MIRA INFORM REPORT

 

 

Report No. :

511082

Report Date :

30.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

EKC INTERNATIONAL FZE

 

 

Registered Office :

Plot No: S21004, Jebel Ali Free Zone, PO Box 61041 Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

13.06.2007

 

 

Com. Reg. No.:

7676 

 

 

Legal Form :

Free Zone Establishment 

 

 

Line of Business :

Manufacturers of cylinders for industrial gases, medical gases, firefighting equipment, beverage industry, accumulator shells, aerospace, scientific research as well as CNG-NGV cylinders for vehicles.

 

 

No. of Employees :

170 [2018]

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd 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 :

No Complaints

 

 

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

 

 

SUMMARY 

 

 

 

COMPANY NAME

EKC International FZE

 

ADDRESS

Building

Street

Area

PO Box

EKC Building

Plot No: S21004

Jebel Ali Free Zone, 7th Roundabout, Opp. Bridgestone

61041

Dubai

TEL/FAX 

Verified Phones: (+971 4) 883 2796 / Fax: (+971 4) 883 2799

EMAIL/WEBSITE

Email: accounts@ekcuae.com / Website: www.ekcuae.com

ACTIVITY

NACE 3299 - Other manufacturing n.e.c.;

PRINCIPAL 

Pushkar Kumar Khurana

Workforce 

Managing Director 

170  

LEGAL INFO 

 

Date Of Est.

Reg. No.

Legal Form

Status

13/06/2007

7676 

Free Zone Establishment 

Active

CAPITAL

CURRENCY

AMOUNT

AED 

1,000,000  

 

 

IDENTIFICATION

 

CO. NAME

EKC International FZE

BUILDING

EKC Building

STREET

Plot No: S21004

AREA

Jebel Ali Free Zone, 7th Roundabout, Opp. Bridgestone

POSTAL ADDRESS

61041 Dubai

CITY

Dubai

COUNTRY

United Arab Emirates

TELEPHONE

(+971 4) 883 2796 ext. 204 (Chandra Prakash Batra) & 208 (Accounts Depart.) / (+971 4) 883 2797 / (+971 4) 883 2798

FAX

(+971 4) 883 2799

VERIFIED EMAIL

accounts@ekcuae.com / purchase@ekcuae.com /  marketing@ekcuae.com / cpb@ekcuae.com /  hrd@ekcuae.com

WEBSITE

www.ekcuae.com / www.everestkanto.com

BUSINESS HOURS (DURING RAMADAN)

DAYS

OFFICE HOURS

BREAK TIME

Sun-Thu

09:00-16:00

Without Break

REGISTERED ADDRESS

Plot No: S21004, Jebel Ali Free Zone, PO Box 61041 Dubai, United Arab Emirates

 

 

 

SENIOR PERSONNEL

 

MANAGEMENT

NAME

POSITION

Pushkar Kumar Khurana

Managing Director 

Chandra Prakash Batra

 

Khan K.A.

 

 

Santosh Pandey

 

 

John Kutty   

 

Amal Gargav

 

B. Surendra

 

Krishna Kumar 

Commercial Director

 

Director (Fire Fighting Division)

 

Finance & Accounts Manager

 

HR & Admin Manager

 

Marketing Manager

 

Sales Manager  

 

Purchasing Manager

WORKFORCE

NO. OF EMPLOYEES

PERIOD

170 

05.2018

 

 

FINANCIAL SUMMARY

 

REVENUE  

31/03/2017

31/03/2016

INR 1,568,055,000

INR 1,659,078,000

NET PROFIT / (LOSS)   

31/03/2017   

31/03/2016

INR    39,412,000

INR   104,036,000

NOTES     

The following financial highlights as at 31/03/2017, showed:

 

Total Assets       : INR 1,477,610,000 – 2017

                   : INR 1,823,950,000 – 2016

 

Total Liabilities  : INR   240,595,000 – 2017

                   : INR   265,694,000 – 2016

 

Capital Expenditure: INR    66,313,000 – 2017

                   : INR    85,699,000 – 2016

 

Depreciation /

Amortisation       : INR    35,130,000 – 2017

                   : INR    26,275,000 – 2016

 

The following consolidated balance sheets as at 31 March 2017 applies to Everest Kanto Cylinder Limited, subject’s parent company:

 

                       31/03/2017  31/03/2016

                    (in Lakhs of Indian Rupees)

 

EQUITY AND LIABILITIES

Shareholders’ Funds

Share Capital            2,244.15    2,244.15

Reserves and Surplus    39,526.58   32,092.70

                        41,770.73   34,336.85

Minority Interest            1.37        1.37

Non-Current Liabilities

Long-Term Borrowings    19,768.57   24,897.74

Deferred Tax Liabilities

/ Assets (Net)                  -           -

Long-Term Provisions     1,737.65    2,105.12

                        21,506.22   27,002.86

Current Liabilities

Short-Term Borrowings   21,960.91   27,385.16

Trade Payables 

Outstanding dues to Micro,

Small and Medium

Enterprises                198.75      159.31

Outstanding dues to Other

than Micro, Small and

Medium Enterprises       7,632.83    5,583.13

Other Current

Liabilities             18,634.36    9,549.49

Short-Term Provisions      168.09      144.51

                        48,594.94   42,821.60

TOTAL                  111,873.26  104,162.68

 

ASSETS

Non-Current Assets

Fixed Assets (x)

Tangible Assets         41,905.59   51,046.26

Intangible Assets          129.56      165.93

Capital Work-in-Progress 1,386.72    2,838.64

                        43,421.87   54,050.83

Non-Current Investments     44.95       44.95

Long-Term Loans and

Advances                 1,617.63    1,694.22

Other Non-Current Assets    65.00      185.00

                         1,727.58    1,924.17

Current Assets

Current Investments          2.72        2.60

Inventories (xv)        25,901.20   28,757.90

Trade Receivables (xvi) 11,618.07   10,641.32

Cash and Bank Balances   3,494.71    2,720.82

Short-Term Loans and

Advances                 5,968.09    3,714.22

Other Current Assets    19,739.02    2,350.82

                        66,723.81   48,187.68

TOTAL                  111,873.26  104,162.68

 

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

 

                       31/03/2017  31/03/2016

                    (in Lakhs of Indian Rupees)

 

Revenue from Operations 56,765.99   50,575.79

Other Income               709.43      262.39

Total Revenue           57,475.42   50,838.18

Expenses:

Cost of Materials

Consumed                21,870.87   20,244.47

Purchases of

Stock-in-Trade           7,224.81    7,931.78

Changes in Inventories of

Finished Goods,Work-in-Progress

and Stock-in-Trade        (745.02)     374.33

Employee Benefits

Expense                  8,627.55    8,063.14

Finance Costs            4,452.69    5,351.40

Depreciation and

Amortization Expense     4,335.81    7,153.00

Other Expenses (xxvi)   13,325.55   12,787.69

Total Expenses          59,092.26   61,905.81

Profit / (Loss) from Ordinary

Activities before Recoveries

/ (Provision)           (1,616.84) (11,067.63)

for Doubtful Debts, Foreign

Exchange Variation Gain / (Loss)

Exceptional Items and Tax

Recoveries against Doubtful

Debts (Net)                294.83      155.33

Foreign Exchange Variation

Gain / (Loss)             (364.55)    (952.80)

Profit / (Loss) from Ordinary

Activities before Exceptional

Items and Tax           (1,686.56) (11,865.10)

IX. Exceptional Items

Gain/(Loss) (net)        9,571.06     (408.39)

Profit / (Loss)

Before Tax               7,884.50  (12,273.49)

Tax Expense:

Current Tax                 15.30       15.94

Deferred Tax                    -       13.75

Tax Adjustments for Earlier

Years (Net)                     -      105.68

XII. Net Profit / (Loss)

for the Year             7,869.20  (12,408.86)

Earnings per Equity Share

Basic                        7.01      (11.58)

Diluted                      7.01      (11.58)

FISCAL YEAR-END 

31 March. 

 

 

LEGAL STATUS 

 

INCORPORATION

13/06/2007

REGISTRATION NO.       

C.R. NUMBER

ISSUED BY  

License No.: 7676 (expiry date: 12/06/2019)

Jebel Ali Free Zone Authority (JAFZA) 

AUTHORISED CAPITAL     

AMOUNT

CURRENCY

1,000,000

AED

PAID-UP CAPITAL  

AMOUNT

CURRENCY 

1,000,000

AED

BUSINESS HISTORY

The Company was incorporated in United Arab Emirates on 13 June 2007, however its origins of business activities in UAE can be traced back to 2004.  

LEGAL FORM     

Free Zone Establishment 

STATUS

Active

OWNER   

NAME  

PERCENTAGE

Everest Kanto Cylinder Limited

204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point, Mumbai - 400 021.

Telephone: (+91 22) 3026 8300-01

Fax      : (+91 22) 2287 0720

Email: investors@ekc.in.

Website: www.everestkanto.com

Everest Kanto Cylinder (EKC) is engaged in the business of manufacturing industrial and CNG cylinders. Established in 1978, EKC has grown to become pioneer in development & production of industrial & CNG Cylinders with well over 1.5 million High Pressure gas cylinders and 6.00,000 CNG cylinders in service and three manufacturing plants in India Aurangabad, Tarapur and Gandhidam and Middle East (UAE) JAFZA in Dubai.

