MIRA INFORM REPORT

 

 

Report Date :

29.08.2007

 

IDENTIFICATION DETAILS

 

Name :

SWAIDAN TRADING CO LLC (STC)

 

 

Registered Office :

Al Naboodah Building, Al Ittihad Road, Hor Al Anz, P O Box 1200 & 80657, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1958

 

 

Com. Reg. No.:

4884, Dubai

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Offers a comprehensive range of agriculture oriented products. Distributors of various industrial rubber products.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 800,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear


SUMMARY

 

Company Name                         : SWAIDAN TRADING CO LLC (STC)

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Start Date                                             : 1958

Registration Date                                   : 25th May 1969

Commercial Registration Number            : 4884, Dubai

Trade Licence Number                            : 205838

Membership Number                              : 663

Issued Capital                                        : UAE Dh 31,000,000

Paid up Capital                                      : UAE Dh 31,000,000

Total Workforce                                     : 300

Line of Business                                    : Subject operates through several divisions (see below).

Financial Condition                                 : Good

Payments                                             : Prompt

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

SWAIDAN TRADING CO LLC (STC)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Naboodah Building

Street               : Al Ittihad Road

Area                 : Hor Al Anz

PO Box             : 1200 & 80657

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2948111 / 2019603 / 2948550

Facsimile          : (971-4) 2949300 / 2948998

Email                : swaidan@emirates.net.ae

 

 

Premises

 

Subject operates from a large suite of offices, showrooms and storage facilities that are owned and located in the Central Business Area of Dubai.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       Airport Road                                                                         Showroom & warehouse premises

Dubai

     Tel : (971-4) 2821915

 

·       Zabeel Road                                                                         Showroom & warehouse premises

Dubai

     Tel : (971-4) 3400033 / 3400036

     Fax: (971-4) 3400307

 

·       Abu Dhabi                                                                            Office and showroom premises

Tel : (971-2) 5554233

 

·       Al Ain                                                                                   Office and showroom premises

Tel : (971-3) 7211792

Fax : (971-3) 7217818

 

·       Fujairah                                                                                Office and showroom premises

Tel : (971-9) 2222731

Fax : (971-9) 2223769

 

 

KEY PRINCIPALS

 

·       Abdullah Mohamed Juma Al Naboodah                                   Managing Director

 

·       Omar Saeed Juma Al Naboodah                                             Director

 

·       Ahmed Saeed Juma Al Naboodah                                           Director

 

·       Johan Heislitz                                                                       General Manager

 

·       Mufid Abbas                                                                         Commercial & Finance Manager

 

·       Safwat Bolis                                                                         Technical Manager

 

·       Saeed Nemer                                                                        Sales Manager

 

·       Muzammil Hassan                                                                Marketing Manager

 

·       Hussain Doriwala                                                                  Administration Manager

 

·       Mohamed Al Shouli                                                               Manager – Peugeot Cars Division

 

·       Ahmed Al Hossani                                                                Manager – Agro Chemicals Division

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1958, however it was registered on 25th May 1969.

 

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

 

Commercial Reg. No.  : 4884, Dubai

 

Trade Licence No.       : 205838

 

Membership No.          : 663

 

Issued Capital              : UAE Dh 31,000,000

 

Paid up Capital            : UAE Dh 31,000,000

 

 

Name of Shareholder (s)          Percentage

 

·       Saeed & Mohamed Al Naboodah Holding Co LLC                                 50%

Al Naboodah Building

Al Ittihad Road

Hor Al Anz

PO Box : 1200

Dubai

Tel : (971-4) 2948888

Fax : (971-4) 2948877

 

·       Abdullah Mohamed Juma Al Naboodah                                               25%

 

·       Ahmed Saeed Juma Al Naboodah                                                       25%

 

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 prominent and financially strong, Al Naboodah Group of Companies which comprises the following concerns :

 

·       Al Naboodah Laing Co LLC

 

·       Emirates Concrete Products (EMCON)

 

·       Gulf Technical Trading & Services Co

 

·       SMKA Electric Co

 

·       Al Naboodah Contracting Company

 

·       Gulf Technical Trading and Services Company

 

·       Al Naboodah Medon Construction Company

 

·       Saeed and Mohamed Al Naboodah Real Estate Company

 

