bank of Dubai
Exhibition
Hall No. 4
Dubai
World Trade Centre
Sheikh
Zayed Road
Dubai
Tel:
(971-600) 540000
Fax:
(971-4) 2221839
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 Christopher Varghese, Managing
Director
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 65.10 |
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1 |
INR 90.45 |
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Euro |
1 |
INR 79.59 |
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UAE Dh |
1 |
INR 17.77 |
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 : |
TPT |
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
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Promoters
/ Management background
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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.