MIRA
INFORM REPORT
|
Report Date : |
07.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DUBAI STEEL
TRADING LLC |
|
|
|
|
Registered Office : |
Sheikh Zayed
Road, Al Quoz Industrial Area, P O Box 8386, Dubai |
|
|
|
|
Country : |
United Arab
Emirates |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
15th June 1986 |
|
|
|
|
Com. Reg. No.: |
43160, Dubai |
|
|
|
|
Legal Form : |
Limited Liability Company – LLC |
|
|
|
|
Line of Business : |
Engaged in the import
and distribution of steel products, including pipes, tubes, rebars and
stainless steel. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 700,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name : DUBAI STEEL TRADING LLC
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 15th June 1986
Commercial Registration Number : 43160, Dubai
Trade Licence Number : 206468
Membership Number : 11640
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Total Workforce : 21
Line of Business : Distributors of steel products.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
DUBAI STEEL TRADING
LLC
ADDRESS
Registered & Physical Address
Street : Sheikh Zayed Road
Area : Al Quoz Industrial Area
PO Box : 8386
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 3474411
Facsimile : (971-4) 3472521
Email : dstc@emirates.net.ae
Premises
Subject operates
from a small suite of offices and a warehouse covering an area of 450,000
square feet that are owned and located in the Industrial Area of Dubai.
KEY PRINCIPALS
Name Nationality Position
·
Radhe Mohan
Kapur Indian Managing Director
·
Tayeb Abdul
Rahim Baqer Emirati Director
·
Ramesh Devani - Sales Manager
LEGAL FORM & OWNERS
Date of Establishment : 15th
June 1986
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 43160, Dubai
Trade Licence No. : 206468
(Expires 10th June 2009)
Membership No. : 11640
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s)
Percentage
·
Tayeb Abdul Rahim
Baqer 51%
·
Radhe Mohan
Kapur 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 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.
AFFILIATED COMPANIES
·
Woodstock
Trading LLC
Tayeb Abdul Rahim Baqer Building
PO Box: 11072
Dubai
Tel: (971-4) 2858800
Fax: (971-4) 2857336
LINE OF BUSINESS
Operations : Engaged in the import and distribution of
steel products, including pipes, tubes, rebars and stainless steel.
The company is certified to ISO 9002-1994.
Import Countries
: Europe and GCC countries.
Operating Trend
: Steady
Subject has a
workforce of 21 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : United
Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/05: Year
Ending 31/12/06:
Total Revenue UAE Dh 7,860,000 UAE Dh
8,250,000
Local sources
consider subject’s financial condition to be Fair.
BANKERS
·
National Bank
of Dubai
Baniyas Street
PO Box : 777
Dubai
Tel : (971-4) 2222241
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Established in
1986, subject is owned and managed by Mr Radhe Mohan Kapur, an Indian national
who operates in Dubai under the local sponsorship of Tayeb Abdul Rahim Baqer.
Local sources are of the opinion that the subject
would not enter into financial transactions it could not see its way clear to
fulfil.
Maximum suggested
credit figure: US$ 700,000
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%)