·       International Resources Overseas Co

 

·       Al Naboodah Cargo Centre

 

·       Al Naboodah Gypsum & Marble Products LLC

 

·       Trans Gulf Electromechanical LLC

 

·       Al Hamra Pharmacy

 

·       Al Naboodah Travel Agencies

 

·       Al Naboodah General Enterprises Corp

 

·       Al Naboodah – KMBC LLC

 

·       Naboodah Wood Workshop

 

·       Lite Tech Industries LLC

 

 

LINE OF BUSINESS

 

Operations : Subject’s operations are performed by the following divisions :

 

  • Agro Chemical Division

 

This is the largest and oldest division of STC and offers a comprehensive range of agriculture oriented products which include some of the well known brands of fertilizers, insecticides, seeds, garden tools, shades and nets, tents and sprayers, agriculture tractors and lawn mowers.

 

Sole agents for BASF (Germany) in Dubai.

 

  • Heavy Equipment & Commercial Vehicles Division

 

Engaged in the distribution of light and heavy machinery, earth moving equipment, commercial vehicles, automobiles, generators, power plants, water pumps, industrial tools and spare parts.

 

  • Tyre Division

 

Exclusive distributor for Goodyear Tyres and also agents for Fulda & Kelly Tyre companies. Subject is one of the largest stockists and distributors of tyres in the Gulf region. STC also has two modern workshops manned with highly qualified mechanics to provide tyre and quick auto services.

 

  • Industrial Rubber Products Division

 

Distributors of various industrial rubber products, including conveyor belts, transmission belts, fan belts, V belts and wedges, radiators and all types of hoses and rubber products.

 

  • Automotive Division

 

Exclusive agents and distributors in Dubai and the Northern Emirates for Peugeot cars. This division also distributes pick- ups, ambulances and other vehicles. The division has its own modern workshop and Auto Spare Parts Department manned with qualified and professional staff.

 

Import Countries : Germany, the United Kingdom, France, Italy, the Netherlands, Norway, Japan, Korea and India.

 

International Suppliers :

 

·       Ashok Leyland Ltd                            India

·       Olympia                                           Japan

·       Mikasa Construction Equipment         Japan

·       Daewoo Generators                           Korea

·       Iveco Aifo                                          Italy

·       Fiamm Automotive Batteries              Italy

·       Basf                                                 Germany

·       Gloria Power Sprayers                       Germany

·       Agroflor Shading Nets                        Germany

·       BASF Agro-Chemicals                       Germany

·       Mando Bus Air Conditioners               Germany

·       Wolf Tools                                        United Kingdom

·       Wilsonart Laminates                          United Kingdom

·       Aveling Barford (Machines) Ltd           United Kingdom

·       British Leyland Ltd                            United Kingdom

·       Liner Manufacturing Ltd                      United Kingdom

·       Sluis & Groot                                    The Netherlands

·       Van Hool                                          Belgium

·       Virax                                                France

·       Otto Waste Containers                      Norway

·       BMC Sanayi                                     Turkey

 

Brand Names : LEYLAND                     AVELING                      WIBAU

                        PEUGEOT                    BARFORD                    BASF

                        GOODYEAR                 VIRAX                           GLORIA

                        GOODWIN                    MACO                          OTTO

 

Operating Trend : Steady

 

Subject has a workforce of approximately 300 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/05 :                           Year Ending 31/12/06 :

 

Total Revenue                            UAE Dh 176,300,000                              UAE Dh 181,657,000

 

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

 

 

BANKERS

 

·       Commercial Bank of Dubai

Mankhool Street

PO Box : 2668

Dubai

Tel : (971-4) 3523355

Fax : (971-4) 3527655 / 2524796

 

·       National Bank of Dubai (NBD)

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

 

 

PAYMENT HISTORY

 

Subject’s payment record is reported to be met in a generally prompt manner.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000:

 

Swaidan Trading Co LLC (STC) has operations dating back to 1958 and has steadily grown into a leading concern in Dubai with interests in a number of diversified activities. It represents a host of renowned international suppliers and many leading brands.

 

It is a member of the well known Naboodah Group of Companies, which enjoys a good reputation not only locally but on an international scale as well.

 

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$ 800,000

 

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.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

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