MIRA INFORM REPORT

 

 

Report Date :

16.01.2007

 

IDENTIFICATION DETAILS

 

Name :

ROYAL PALACE FURNITURE LLC

 

 

Registered Office :

Emirates National Road, P O Box 2327, Ajman

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

1990

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Engaged in the manufacture and retail of furniture.

 

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$ 300,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : ROYAL PALACE FURNITURE LLC

Country of Origin                                    : Ajman, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 1990

Issued Capital                                        : UAE Dh 15,000,000

Paid up Capital                                      : UAE Dh 15,000,000

Total Workforce                                     : 1,000

Line of Business                                    : Manufacturers and retailers of furniture.

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

COMPANY NAME

 

ROYAL PALACE FURNITURE LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Emirates National Road

PO Box             : 2327

Town                 : Ajman

Country             : United Arab Emirates

Telephone         : (971-6) 7464454 / 7434823

Facsimile          : (971-6) 7464303 / 7434485

Email                : chandra@royalpalacegroup.com

 

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Ajman.

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                                 Position

 

·       Suqa Than                                        Indian                                        Managing Director

 

·       Satish Man                                       Indian                                        Director

 

·       Sheikh Majid Al Nuaimi                      Emirati                                      Director

 

·       Sonil Chata                                           -                                           Sales Manager

 

·       Chandra Shaker                                    -                                           Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1990

 

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

 

Issued Capital              : UAE Dh 15,000,000

 

Paid up Capital            : UAE Dh 15,000,000

 

Name of Shareholder (s)          Percentage

 

·       Sheikh Majid Al Nuaimi                                                                      51%

 

·       Suqa Than                                                                                        25%

 

·       Satish Man                                                                                       24%

 

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

 

·       Al Hayat Furniture LLC

Sharjah

 

·       Marbella Furniture LLC

     Sharjah

 

 

LINE OF BUSINESS

 

Operations : Engaged in the manufacture and retail of furniture.

 

Import Countries : Europe and the Far East.

 

Subject has a workforce of approximately 1,000 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Companies registered in Ajman, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       HSBC Bank Middle East

Main Branch

Ajman

Tel : (971-6) 5537222

Fax : (971-6) 5537880

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000:

 

Established in 1990, subject is involved in the manufacture and retail of furniture and has a workforce of approximately 1,000 employees.

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

Maximum suggested credit figure: US$ 300,000

 

 

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

 

 

 

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