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MIRA INFORM REPORT
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Report No. : |
498168 |
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Report Date : |
19.03.2018 |
IDENTIFICATION DETAILS
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Name : |
CAN PACK MIDDLE EAST LLC |
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Registered Office : |
Dubai Investment Park, PO Box 215061 & 45432, 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 : |
22.02.2007 |
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Com. Reg. No.: |
1005959, Dubai |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject is engaged in the manufacture of cans ranging in size from 2.5
ml to 355 ml. |
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No. of Employees : |
250 |
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+ |
Low Risk |
Business dealings permissible with low
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 :
CAN PACK MIDDLE EAST LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
22nd February 2007
Commercial Registration Number :
1005959, Dubai
Trade Licence Number :
591889
Chamber Membership Number :
118446
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
250
Activities :
Manufacturers of cans
Financial Condition :
Good
Payments : Regular
Operating Trend :
Steady
Person Interviewed :
Shahul Hameed, Financial
Controller
COMPANY
NAME
CAN PACK MIDDLE EAST LLC
ADDRESS
Registered &
Physical Address
Location : Dubai
Investment Park
PO Box :
215061 & 45432
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8850447
/ 8852955 / 8020100 / 8020250 / 8020275
Facsimile : (971-4)
8852966 / 8850449 / 8809194
Mobile :
(971-50) 4594904
Email :
sales@canpackme.ae / tpaul@canpackme.ae / shahul.hameed@canpackme.ae
Premises
Subject operates from a large suite of offices and a factory that are
rented and located in the Dubai Investment Park.
KEY
PRINCIPALS
Name Nationality Position
Wiele Sunulski Polish Managing
Director
Micheal Sloniec - Director
Mariuz Spolarczyk - Operations
Manager
A Sloniec - Finance
Manager
Thomas Paul - Accounts Manager
Shahul Hameed - Financial
Controller
LEGAL
FORM & OWNERS
Date of Establishment : 22nd
February 2007
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 1005959, Dubai
Trade Licence No. : 591889 (Expires
21/02/2020)
Chamber Member No. : 118446
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s)
Can Pak SA
Poland
AFFILIATED
COMPANIES
Can Pack ME FZE
Jebel Ali Free Zone, South Zone
PO Box: 215061
Dubai
Tel: (971-4) 8865123 / 8020250
Fax: (971-4) 8852966 / 8809194
Arab Can Co LLC
Dubai Investment Park
PO Box: 102773
Dubai
Tel: (971-4) 8852955
Fax: (971-4) 8852966
OPERATIONS
Activities: Engaged in the manufacture of cans ranging in size from 2.5 ml to 355
ml.
Production
Capacity: 1.9 million cans per year.
Import Countries: Europe and India
Local Suppliers:
Toll Global LLC Dubai
Henkel Jebel Ali FZE Dubai
Operating Trend: Steady
Subject has a workforce of approximately 250 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/16: UAE
Dh 493,554,445
Year Ending 31/12/17: UAE
Dh 510,735,958
Local sources consider subject’s financial condition to be Good.
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
Emirates Bank International Ltd
Jebel Ali Free Zone Branch
PO Box: 2923
Dubai
Tel: (971-4) 8815551
Fax: (971-4) 8815545
PAYMENT
HISTORY
Regular
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 Shahul Hameed, Financial Controller
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 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 17.74 |
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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PRA |
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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
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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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.