MIRA INFORM REPORT

 

 

Report Date :

4th April 2006

 

IDENTIFICATION DETAILS

 

Name :

PYCHEM CO LLC

 

 

Registered Office :

Industrial Area No. 4

23940, Sharjah, United Arab Emirates

 

 

Date of Incorporation :

1st February 1997

 

 

Com. Reg. No.:

29590, Sharjah

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Distributors of construction and industrial chemicals.

 

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

PYCHEM CO LLC

Country of Origin

Sharjah, United Arab Emirates

Legal Form

Limited Liability Company - LLC

Registration Date

1st February 1997

Commercial Registration Number

29590, Sharjah

Trade Licence Number

121701

Membership Number

196657

Issued Capital

UAE Dh 150,000

Paid up Capital

UAE Dh 150,000

Total Workforce

8

Line of Business

Distributors of construction and industrial chemicals.

Financial Condition

Fair

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

 

COMPANY NAME

 

PYCHEM CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location      : Industrial Area No. 4

PO Box        : 23940

Town           : Sharjah

Country      : United Arab Emirates

Telephone   : (971-6) 5431636 / 5420414

Facsimile    : (971-6) 5421446

Mobile                  : (971-50) 6770361

Email          : pychem@eim.ae

 

Premises

 

Subject operates from a small suite of offices and a warehouse that are owned and located in the Industrial Area of Sharjah.

 

 

KEY PRINCIPALS

 

Name                                       Nationality                     Position

 

P V Gopinathan                       Indian                            Managing Director

 

Hassan Al Maadi                      Emirati                           Director

 

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st February 1997

 

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

 

Commercial Reg. No.    : 29590, Sharjah

 

Trade Licence No.         : 121701 (Expires 1st February 2007)

 

Membership No.  : 196657

 

Issued Capital      : UAE Dh 150,000

 

Paid up Capital    : UAE Dh 150,000

 

Name of Shareholder (s)                Percentage

 

Hassan Al Maadi                               51%

 

P V Gopinathan                                 49%

 

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 150,000, 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 and distribution of construction and industrial chemicals, including adhesives, bonding agents, grouts, sealants and water proofing products.

 

Import Countries : Australia, India, Japan, South Korea and the United States of America.

 

Operating Trend : Steady

 

Subject has a workforce of 8 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 7,200,000                            UAE Dh 7,860,000

 

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

 

 

 

BANKERS

 

Abu Dhabi Commercial Bank

Mina Road

PO Box : 4377

Sharjah

Tel : (971-6) 5737000

Fax : (971-6) 5725331

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 15,000,000:

 

Established in 1999, subject is owned and managed by Mr P V Gopinathan, an Indian national who operates in Sharjah under the local sponsorship of Mr Hassan Al Maadi.

 

According to local sources subject is making steady progress in the local business market and nothing detrimental has been reported regarding the manner in which payments are fulfilled. As such the business is considered to be a fair trade risk.

 

The above credit figure is higher than transactions previously seen and a measure of caution would be prudent.

 

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