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MIRA
INFORM REPORT
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Report Date : |
11.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
AL FUTTAIM AUTO AND MACHINERY CO LLC (FAMCO) |
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Registered Office : |
Airport Road, Rashidiya, P O Box – 5502, Dubai, |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1969, however subject was registered on 3rd December 1979. |
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Com. Reg. No.: |
58459, Dubai |
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Legal Form : |
Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company
- LLC) |
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Line of Business : |
import and distribution of trucks and buses, construction equipment,
material handling equipment, industrial equipment and machinery, storage
systems, and related spare parts |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name :
AL FUTTAIM AUTO AND MACHINERY CO LLC (FAMCO)
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Start Date :
1969
Registration Date :
3rd December 1979
Commercial Registration Number :
58459, Dubai
Trade Licence Number :
200272
Membership Number :
6247
Issued Capital :
UAE Dh 10,000,000
Paid up Capital :
UAE Dh 10,000,000
Total Workforce :
170
Line of Business :
Import and distribution of trucks and buses, construction
equipment, material handling equipment,
industrial equipment
and machinery, storage systems, and related
spare parts.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
COMPANY NAME
AL FUTTAIM AUTO AND MACHINERY CO LLC (FAMCO)
ADDRESS
Registered & Physical Address
Street : Airport Road
Area : Rashidiya
PO Box : 5502
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2135100
/ 2858861
Facsimile : (971-4)
2858446
Email : famco@alfuttaim.co.ae
Premises
Subject operates from a large suite of offices and a showroom with
warehousing facilities that are owned and located in the Industrial Business
Area of Dubai.
Branch Office (s)
Location Description
Musafah Office
& warehouse premises
PO Box: 8103
Abu Dhabi
Tel: (971-2) 5554169
Fax: (971-2) 5543194
Email: famcoauh@emirates.net.ae
PO Box: 16791 Office
& warehouse premises
Al Ain
Tel: (971-3) 7210777
Fax: (971-3) 7219901
Email: famcoaln@emirates.net.ae
KEY PRINCIPALS
Majid Al Futtaim Managing
Director
Abdullah Hamad Al Futtaim Director
Hamad Al Futtaim Director
Omar Abdulla Al Futtaim Director
Rolf Preisler General Manager
Syed Murtaza Finance
Manager
Kamal Hussain Sales
Manager
LEGAL FORM &
OWNERS
Date of Establishment : 1969,
however subject was registered on 3rd December 1979.
Legal Form :
Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 58459,
Dubai
Trade Licence No. : 200272
Membership No. : 6247
Issued Capital : UAE
Dh 10,000,000
Paid up Capital : UAE
Dh 10,000,000
Name of Shareholder
(s) Percentage
Al Futtaim Trading Company LLC 95%
PO Box : 7880
Dubai
Tel : (971-4) 2177777
Fax : (971-4) 2212933
Al Futtaim Company LLC 5%
PO Box : 152
Dubai
Tel : (971-4) 2177777
Fax : (971-4) 2212933
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 Al Futtaim Trading Group, which was established
in the 1930's, operating essentially as a trading enterprise. Pearls, textiles,
foodstuffs and timber formed the foundation of Al Futtaim's initial trading
enterprise. The forties and fifties saw the Trading Group extend its capacity
and scope of operations to establish itself as a leading organisation in the
region. The most obvious example of this expansion was the introduction of
Japanese automobiles into the United Arab Emirates in 1955.
Today, the Al Futtaim Trading Group of Companies is one of the largest
and most successful privately owned business houses in the lower Gulf region. A
workforce numbering upwards of 8,000 and forever on the increase, is drawn from
over twenty nations and encompasses a number of areas which include automobiles,
electronic, insurance, civil engineering, computers, furnishings, hardware,
advertising, construction, real estate, property development, light and heavy
engineering, ship repair and steel fabrication.
