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MIRA
INFORM REPORT
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Report Date : |
1st
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
EMIRATES TRADING AGENCY LLC (ETA) |
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Registered Office : |
Ascon House, Salahuddine Al
Ayoubi Street, Deira,
P. O. Box 5239, Dubai, United Arab Emirates |
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Country : |
United
Arab Emirates |
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Date of Incorporation : |
1973 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in many aspects of shipping industry.
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
US$ 2,600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
|
Company Name |
EMIRATES TRADING AGENCY LLC (ETA) |
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Country of Origin |
Dubai, United Arab Emirates |
|
Legal Form |
Limited Liability Company - LLC |
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Registration Date |
1973 |
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Membership Number |
10643 |
|
Issued Capital |
UAE Dh 6,000,000 |
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Paid up Capital |
UAE Dh 6,000,000 |
|
Total Workforce |
1,000 (plus approximately 1,000 casual workers) |
|
Line of Business |
Subject operates through several divisions (see below for details). |
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Financial Condition |
Good |
|
Payments |
Prompt |
COMPANY NAME
EMIRATES TRADING AGENCY LLC (ETA)
ADDRESS
Registered & Physical Address
Building : Ascon House
Street : Salahuddine Al Ayoubi Street
Area : Deira
PO Box : 5239
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2713333 / 2729335 / 2716655 /
7073131
Facsimile : (971-4) 2729863 / 2729319 / 2729761
Email : eta@eta-ascon.com
Premises
Subject
operates from a large suite of offices that are owned and located in the
Central Business Area of Dubai.
Branch Office (s)
Location Description
·
Khalifa
Bin Howeidah Building Rented
office premises
Al Falah Street
PO Box : 3532
Abu Dhabi
Tel : (971-2) 6774420
Fax : (971-2) 6723053
KEY
PRINCIPALS
·
Abdullah
Al Ghurair Chairman
·
B.S.
Abdul Rahman Vice
Chairman
·
Sayyed
Mohamed Salahuddin Managing
Director
·
Abdul
Rahman Saif Al Ghurair Deputy
Managing Director
·
Saif
Ahmed Majed Al Ghurair Director
·
Abdul
Aziz Abdullah Al Ghurair Director
·
Easa
Abdullah Al Ghurair Director
·
P.S.M.
Sayyed Abdul Khadir Director
·
N.D.S.
Sathak Ansari Director
·
Khalid
Abdullah Al Ghurair Director
·
Arif
Buhary Rahman Director
·
Nour
El Haq Manager
– Trading & Shipping
Division
·
Ismail
Sayed Manager
– Construction
Division
·
A.K.
Agrawal Manager
– Mechanical
Division
·
T.C.
Ravenera Manager
– Power Division
·
P.H.
Habibullah Manager
– Automotive
Division
·
G.S.
Bukhari Manager
– Coastal Works
Division
LEGAL
FORM & OWNERS
|
Date
of Establishment |
1973 |
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|
|
|
Legal
Form |
Sharikat
Thet Massouliya Mahdoudeh (Limited Liability Company - LLC) |
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|
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Membership
No. |
10643 |
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|
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Issued
Capital |
UAE Dh
6,000,000 |
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|
|
|
Paid
up Capital |
UAE Dh
6,000,000 |
Name
of Shareholder (s)
·
Abdullah
Al Ghurair
·
B.S.
Abdul Rahman
·
Sayyed
Mohamed Salahuddin
·
Abdul
Rahman Saif Al Ghurair
·
Saif
Ahmed Majed Al Ghurair
·
Abdul
Aziz Abdullah Al Ghurair
·
Easa
Abdullah Al Ghurair
·
P.S.M.
Sayyed Abdul Khadir
·
N.D.S.
Sathak Ansari
·
Khalid
Abdullah Al Ghurair
·
Arif
Buhary Rahman
Note
to the Legal Form
A Limited
Liability Company (LLC) is defined in the Company Law as a company incorporated
with not less than two and not more than fifty shareholders, each responsible
only for the liabilities of the company to the extent of their share
participation in the capital of the company.
The
Company Law provides that the capital of a Limited Liability Company (LLC)
should not be less than UAE Dh 300,000, which should be divided into equal
shares of a value not less than UAE Dh 100 each.
This
type of company may engage in any form of legitimate business, with the
exception of insurance, banking and investment of funds.
Non
UAE Participation
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.
Under this arrangement the above ownership may not reflect the actual profit distribution within the company, as the company may have internal management agreements in place that provides full management of the company in return for a share of the company’s assets and profits. This internal relationship may or may not be recognized by law depending on the way the internal agreement is made.
AFFILIATED
COMPANIES
Subject is a member of the Al Ghurair Group, which has a turnover over
in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified
range of interests spanning real estate, finance and industry, with specialist
operations in banking, trading and shipping.
Some of the very successful industries that it operates today in the
United Arab Emirates, include the National Flour Mills Co Ltd, National Cement
Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National
Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In
the banking sector, the Ghurairs are owners of the UAE’s largest private bank,
the Dubai-based Mashreq Bank, which is one of the Group’s most successful
ventures and operates from branches both within and outside the UAE.
