MIRA INFORM REPORT

 

 

Report Date :

02.05.2007

 

IDENTIFICATION DETAILS

 

Name :

AL FALAJ ELECTRICAL CO LLC

 

 

Registered Office :

Electra Street, P O Box 31205, Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1981

 

 

Com. Reg. No.:

26872, Abu Dhabi

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the import and distribution of electrical switchgear, cladding accessories and computer stationery.

 

 

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$ 200,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : AL FALAJ ELECTRICAL CO LLC

Also Known As                                      : AL FALAJ TRADING CO

Country of Origin                                    : Abu Dhabi, United Arab Emirates

Legal Form                                            : Limited Liability Company – LLC

Start Date                                             : 1981

Registration Date                                   : 25th October 2005

Commercial Registration Number            : 26872, Abu Dhabi

Trade Licence Number                            : 28907

Membership Number                              : 16939

Issued Capital                                        : UAE Dh 300,000

Paid up Capital                                      : UAE Dh 300,000

Total Workforce                                     : 24

Line of Business                                    : Distributors of electrical switchgear, cladding

                                                  accessories and computer stationery.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

AL FALAJ ELECTRICAL CO LLC

 

 

ALSO KNOWN AS

 

AL FALAJ TRADING CO

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Electra Street

PO Box             : 31205

Town                 : Abu Dhabi

Country             : United Arab Emirates

Telephone         : (971-2) 6762637

Facsimile          : (971-2) 6761103

Email                : alfalaj@emirates.net.ae

 

Note

 

Subject was previously located in Sharjah and its old telephone number of 971-6 5333436 is redirected to its offices in Abu Dhabi.

 

 

Premises

 

Subject operates from a small suite of offices and a warehouse that are owned and located in the Central Business Area of Abu Dhabi.

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                     Position

 

·       K K Agrawal                                     Indian                            Managing Director

 

·       Osama Faheed Abdul                        Emirati                          Director

 

·       John Serrao                                          -                               Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1981, however subject re-registered on 25th October 2005.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 26872, Abu Dhabi

 

Trade Licence No.       : 28907

 

Membership No.          : 16939

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

 

Name of Shareholder (s)           Percentage

 

·       Osama Faheed Abdul                                                                        51%

 

·       K K Agrawal                                                                                     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.

 

 

LINE OF BUSINESS

 

Operations : Engaged in the import and distribution of electrical switchgear, cladding accessories and computer stationery.

 

Import Countries : India, United Kingdom and the United States of America.

 

Operating Trend : Steady

 

Subject has a workforce of 24 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/05:                Year Ending 31/12/06:

 

Total Revenue                            UAE Dh 7,290,000                     UAE Dh 8,000,000

 

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

 

 

BANKERS

 

·       HSBC Bank Middle East

PO Box : 242

Abu Dhabi

Tel : (971-2) 8004440 / 6147259

     Fax : (971-2) 6331564

 

 

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 owned and managed by Mr K K Agrawal, an Indian national who operates in Abu Dhabi under the local sponsorship of Mr Osama Faheed Abdul.

 

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$ 200,000

 

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