MIRA
INFORM REPORT
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Report Date : |
30th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
TERRACO UAE LTD CO LLC |
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Registered Office : |
Industrial
Area, PO Box: 1672, Umm Al Quwain, United Arab Emirates. |
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Country : |
United
Arab Emirates |
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Date of Incorporation : |
09.05.2005 |
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Com. Reg. No.: |
5321, Umm Al Quwain |
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Legal Form : |
Sharikat
Thet Massouliya Mahdoudeh (Limited Liability Company - LLC) |
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Line of Business : |
Manufacturer of decorative and industrial paints. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$
150,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
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Company
Name |
TERRACO UAE LTD CO LLC |
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Country
of Origin |
Umm Al Quwain, United Arab Emirates |
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Legal
Form |
Limited Liability Company - LLC |
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Registration
Date |
9th May 2005 |
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Commercial
Registration Number |
5321, Umm Al Quwain |
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Trade
Licence Number |
332 |
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Membership
Number |
4686 |
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Issued
Capital |
UAE Dh 1,600,000 |
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Paid
up Capital |
UAE Dh 1,600,000 |
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Total
Workforce |
200 |
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Line
of Business |
Manufacturer of decorative and industrial paints. |
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Financial
Condition |
Undetermined |
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Payments |
Nothing detrimental uncovered |
COMPANY NAME
TERRACO
UAE LTD CO LLC
ADDRESS
Registered & Physical Address
Location : Industrial Area
PO Box : 1672
Town : Umm Al Quwain
Country : United Arab Emirates
Telephone : (971-6) 7662927
Facsimile : (971-6) 7662425
Mobile : (971-50) 482703
Premises
Subject
operates from a large suite of offices and a factory that are rented and
located in the Industrial Area of Umm Al Quwain.
KEY PRINCIPALS
Name Nationality Position
· Joran W Stong Swedish Managing Director
· Sheikh Abdulrahman Bin Salem Al
Qassimi Emirati Director
LEGAL FORM & OWNERS
Date of Establishment : 9th May 2005
Legal Form : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 5321, Umm Al Quwain
Trade Licence No. : 332
Membership No. : 4686
Issued
Capital : UAE Dh 1,600,000
Paid
up Capital : UAE Dh 1,600,000
Name of Shareholder (s)
Percentage
· Sheikh Abdulrahman Bin Salem Al
Qassimi 51%
· Joran W Stong 49%
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.
LINE OF BUSINESS
Operations
: Engaged in the
manufacture of decorative and industrial paints.
Import
Countries :
Europe and GCC countries.
Subject
has a workforce of approximately 200 employees.
FINANCIAL HIGHLIGHTS
Companies
registered in Umm Al Quwain, 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
·
Arab
Bank Plc
Ittihad
Street
PO Box : 11364
Dubai
Tel :
(971-4) 2228845
Fax :
(971-4) 2285974 / 2940847
PAYMENT HISTORY
No
complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion
on the credit figure of US$ 150,000:
Established
in 2005, subject is involved in the manufacture of decorative and industrial
paints.
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$ 150,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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