MIRA INFORM REPORT

Report No. :	509053
Report Date :	16.05.2018

IDENTIFICATION DETAILS

Name :	THE INDEPENDENT TOBACCO FZE
Registered Office :	Sheikh Zayed Road, Plot No. S10841, Jebel Ali Free Zone, PO Box 261031 Dubai
Country :	United Arab Emirates
Financials (as on) :	31.12.2017
Date of Incorporation :	24.05.2003
Com. Reg. No.:	4810
Legal Form :	Free Zone Establishment * (single shareholder limited liability company)
Line of Business :	Manufacturers and Exporters of Tobacco Products, Mainly Cigarettes. Brands : - Business Royals; - Reds American; - Blues English; - Blue Ice; - Mini Pack; - M&J.
No. of Employees :	155

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
United Arab Emirates	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

BRIEF SUMMARY
COMPANY NAME	THE INDEPENDENT TOBACCO FZE
ADDRESS	Building	Street			Area			PO Box
	The Independent Tobacco Building	Sheikh Zayed Road, Plot No. S10841			Jebel Ali Free Zone, South Zone 1, Opp. Danube			261031 Dubai
TEL/FAX	Verified Phones: (+971 4) 886 3963 / (+971 4) 886 0345 / Fax: (+971 4) 886 3960
EMAIL/WEBSITE	Email: info@independenttobacco.com / Website: www.independenttobacco.com
ACTIVITY	NACE 1200 - Manufacture of tobacco products;
PRINCIPAL	Mohammed Said Guedi					Workforce
	Chairman					155
LEGAL INFO	Date Of Est.		Reg. No.	Legal Form			Status
	24/05/2003		4810	Free Zone Establishment			Active
CAPITAL	CURRENCY			AMOUNT
	AED			1,000,000
OPINION ON MAX CREDIT	CURRENCY			AMOUNT
	AED			7,600,000

IDENTIFICATION
CO. NAME	The Independent Tobacco FZE
TRADEMARK	Business Royals / Reds / M&J / Blues / Blue Ice
FORMER NAME	The Independent Tobacco FZCO
BUILDING	The Independent Tobacco Building
STREET	Sheikh Zayed Road, Plot No. S10841
AREA	Jebel Ali Free Zone, South Zone 1, Opp. Danube
POSTAL ADDRESS	261031 Dubai
CITY	Dubai
COUNTRY	United Arab Emirates
TELEPHONE	(+971 4) 886 3963 / (+971 4) 886 0345
FAX	(+971 4) 886 3960 / (+971 4) 886 0344
VERIFIED EMAIL	info@independenttobacco.com / ram@independenttobacco.com / itcfzco@emirates.net.ae / independenttobacco@independenttobacco.com
WEBSITE	www.independenttobacco.com
BUSINESS HOURS	DAYS	OFFICE HOURS	BREAK TIME
	Sun-Thu	09:00-17:00	13:00-13:30
REGISTERED ADDRESS	Sheikh Zayed Road, Plot No. S10841, Jebel Ali Free Zone, PO Box 261031 Dubai, United Arab Emirates

SENIOR PERSONNEL
MANAGEMENT	NAME	POSITION
	Mohammed Said Guedi	Chairman
	Ahmed Said Guedi Ramakrishnan Ponnambalam Jani Calingacion	General Manager Chief Financial Officer Accountant
WORKFORCE	NO. OF EMPLOYEES	PERIOD
	155	05.2018
	800 (MSG Group)	01.2018

FINANCIAL SUMMARY
REVENUE	31/12/2017	31/12/2018 (Projected)
	USD 103,000,000	USD 110,000,000
NET PROFIT / (LOSS)	31/12/2017	31/12/2016
	USD 12,000,000	USD 11,700,000
NOTES	Historical Profit & Loss Account Sales Turnover : USD 12,000,000 - 2005 : USD 24,000,000 - 2006 : USD 45,000,000 - 2007 : USD 52,000,000 - 2008 : USD 58,000,000 - 2009 : not given - 2010 / 2011 : USD 90,000,000 - 2012 : USD 76,000,000 - 2013 : not given - 2014/2015 : USD 108,000,000 – 2016 Net Profit : USD 2,360,000 - 2006 : USD 7,500,000 - 2007 : USD 9,000,000 - 2008 : not given - 2009 / 2013
FISCAL YEAR-END	31 December

