MIRA INFORM REPORT

 

 

Report Date :

22.05.2007

 

IDENTIFICATION DETAILS

 

Name :

AJMAL PERFUME MANUFACTURING & OUDH PROCESSING INDUSTRY LLC

 

 

Registered Office :

Plot No. 108, Sheikh Zayed Road, Al Quoz Industrial Area, P O Box 3141, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1951

 

 

Com. Reg. No.:

42094, Dubai

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the manufacture of perfumes and cosmetics.

 

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$ 400,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear


SUMMARY

 

Company Name                         : AJMAL PERFUME MANUFACTURING & OUDH

                                                  PROCESSING INDUSTRY LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company – LLC

Start Date                                             : 1951

Registration Date                                   : 8th June 1987

Commercial Registration Number            : 42094, Dubai

Trade Licence Number                            : 300319

Membership Number                              : 12259

Issued Capital                                        : UAE Dh 10,500,000

Paid up Capital                                      : UAE Dh 10,500,000

Total Workforce                                     : 280

Line of Business                                    : Manufacturers of perfumes and cosmetics.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

AJMAL PERFUME MANUFACTURING & OUDH PROCESSING INDUSTRY LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Plot No. 108

Street               : Sheikh Zayed Road

Area                 : Al Quoz Industrial Area

PO Box             : 3141

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2690102

Facsimile          : (971-4) 2629747

Email                : info@ajmalperfume.com

 

 

Premises

 

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

 

 

Branch Offices

 

Location                                                                                           Description

 

·       Hamarain Center, Gate 8, 2nd Floor                                                     Office premises

PO Box : 8809

Dubai

 

·       PO Box : 11500                                                                                Showroom premises

Muharraq

     Bahrain

 

·       4/13 Kamal Mansion                                                                          Showroom premises

Arthur Bunder Road

Mumbai

India

 

·       PO Box : 28343                                                                                Showroom premises

Safat 13142

Kuwait

 

·       PO Box : 2429                                                                                  Showroom premises

Ruwi 112

Muscat

Oman

 

·       PO Box : 4485                                                                                  Showroom premises

Doha

     Qatar

 

·       PO Box : 104080                                                                              Showroom premises

Jeddah 21331

     Saudi Arabia

 

·       64 Knightsbridge                                                                               Showroom premises

London SW1X 7JF

       United Kingdom

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Mohamed Amiruddin Ajmal Ali                        Indian                            Managing Director

 

·       Nazirul Haq Ajmal                                         Indian                            Director

 

·       Mohamed Fakhruddin Ajmal                           Indian                            Director

 

·       Hamad Ahmed Bin Suqat                               Emirati                          Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1951, however subject was registered on 8th June 1987.

 

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

 

Commercial Reg. No.  : 42094, Dubai

 

Trade Licence No.       : 300319 (Expires 31st May 2008)

 

Membership No.          : 12259

 

Issued Capital              : UAE Dh 10,500,000

 

Paid up Capital            : UAE Dh 10,500,000

 

 

Name of Shareholder (s)          Percentage

 

·       Hamad Ahmed Bin Suqat                                                                   51%

 

·       Mohamed Amiruddin Ajmal Ali                                                            17%

 

·       Nazirul Haq Ajmal                                                                             16%

 

·       Mohamed Fakhruddin Ajmal                                                               16%

 

 

 

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 perfumes and cosmetics.

 

Import Countries : Europe and the United States of America.

 

Operating Trend : Steady

 

Subject has a workforce of approximately 280 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 42,500,000                               UAE Dh 46,130,000

 

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

 

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box : 1250

Dubai

Tel : (971-4) 2229131 / 2221134

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 May 2006

Credit amount                                        150,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

Established in 1951, subject is involved in the manufacture of perfumes and cosmetics.

 

According to local sources, subject’s financial condition is satisfactory whilst payments are made in a timely manner. The company’s operating history is reportedly clear and the subject is considered to be a fair trade risk.

 

Maximum suggested credit figure: US$ 400,000

 

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