MIRA INFORM REPORT

 

 

Report Date :

7th June 2006

 

IDENTIFICATION DETAILS

 

Name :

NIRMALS TRADING CO LLC

 

 

Registered Office :

Mustafa Bin Abdullatif Building

Al Souq Street, Al Souq Al Kabir

6558, Dubai

United Arab Emirates

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31/12/2005

 

 

Date of Incorporation :

14th June 1988

 

 

Com. Reg. No.:

43967, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Import, distribution and retail of textiles, readymade garments, suitcases and travel requisites, perfumes and cosmetics.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 150,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

SUMMARY

 

Company Name

NIRMALS TRADING CO LLC

Country of Origin

Dubai, United Arab Emirates

Legal Form

Limited Liability Company - LLC

Registration Date

14th June 1988

Commercial Registration Number

43967, Dubai

Trade Licence Number

216997

Membership Number

13858

Issued Capital

UAE Dh 300,000

Paid up Capital

UAE Dh 300,000

Total Workforce

10

Line of Business

Import, distribution and retail of textiles, readymade garments, suitcases and travel requisites, perfumes and cosmetics.

Financial Condition

Fair

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

 

 

COMPANY NAME

 

NIRMALS TRADING CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Mustafa Bin Abdullatif Building

Street               : Al Souq Street

Area                 : Al Souq Al Kabir

PO Box             : 6558

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 3536101

Facsimile          : (971-4) 3535806

 

Premises

 

Subject operates from a small suite of offices and a showroom that are rented and located in the Central Business Area of Dubai.

 

 

KEY PRINCIPALS

 

Name                                                                Nationality                     Position

 

Suresh Kumar Vasandani                                   Indian                            Managing Director

 

Monoharlal Chetandas Topandas             Indian                            Director

 

Mohamed Ali Saleh Ali                                       Emirati                          Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th June 1988

 

Legal Form                  : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

Commercial Reg. No.  : 43967, Dubai

 

Trade Licence No.       : 216997 (Valid until 03/06/2007)

 

Membership No.          : 13858

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                                 Percentage

 

Mohamed Ali Saleh Ali                                                               51%

 

Suresh Kumar Vasandani                                                           25%

 

Monoharlal Chetandas Topandas                                     24%

 

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 recognised by law depending on the way the internal agreement is made.

 

 

LINE OF BUSINESS

 

Operations: Engaged in the import, distribution and retail of textiles, readymade garments, suitcases and

travel requisites, perfumes and cosmetics.

 

Import Countries: France, Spain, Pakistan and India.

 

Operating Trend : Steady

 

Subject has a workforce of 10 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/04                 Year Ending 31/12/05

 

Total Revenue                            UAE Dh 5,280,000                     UAE Dh 5,365,000

 

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

 

 

BANKERS

 

Emirates Bank International Ltd

Beniyas Road

Deira

PO Box : 2923

Dubai

Tel : (971-4) 2256256 / 2256900

Fax : (971-4) 2268005 / 2267718

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Nirmals Trading Co LLC is engaged in the import, distribution and retail of textiles, readymade garments, suitcases and travel requisites, perfumes and cosmetics.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

Maximum suggested credit figure: US$ 150,000

 

 

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

 

 

 

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