MIRA
INFORM REPORT
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Report Date : |
19th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
BHATIA BROTHERS LLC |
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Registered Office : |
Moza Mohamed Al Menaei Building Al Nakheel Street, Naif 1275, Dubai, United Arab Emirates |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
25th July 1981 |
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Com. Reg. No.: |
42466, Dubai |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject’s activities are performed through the following divisions:
Engaged as distributors of oilfield
supplies, industrial and petrochemical equipment, including cables, cords and
ropes, carbon steel, stainless steel, welded pipes, fittings and flanges, as
well as metallic chemical products.
The automotive division are stockists and
distributors for an array of car care products and accessories. The division
supplies to all major fuel retailing companies in the region and major
customers include government departments, new car dealers, fleet owners and
leading supermarket chains |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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$ 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
SUMMARY
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Company Name |
BHATIA BROTHERS LLC |
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Country of Origin |
Dubai, United Arab Emirates |
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Legal Form |
Limited Liability Company – LLC |
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Start Date |
1960 |
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Registration Date |
25th July 1981 |
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Commercial Registration Number |
42466, Dubai |
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Trade Licence Number |
201334 |
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Membership Number |
8208 |
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Issued Capital |
UAE Dh 3,000,000 |
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Paid up Capital |
UAE Dh 3,000,000 |
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Total Workforce |
100 |
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Line of Business |
Subject operates several divisions (see below for details) |
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Financial Condition |
Good |
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Payments |
Nothing detrimental uncovered |
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Operating Trend |
Steady |
COMPANY NAME
BHATIA BROTHERS LLC
ADDRESS
Registered & Physical Address
Building : Moza Mohamed Al Menaei Building
Street : Al Nakheel Street
Area : Naif
PO Box : 1275
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2267225 / 3331696
Facsimile : (971-4) 2268339 / 2826041
Email : bbisdxb@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Dubai.
Branch Office (s)
Location Description
PO Box : 785 Rented warehouse premises
Ras Al Khaimah
Tel : (971-7) 2234944 / 2239033
Fax : (971-7) 2238299
PO Box : 40687 Rented warehouse premises
Sharjah
Tel : (971-6) 5337166
Fax : (971-6) 5338046
Sultan Bin Ali Al Owais Building Rented warehouse premises
Baniyas Street
Al Sabkha
PO Box : 1275
Dubai
Tel : (971-4) 2267225
Fax : (971-4) 2268339
PO Box : 1611 Rented warehouse premises
Fujairah
Tel : (971-9) 222934
Fax : (971-9) 222935
KEY PRINCIPALS
Name Nationality Position
Ajay Bhagwandas Karani Indian Managing Director
Manish Bhagwandas Karani Indian Director
Karani Viramati Bhagwandas Indian Director
Sheikh Mohamed Bin Hasher Al Maktoum Emirati Director
M. Cannan - General Manager
Siddhartha Tiku - Sales Manager
M F M Colaco - Materials Manager
G K Sharma - Product Manager
LEGAL FORM & OWNERS
Date of Establishment : 1960
History : Subject was originally established in 1960 as a General Partnership, however on 25th July 1981 and upon renewal of subject’s trade licence it was re-registered as a Limited Liability Company under the current style of “Bhatia Brothers LLC”
Legal Form : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 42466, Dubai
Trade Licence No. : 201334
Membership No. : 8208
Issued Capital : UAE Dh 3,000,000
Paid up Capital : UAE Dh 3,000,000
Name of Shareholder (s) Percentage
Sheikh Mohamed Bin Hasher Al Maktoum 51%
Manish Bhagwandas Karani 17%
Ajay Bhagwandas Karani 16%
Karani Viramati Bhagwandas 16%
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.