EKC has received ISO 9001:2000 for Quality Management for its three manufacturing plants. The company has production capacity of 5.00,000 cylinders on an annual basis.

 

The company has subsidiaries, namely EKC International FZE, EKC Hungary Kft, CP Industries Holdings, Inc and EKC Industries (Tianjin) Company.

 

In 2009 Everest Kanto Cylinder completed the acquisition of a majority stake (72.65%) in Calcutta Compressions & Liquefaction Engineering Pvt. Ltd. Its geographical segments include India, China, UAE, USA & Hungary, Thailand and Europe employing more than 1,000 people.

 

* 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   

National Bank Of Fujairah

Khalid Bin Waleed Street

PO Box : 2979

Dubai

Telephone: (+971 4) 397 1700

Fax      : (+971 4) 397 3922

AUDITORS    

Walker Chandiok & Co LLP,

Chartered Accountants, Mumbai

(Formerly Walker, Chandiok & Co.)

ACTIVITY CODE (NACE)    

3299 - Other manufacturing n.e.c.;3299 - Other manufacturing n.e.c.;

LINE OF BUSINESS    

Manufacturers of cylinders for industrial gases, medical gases, firefighting equipment, beverage industry, accumulator shells, aerospace, scientific research as well as CNG-NGV cylinders for vehicles.

 

Subject’s range of cylinders includes:

 

- CNG Cylinders for Natural Gas Vehicles;

- CNG Cylinder Cascades;

- Cylinders for Compressed Industrial Gases;

- Seamless Cylinders for Fire Fighting Application and Beverage uses.

 

Subject also offers various products for storage, conveyance and usage of high pressure gases:

 

- Cylinder Valves

Working Pressure - 250 Bar Max

Valve Threads - BS 341, DIN 477, IS 3224;

 

- Valve Protection Guards

In High Impact ABS plastic material in attractive colours, mainly for the portable cylinders with water capacity up to 20 Ltr;

 

- Valve Protection Caps

In all steel robust fabricated construction. 

 

- Medical Equipments

High Altitude Breathing Apparatus;

Oxygen masks;

Boyle's Apparatus for anaesthesia.

 

- Industrial Equipments

- Cylinder Cascades, Quads, for the storage and transportation of large volumes of high pressure gases for dispensing e.g. Compressed Natural

Gas, Hydrogen etc;

Trailer mounted cylinder bundles for end users of high pressure gases.

 

- Purge Bottles / Double Necked Cylinders.

IMPORT FROM

Europe and Far East and South East Asian countries.

EXPORT TO 

Middle East, East African and South East Asian countries.  

FACILITIES

Premises comprising administrative offices, a manufacturing unit and storage facilities located at the heading address. 

RELATED COMPANIES

Subject is a member of EKC Group of Companies, which also includes the following companies:

 

Subsidiaries

 

1. EKC Hungary Kft.

   1126, Budapest, Nagy Jeno u.10

   Hungary

 

2. EKC Europe Gmbh

   Bismarckstr. 120 47057 Duisburg 

   Germany

 

Associates

 

1. Calcutta Compression & Liquefaction

   Engineering Ltd

   Unit No. 203, 2nd Floor, 52A, Shakespeare

   Sarani Chandan Niketan, Kolkata

   West Bengal – 700017

   India

   CIN No.: U51410WB2004PLC100920

 

2. EKC Positron Gas Limited

   Unit No. 203, 2nd Floor, 52A, Shakespeare

   Sarani Chandan Niketan, Kolkata

   West Bengal – 700017

   India

   CIN No.: U40300WB2015PLC206360

 

3. Next Gen Cylinder Private Limited 

   204, Raheja Centre, Free Press Journal Marg,   

   214, Nariman Point

   Mumbai- 400 021

   India

   CIN No.: U74999MH2016PTC289026

 

4. EKC Industries (Tainjin) Company Limited

   Plot No. 12, He Chang Road, Wuqing

   Development Area, Tianjin, 

   China

 

5. EKC Industries (Thailand) Company Ltd

   No. 269, Vibhavadi - Rangsit Road, Sanambin  

   Sub-district, Donmuang District

   Bangkok – 10120

   Thailand

 

6. CP Industries Holding, Inc.

   2214, Walnut Street, Mckeesport, PA - 15132   

   USA

 

7. Kamal EKC Industries Limited

   Tanzania

 

 

 

 

SPECIAL REMARKS 

 

INTERVIEWED   

Krishna Kumar (Purchasing Manager).

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.82

UK Pound

1

INR 90.17

Euro

1

INR 78.70

UAE Dh

1

INR 18.37 

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

SYL

                                                


 

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)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.