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MIRA INFORM REPORT
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Report No. : |
499226 |
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Report Date : |
27.03.2018 |
IDENTIFICATION DETAILS
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Name : |
GLOBAL
WEAR SOLUTIONS EQUIP SPARE PART TRADING LLC |
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Registered Office : |
Zarouni Business
Centre, Office No. 201, Al Barsha, P O Box: 115745, Dubai |
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Country : |
United Arab
Emirates |
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Date of Incorporation : |
21.03.2017 |
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Legal Form : |
Limited Liability
Company - LLC |
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Line of Business : |
Import and
distribution of conveyor belts, wear resistant
rubber sheeting, ceramic liners and steel liners for heavy engineering and
material handling applications. |
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No. of Employees : |
15 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
NB |
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Credit Rating |
Explanation |
Rating Comments |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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Status : |
New Business |
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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 : GLOBAL WEAR SOLUTIONS EQUIP SPARE PART TRADING LLC
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date : 21st
March 2017
Trade Licence
Number : 778621
Chamber Membership
Number : 286490
Issued Capital : UAE Dh
300,000
Paid up Capital : UAE Dh
300,000
Total Workforce :
15
Activities :
Distributors of conveyor belts, wear resistant
rubber sheeting, ceramic
liners and steel liners for heavy engineering
and material handling
applications
Financial Condition : Undetermined
Payments :
Unknown
Person Interviewed : Joby G Varghese, Operations Manager
COMPANY
NAME
GLOBAL
WEAR SOLUTIONS EQUIP SPARE PART TRADING LLC
ADDRESS
Registered & Physical
Address
Building : Zarouni Business Centre, Office
No. 201
Area : Al Barsha
PO Box : 115745
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2274431
Facsimile : (971-4) 2721927
Mobile : (971-56) 6065105
Email : alex@globalwearsolutions.com / enquiries@globalwearsolutions.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Dubai.
KEY
PRINCIPALS
Name Nationality Position
·
Rahul Thottiyoil Indian Managing
Director
·
Joby G Varghese - Operations
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 21st
March 2017
Legal Form :
Limited Liability Company -
LLC
Trade Licence No. : 778621 (Expires 20/03/2019)
Chamber Member No. : 286490
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s) Nationality Percentage Holding
·
Al
Shura Turnkey Projects LLC Emirati 51%
·
Rahul Thottiyoil Indian 49%
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.
AFFILIATED
COMPANIES
·
Global
Wear Solutions
Mexico
·
Global
Wear Solutions
Australia
OPERATIONS
Activities: Engaged in the import and distribution of conveyor belts, wear resistant rubber sheeting, ceramic
liners and steel liners for heavy engineering and material handling
applications.
Import
Countries: Europe and the
Far East
Brand Names: REXLINE, REXWRAP, TRAGEN, PANZER, ABRATUFF,
ABRAHARD, FLEXIGO and CRUSHLINE
Subject has a
workforce of 15 employees.
FINANCIAL
DATA
Subject is a newly
formed business and as a result financial information is not currently
available.
BANKERS
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PO Box: 1080
Tel: (971-4) 2953000
Fax: (971-4) 2954111
PAYMENT
HISTORY
Unknown
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 Joby
G Varghese, Operations Manager
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.
In view of
subject’s infancy, extensive payment and financial records are not available, therefore
dealings are recommended to be on secured terms, and a close monitoring of
subject’s business development is advisable.
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 65.13 |
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1 |
INR 91.96 |
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Euro |
1 |
INR 80.34 |
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UAE DH |
1 |
INR 17.64 |
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 : |
NIT |
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
·
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.