MIRA INFORM REPORT

 

 

Report Date :

29th December, 2006

 

IDENTIFICATION DETAILS

 

Name :

KADDAS OILFIELD SERVICES AND TRADING COMPANY LLC (KOSTCO)

 

 

Registered Office :

Kaddas Building, Mussafah Industrial Area, PO Box: 3808, Abu Dhabi, United Arab Emirates.

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

10.01.1977

 

 

Com. Reg. No.:

12590, Abu Dhabi

 

 

Legal Form :

Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

 

Line of Business :

Distribution of oilfield equipment and spare parts, including stainless and

carbon steel pipes, pipe fittings, valves, fasteners, gaskets, hoses, tank truck loading equipment and related oilfield consumables.

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

SUMMARY

 

Company Name

KADDAS OILFIELD SERVICES AND TRADING COMPANY LLC (KOSTCO)

Country of Origin

Abu Dhabi, United Arab Emirates

Legal Form

Limited Liability Company - LLC

Registration Date

10th January 1977

Commercial Registration Number

12590, Abu Dhabi

Trade Licence Number

2899

Membership Number

5894

Issued Capital

UAE Dh 2,000,000

Paid up Capital

UAE Dh 2,000,000

Total Workforce

70

Line of Business

Distribution of oilfield equipment and spare parts.

Financial Condition

Fair

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

COMPANY NAME

 

KADDAS OILFIELD SERVICES AND TRADING COMPANY LLC (KOSTCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Kaddas Building

Area                 : Mussafah Industrial Area

PO Box             : 3808

Town                 : Abu Dhabi

Country             : United Arab Emirates

Telephone         : (971-2) 5510051

Facsimile          : (971-2) 5511976 / 5510488

Email                : kostco@emirates.net.ae

 

 

Premises

 

Subject operates from a medium sized suite of offices, a warehouse and a showroom that are owned and located in the Industrial Area of Abu Dhabi.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       PO Box : 61486                                                                    Office & warehouse premises

Jebel Ali Free Zone

Dubai

 

·       PO Box : 6409                                                                      Office & warehouse premises

Sharjah

     Tel   : (971-6) 5313099

     Fax : (971-6) 5313427

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                     Position

 

·       Jabby Joseph                                       Indian                         Managing Director

 

·       Anand Ranganath                                 Indian                         Director

 

·       Abdullah Kaddas                                 Emirati                        Director

 

·       C.R.Nair                                                  -                            General Manager

 

·       Jai Boy                                                    -                            Finance Manager

 

·       P.C. Anthony                                           -                            Administration Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10th January 1977

 

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

 

Commercial Reg. No.  : 12590, Abu Dhabi

 

Trade Licence No.       : 2899 (Expires 12th May 2007)

 

Membership No.          : 5894

 

Issued Capital              : UAE Dh 2,000,000

 

Paid up Capital            : UAE Dh 2,000,000

 

 

Name of Shareholder (s)                   Percentage

 

·       Abdullah Kaddas                                                           51 %

 

·       Jabby Joseph                                                            ]

                                                                                    ]    49 %

·       Anand Ranganath                                                      ]

 

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.

 

 

AFFILIATED COMPANIES

 

·       Crown Printing Co LLC

Tourist Club Area

Abu Dhabi

 

 

LINE OF BUSINESS

 

Operations : Engaged in the distribution of oilfield equipment and spare parts, including stainless and

         carbon steel pipes, pipe fittings, valves, fasteners, gaskets, hoses, tank truck loading

         equipment and related oilfield consumables.

 

Clients :

 

·       Sadco                                              United Arab Emirates

·       Adnoc                                              United Arab Emirates

·       Adma                                               United Arab Emirates

·       Adgas                                              United Arab Emirates

 

Import Countries : Italy, France, Spain, Belgium, Sweden, Saudi Arabia and the United Kingdom.

 

International Suppliers :

 

·       Valvo Metal                                       Italy

·       L.V.F.                                              Italy

·       Delta Valves                                     Italy

·       Galperti Engineering                          Italy

·       Moorside Machining Co Ltd                United Kingdom

·       Spromak                                          United Kingdom

·       Al Imam Factories Est                       Saudi Arabia

·       Sagana                                            France

·       Beck Crespel                                    France

·       Ulma Forging (ENARA)                      Spain

·       Fabricom                                          Belgium

·       Stalror International                           Sweden

 

Operating Trend : Steady

 

Subject has a workforce of 70 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 27,250,000                               UAE Dh 28,910,000

 

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

 

 

BANKERS

 

·       Arab Bank Plc

Sheikh Khalifa Street

     PO Box : 875

     Abu Dhabi

     Tel   : (971-2) 5334111

     Fax : (971-2) 5336433

 

·       Abu Dhabi Commercial Bank

Mussafah

PO Box : 9331

Abu Dhabi

Tel   : (971-2) 5544272

Fax : (971-2) 5544273

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Kaddas Oilfield Services And Trading Company LLC (KOSTCO) is very well established in the local business market with operations dating back to 1977. The company is engaged in the distribution of oilfield equipment and spare parts, supplying several of the regions leading oil companies.

 

KOSTCO deals with a host of renowned international suppliers who report payment obligations are met in a timely manner.

 

According to local sources subject’s operating history is clear and the financial situation is satisfactory. As such the company is considered to be a fair trade risk.

 

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

 

 

 

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