MIRA INFORM REPORT

 

Report Date :

23rd February, 2007

 

IDENTIFICATION DETAILS

 

Name :

AJMAL STEEL TUBES & PIPES INDUSTRIES LIMITED

 

 

Registered Office :

Musaffah Industrial City, PO Box: 47563 & 105361, Abu Dhabi, United Arab Emirates.

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

20.05.2006

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Engaged in the manufacture of metal pipes.

 

 

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$ 80,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

SUMMARY

 

 

Company Name

AJMAL STEEL TUBES & PIPES INDUSTRIES LIMITED

Country of Origin

Abu Dhabi, United Arab Emirates

Legal Form

Limited Liability Company - LLC

Registration Date

20th May 2006

Trade Licence Number

95144

Membership Number

152333

Issued Capital

UAE Dh 300,000

Paid up Capital

UAE Dh 300,000

Total Workforce

50

Line of Business

Manufacture of metal pipes.

Financial Condition

Undetermined

Payments

Nothing detrimental uncovered

 

 

 

 

 

COMPANY NAME

 

AJMAL STEEL TUBES & PIPES INDUSTRIES LIMITED

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Musaffah Industrial City

PO Box             : 47563 & 105361

Town                 : Abu Dhabi

Country             : United Arab Emirates

Telephone         : (971-2) 5511634

Facsimile          : (971-2) 5511262

Email                : rahman@lawrienoble.com

                          ajmal788@emirates.net.ae

 

 

Premises

 

Subject operates from a medium sized suite of offices and a factory that are rented and located in the Industrial Area of Abu Dhabi.

 

 

KEY PRINCIPALS

 

·       Ishaq Mohamed Salem Mohamed Al Maiza                                         Managing Director

 

·       Mohamed Ashraf Shahul Ameed                                                         Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20th May 2006

 

Legal Form                  : Limited Liability Company - LLC

 

Trade Licence No.       : 95144 (Valid until 19/05/2007)

 

Membership No.          : 152333

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

 

 

 

 

Name of Shareholder (s)

 

·       Ishaq Mohamed Salem Mohamed Al Maiza

 

·       Mohamed Ashraf Shahul Ameed

 

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: Engaged in the manufacture of metal pipes.

 

Import Countries: India and South East Asia.

 

Subject has a workforce of approximately 50 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Subject is a newly formed business and as a result financial information is not currently available.

 

 

BANKERS

 

·       Emirates Bank International Ltd

PO Box : 47676

Abu Dhabi

Tel   : (971-2) 6224400

 

Fax : (971-2) 6225520

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Ajmal Steel Tubes & Pipes Industries Limited is a relatively new business with operations commencing in May 2006. It is engaged in the manufacture of metal pipes.

 

According to local sources subject is making steady progress in the local business market and nothing detrimental has been reported regarding the manner in which payments are fulfilled. As such the business is considered to be a fair trade risk.

 

The above credit figure is higher than transactions previously seen and a measure of caution would be prudent given the lack of financial and payment due to the short operating history.

 

Maximum suggested credit figure: US$ 80,000

 

 

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