MIRA INFORM REPORT

 

 

Report No. :

511534

Report Date :

29.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ELECON MIDDLE EAST FZE

 

 

Registered Office :

Dubai Airport Free Zone, Plot No. 5EA 420, PO Box – 54754, Dubai       

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

06.10. 2005

 

 

Legal Form :

Free Zone Establishment – FZE

 

 

Line of Business :

Subject is engaged in the import and distribution of gearboxes, couplings, material handling equipment and related products

 

 

No. of Employees :

5

 

 

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 :

Satisfactory

 

 

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                                    : ELECON MIDDLE EAST FZE

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Free Zone Establishment – FZE

Registration Date                                  : 6th October 2005

Trade Licence Number                           : 834

Issued Capital                                       : UAE Dh 500,000

Paid up Capital                                     : UAE Dh 500,000

Total Workforce                                                : 5

Activities                                               : Distributors of gearboxes, couplings, material handling equipment and

                                                              related products

Financial Condition                                : Fair

Payments                                             : No Complaints

Operating Trend                                    : Steady

Person Interviewed                                : Rajen Kavani, General Manager

COMPANY NAME

 

 ELECON MIDDLE EAST FZE

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Dubai Airport Free Zone, Plot No. 5EA 420

 

PO Box                        : 54754

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 6091424 / 3510251

Facsimile          : (971-4) 6091426 / 3510461

Mobile              : (971-50) 1424059 / 2755487

Email                : rajen@elecon.com

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Dubai Airport Free Zone Area.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       T V Patel                                                                                          Chairman

 

·       Kalyan Kar                                                                                       Chief Executive Officer

 

·       Rajen Kavani                                                                                    General Manager

 

·       Nirav Shah                                                                                       Sales Manager

                                         

·       Kamlesh Shah                                                                                  Financial Manager

 

·       Hatim Sarsawala                                                                               Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 6th October 2005

 

Legal Form                  : Free Zone Establishment – FZE

 

Trade Licence No.        : 834 (Expires 07/10/2018)

 

Issued Capital              : UAE Dh 500,000

 

Paid up Capital            : UAE Dh 500,000

 

Name of Shareholder (s)                                 Percentage

 

·       Elecon Engineering Co Ltd                                        100%

Anand Sojitra Road

Vallabh Vidyanagar 388120

Gujarat

India

Tel: (91-2692) 238701 / 238702

Fax: (91-2692) 227484 / 227020

 

 

AFFILIATED COMPANIES

 

·       Radicon Transmission UK

Unit J3, Lowfields Business Park

Lowfields Way

Elland

West Yorkshire HX5 9DA

United Kingdom

Tel: (44-1484) 465800

Fax: (44-1484) 465801

 

·       Elecon Singapore Pte Ltd

10 Anson Road

24-03 International Plaza

Singapore 079903

Tel: (65) 62278258

Fax: (65) 62278942

 

·       Benzlers

Porfyrgatan 7

25468 Helsingborg

Sweden

Tel: (46-0) 42186800

·       Radicon Drive Systems Inc

2475 Alft Lane

Eldin, IL 60124

United States of America

Tel: (1-847) 5939910

Fax: (1-847) 5939950

 

·       Radicon Transmission FZE

PO Box: 8224

Saif Zone

Sharjah

Tel: (971-52) 9059857

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of gearboxes, couplings, material handling equipment and related products.

 

Import Countries: Europe and the Far East

 

Export Countries: Saudi Arabia, Oman, Yemen, Jordan, Kuwait, Iran, Iraq, Syria, Turkey, Bahrain, Qatar,

                             Afghanistan, Algeria, Comoros, Djibouti and Lebanon

 

Operating Trend: Steady

 

Subject has a workforce of 5 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                    Year Ending 31/03/15:               Year Ending 31/03/16:               Year Ending 31/03/17:

 

Total sales                    UAE Dh 11,190,000                   UAE Dh 13,330,000                   UAE Dh 14,680,000

 

Local sources consider subject’s financial condition to be Fair.

 

The above figures were provided by Rajen Kavani, General Manager

 

 

BANKERS

 

·       Dubai Islamic Bank

PO Box: 1080

Dubai

Tel: (971-4) 2953000

Fax: (971-4) 2954111

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.44

UK Pound

1

INR 89.89

Euro

1

INR 70.00

UAE DH

1

INR 18.46

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

KET

                                                


 

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