AFFILIATED COMPANIES
Subject is a member of the Bhatia Brothers Group of Companies, which includes the following concerns :
Technical Parts Co
Abdullah Abdul Jalil Building
Hamdan Street
PO Box : 337
Abu Dhabi
United Arab Emirates
Tel : (971-2) 6771500
Fax : (971-2) 6771958
Oilfield Supply Centre (OFSC)
Darsait
Ruwi
PO Box : 5855
Muscat
Oman
Tel : (968) 705077 / 708908 / 794382
Fax : (968) 708169
Sea Side Supply
PO Box : 275
Dubai
United Arab Emirates
Tel : (971-4) 2229670
Bhatia Engineering Co
PO Box : 3675
Dubai
United Arab Emirates
Tel : (971-4) 2223225
Fax : (971-4) 2268339
Super General Trading Co
Murshid Bazaar
Deira
PO Box : 1275
Dubai
United Arab Emirates
Tel : (971-4) 2245387
Fax : (971-4) 2246078 / 2245717
LINE OF BUSINESS
Operations : Subject’s activities are performed through the following divisions:
Industrial Supplies Division
Engaged as distributors of oilfield
supplies, industrial and petrochemical equipment, including cables, cords and
ropes, carbon steel, stainless steel, welded pipes, fittings and flanges, as
well as metallic chemical products.
Automotive Division
The automotive division are stockists and distributors for an array of car care products and accessories. The division supplies to all major fuel retailing companies in the region and major customers include government departments, new car dealers, fleet owners and leading supermarket chains
It has supply contracts with the following petrol stations - C-Stores of UAE. - ADNOC, EPPCO, ENOC and Emarat, covering 300 stations as an exclusive tie-up. It also services over 300 other outlets like spare parts shops, service stations, super markets, hardware shops, workshops and oil change centres covering the entire country.
Subject was certified as an ISO 9000 Company since 1997.
Import Countries: Europe, Canada, United States of America and the Far East.
International Suppliers:
Clorox Company (STP) United States of America
Prestone Corp United States of America
Cyclo Industries United States of America
Freemyer Industrial United States of America
Holts Lloyd United Kingdom
Simoniz United Kingdom
Flexitallic Ltd. United Kingdom
Domnick Hunter Ltd United Kingdom
Fenner United Kingdom
Wynn's Belgium
CRC Industries Belgium
Kontakt Chemie Belgium
American Air Filter (AAF) Netherlands
AB Ph. Nederman & Co Sweden
Fuseas Ltd Japan
TPC Pneumatics & Mechatronics Corp Korea
Export Countries: Oman, Qatar, Bahrain and Saudi Arabia.
Brand Names : AEROQUIP, MOLY SLIP, GEDORE, BOSCH, KAESER COMPRESSORS, CROSLY
INTER, WILLIAMS TOOLS, DESBORDES, PETTINAROLI VALVES, KANGO POWER TOOLS,
INTERVALVE, CROSBY, NORDSTORM and AUDCO.
Operating Trend : Steady
Subject has a workforce of approximately 100 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 36,200,000 UAE Dh 37,250,000
Local sources consider subject’s financial condition to be Good.
BANKERS
National Bank of Dubai
Baniyas Street
PO Box : 777
Dubai
Tel : (971-4) 2222241
HSBC Bank Middle East
Deira Souk Branch
PO Box : 66
Dubai
Tel : (971-4) 2535000
Citibank
Al Maktoum Street
Deira
PO Box : 749
Dubai
Tel : (971-4) 5074121
Fax : (971-4) 2238922
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction April 1997 May 2002 May 2004
Credit amount 20,000 7,839 111,024
Amount overdue 0 0 0
Payment terms 30 days 30 days 60 days
Payment Method Letters of Credit Letters of Credit Letters of Credit
Paying record No Complaints No Complaints No Complaints
Currency Pounds Sterling Canadian Dollars Canadian Dollars
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000
Established in 1960, subject is owned and managed by members of the Karani family, who are Indian nationals operating in Dubai under the local sponsorship of Sheikh Mohamed Bin Hasher Al Maktoum.
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 and the above credit figure is deemed to be within subject’s financial means.
Maximum suggested credit figure: US$ 600,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |