MIRA
INFORM REPORT
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Report Date : |
13.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ROYAL PACKING MATERIALS INDUSTRY LLC |
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Registered Office : |
Mohamed Jaber Alharvi Warehouse, Sheikh Zayed Road, Al Quoz
Industrial, P O Box – 51183, 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 : |
04.08.2005 |
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Com. Reg. No.: |
59234, Dubai |
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Legal Form : |
Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company
- LLC) |
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Line of Business : |
Manufacturing of Packing and Packaging Materials, Including
Corrugated Carton Boxes,
Paper Bags and Box Files. |
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$ 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name :
ROYAL PACKING MATERIALS INDUSTRY LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
4th August 2005
Commercial Registration Number :
59234, Dubai
Trade Licence Number :
514674
Membership Number :
99915
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
25
Line of Business : Manufacturers of
packing and packaging materials.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
COMPANY NAME
ROYAL PACKING MATERIALS INDUSTRY LLC
ADDRESS
Registered & Physical Address
Building : Mohamed Jaber
Alharvi Warehouse
Street : Sheikh Zayed
Road
Area : Al Quoz
Industrial Area
PO Box : 51183
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 3476693
Facsimile : (971-4)
3476698
Premises
Subject operates from a medium sized suite of offices and a factory that
are rented and located in the Industrial Area of Dubai.
Branch Offices
Location Description
Baniyas Square Rented
office premises
Dubai
Tel : (971-4) 2224200
KEY PRINCIPALS
Name Nationality Position
Mohamed Shahabuddin Indian Managing Director
Abeda Mohamed Iqbal Lal Indian
Director
Mohamed Abdul Aziz Amrulla Abdullah Karmostaji Emirati Director
LEGAL FORM &
OWNERS
Date of Establishment : 4th
August 2005
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 59234, Dubai
Trade Licence No. : 514674
Membership No. : 99915
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder
(s) Percentage
Mohamed Abdul Aziz Amrulla Abdullah Karmostaji 51%
Mohamed Shahabuddin 25%
Abeda Mohamed Iqbal Lal 24%
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 manufacturing of packing and packaging
materials, including corrugated
carton boxes, paper bags and box files.
Import Countries : Europe and the Far East.
Subject has a workforce of 25 employees.
FINANCIAL HIGHLIGHTS
Financial highlights provided by outside sources are given below :
Currency : United Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/06 :
Total Sales UAE
Dh 8,200,000
Local sources consider subject’s financial condition to be Fair.
BANKERS
National Bank of Fujairah
PO Box 2979
Dubai
Tel : (971-4) 3971700 / 5078300
Fax : (971-4) 3979100 / 3973922
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Established in 2005, subject is involved in the manufacturing of packing
and packaging materials, including corrugated carton boxes, paper bags and box
files.
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$ 150,000
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%)