MIRA INFORM REPORT

 

 

Report Date :

23rd February, 2007

 

IDENTIFICATION DETAILS

 

Name :

EMIRATES MEAT (EDAM) LLC

 

 

Registered Office :

Sheikh Zayed Road, Plot WT-67, Jebel Ali Free Zone, PO Box: 61036, Dubai, United Arab Emirates.

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

01.07.1994

 

 

Com. Reg. No.:

85290, Dubai

 

 

Legal Form :

Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

 

Line of Business :

Engaged in the production, processing, packaging and marketing of frozen and chilled foods, various meat products, including meat cuts, mince meat, burgers, meatballs, kebabs, chicken, duck, turkey, veal, lamb and mutton products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 450,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

SUMMARY

 

 

Company Name

EMIRATES MEAT (EDAM) LLC

Country of Origin

Dubai, United Arab Emirates

Legal Form

Limited Liability Company - LLC

Registration Date

1st July 1994

Commercial Registration Number

85290, Dubai

Trade Licence Number

8926

Membership Number

34196

Issued Capital

UAE Dh 3,000,000

Paid up Capital

UAE Dh 3,000,000

Total Workforce

78

Line of Business

Production, processing, packaging and marketing of meat.

Financial Condition

Fair

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

 

COMPANY NAME

 

EMIRATES MEAT (EDAM) LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Sheikh Zayed Road, Plot WT-67

Area                 : Jebel Ali Free Zone

PO Box             : 61036

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 8817517

Facsimile          : (971-4) 8817516

Mobile               : (971-50) 6250236

Email                : edamllc@emirates.net.ae

 

 

Premises

 

Subject operates from a medium sized suite of offices, a warehouse and a factory that are rented and located in the Jebel Ali Free Zone.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       Al Quoz Industrial Area                                                          Office & warehouse premises

Dubai

     Tel   : (971-4) 3400544

     Fax  : (971-4) 3400533

 

 

KEY PRINCIPALS

 

·       Faisal Hassan Ibrahim Galadari                                              Managing Director

 

·       Zayed Galadari                                                                      Director

 

·       Yousif Nassar                                                                       Administration & Finance Manager

 

·       Satish Mathew                                                                      Financial Controller

 

·       Marwan Nazar                                                                       Marketing Manager

 

 

 

 

·       Peter De Souza                                                                    Production Manager

 

·       Ms Lina Napier                                                                      Customer Services Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st July 1994

 

History                         : Subject was originally established in 1994 under the name of “Emirates Danish

  Meat LLC (EDAM)”. However, in 1999 subject re-registered under the new

  name of “Emirates Meat (EDAM) LLC”.

 

Legal Form                  : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

Commercial Reg. No.  : 85290, Dubai

 

Trade Licence No.       : 8926 (Valid until 30/06/2007)

 

Membership No.          : 34196

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

 

Name of Shareholder (s)

 

·       Faisal Hassan Ibrahim Galadari

 

·       Zayed Galadari

 

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

 

·       Galadari Sons Trading LLC

Sheikh Rashed Bin Rashid Al Maktoum Building

Al Ghubaiba Street

PO Box: 7992

Dubai

Tel               : (971-4) 3937773

Fax              : (971-4) 3937676

Email           : galsons@emirates.net.ae

 

·       Galadari Sons International Co LLC

Sheikh Rashed Bin Rashid Al Maktoum Building

Al Ghubaiba Street

PO Box: 7992

Dubai

Tel               : (971-4) 3532777 / 3532244

Fax              : (971-4) 3531181 / 3532255

 

·       Galadari Sons Hosiery Mills LLC

Sheikh Zayed Road

Jebel Ali Free Zone

PO Box: 16822

Dubai

Tel               : (971-4) 8816560

Fax              : (971-4) 8816061

 

 

LINE OF BUSINESS

 

Operations : Engaged in the production, processing, packaging and marketing of frozen and chilled foods, various meat products, including meat cuts, mince meat, burgers, meatballs, kebabs, chicken, duck, turkey, veal, lamb and mutton products.

 

Subject is also engaged in the canning of fish and seafood products.

 

Import Countries : Brazil, Australia, United Kingdom, Denmark, France, India and the Far East.

 

Export Countries: Pakistan and Tanzania.

 

Brand Names : EDAM

 

Operating Trend : Steady

 

Subject has a workforce of 78 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 18,100,000                               UAE Dh 19,375,000

 

Local sources consider subject’s financial condition to be Fair.

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box : 66

     Dubai

     Tel   : (971-4) 2535000

 

·       National Bank of Dubai (NBD)

Baniyas Street

     PO Box : 777

     Dubai

     Tel   : (971-4) 2222241

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction      October 1999                September 2000           December 2005

Credit amount                100,000             26,000                          69,000

Amount overdue 0                                  0                                  0

Payment terms              60 days                         60 days                         60 days

Payment Method           Letters of Credit             Letters of Credit             Letters of Credit

Paying record                No Complaints               No Complaints               No Complaints

Currency                       Pounds Sterling             Pounds Sterling             Pounds Sterling

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Emirates Meat LLC (EDAM) has been in business for over 10 years. The company operates from the Jebel Ali Free Zone where it is engaged in the production, processing, packaging and marketing of frozen and chilled foods, particularly meat.

 

The company is own by Mr Faisal Hassan Ibrahim Galadari and Mr Zayed Galadari who are wealthy businessmen deemed trustworthy for respecting their trade commitments.

 

According to local sources, subject is adequately capitalised, meeting its payment obligations in a timely manner and as such is considered to be a fair trade risk.

 

Maximum suggested credit figure: US$ 450,000

 

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