MIRA
INFORM REPORT
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Report Date : |
12.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
AL MASHRIQ FURNITURE MANUFACTURING LLC |
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Registered Office : |
Plot No. 42, Sheikh Zayed Road, Jebel Ali Industrial Area, PO Box
71605, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
05.01.1999 |
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Com. Reg. No.: |
52256, Dubai |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Manufacture of Office Chairs, Sofa Sets and Auditorium
Chairs. |
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$ 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name : AL MASHRIQ FURNITURE MANUFACTURING LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 5th January 1999
Commercial Registration Number : 52256, Dubai
Trade Licence Number : 509479
Membership Number : 41053
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Total Workforce : 120
Line of Business : Manufacture of office chairs, sofa sets and auditorium chairs.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
AL MASHRIQ FURNITURE MANUFACTURING LLC
ADDRESS
Registered & Physical Address
Building : Plot No. 42
Street : Sheikh Zayed
Road
Area : Jebel Ali
Industrial Area
PO Box : 71605
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 8851388
Facsimile : (971-4)
8851117
Email : almashrq@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices and a factory that
are rented and located in the Industrial Area of Dubai.
KEY PRINCIPALS
Name Nationality Position
· Mahmood Abdul
Fatah Hassan Al Nashash Jordanian Managing Director
· Ismail Abdul Fatah
Hassan Al Nashash Jordanian Director
· Taleb Jassim
Abdullah Al Hawai Emirati Director
LEGAL FORM & OWNERS
Date of
Establishment : 5th
January 1999
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg.
No. : 52256, Dubai
Trade Licence No. : 509479 (Expires on 20/12/2008)
Membership No. : 41053
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Name of Shareholder (s) Percentage
· Taleb Jassim
Abdullah Al Hawai 51%
· Al Mutamayiza
Industrial & Trading Co LLC 35%
· Ismail Abdul Fatah
Hassan Al Nashash 7%
· Mahmood Abdul
Fatah Hassan Al Nashash 7%
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: Engaged in the manufacture of office chairs, sofa sets and auditorium
chairs.
Subject is ISO 9002 accredited.
Import Countries: Belgium, Germany and China.
Export Countries: Saudi Arabia, Bahrain,
Oman, Qatar, Yemen, North Africa, and Central Asia.
Operating Trend : Steady
Subject has a workforce of approximately 120 employees.
FINANCIAL HIGHLIGHTS
Financial highlights provided by outside sources are given below :
Currency : United Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/06: Year
Ending 31/12/07:
Total Revenue UAE
Dh 27,000,000 UAE Dh
31,000,000
Local sources consider subject’s financial condition to be Fair.
BANKERS
·
Arab Bank Plc
Ittihad Street
PO Box : 11364
Dubai
Tel : (971-4)
2228845
Fax : (971-4)
2285974 / 2940847
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Al Mashriq Furniture Manufacturing LLC is well established in the local
market and specialises in the manufacture of office chairs, sofa sets and
auditorium chairs.
During the course of this investigation nothing detrimental was
uncovered regarding the manner in which payment obligations are fulfilled. The
operating history is clear and the financial situation is satisfactory. As such
we are of the opinion that the subject is a fair trade risk and the above
credit figure is within subject’s financial means.
Maximum suggested credit figure: US$ 250,000
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%)