MIRA
INFORM REPORT
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Report Date : |
2nd
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
GEO ELECTRICAL TRADING & CONTRACTING CO LLC |
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Registered Office : |
BMW
Road, Industrial Area No. 2, PO Box: 3189, Sharjah, United Arab Emirates. |
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Country : |
United
Arab Emirates |
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Date of Incorporation : |
16.09.1989 |
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Com. Reg. No.: |
9396, Sharjah |
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Legal Form : |
Sharikat
Thet Massouliya Mahdoudeh (Limited Liability Company - LLC) |
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Line of Business : |
Subject’s
activities are performed through the following divisions: Ø
Production Division Ø
Rental Division Ø Spare Parts & Services Division |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$
300,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
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Company
Name |
GEO ELECTRICAL TRADING & CONTRACTING CO LLC |
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Country
of Origin |
Sharjah, United Arab Emirates |
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Legal
Form |
Limited Liability Company - LLC |
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Registration
Date |
16th September 1989 |
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Commercial
Registration Number |
9396, Sharjah |
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Trade
Licence Number |
17155 |
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Membership
Number |
10041 |
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Issued
Capital |
UAE Dh 150,000 |
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Paid
up Capital |
UAE Dh 150,000 |
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Total
Workforce |
170 |
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Line
of Business |
Subject operates several divisions (see below for details). |
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Financial
Condition |
Fair |
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Payments |
Nothing detrimental uncovered |
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Operating
Trend |
Steady |
COMPANY NAME
GEO
ELECTRICAL TRADING & CONTRACTING CO LLC
ADDRESS
Registered & Physical Address
Street : BMW Road
Area : Industrial Area No. 2
PO Box : 3189
Town : Sharjah
Country : United Arab Emirates
Telephone : (971-6) 5420603 / 5335153 / 5335127 /
5327733
Facsimile : (971-6) 5432245 / 5338245 / 5323366
Email : glmlggg@emirates.net.ae
Premises
Subject
operates from a medium size suite of offices, a workshop and a warehouse that
are rented and located in the Industrial Area of Sharjah.
KEY PRINCIPALS
Name Nationality Position
· George Narea Paramban Indian Managing
Director
· Rashid A. Ghareeb Emirati Director
· Paul Mindery - Finance
Manager
· Anthony Pavi - Marketing
Manager
· Gamal Abdul Azhar - Sales
Manager
· K.N.K. Menon - Technical
& Services Manager
LEGAL FORM & OWNERS
Date of Establishment : 16th September 1989
Legal Form : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 9396, Sharjah
Trade Licence No. : 17155 (Expires 19th September
2007)
Membership No. : 10041
Issued
Capital : UAE Dh 150,000
Paid
up Capital : UAE Dh 150,000
Name of Shareholder (s) Percentage
· Rashid A. Ghareeb 51%
· George Narea Paramban 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
: Subject’s
activities are performed through the following divisions:
·
Production Division
This division is engaged in the assembly of
electrical and ventilation equipment that is manufactured in Thailand under the
brand name of “Geo Air”.
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Rental Division
This division specialises in renting a wide
range of electrical appliances, refrigerators and air conditioning units.
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Spare Parts & Services Division
Engaged in the import and distribution of
electrical appliances, refrigeration and air conditioning systems, and
ventilation and humidifying units.
Subject also acts as air conditioning
contractors providing installation and maintenance services.
Import
Countries :
United States of America, France, Thailand, and GCC countries.
Brand
Names : GEOAIR
Operating
Trend : Steady
Subject
has a workforce of 170 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
29,000,000 UAE Dh
31,350,000
Local
sources consider subject’s financial condition to be Fair.
BANKERS
·
National
Bank of Sharjah
Al Boorj Avenue
PO Box : 4
Sharjah
Tel : (971-6) 5547747
·
Mashreq
Bank Plc
Foreign Trade Centre
Al Boorj Avenue
PO Box : 9271
Sharjah
Tel :
(971-6) 5351366 / 5354873
Fax :
(971-6) 5372903
·
HSBC
Bank Middle East
Deira Souk Branch
PO Box : 66
Dubai
Tel : (971-4) 2535000
PAYMENT HISTORY
No
complaints regarding subject’s payments have been reported.
Date of
transaction July 2002 June 2003
Credit
amount 100,000 100,000
Amount
overdue 0 0
Payment
terms 45 days 45 days
Payment
Method Letters of Credit Letters of Credit
Paying
record No Complaints No Complaints
Currency US
Dollars US
Dollars
GENERAL COMMENTS
Opinion
on the credit figure of US$ 150,000
Established
in 1989, subject is owned and managed by Mr George Narea Paramban, an Indian
national who operates in Sharjah under the local sponsorship of Mr Rashid A.
Ghareeb.
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 fair trade risk and the above credit
figure is deemed to be within subject’s financial means.
Maximum
suggested credit figure : US$ 300,000
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 |
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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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