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MIRA INFORM REPORT
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Report No. : |
499208 |
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Report Date : |
20.03.2018 |
IDENTIFICATION DETAILS
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Name : |
GULF PETROCHEM FZC |
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Registered Office : |
Hamriyah Free Zone, Plot No. 2, PO Box 41506, Sharjah |
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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 : |
01.04.1998 |
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Com. Reg. No.: |
837 |
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Legal Form : |
Free Zone Company – FZC |
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Line of Business : |
Subject is engaged in the processing and refining of lubricants, oils,
greases and bitumen. |
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No. of Employees : |
225 |
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. 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 :
GULF PETROCHEM FZC
Country of Origin :
Sharjah, United Arab Emirates
Legal Form :
Free Zone Company – FZC
Start Date :
1st April 1998
Commercial Registration Number : 837
Trade Licence Number :
7
Issued Capital :
UAE Dh 1,335,000,000
Paid up Capital :
UAE Dh 1,335,000,000
Total Workforce :
225
Activities :
Processing and refining of lubricants, oils and greases
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
Person Interviewed :
Narindira Modi, Finance Manager
COMPANY
NAME
GULF PETROCHEM FZC
ADDRESS
Registered &
Physical Address
Location : Hamriyah Free
Zone, Plot No. 2
PO Box : 41506
Town : Sharjah
Country : United Arab Emirates
Telephone : (971-6) 5263773
/ 7488140 / 5264944
Facsimile : (971-6)
5263778 / 7487483 / 5264955
Mobile : (971-55) 2245123 / 2245213
Email : mail@gulfpetrochem.com
/ gepco@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices and a refinery
that are rented and located in the Hamriyah Free Zone.
KEY
PRINCIPALS
Name Nationality Position
Ashok Goyel Indian Managing Director
Sudair Goyel Indian Director
Manen Goyel Indian Director
Prerit Goyel Indian Director
Thangapandian Srinivasalu - Director
Brij Mohan Bansal - Director
Ayush Goyel - Director
Geraled Babu - Administration
Manager
Narindira Modi - Finance
Manager
Niraj Kumar - Commercial
Manager
Nitin Jain - Financial
Controller
Vishal D’Souza - Senior
Accountant
LEGAL
FORM & OWNERS
Date of Establishment : 1st
April 1998
History : Subject began in
1998 as a Free Zone Establishment but re-registered as a Free Zone
Company on 19th December 2006
Legal Form : Free Zone Company
- FZC
Commercial Reg. No. : 837
Trade Licence No. : 7
Issued Capital : UAE Dh
1,335,000,000
Paid up Capital : UAE Dh
1,335,000,000
Name of
Shareholder (s) Percentage
Ashok Goyel 28.169%
Sudair Goyel 28.169%
Prerit Goyel 21.831%
Manen Goyel 21.831%
AFFILIATED
COMPANIES
Vishwaa Carriers LLC
Fujairah
Gulf Petrochem SA
Geneva
Switzerland
Gulf Petrochem Limited
London
United Kingdom
Gulf Petrochem India Pvt Ltd
Mumbai
India
Gulf Petrochem Pvt Ltd
New Delhi
India
Gulf Petrochem PTE Ltd
Singapore
Aspam Energy (T) Ltd
Dar El Salaam
Tanzania
Gulf Petrochem Energy Services Ltd
Lagos
Nigeria
Gulf Petrochem
Kenya
Gulf Petrochem Latin America (GPLAM) Corp
Panama
OPERATIONS
Activities: Engaged in the processing and refining of lubricants, oils, greases and
bitumen.
Subject activities include storage, leasing and bunkering services.
Gulf Petrochem Group is a leading player in oil space, specializing in
Oil Trading & Bunkering, Oil Refining, Grease Manufacturing, Oil Storage
Terminals, Bitumen Manufacturing, and Shipping & Logistics. It operates a
60,000 cubic meters facility in Hamriyah Free Zone, Sharjah capable of storing
various grades of oils and owns three vessels with a combined capacity of
17,000 cubic meters to service bulk shipments.
Subject is still in the process of completing its storage facilities
which will be located in Fujairah.
