MIRA INFORM REPORT

 

 

Report Date :

19.11.2007

 

IDENTIFICATION DETAILS

 

Name :

ZAFCO TRADING LLC

 

 

Registered Office :

Mohamed Ali Alosaimi Building, Al Maktoum Street, Al Rigga, Deira, P O Box 13855 & 27946 & 29284, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

30th June 1993

 

 

Com. Reg. No.:

43879, Dubai

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Import, distribution and export of automotive components; Importers and distributors of general foodstuff products and commodities.

 

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 :

No Complaints

 

 

Litigation :

Clear

SUMMARY

 

Company Name                         : ZAFCO TRADING LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 30th June 1993

Commercial Registration Number            : 43879, Dubai

Trade Licence Number                            : 231359

Membership Number                              : 27485

Issued Capital                                        : UAE Dh 1,200,000

Paid up Capital                                      : UAE Dh 1,200,000

Total Workforce                                     : 40

Line of Business                                    : Distributors of automotive components, electrical goods and

                                                              foodstuff products.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

COMPANY NAME

 

ZAFCO TRADING LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Mohamed Ali Alosaimi Building

Street               : Al Maktoum Street

Area                 : Al Rigga, Deira

PO Box             : 13855 & 27946 & 29284

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2270965 / 6440849 / 2233559

Facsimile          : (971-4) 2278186

Email                : zafco@emirates.net.ae

                          info@zafco.com

 

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Central Business Area of Dubai.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       PO Box : 64516                                                                    Warehouse & showroom premises

Dubai

     Tel : (971-4) 2291782

     Fax : (971-4) 2258634

 

·       PO Box : 50398                                                                    Warehouse & showroom premises

Nasr Square

Dubai

 

 

KEY PRINCIPALS

 

     Name                                               Nationality                     Position

 

·       Mohamed Iqbal Abdul Karim               Pakistani                       Managing Director

 

·       Mohamed Hussain Abdul Karim          Pakistani                       Director

 

·       Sultan Ali Abdul Karim                       Pakistani                       Director

 

·       Ghulam Abbas Abdul Karim               Pakistani                       Director

 

·       Mahdi Habib Jaffar Ali                        Emirati                          Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 30th June 1993

 

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

 

Commercial Reg. No.  : 43879, Dubai

 

Trade Licence No.       : 231359 (Expires 26th June 2008)

 

Membership No.          : 27485

 

Issued Capital              : UAE Dh 1,200,000

 

Paid up Capital            : UAE Dh 1,200,000

 

 

Name of Shareholder (s)          Percentage

 

·       Mahdi Habib Jaffar Ali                                                                        51%

 

·       Mohamed Iqbal Abdul Karim                                                               13%

 

·       Sultan Ali Abdul Karim                                                                       13%

 

·       Mohamed Hussain Abdul Karim                                                          12%

 

·       Ghulam Abbas Abdul Karim                                                               11%

 

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.

 

 

AFFILIATED COMPANIES

 

·       Zafar Enterprises

802 Fortune Centre, Block 6

Shahrah-e-Faisal

Karachi

Pakistan

Tel: (92-21) 4545737-8

Fax: (92-21) 4546645

 

·       ZTI Export Inc

8240 NW, 52nd Ter, Suite No. 106

Miami

Florida 33166

United States of America

Tel: (1-305) 4063811

Fax: (1-305) 4069811

 

 

LINE OF BUSINESS

 

Operations : Subject’s activities are performed through the following divisions:

 

·       Automotive Division

 

       This division is the primary focus of the company and specialises in the import, distribution and export of automotive components, including tyres, tubes, batteries and lubricants.

 

·       Electronics Division

 

       Distributors of electrical and electronic products such as televisions, washing machines, DVD, home appliances, generators and mobile phones.

 

·       Foodstuff Division

 

       Importers and distributors of general foodstuff products and commodities, including spices and herbs, nuts and dried fruits, pickles, jam and jelly, canned foods and drinks.

 

Import Countries : Europe and the Far East.

 

Export Countries : Iran, Iraq, Pakistan, Kenya, Uganda, Rwanda, Tanzania, Sudan, Eritrea, Congo and South Africa.

 

Brand Names : NEXEN, PANDA, PHOENIX, WARRIOR, SIAM, PIRELLI, OTANI, BRIDGESTONE, MARSHAL, KUMHO, HANKOOK and TRANE.

 

Operating Trend : Steady

 

Subject has a workforce of 40 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 14,750,000                               UAE Dh 16,120,000

 

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

 

 

BANKERS

 

·       Middle East Bank Ltd

Arbift Tower

Baniyas Street

PO Box : 5547

Dubai

     Tel : (971-4) 2220121

 

·       The Standard Chartered Bank

Khalid Bin Waleed Street

PO Box : 999

Dubai

Tel : (971-4) 2520455

 

·       Mashreq Bank Plc

Deira Branch

PO Box : 1250

Dubai

Tel : (971-4) 2229131 / 2221134

Fax : (971-4) 2233784

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     April 1998                      July 2002                      July 2003

Credit amount                            200,000             200,000             150,000

Amount overdue             0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Malaysian Ringgits         US Dollars                     US Dollars

 

 

GENERAL COMMENTS

 

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

 

Established in 1993, subject is owned and managed by members of the Karim family, who are Pakistani nationals operating in Dubai under the local sponsorship of Mr Mahdi Habib Jaffar Ali.

 

According to local sources subject’s operating history is clear with payments met in a timely manner. The financial position is satisfactory and the business is considered to be a sound trade risk. As such the above credit figure is deemed 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.

 

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