MIRA
INFORM REPORT
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Report Date : |
30th
May 2006 |
IDENTIFICATION
DETAILS
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Name : |
AL SHAM GENERAL TRADING CO LLC |
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Registered Office : |
Abdulwahid Fikiri Building Al Burj Street, Al Rigga 9164, 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 : |
10th August 1982 |
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Com. Reg. No.: |
46695, Dubai |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Distributors of building materials,
hardware, sanitary ware products and electrical products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 200,000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
SUMMARY
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Company Name |
AL SHAM GENERAL TRADING CO 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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Registration Date |
10th August 1982 |
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Commercial Registration Number |
46695, Dubai |
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Trade Licence Number |
202040 |
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Membership Number |
9483 |
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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 |
7 |
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Line of Business |
Distributors of building materials, hardware, sanitary ware products and electrical products. |
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Financial Condition |
Fair |
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Payments |
Nothing detrimental uncovered |
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Operating Trend |
Steady |
COMPANY NAME
AL SHAM GENERAL TRADING CO LLC
ADDRESS
Registered & Physical Address
Building : Abdulwahid Fikiri Building
Street : Al Burj Street
Area : Al Rigga
PO Box : 9164
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2242295 / 2235668
Facsimile : (971-4) 2282522 / 2697011
Premises
Subject operates from a small suite of offices and a warehouse that are rented and located in the Central Business Area of Dubai.
KEY PRINCIPALS
Name Nationality Position
Dewani Kanayalal Techchand Indian Managing Director
Shyam Kanayalal Dewani Indian Director
Deepak Kanayalal Dewani Indian Director
Mohamed Yousuf Abdul Karim Bu Khammas Emirati Director
LEGAL FORM & OWNERS
Date of Establishment : 10th August 1982
Legal Form : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 46695, Dubai
Trade Licence No. : 202040 (Expires 30th July 2006)
Membership No. : 9483
Issued Capital : UAE Dh 3,000,000
Paid up Capital : UAE Dh 3,000,000
Name of Shareholder (s) Percentage
Mohamed Yousuf Abdul Karim Bu Khammas 51%
Dewani Kanayalal Techchand 24%
Shyam Kanayalal Dewani 15%
Deepak Kanayalal Dewani 10%
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 and distribution of building materials, hardware, sanitary ware
products and electrical products.
Import Countries : Europe and GCC countries.
Operating Trend : Steady
Subject has a workforce of 7 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 4,800,000 UAE Dh 5,000,000
Local sources consider subject’s financial condition to be Fair.
BANKERS
Habib Bank Ltd
Jamal Abdul Nasser Square
PO Box : 3306
Dubai
Tel : (971-4) 3232212
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Established in 1982, subject is owned and managed by a number of Indian nationals who operate in Dubai under the local sponsorship of Mr Mohamed Yousuf Abdul Karim Bu Khammas.
Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.
Maximum suggested credit figure: US$ 200,000
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 |