MIRA INFORM REPORT

 

 

 

Report Date :

13.08.2008

 

IDENTIFICATION DETAILS

 

Name :

UNITED KAIPARA DAIRIES CO PSC (UNIKAI)

 

 

Registered Office :

Plot No. 16B, Sheikh Zayed Road, Al Quoz Industrial Area, PO Box 6424, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

10.04.1977

 

 

Com. Reg. No.:

42497, Dubai

 

 

Legal Form :

Public Shareholding Company - PSC

 

 

Line of Business :

Production and processing of dairy products, as well as the distribution of frozen, chilled and dry food

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 1500000

 

 

Status :

Very Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

SUMMARY

 

Company Name                                     : UNITED KAIPARA DAIRIES CO PSC (UNIKAI)

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Public Shareholding Company - PSC

Registration Date                                   : 10th April 1977

Commercial Registration Number            : 42497, Dubai

Trade Licence Number                            : 300236

Chamber Membership Number                : 3691

Issued Capital                                        : UAE Dh 25,000,000

Paid up Capital                                      : UAE Dh 25,000,000

Total Workforce                         : 1,580

Activities                                               :Production and processing of dairy products, as well as the distribution of frozen, chilled and dry food

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Recommended Credit Limit                     : US$ 1,500,000

 

 

COMPANY NAME

 

UNITED KAIPARA DAIRIES CO PSC (UNIKAI)

 

 

ADDRESS

 

Registered & Physical Address

Building             : Plot No. 16B

Street               : Sheikh Zayed Road

Area                 : Al Quoz Industrial Area

PO Box             : 6424

Town                 : Dubai

Country : United Arab Emirates

Telephone         : (971-4) 3382133 / 3380831

Facsimile          : (971-4) 3383099 / 3386484

Email                : unikai@emirates.net.ae

 

Premises

Subject operates from a large suite of offices, a warehouse and a factory covering an area of 475,000 square feet that are owned and located in the Industrial Area of Dubai.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box 71363 / 424                                                                          Distribution centre

Abu Dhabi

Tel: (971-2) 5556003

Fax: (971-2) 5556729

 

·       PO Box 17977                                                                                  Distribution centre

Al Ain

Tel: (971-3) 7825704

Fax: (971-3) 7825706

 

·       PO Box 10540                                                                                  Distribution centre

     Khor Fakkan

     Tel: (971-9) 2386727

     Fax: (971-9) 2382350

 

·       PO Box 1664                                                                                    Distribution centre

     Ras Al Khaimah

     Tel: (971-7) 2221962

     Fax: (971-7) 2221961

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       HE Abdul Rahman Mohamed Bin Nasir Al Owais                                 Chairman

 

·       Yousef Mohamed Al Mulla                                                                 Vice Chairman

 

·       Sajjad Ahmed Sheikh Anwar Ghani                                                     Managing Director

 

·       Butty Obaid Al Mulla                                                                         Director

 

·       Ali Bin Humaid Al Owais                                                                    Director

 

·       Malik Mohamed Siddique                                                                   Finance & Administration Manager

 

·       Jacob Mammen                                                                                Production Manager

 

·       Nabeel Abu Ayoun                                                                            Marketing Manager

 

·       Mazhar Kazi                                                                                     Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10th April 1977

 

History                         : Subject was incorporated on 10th April 1977 as a Limited Liability Company

  under the name of “United Kaipara Dairies Limited”.

 

                                      However, on 28th June 1997, the company was re-registered as a Public

  Shareholding Company under the current style of “United Kaipara Dairies Co

  PSC”.

 

Legal Form                  : Public Shareholding Company - PSC

 

Commercial Reg. No.  : 42497, Dubai

 

Trade Licence No.       : 300236

 

Chamber Member No. : 3691

 

Issued Capital              : UAE Dh 25,000,000

 

Paid up Capital            : UAE Dh 25,000,000

 

Name of Shareholder (s)

 

·       Sajjad Ahmed

 

·       Said Mohamed Al Mulla

 

·       Abdul Aziz Ali Al Owais

 

·       Said Al Owais

 

·       Saeed Mohamed Saeed Al Mulla

 

·       Approximately 70 businessmen and private investors

 

 

OPERATIONS

 

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

 

·       Unikai Dairy

 

       Under this division, subject is engaged in the production and processing of dairy products, such as re-constituted milk, yoghurt, cream, buttermilk, cheese, ice cream and juices. Production began in October 1979 and currently stands at 30 million litres per annum.

 

·       Unikai Foods International

 

       Engaged as distributors of frozen, chilled and dry food – operating a fleet of over 350 vans and delivering to more than 14,500 customers.

 

Clients :

 

·       Oman Marketing Center                     Oman

 

Import Countries: Europe, United States of America, India and New Zealand

 

International Suppliers:

 

·       New Zealand Dairy Board                   New Zealand

·       Dat-Schaub A.M.B.A                         Denmark

 

Export Countries: Subject exports to neighbouring Gulf States, particularly Oman

 

Brand Names: UNIKAI, AL MOROUJ, ROYAL TREAT, PREMIUM ICE CREAM, MUMTAZ RICE, SHAN SPICES, WALKERS, FALAK RICE, SHEZAN, EURO CAKES, UNO FROZEN PRODUCTS, FAIRCO and DAT SCHAUB

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,580 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/06:                Year Ending 31/12/07:

 

Total Sales                                UAE Dh 266,099,000                  UAE Dh 309,590,000

 

Net Profit                                   UAE Dh     7,948,000                 UAE Dh   21,012,000

 

Total Assets                              UAE Dh   83,084,000                 UAE Dh 185,076,000

 

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

 

The above financial figures were confirmed by the subject’s Finance Department.

 

 

BANKERS

 

·       National Bank of Dubai

Baniyas Street

     PO Box 777

     Dubai

     Tel: (971-4) 2222241

 

·       Arab Emirates Investment Bank

PO Box 5503

Deira

Dubai

Tel: (971-4) 2222191

Fax: (971-4) 2274351

 

·       United Bank Ltd

Murshid Bazar Branch

PO Box 1000

Dubai

Tel: (971-4) 2282025 / 2223191

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box 66

     Dubai

     Tel: (971-4) 2535000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction      April 2003                     May 2004                      June 2005

Credit amount                500,000             139,120             121,140

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                Prompt                          Prompt                          Prompt

Currency                       US Dollars                     Canadian Dollars            Canadian Dollars

 

 

GENERAL COMMENTS

 

United Kaipara Dairies Co PSC (UNIKAI) has operations dating back to 1977 and is engaged in the production and processing of dairy products, as well as the distribution of frozen, chilled and dry food through its fleet of 350 vans. The company deals with a number of leading international suppliers and enjoys a excellent reputation for the quality of its products.

 

Local sources report that payment obligations are met in a generally prompt manner and the financial situation is healthy and profitable. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.67

UK Pound

1

Rs.80.92

Euro

1

Rs.63.71

 

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