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MIRA
INFORM REPORT
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Report Date : |
03.09.2007 |
IDENTIFICATION DETAILS
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Name : |
KADDAS OILFIELD
SERVICES AND TRADING COMPANY LLC (KOSTCO) |
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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 : |
10th January 1977 |
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Com. Reg. No.: |
12590, |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Engaged in the
distribution of oilfield equipment and spare parts. |
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$ 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : KADDAS OILFIELD SERVICES AND TRADING COMPANY
LLC (KOSTCO)
Country of Origin :
Legal Form : Limited Liability Company - LLC
Registration Date : 10th January 1977
Commercial Registration Number :
12590,
Trade Licence Number : 2899
Membership Number : 5894
Issued Capital : UAE Dh 2,000,000
Paid up Capital : UAE Dh 2,000,000
Total Workforce : 70
Line of Business : Distribution of oilfield equipment and spare parts.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
KADDAS OILFIELD
SERVICES AND TRADING COMPANY LLC (KOSTCO)
ADDRESS
Registered & Physical Address
Building :
Area : Mussafah Industrial Area
PO Box : 3808
Town :
Country :
Telephone : (971-2) 5510051
Facsimile : (971-2) 5511976 / 5510488
Email : kostco@emirates.net.ae
Premises
Subject operates
from a medium sized suite of offices, a warehouse and a showroom that are owned
and located in the Industrial Area of Abu Dhabi.
Branch Office (s)
Location Description
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PO Box
: 61486 Office
& warehouse premises
Jebel Ali Free Zone
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PO Box
: 6409 Office
& warehouse premises
Sharjah
Tel : (971-6) 5313099
Fax : (971-6) 5313427
KEY PRINCIPALS
Name Nationality Position
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Jabby
Joseph Indian Managing
Director
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Anand
Ranganath Indian Director
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Abdullah
Kaddas Emirati Director
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C.R.Nair - General
Manager
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Jai Boy - Finance
Manager
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P.C.
Anthony - Administration
Officer
LEGAL FORM &
OWNERS
Date of Establishment : 10th
January 1977
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 12590,
Trade Licence No. : 2899
(Expires 12th May 2008)
Membership No. : 5894
Issued Capital : UAE Dh 2,000,000
Paid up Capital : UAE Dh 2,000,000
Name of Shareholder
(s) Percentage
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Abdullah
Kaddas 51
%
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Jabby
Joseph ]
]
49 %
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Anand
Ranganath ]
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.
AFFILIATED COMPANIES
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Crown
Printing Co LLC
Tourist Club Area
LINE OF BUSINESS
Operations : Engaged in the distribution of oilfield
equipment and spare parts, including stainless and carbon steel pipes, pipe
fittings, valves, fasteners, gaskets, hoses, tank truck loading equipment and
related oilfield consumables.
Clients :
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Sadco
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Adnoc
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Adma
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Adgas
Import Countries
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International
Suppliers :
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Valvo
Metal
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L.V.F.
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Delta
Valves
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Galperti
Engineering
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Moorside
Machining Co Ltd
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Spromak
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Al Imam
Factories Est
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Sagana
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Beck
Crespel
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Ulma
Forging (ENARA)
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Fabricom
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Stalror
International
Operating Trend
: Steady
Subject has a
workforce of 70 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 28,910,000 UAE Dh 30,400,000
Local sources
consider subject’s financial condition to be Fair.
BANKERS
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Arab
Bank Plc
PO Box : 875
Tel : (971-2) 5334111
Fax : (971-2) 5336433
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Abu
Dhabi Commercial Bank
Mussafah
PO Box : 9331
Tel : (971-2) 5544272
Fax : (971-2) 5544273
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000
Kaddas Oilfield
Services And Trading Company LLC (KOSTCO) is very well established in the local
business market with operations dating back to 1977. The company is engaged in
the distribution of oilfield equipment and spare parts, supplying several of
the regions leading oil companies.
KOSTCO deals with a
host of renowned international suppliers who report payment obligations are met
in a timely manner.
According to local sources
subject’s operating history is clear and the financial situation is
satisfactory. As such the company is considered to be a fair trade risk and the
above credit figure is deemed admissible.
Maximum suggested
credit figure: US$ 400,000
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. |
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%)