LEGAL STATUS
INCORPORATION	24/05/2003
REGISTRATION NO.	C.R. NUMBER	ISSUED BY
	Trade License No. : 4810 (expiry date : 27/03/2019)	Jebel Ali Free Zone Authority (JAFZA)
OTHER REGISTRATION NO.	Dubai Chamber of Commerce and Industry Membership No.: 91598 (issue date : 12 October 2004)
AUTHORISED CAPITAL	AMOUNT	CURRENCY
	1,000,000	AED
PAID-UP CAPITAL	AMOUNT	CURRENCY
	1,000,000	AED
LEGAL FORM	Free Zone Establishment * (single shareholder limited liability company)
BUSINESS HISTORY	The company was incorporated in Jebel Ali Free Zone Authority (JAFZA) on 24 May 2003 as a free zone company under the name “The Independent Tobacco FZCO”. In 2008, subject was converted into a free zone establishment with the present name and shareholding structure.
STATUS	Active
SHAREHOLDERS	NAME	PERCENTAGE
	Mohammed Said Guedi Nationality: Djiboutian Date of Birth: Jan 1959 * According to law No.9 governing the establishment of companies in the Jebel Ali Free Zone, which was introduced in early 1992 and came into force in October 1992, foreign companies are allowed to set up separate legal entities referred to as Free Zone Establishments (FZEs) and Free Zone Companies (FZCO) having all features of a Private Limited Liability Company. The FZE can be either owned by a foreign individual or a corporate body. Its liability is determined by the amount of paid-up capital, which must be at least Dh 1 million. Previously, FZEs had to be branches of a company registered in a foreign country. A FZCO legal form allows investors to establish a company in Jebel Ali Free Zone having more than one shareholders (FZE only permits one shareholder). Its minimal registered capital is Dh 500,000.	100.00%

OPERATION
BANKERS	1. Standard Chartered Bank Mani Branch PO Box 999 Dubai Telephone: (+971 4) 352 0455 Fax : (+971 4) 352 6679 2. Mashreq Bank Omer Bin Al Khattab Street PO Box 1250 Dubai United Arab Emirates Telephone: (+971 4) 222 9131 Fax : (+971 4) 222 6061 3. Emirates NBD (fmly Emirates Bank International) Baniyas Square Baniyas Square PO Box 2923 Dubai United Arab Emirates Telephone: (+971 4) 228 3101 Fax : (+971 4) 222 6773 Subject previously had an account with: Barclays Bank PLC Ground Floor, Building No.6 Burj Dubai Business Hub Sheikh Zayed Road PO Box 1891 Dubai Telephone: (+971 4) 438 1038 Fax : (+971 4) 435 5932
ACTIVITY CODE (NACE)	NACE 1200 - Manufacture of tobacco products;
LINE OF BUSINESS	Manufacturers and exporters of tobacco products, mainly cigarettes. Brands : - Business Royals; - Reds American; - Blues English; - Blue Ice; - Mini Pack; - M&J.
IMPORT FROM	Brazil, India, Malaysia, Indonesia, Philippines, Europe and USA.
EXPORT TO	Turkey, East Africa, Algeria, Pakistan, Afghanistan, Iraq, Malta, Mauritius, Congo and Oman.
FACILITIES	Owned premises comprising administrative office and a manufacturing unit with storage facilities located at the heading address.
RELATED COMPANIES	Subject is a member of MSG Group of Companies, which also includes the following companies: Associates 1. MSG Trading Establishment Djibouti 2. Independent Tobacco Incorporated 176 Mine Lake Court, Suite 100 Raleigh, NC 27615-6417 USA Est.: 10/09/2004 C.R. No.: 0742860 3. The Chelsea Tobacco Company Limited The St Botolph Building 138 Houndsditch London EC3A 7AR UK Est.: 22/09/2004 C.R. No.: 05237843 4. SOMCABLE SAS Hargeisa, Somali Est.: 2009 5. Guedi Transit S.A.R.L. Hotel Atlantic-Rue d’Athenes PO. Box: 2558 Republic of Djibouti Tel: (+253 21) 359 409 6. The Independent Energy Hargeisa, Somali

PAYMENT RECORDS
CREDIT OPINION	We consider it is acceptable to deal with subject for LARGE amounts.
FINANCIAL STRENGTH	Normal
EMPLOYEE RANGE	ER3

SPECIAL REMARKS
INTERVIEWED	Ramakrishnan Ponnambalam (Chief Financial Officer).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.52
UK Pound	1	INR 91.49
Euro	1	INR 80.52
UAE Dh	1	INR 18.47

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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