MIRA INFORM REPORT

 

 

Report Date :

25.07.2007

 

IDENTIFICATION DETAILS

 

Name :

EXTRA CO FIBRE GLASS & PREFAB HOUSES LTD

 

 

Registered Office :

Industrial Area No. 2, P O Box 6174, Sharjah

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

15th August 1981

 

 

Com. Reg. No.:

7074, Sharjah

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the manufacture of prefabricated houses, water tanks, swimming pools, PVC lining and multipurpose roof panels.

 

 

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$ 350,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : EXTRA CO FIBRE GLASS & PREFAB HOUSES LTD

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 15th August 1981

Commercial Registration Number            : 7074, Sharjah

Trade Licence Number                            : 371

Membership Number                              : 846

Issued Capital                                        : UAE Dh 500,000

Paid up Capital                                      : UAE Dh 500,000

Total Workforce                                     : 1,000

Line of Business                                    : Manufacturers of prefabricated houses, water tanks, swimming

                                                  pools, PVC lining and multipurpose roof panels.

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 

COMPANY NAME

 

EXTRA CO FIBRE GLASS & PREFAB HOUSES LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Industrial Area No. 2

PO Box             : 6174

Town                 : Sharjah

Country             : United Arab Emirates

Telephone         : (971-6) 5432538

Facsimile          : (971-6) 5421381

Email                : extraco@emirates.net.ae

 

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                                 Position

 

·       George Bu Nasser                             Lebanese                                  Managing Director

 

·       Salem Abdullah                                 Emirati                                      Director

 

·       Jameel Karb                                         -                                           Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th August 1981

 

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

 

Commercial Reg. No.  : 7074, Sharjah

 

Trade Licence No.       : 371

 

Membership No.          : 846

 

Issued Capital              : UAE Dh 500,000

 

Paid up Capital            : UAE Dh 500,000

 

 

 

Name of Shareholder (s)          Percentage

 

·       Salem Abdullah                                                                                 51%

 

·       George Bu Nasser                                                                             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 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

 

·       Extra Fibre Class & Prefabricated Houses LLC

Mohamed Saeed Hareb Building

Salah Al Din Street

Al Khabeesi

PO Box: 19209

Dubai

Tel: (971-4) 2698015

Fax: (971-4) 2661897

 

 

LINE OF BUSINESS

 

Operations : Engaged in the manufacture of prefabricated houses, water tanks, swimming pools, PVC lining and multipurpose roof panels.

 

Subject also distributes building materials, construction equipment, sanitary ware, acrylic and fibreglass products.

Import Countries : Europe and GCC countries.

 

Subject has a workforce of approximately 1,000 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Companies registered in Sharjah, 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

 

·       Investment Bank for Trade & Finance LLC

Al Arooba Street

     PO Box : 1885

     Sharjah

     Tel : (971-6) 5355391

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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

 

Established in 1981, subject is involved in the manufacture of prefabricated houses, water tanks, swimming pools, PVC lining and multipurpose roof panels. Subject also distributes building materials, construction equipment, sanitary ware, acrylic and fibreglass products.

 

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$ 350,000

 

 

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