MIRA
INFORM REPORT
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Report Date : |
15.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
AL LOKRIT INTERNATIONAL ORNAMENTAL FLOWERS AND PLANT LLC |
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Registered Office : |
Jamal Abdul Nasser Street, Al Majaz Area, PO Box 6817, Sharjah |
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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 : |
13.03.1990 |
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Com. Reg. No.: |
19991 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Import and Distribution of Ornamental and Fresh Cut Plants
and Flowers, Pots and Vases, as well as Offering Landscaping Services. |
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 LOKRIT INTERNATIONAL ORNAMENTAL FLOWERS AND PLANT
LLC
Country of Origin : Sharjah, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 13th March 1990
Commercial Registration Number : 19991
Trade Licence Number : 113109
Membership Number : 24635
Issued Capital : UAE Dh 150,000
Paid up Capital : UAE Dh 150,000
Total Workforce : 50
Line of Business : Import and distribution of ornamental and fresh cut plants and
flowers, pots and vases, as well as offering landscaping services.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
AL LOKRIT INTERNATIONAL ORNAMENTAL FLOWERS AND PLANT LLC
ADDRESS
Registered & Physical Address
Street : Jamal Abdul
Nasser Street
Area : Al Majaz
Area
PO Box : 6817
Town : Sharjah
Country : United Arab
Emirates
Telephone : (971-6) 5551530
Facsimile : (971-6)
5594750
Email : lokrit@emirates.net.ae
Premises
Subject operates from a medium sized suite of offices and a warehouse that
are rented and located in the Suburban Business Area of Sharjah.
Branch Office (s)
Location Description
· Al Quoz Industrial
Area Rented
warehouse premises
Dubai
Tel:
(971-4) 3477654
KEY PRINCIPALS
Name Nationality Position
· Dadad Mohamed
Daoud Emirati Managing
Director
· Gadoaney Manohar Indian Director
· Hassan Khan - Sales
Manager
LEGAL FORM & OWNERS
Date of
Establishment : 13th
March 1990
Legal Form : Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg.
No. : 19991, Sharjah
Trade Licence No. : 113109
Membership No. : 24635
Issued Capital : UAE Dh 150,000
Paid up Capital : UAE Dh 150,000
Name of Shareholder (s) Percentage
· Dadad Mohamed
Daoud 51%
· Gadoaney Manohar 49%
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 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 import and distribution of ornamental and fresh cut
plants and flowers, as
well as pots and vases.
Subject also offers landscaping
services.
Import Countries: Netherlands, United Kingdom, and Spain.
Operating Trend : Steady
Subject has a workforce of 50 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 18,900,000 UAE
Dh 20,675,000
Local sources consider subject’s financial condition to be Fair.
BANKERS
·
HSBC Bank Middle East
Al Arooba Street
PO Box : 25
Sharjah
Tel : (971-6)
5537222
Fax : (971-6)
5537880
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Established in 1990, Al Lokrit International Ornamental Flowers And
Plant LLC specialises in the import and distribution of ornamental and fresh
cut plants and flowers, pots and vases, as well as offering landscaping
services.
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%)