The Al Futtaim Trading Group of Companies consists of the following
concerns :
Al Futtaim Motors Company LLC
Al Futtaim Tower
Baniyas Square
Al Rigga
PO Box : 11052
Dubai
Tel : (971-4) 2282261 / 2954231
Fax : (971-4) 2288616
Email: afmotors@alfuttaim.co.ae
MAF Telecommunications & Receiving Systems Trading
PO Box : 60811
Dubai
Tel : (971-4) 3366990
Fax : (971-4) 3366991
MAF Leisure & Entertainment Co LLC
PO Box : 60811
Dubai
Tel : (971-4) 2894333
Fax : (971-4) 2894334
Ace Hardware & Home Center
PO Box : 7880
Dubai
Tel : (971-4) 3381416
Fax : (971-4) 3386151
Aftron
PO Box : 159
Dubai
Tel : (971-4) 2824080
Fax : (971-4) 2825383
Al Futtaim Engineering
PO Box : 159
Dubai
Tel : (971-4) 2823215 / 2823235 / 2823261
Fax : (971-4) 2823429 / 2823847
Al Futtaim Tower Scaffolding (Private) Limited
PO Box : 5502
Dubai
Tel : (971-4) 2858776 / 2858861
Fax : (971-4) 2858592
Al Futtaim Electronics (Sanyo)
PO Box : 5559
Dubai
Tel : (971-4) 2823215 / 2824080
Fax : (971-4) 2825383
Al Futtaim Electronics (Toshiba)
PO Box : 5866
Dubai
Tel : (971-4) 2213600
Fax : (971-4) 2222140
Al Futtaim Computer Software Products Company (Afcomp)
PO Box : 152
Dubai
Tel : (971-4) 3933878
Fax : (971-4) 3933832
Al Futtaim Watches & Jewellery
PO Box : 7916
Dubai
Tel : (971-4) 2224142
Fax : (971-4) 2224599
Al Futtaim Logistics
Jebel Ali
PO Box : 61450
Dubai
Tel : (971-4) 8818288
Fax : (971-4) 8819157
Al Futtaim Travel
PO Box : 7880
Dubai
Tel : (971-4) 2213030
Fax : (971-4) 2230534
Al Futtaim Market Research
PO Box : 152
Dubai
Tel : (971-4) 2270503
Fax : (971-4) 2242563
Al Futtaim Willis Faber (Pvt) Limited
PO Box : 152
Dubai
Tel : (971-4) 2952277
Fax : (971-4) 2950103
Al Futtaim Tarmac
PO Box : 1811
Dubai
Tel : (971-4) 3331200 / 3331670
Fax : (971-4) 3331018
Arab Orient Insurance Company
PO Box : 152
Dubai
Tel : (971-4) 2953425
Fax : (971-4) 2955701
Gulf Marketing and Servicing Company (Gmasco)
PO Box : 5830
Dubai
Tel : (971-4) 2282101
Fax : (971-4) 2279801
IKEA
PO Box : 50618
Dubai
Tel : (971-4) 2950434
Fax : (971-4) 2950162
Oman National Electronics (O.N.E)
PO Box : 531
Dubai
Tel : (971-4) 2719000
Fax : (971-4) 2710284
Panatech Engineering
PO Box : 531
Dubai
Tel : (971-4) 2719000 / 2826700
Fax : (971-4) 2719517
Paragon International Co
PO Box : 5502
Dubai
Tel : (971-4) 2714949
Fax : (971-4) 2714934
Trading Enterprises
PO Box : 5628
Dubai
Tel : (971-4) 2954246
Fax : (971-4) 2954381
Majid Al Futtaim Hypermarket LLC (MAF Carrefour Hypermarket)
Lexus Tower
Baniyas Street
Deira City Centre
PO Box: 60811
Dubai
Tel: (971-4) 2949999 / 2093281
Fax: (971-4) 2955295 / 2955009
Email: mafcogroup@emirates.ae
MAF Misr SAE
2 Port Said Road
Maadi
Cairo 11431
Egypt
Tel : (20-2) 7509074 / 7509075 / 7509076
Fax : (20-2) 7509397
LINE OF BUSINESS
Operations : Engaged in the import and distribution of trucks and buses,
construction equipment, material handling equipment, industrial equipment and
machinery, storage systems, and related spare parts.
Subject is the exclusive UAE distributor for Volvo trucks, buses and construction equipment and also
exclusively represents Yanmar of Japan,
the world's largest non-vehicle diesel engine producer for marine engines and generators,
the lift truck manufacturer, Linde of
Germany and Ingersoll-Rand,
worldwide manufacturers of machinery and equipment for the road building,
construction, mining manufacturing and process industries..
The company is ISO 9002 and 14001 certified.
Import Countries : Japan, Sweden, Germany and the United States of
America.
International Suppliers :
Yanmar Engines Ltd Japan
Kato Cranes Japan
Rotor Tools United
States of America
Operating Trend : Steady
Subject has a workforce of approximately 170 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 Sales UAE
Dh 72,650,000 UAE
Dh 75,800,000
Local sources consider subject’s financial condition to be Good.
BANKERS
Bank of Baroda
PO Box : 3162
Dubai
Tel : (971-4) 5531955
Fax : (971-4) 5536962
Commercial Bank of Dubai
Mankhool Street
PO Box : 2668
Dubai
Tel : (971-4) 3523355
Fax : (971-4) 3527655 / 2524796
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Al Futtaim Auto and Machinery Co LLC (FAMCO) is very well established in
the local market with operations dating back to 1969. It is engaged in the
import and distribution of trucks and buses, construction equipment, material
handling equipment, industrial equipment and machinery, storage systems, and
related spare parts.
The company deals with a host of leading international suppliers such as
Yanmar, Volvo, Ingersoll-Rand and Linde. Subject is a
member of the well known and financially strong Al Futtaim Trading Group.
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 sound trade risk.
Maximum suggested credit figure: US$ 1,500,000
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. |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)