Import Countries: Europe and GCC countries
International Suppliers:
India Oil Corporation India
Surya Energy FZE Sharjah
Renish Petroleum Dubai
Operating Trend: Steady
Subject has a workforce of approximately 225 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: United Arab
Emirates Dirham (UAE Dh)
Balance Sheet 31/12/08 31/12/09
31/12/10
Liabilities
Share Capital 100,000,000
100,000,000 160,462,000
Retained Earnings (Loss) 16,147,373
48,140,192 115,374,198
Shareholders Current Account 166,393 - -
Shareholders Loan - 35,900,000
-
Total Equity 116,313,766
184,040,192 275,836,198
Non Current Liabilities
Vehicle Loan 521,542
667,603 496,848
Term Loan 5,166,666
11,051,011 26,788,496
Employees' End of Service Benefits 193,982
353,744 490,559
Total Non-Current
Liabilities 5,882,190
12,072,358 27,775,903
Current Liabilities
Accounts Payable 7,585,350
31,456,869 13,997,084
Borrowings from Banks & Financial
Institutions 52,199,271
78,421,472 194,908,560
Current Portion of Long Term Debt (Vehicle
Loan +
Term Loan) 5,585,078
4,596,799 8,283,611
Advances from Customers 848,168
2,276,851 327,772
Provision & Accrued Expenses 731,018
1,074,667 2,174,907
Other Payables 458,575
1,379,531 -
Amount due to Related Parties 1,145,192
- -
Total Current Liabilities 68,552,652
119,206,189 219,691,934
TOTAL LIABILITIES & EQUITY 190,748,608
315,318,739 523,304,035
Assets
Fixed Assets
Property, Plant & Equipment 140,398,086
131,915,285 166,794,760
Total Fixed Assets 140,398,086
131,915,285 166,794,760
Investments
Investment in Subsidiaries -
25,400,000 69,630,734
Total Investments -
25,400,000 69,630,734
Current Assets
Cash and Balance with Banks 839,189
2,976,429 5,057,259
Inventories 16,468,037
29,210,330 54,623,818
Fixed Deposit with Banks 526,083
540,515 546,115
Trade Receivables 16,248,621
110,110,504 159,927,928
Other Receivables 16,268,592
7,434,906 39,529,592
Amount Due from Related Parties - 7,730,770 27,193,829
Total Current Assets 50,350,522
158,003,454 286,878,541
TOTAL ASSETS 190,748,608
315,318,739 523,304,035
Profit & Loss Account
Revenues 529,627,604
774,220,583 1,327,160,571
Total Operating Income 529,627,604
774,220,583 1,327,160,571
Cost of Sales (501,401,408)
(721,180,590) (1,229,158,130)
Total Direct Expenditure (501,401,408)
(721,180,590) (1,229,158,130)
Gross Profit (Loss) 28,226,196
53,039,993 98,002,441
Administrative Expenses
Professional, Visa, Taxes & Legal
Expenses (971,295)
(1,146,171) (1,319,760)
Salaries & Other Related Benefits (3,256,595)
(5,308,328) (7,149,471)
Vehicle Maintenance (304,021)
(147,865) (130,824)
Printing & Stationery (72,385)
(21,236) (153,208)
Repairs & Maintenance (211,687)
(69,645) (100,043)
Foreign Exchanges Loss -
(224,855) (257,778)
Utilities (24,682)
(14,058) (1,400)
Communication (277,218)
(256,041) (296,861)
Travelling & Conveyance (376,937)
(162,892) (304,447)
Charity and Donation (51,640)
(113,230) (22,936)
Rent (250,013)
(396,709) (687,458)
Directors Remuneration (1,800,000)
(1,800,000) (1,200,000)
Office Expenses (90,435)
(8,548) (55,906)
Bank Charges (885,855)
(3,079,206) (3,234,201)
Miscellaneous (426,994)
(5,019) (15,891)
Selling and Marketing Expenses
Advertisement & Business Promotion (849,638)
(1,022,383) (1,038,616)
Rebate & Discount (488,465)
(478,728) (293,245)
Carriage Outward & Distribution (529,458)
(603,956) (3,336,294)
Profit Before Interest & Depreciation 17,358,878
38,181,123 78,404,102
Depreciation (1,773,468)
(1,841,830) (3,315,621)
Operating Profit After Depreciation 15,585,410
36,339,293 75,088,481
Other Income 621,429
747,524 1,015,268
Loss on Sale of Property, Plant &
Equipment - (25,874) -
Earnings Before Interest & Tax 16,206,839
37,060,943 76,103,749
Less: Interest (2,610,503)
(5,068,124) (8,869,743)
Earnings Before Tax 13,596,336
31,992,819 67,234,006
Profit After Tax 13,596,336
31,992,819 67,234,006
Net Profit After Tax and Extraordinary
Items 13,596,336
31,992,819 67,234,006
Plus / (Minus) Retained Earnings / (Loss) B/F
2,551,037 16,147,373 48,140,192
Retained Earnings (Loss) C/F 16,147,373
48,140,192 115,374,198
Local sources consider subject’s financial condition to be Good.
Total revenue for the year ending 31st December 2011 was UAE
Dh 2,203,504,684 and for the ending 31st December 2012 it was UAE Dh
3,900,000,000. Figures for the year ending 31st December 2013 were not
available. Figures for the year ending 31st December 2014 were UAE
Dh 7,300,000,000. Figures for the year ending 31st December 2015
were UAE Dh 736,031,458 and figures for the year ending 31st
December 2016 were UAE Dh 834,000,000.
BANKERS
HSBC Bank Middle East
PO Box: 25
Sharjah
Tel: (971-6) 5537222
Fax: (971-6) 5537880
Bank of Baroda
PO Box: 1671
Sharjah
Tel: (971-6) 5687082
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
Subject’s head office and grease plant caught fire on 2nd of
April 2011. As a result they had to move to temporary premises.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.04 |
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1 |
INR 90.56 |
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Euro |
1 |
INR 79.78 |
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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 : |
TRU |
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.