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MIRA INFORM REPORT
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Report No. : |
497829 |
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Report Date : |
19.03.2018 |
IDENTIFICATION DETAILS
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Name : |
AFRICAN COMMODITIES DMCC |
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Registered Office : |
Silver
Tower, 22nd Floor, Office A to E & L, Jumeirah Lakes Towers, PO
Box 113709, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
31.07.2004 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is Engaged in the import and
distribution of steel, iron and other metal products and chemicals |
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No. of Employees : |
18 |
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, 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 :
AFRICAN COMMODITIES DMCC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company
Registration Date :
31st July 2004
Trade Licence Number :
30066
Membership Number :
0070
Issued Capital :
UAE Dh 1,000,000
Paid up Capital :
UAE Dh 1,000,000
Total Workforce :
18
Activities :
Distributors of steel, iron and other metal products and chemicals
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
AFRICAN COMMODITIES DMCC
ADDRESS
Registered & Physical Address
Location : Silver Tower, 22nd
Floor, Office A to E & L, Jumeirah Lakes Towers
PO Box :
113709
Town :
Dubai
Country : United Arab
Emirates
Telephone :
(971-4) 4408200 / 4408215 / 4408209 / 3970914 / 4408226
Facsimile :
(971-4) 4475211
Mobile :
(971-50) 2804952 / 6518348
Email : vishal.aggarwal@afdmcc.com / ekta.gupta@afdmcc.com
/ a.narang@afdmcc.com
/
Please note that subject’s previous address was, Unit No. AU-34-A-A,
Gold Tower, 34th Floor, Office No. A2E&L, Cluster I, Plot No.
PH-1-13A, Jumeirah Lakes Towers, Dubai.
Premises
Subject operates from a small suite of offices that are
rented and located in the Central Business Area of Dubai.
KEY
PRINCIPALS
Name Position
Raj Kumar Gupta Managing
Director
Vishal Agrawal Investment
Relations Manager
Omar Farooq Sales
Manager
Gurav Sareen Finance
Manager
Manish Modi Chief
Financial Officer
Sujatha Sundararajan Accounts
Manager
Pullan Parekh Commercial
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 31st
July 2004
Legal Form : Limited
Liability Company
Trade Licence No. : 30066
Membership No. :
0070
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE
Dh 1,000,000
Name of Shareholder (s) Percentage
Trans Global Group Investment Ltd 100%
British Virgin Islands
AFFILIATED
COMPANIES
Parco Enterprises Nigeria Ltd
Lagos
Nigeria
OPERATIONS
Activities: Engaged in the import and distribution
of steel, iron and other metal products and chemicals.
Import Countries: South Africa, China and
Switzerland
International Suppliers:
Max Steel South
Africa
Duferco Steel South
Africa
Hangzuo Jiankun China
PMC Industries Ltd China
Met Invest Switzerland
Operating Trend: Steady
Subject has a workforce of 18 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given
below:
Currency: United States Dollars (US$)
Balance Sheet 31/12/10 31/12/09
Non-current assets
Property, plant and equipment 4,138,745 2,561,826
Investment properties 323,581 -
Current assets
Inventories 2,051,189 7,900,246
Trade and other receivables 83,872,579 66,732,683
Cash 115,659 63,027
Other current financial assets 22,066 5,003,967
86,061,493 79,699,923
Current liabilities
Bank borrowings (25,902,987) (22,246,215)
Trade and other payables (11,276,918) (4,791,513)
(37,179,905) (27,037,728)
Net current assets 48,881,588 52,662,195
Non-current liabilities
Staff-end-of service gratuity (55,321) (30,377)
53,288,593 55,193,644
Share capital 54,795 54,795
Retained earnings 52,307,832 50,536,057
Equity funds 52,362,627 50,590,852
Shareholders’ current account 925,966 4,602,792
53,288,593 55,193,644
Statement of Income
Revenue 300,104,214 302,602,834
Cost of sales (269,333,885) (271,093,424)
Gross profit 30,770,329 31,509,410
Other operating income 861,883 419,093
Staff costs (1,141,616) (558,529)
Depreciation expense (297,485) (63,789)
Other operating expenses (269,608) (151,315)
Provision for doubtful debts - (8,165)
Impairment loss - (507,740)
Profit from operating activities 29,923,503 30,638,965
Interest income 71,567 34,141
Finance costs (1,223,295) (1,167,494)
Profit for the year 28,771,775 29,505,612
Turnover for the year ending 31st December 2012
was US$ 439,073,000, for the year ending 31st December 2013 US$
472,224,694 for the year ending 31st December 2014 US$ 475,000,000,
for the year ending 31st December 2015 US$ 459,000,000, for the year
ending 31st December 2016 US$ 297,977,720 and for the year ending 31st
December 2017 US$ 326,752,893.
Local sources consider subject’s financial condition to be
Good.
BANKERS
HSBC Bank Middle East
Deira Souk Branch
PO Box: 66
Dubai
Tel: (971-4) 2535000
PAYMENT
HISTORY
Regular
Date of transaction January
2014
Credit amount 500,000
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
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 payment obligations are met in a
generally timely manner and the operating history is clear. As such 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 64.87 |
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1 |
INR 90.49 |
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Euro |
1 |
INR 79.91 |
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UAE DH |
1 |
INR 17.75 |
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 : |
KET |
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
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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.