The Al Ghurair Group is active in London, New York, Cairo, Khartoum,
Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.
In real estate the Al Ghurair Centre has become a prominent landmark in
Dubai. It was built at a cost of more than US $ 150 million and is now home to
most of the city’s top retailers.
The Al Ghurair Group comprises the following concerns :
·
Al
Ghurair Holdings (Private) Ltd
·
Gulf
Extrusions Ltd
·
Arabian
Aluminium Company
·
Al
Ghurair Publishing & Printing House
·
Union
Mosaic & Marble Company
·
Al
Ghurair Centre
·
Arabian
Mix
·
National
Cement Company Ltd
·
Arabian
Packing Company
·
Gulf
Utensils
·
Gulf
Import & Export Co
·
House
of Perfume
·
Computer
Intelligence and Communications Ltd
·
Gulf
Confectionery & Biscuit Company
·
Oman
Insurance Co Limited
·
Mashreq
Bank
·
Al
Ghurair Enterprises
·
Al
Ghurair Exchange
·
National
Flour Mills Company Ltd
·
National
Concrete Company Ltd
·
Masafi
Mineral Water Co LLC
·
Associated
Construction & Investment Co LLC (ASCON)
·
Al
Ghurair Fieness Perry & Partners
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Pak
Arab Traders
·
Al
Ghurair Real Estate
·
Al
Khaleej Sugar Co WLL
·
Central
Electric Equipment Co LLC (CEEC)
·
National
Oman Marble Company
·
Rawda
Quarries Ltd
·
Ghurair
Tarmac
·
Oman
Finance Company
·
Ghurair
Crown (Engineering) Ltd
·
Al
Ghurair Industries (Pvt) Ltd
LINE
OF BUSINESS
Operations
Subject’s
activities are performed through the following divisions :
Shipping
Division
Under this
division, subject is engaged in many aspects of the shipping industry. Its
operations are performed by the following 5 departments :
Brokering : The company is a leading broker for dry cargo chartering and Sale and Purchase (S&P) of dry bulk carrier vessels, with 1,500 chartering fixtures and S&P deals to its credit. This department has its own ship brokerage office, Western Shipping & Trading Limited in London as well as a branch in Bangkok. It is an active member of the Baltic Exchange as well as being a member of BIMCO (Baltic and International Maritime Council). Western Shipping also undertakes shipping consultancy and post-fixture management on behalf of ETA and select clients.
Chartering : The chartering department commenced operations in the mid- 1970s with a 3,000 ton
affreightment contract. The department today oversees the movement of
over 8 million tons of cargo, of
which 5 million tons are moved in
vessels under its own charter.
Operations & Agency : The operations department handles
all loading, discharging and
coordination
with ports and customs transport
and delivery. The department also undertakes ships agency in Dubai
and provides ship owners and
charterers with comprehensive services such as bunkering, protecting
agency, crew changes, emergency
repairs and surveys.
Projects
& Development : The projects department specialise in the development of new business
concepts. It is currently engaged in the deployment of floating cranes in
Indian ports. Recently in collaboration with Shipping & Trading Associates
LLC, the department acquired the floating crane Diamond of Vizag. The crane
will be deployed in a variety of situations, such as the lightening of the
panamax, discharging to feeder vessels at anchorage directly from the mother vessel,
as well as fast loading and discharging at berths without shore handling
facilities.
This department also handles
asset finance matters and feasibility studies on various projects for the
shipping division.
Ship
Management : The
Ship Management department currently operates 6 dry bulk cargo vessels ranging
from 7,000 dwt to 67,000 dwt and a floating crane. This department provides
ship owners with a comprehensive vessel management programme including,
pre-acquisition vessel inspection, surveys,
technical
advise, crewing and total vessel management.
In October 1998, ANZ Investment
Bank arranged a $ 5.4 million, five year
Murabaha Islamic financing
facility for ETA. The funds were used for the
purchase of a 64,286 dwt dry bulk
carrier, named Pearl of Kuwait.
Automotive
Division
This
division is also known as the “Computerised Auto Repair & Services Division
(C.A.R.S)” and provides car servicing and computerised engine tuning, as well
as car body components and car accessories, such as batteries, tyres and
headlights.
Contracting
Division
Under
this division, subject provides contracting services for electro-mechanical
projects as well as power and control systems. Its operations are performed by
the following :
Electro Mechanical Dept. : The Electro-mechanical department specialises in
building projectsrequiring advanced engineering skills and technical expertise.
Its activities
cover the supply and installation of air-conditioning units, electrical,
sanitary, plumbing, fire alarm and security systems. The department’s past
contracts include residential, commercial and industrial buildings, hospitals,
universities, airports, as well as electrical power, communication and defence
projects. It has also contributed to major landmarks in the cities of Dubai and
Abu Dhabi such as Ruler’s Diwan, Etisalat Building, Citi Bank Regional Head
Office in Dubai, Municipality head office in Abu Dhabi, the Dubai International
Airport, the Forte Grant Hotel in Abu Dhabi and Jumeirah Beach Hotel.
