MIRA
INFORM REPORT
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Report Date : |
05.05.2007 |
IDENTIFICATION DETAILS
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Name : |
AL FALAJ
ELECTRICAL CO LLC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
26872, |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Engaged in the
import and distribution of electrical switchgear, cladding accessories and
computer stationery. |
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$ 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : AL FALAJ ELECTRICAL CO LLC
Also Known As : AL FALAJ TRADING CO
Country of Origin :
Legal Form : Limited Liability Company – LLC
Start Date : 1981
Registration Date : 25th October 2005
Commercial Registration Number :
26872,
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 :
PO Box : 31205
Town :
Country :
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
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
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K
K Agrawal Indian Managing Director
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Osama
Faheed Abdul Emirati Director
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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,
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
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Osama
Faheed Abdul 51%
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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
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
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Operating Trend
: Steady
Subject has a
workforce of 24 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency :
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
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HSBC
Bank
PO Box : 242
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
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
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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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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%)