MIRA INFORM REPORT

 

 

Report Date :

29.10.2007

 

IDENTIFICATION DETAILS

 

Name :

AL RAHMANI GENERAL TRADING CO LLC

 

 

Registered Office :

Yousuf Al Rahmani Sons Building, Hor Al Anz Street, Hor Al Anz, Deira, P O Box 329, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1917

 

 

Com. Reg. No.:

45740, Dubai

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Building materials such as timber, plywood boards/panels, sheets, cements, and structural steel ; Interior decoration items; Ceiling and partitioning products like ceiling tiles and gypsum boards.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 700,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear


SUMMARY

 

Company Name                         : AL RAHMANI GENERAL TRADING CO LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company – LLC

Start Date                                             : 1917

Registration Date                                   : 6th May 1980

Commercial Registration Number            : 45740, Dubai

Trade Licence Number                            : 208692

Membership Number                              : 6655

Issued Capital                                        : UAE Dh 3,000,000

Paid up Capital                                      : UAE Dh 3,000,000

Total Workforce                                     : 210

Line of Business                                    : Distributors of building materials, tools, hardware, timber,

                                                  flooring and sanitary ware products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

AL RAHMANI GENERAL TRADING CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Yousuf Al Rahmani Sons Building

Street               : Hor Al Anz Street

Area                 : Hor Al Anz, Deira

PO Box             : 329

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2142599 / 2664300 / 2664698 / 2664417

Facsimile          : (971-4) 2694870

Email                : rahmani@emirates.net.ae

                          sales@alrahmani.com

 

 

Premises

 

Subject operates from a medium sized suite of offices and a warehouse that are owned and located in the Suburban Business Area of Dubai.

 

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Hor Al Anz                                                                                        Showroom premises

Dubai

     Tel : (971-4) 2142540 / 2664282

 

·       Al Aweer                                                                                          Showroom premises

Dubai

     Tel : (971-4) 3331286

 

·       Al Nakheel Road                                                                               Showroom premises

Dubai

     Tel : (971-4) 2224978 / 2221444

 

·       Mussafah Industrial Area                                                                    Showroom premises covering

PO Box: 8413                                                                                   an area of 40,000 square feet

Abu Dhabi

Tel: (971-2) 5554647 / 5552998

Fax: (971-2) 5554909

 

·       Sharjah                                                                                            Showroom premises

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Ibrahim Yousuf Abdul Rahman Al Rahmani      Emirati                          Managing Director

 

·       Noora Heryani                                               Emirati                          Director

 

·       N.H. Bhatia                                                        -                              General Manager

 

·       Harish Annaswami                                             -                              Marketing Manager

 

·       K M Purshothaman                                            -                              Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1917

 

History                         : Subject’s operations date back to 1917 when it was established by the late Haji

  Yousuf Al Rahmani as a small trading concern. However subject was registered

  on 6th May 1980 as a Limited Liability Company between the current owners.

 

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

 

Commercial Reg. No.  : 45740, Dubai

 

Trade Licence No.       : 208692 (Expires 27th February 2008)

 

Membership No.          : 6655

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

 

Name of Shareholder (s)          Percentage

 

·       Ibrahim Yousuf Abdul Rahman Al Rahmani                                          80%

 

·       Noora Heryani                                                                                   20%

 

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 : Subject has a product range covering more than 10,000 items, including the following products :

 

-  Building materials such as timber, plywood boards/panels, sheets, cements, and structural steel.

-  Interior decoration items.

-  Ceiling and partitioning products like ceiling tiles and gypsum boards.

-  Complete range of hardware, plumbing and sanitary ware, paints and accessories, hand/power tools and accessories, as well as electrical fittings.

 

Import Countries : Europe, India, the Far East, Canada and the United States of America.

 

International Suppliers :

 

·       Bison-Kit Adhesives              Netherlands

·       Fobro Sarlino                        France

·       Diaglas                                 Germany

·       Hornitex                               Germany

·       Jowat                                   Germany

·       ARPA Srl                             Italy

·       Ondura Ltd                           United Kingdom

·       Canfor Wood Panels              Canada

·       Hitachi                                 Japan

·       Milton Ltd                             India

·       Swan                                   Malaysia

·       Modecor Ltd                         Saudi Arabia

 

Export Countries : USA, Europe, Eritrea, Ethiopia, Iran, Sudan, Libya, Algeria, Mauritania, Zaire, Kenya, Uganda, Tanzania, Rwanda, Gabon, Madagascar, and Russia

 

Brand Names : WONDER FOAM, BPB, DOLPHIN, MERBOARD, RIKVIN, EUCATEX, KOHL, STANLEY, LOUVERLUX, RHINO, NITTOBO, TENBY ELECTRICAL and MAKITA.

 

Operating Trend : Steady

 

Subject has a workforce of 210 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 49,000,000                               UAE Dh 52,900,000

 

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

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box : 66

     Dubai

     Tel : (971-4) 2535000

 

·       The Standard Chartered Bank

Khalid Bin Waleed Street

Mankhool Branch

PO Box : 999

Dubai

Tel : (971-4) 2520455

 

·       Emirates Bank International Ltd

Al Nasr Square

PO Box : 2923

Dubai

Tel : (971-4) 2281181

 

·       First Gulf Bank

PO Box: 52053

Dubai

Tel: (971-4) 2941234

Fax: (971-4) 2949595

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction         November 2003              January 2005                 October 2006

Credit amount                328,300             306,300             50,000

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                       Canadian Dollars            Canadian Dollars            Pounds Sterling

 

 

GENERAL COMMENTS

 

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

 

Established in 1917, subject is owned and managed by Mr Ibrahim Yousuf Abdul Rahman Al Rahmani and his wife Mrs Noora Heryani.

 

Subject is involved in the import and distribution of building materials, hardware, power tools, timber, laminate flooring and sanitary ware products under a number of well known brand names.

 

The company enjoys an excellent reputation for the quality of its products and has a 20% market share in the building materials sector. Furthermore in late 2002 the company opened another showroom based in Abu Dhabi as part of its expansion programme, under which it aims to open branches in more of the Emirates.

 

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 sound trade risk. As such the above credit figure is deemed admissible.

 

Maximum suggested credit figure: US$ 700,000

 

 

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