MIRA INFORM REPORT

 

 

Report Date :

23rd February, 2007

 

IDENTIFICATION DETAILS

 

Name :

MERCANTILE GLOBAL FZC

 

 

Registered Office :

Al Mubarak Building, Ground Floor, Flat No. 2, Sharjah Immigration Road, Abu Shagara, Sharjah, United Arab Emirates.

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

25.10.2004

 

 

Legal Form :

Free Zone Company - FZC

 

 

Line of Business :

Engaged in the import, distribution and export of scrap metal and steel.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 100,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

 

 

 

 

 

SUMMARY

 

 

Company Name

MERCANTILE GLOBAL FZC

Country of Origin

Ajman, United Arab Emirates

Legal Form

Free Zone Company- FZC

Registration Date

25th October 2004

Trade Licence Number

1662

Membership Number

290/2004

Issued Capital

UAE Dh 1,000,000

Paid up Capital

UAE Dh 1,000,000

Total Workforce

5

Line of Business

Import, distribution and export of scrap metal and steel.

Financial Condition

Fair

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

 

 

COMPANY NAME

 

MERCANTILE GLOBAL FZC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Mubarak Building, Ground Floor, Flat No. 2

Street               : Sharjah Immigration Road

Area                 : Abu Shagara

Town                 : Sharjah

Country             : United Arab Emirates

Telephone         : (971-6) 5532672

Facsimile          : (971-6) 5532672

Mobile               : (971-50) 5580157

Email                : mmabalia@emirates.net.ae

 

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Suburban Business Area of Sharjah.

 

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Ajman Free Zone                                                                               Rented sales office

PO Box: 21026

Ajman

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                                 Position

 

·       Parjati Kumar Balayi                             Indian                                     Managing Director

 

·       Barshan Rathod                                   Indian                                     Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th October 2004

 

Legal Form                  : Free Zone Company - FZC

 

Trade Licence No.       : 1662

 

Membership No.          : 290/2004

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

 

Name of Shareholder (s)

 

·       Parjati Kumar Balayi

 

·       Barshan Rathod

 

Note to the Legal Form  

A Free Zone Company - or FZC - is a company formed and registered within the Free Zones and regulated solely by the Free Zone authorities.


Such companies must have a capital of at least UAE Dh 1 million and liability will be limited to the amount of paid-up capital.

 

This legal form allows for 100 percent foreign ownership within the United Arab Emirates and allows foreign companies to maintain a presence in the UAE (within the free zone), without the usual requirement of a local sponsor that would hold majority ownership, i.e. minimum of 51 % equity in the capital.

 

 

AFFILIATED COMPANIES

 

·       Mecon International FZE

PO Box: 5874

Ajman

Mobile: (971-50) 5580157

 

 

LINE OF BUSINESS

 

Operations: Engaged in the import, distribution and export of scrap metal and steel.

 

Import Countries: India

 

Operating Trend: Steady

 

Subject has a workforce of 5 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 3,100,000                     UAE Dh 3,700,000

 

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

 

·       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.

 

 

GENERAL COMMENTS

 

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.

 

Maximum suggested credit figure: US$ 100,000

 

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/normal.

 

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