Power & Control Systems : The power & Control Systems
department is engaged in the
manufacture,
testing and commissioning of low
voltage switchgear and control panels.
Current
Contracts : Subject
was awarded two contracts from the Dubai Electricity & Water Authority
(DEWA) for the construction of three 132/33-KV substations and the supply and
installation of cabling on the Qusais project. The larger of the contracts
(valued at UAE Dh 256 million) calls for the construction of 132-KV at Qusais,
Burj Nahar and Nasr Club. It also includes the supply and installation of 80
kilometres of 132-KV cabling. The company’s other contract is for the cabling
package associated with the Qusais north substation. Valued at over UAE Dh 90
million the order involves the supply and installation of 132-KV cabling.
In August 1999, ETA announced the
award of a turnkey contract to supply and
install two 13.8 MW fuel
oil generators for Fujairah
Cement Industries. The two units are to
be supplied by US-based Caterpillar
International Power Systems.
ETA has been awarded the
mechanical and electrical packages for the retail and apartment areas in the
existing Al Ghurair Centre.
General
Trading Division
This division
is engaged in the import and distribution of a wide range of general
merchandise, specialising in fire fighting equipment, filters and strainers,
building materials, clinker and cement, limestone, ores and minerals,
fertilisers and chemicals.
Manufacturing
Division
Subject
operates a number of production plants that come under the umbrella of the
Manufacturing Division, including the following:
New
Materials Division: Launched in 1993, New Materials Division introduces new building
materials to the Construction Industry in UAE through extensive foreign
collaborations.
A tie-up with the world leader in composite panel manufacturing M/s Mitsubishi Chemical Functional Products, Inc., Japan consolidates the strong technical base of the division in carrying-out the cladding works with Alpolic, Alook-Ex, Stainless Steel and Titanium composite cladding material for both internal and exterior of the buildings.
This department has executed so
far cladding works exceeding 450,000 square
metres in and around
the UAE.
Ascon Marble and Granite: ASCON Marble and Granite imports
quality marble and granite from Italy,
Spain, India, and Brazil.
It was founded in 1993 and specialises in the field of supply and fixing of
marble
and granite catering to the needs
of builders and contractors. It employs more than 200 craftsmen
and 20 staff.
It has recently won a prestigious
project in Abu Dhabi, The Conference Palace
Hotel, which was worth
more than UAE Dh 200,000,000.
Import
Countries
The United
States of America, India, the Far East and Europe.
International
Suppliers
·
Philips
TDS for Computers The
Netherlands
·
Vassa Controls OY Finland
·
Waagner-Biro AG Austria
·
Alusuisse Singen GmbH Germany
·
Hoppecke
Batteries Germany
·
Koba
Batteries Korea
·
Diax
(Poppy) Chemicals Ltd Japan
·
Mitsubishi Japan
·
Gaira
Bevel Gears Ltd India
·
Titan Watch Company India
·
Composite
(Superlite) Ltd United
States of America
·
President
Chemicals & Solvent Co United
States of America
·
Promask
Maskin Tape United
States of America
·
Westinghouse
Electric United
States of America
·
Dover
Elevators United
States of America
·
Trane
Co United
States of America
·
Oracle
Corp United
States of America
·
Dainichi
Nippon Cables United
States of America
Export
Countries
Oman,
Bahrain, Saudi Arabia, Iran, Pakistan, CIS, Ghana, and African countries.
Subject
has a workforce of approximately 1,000 employees with a further 1,000 casual
workers depending on the volume of work being carried out.
FINANCIAL
HIGHLIGHTS
Companies
registered in Dubai, United Arab Emirates are not legally required to make
their accounts public and no financial information was released by the company.
Local sources have reported that the Group's consolidated sales were in excess
of UAE Dh 3.5 billion.
BANKERS
·
HSBC
Middle East
Deira Souk Branch
PO Box : 66
Dubai
Tel : (971-4) 3535000
·
National
Bank of Dubai
Baniyas Street Branch
PO Box : 777
Dubai
Tel : (971-4) 2222241
PAYMENT HISTORY
Subject’s
payment record is reported to be met in a generally prompt manner.
No
complaints regarding subject’s payments have been reported.
Date of transaction April 1997 July 2005
Credit
amount 25,000 66,000
Amount
overdue 0 0
Payment
terms 30 days 30 days
Payment
Method Letters of
Credit Letters of
Credit
Paying
record Prompt Prompt
Currency Pounds
Sterling Pounds
Sterling
GENERAL COMMENTS
This is
a well established company, part of the Al Ghurair Group which is deemed trustworthy
for respecting its financial trade commitments. Payment obligations are
reportedly met in a prompt and timely manner and local sources advise that
subject is a sound trade risk.
Maximum
suggested credit figure: US$ 2,600,000
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |