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MIRA
INFORM REPORT
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Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
MIDDLE EAST LUBRICANTS CO LLC (MELUBCO) |
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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 : |
01.02.1987 |
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Com. Reg. No.: |
40159, |
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Legal Form : |
Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company
- LLC) |
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Line of Business : |
Engaged in the manufacture, blending and distribution of
lubricants and greases, automatic gear box oils, automotive engine oil, auto
diesel engine oil, zink free oil, marine engine system oil, compressor oil
and heat transfer oils. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 700,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name :
MIDDLE EAST LUBRICANTS CO LLC (MELUBCO)
Country of Origin :
Legal Form :
Limited Liability Company - LLC
Registration Date :
1st February 1987
Commercial Registration Number :
40159,
Trade Licence Number :
300318
Membership Number :
72810
Issued Capital :
UAE Dh 35,486,000
Paid up Capital :
UAE Dh 35,486,000
Total Workforce :
75
Line of Business :
Manufacture, blending and distribution of lubricants & greases
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
COMPANY NAME
MIDDLE EAST LUBRICANTS CO LLC (MELUBCO)
ADDRESS
Registered & Physical Address
Street :
Area : Jebel Ali
Free Zone
PO Box : 1699
Town :
Country :
Telephone : (971-4) 8816544
Facsimile : (971-4)
8816751
Email : melubco@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices and a processing
plant that are leased and located in the Jebel Ali Free Zone.
Branch Office (s)
Location Description
Al Wasl
Tel: (971-4) 3317999
Fax: (971-4) 3318530
KEY PRINCIPALS
Abdullah Saeed Abdullah Chairman
Ali Saeed Abdullah
Mohamed Khalifa Rashid Belhoul Director
Rashid Khalifa Rashid Belhoul Director
Mustafa Mohamed Salem Director
Sanjiv Walawalkar Plant
Manager
LEGAL FORM &
OWNERS
Date of Establishment : 1st
February 1987
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 40159,
Trade Licence No. : 300318
Membership No. : 72810
Issued Capital : UAE Dh 35,486,000
Paid up Capital : UAE Dh 35,486,000
Name of Shareholder
(s) Percentage
BP
City Tower II
Al Bateen Area
PO Box: 1699
Tel: (971-4) 3317999
Fax: (971-4) 3318530
Gibca Ltd 20.40%
PO Box: 289
Sharjah
Tel: (971-6) 5333333
Fax: (971-6) 5333444
Emirates General Petroleum Corp (Emarat) 20.00%
PO Box: 9400
Tel: (971-4) 3371053
Mobil International Co 19.60%
Jebel Ali International Lubricants Co LLC 10.70%
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
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, blending and distribution of lubricants and
greases, automatic gear box oils, automotive engine oil, auto diesel engine
oil, zink free oil, marine engine system oil, compressor oil and heat transfer
oils.
Production Capacity: 120,000
metric tonnes per annum
Import Countries:
Operating Trend : Steady
Subject has a workforce of 75 employees, as well as up to 50 casual
contractors depending on the work volume.
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 81,100,000 UAE Dh
84,275,000
Local sources consider subject’s financial condition to be Good.
BANKERS
National Bank of
PO Box : 777
Tel : (971-4) 2222241
HSBC Bank
Deira Souk Branch
PO Box : 66
Tel : (971-4) 2535000
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction February
2005 February
2007
Credit amount 69,000 66,000
Amount overdue 0 0
Payment terms 90
days 90
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Pounds
Sterling Pounds
Sterling
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Middle East Lubricants Co LLC (Melubco) was established in 1987 and enjoys
an excellent reputation for the quality of its work. The company is engaged in
the manufacture, blending and distribution of lubricants and greases.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk and
the above credit figure is within subject’s financial means.
Maximum suggested credit figure: US$ 700,000
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%)