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MIRA
INFORM REPORT
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Report Date : |
08.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
EMIRATES TRADING
AGENCY LLC (ETA) |
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Registered Office : |
Ascon House,
Salahuddine Al Ayoubi Street, Deira, P O Box 5239, Dubai |
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Country : |
United Arab
Emirates |
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Date of Incorporation : |
1973 |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject’s activities are performed through the following divisions Shipping Division, Automotive Division,
Contracting Division, General Trading Division, Manufacturing Division |
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$ 2,600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : EMIRATES TRADING AGENCY LLC (ETA)
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company - LLC
Registration Date : 1973
Membership Number : 10643
Issued Capital : UAE Dh 6,000,000
Paid up Capital : UAE Dh 6,000,000
Total Workforce : 1,000 (plus approximately 1,000 casual workers)
Line of Business : Subject operates through several divisions (see below for details).
Financial Condition : Undetermined
Payments : Prompt
COMPANY NAME
EMIRATES TRADING
AGENCY LLC (ETA)
ADDRESS
Registered & Physical Address
Building : Ascon House
Street : Salahuddine Al Ayoubi Street
Area : Deira
PO Box : 5239
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2713333 / 2729335 / 2716655 /
7073131
Facsimile : (971-4) 2729863 / 2729319 / 2729761
Email : eta@eta-ascon.com
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Dubai.
Branch Office (s)
Location Description
·
Khalifa Bin
Howeidah Building Rented
office premises
Al Falah Street
PO Box : 3532
Abu Dhabi
Tel : (971-2) 6774420
Fax : (971-2) 6723053
KEY PRINCIPALS
·
Abdullah Al
Ghurair Chairman
·
B.S. Abdul
Rahman Vice
Chairman
·
Sayyed Mohamed
Salahuddin Managing
Director
·
Abdul Rahman
Saif Al Ghurair Deputy
Managing Director
·
Saif Ahmed
Majed Al Ghurair Director
·
Abdul Aziz
Abdullah Al Ghurair Director
·
Easa Abdullah
Al Ghurair Director
·
P.S.M. Sayyed
Abdul Khadir Director
·
N.D.S. Sathak
Ansari Director
·
Khalid
Abdullah Al Ghurair Director
·
Arif Buhary
Rahman Director
·
Nour El Haq Manager
– Trading & Shipping Division
·
Ismail Sayed Manager
– Construction Division
·
A.K. Agrawal Manager
– Mechanical Division
·
T.C. Ravenera Manager
– Power Division
·
P.H.
Habibullah Manager
– Automotive Division
·
G.S. Bukhari Manager
– Coastal Works Division
LEGAL FORM &
OWNERS
Date of Establishment : 1973
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Membership No. : 10643
Issued Capital : UAE Dh 6,000,000
Paid up Capital : UAE Dh 6,000,000
Name of Shareholder
(s)
·
Abdullah Al
Ghurair
·
B.S. Abdul
Rahman
·
Sayyed Mohamed
Salahuddin
·
Abdul Rahman
Saif Al Ghurair
·
Saif Ahmed
Majed Al Ghurair
·
Abdul Aziz
Abdullah Al Ghurair
·
Easa Abdullah
Al Ghurair
·
P.S.M. Sayyed
Abdul Khadir
·
N.D.S. Sathak
Ansari
·
Khalid
Abdullah Al Ghurair
·
Arif Buhary
Rahman
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
Subject is a member of the Al Ghurair Group, which has a turnover over
in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified
range of interests spanning real estate, finance and industry, with specialist
operations in banking, trading and shipping.
Some of the very successful industries that it operates today in the
United Arab Emirates, include the National Flour Mills Co Ltd, National Cement
Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National
Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In
the banking sector, the Ghurairs are owners of the UAE’s largest private bank,
the Dubai-based Mashreq Bank, which is one of the Group’s most successful
ventures and operates from branches both within and outside the UAE.
The Al Ghurair Group is active in London, New York, Cairo, Khartoum,
Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.
In real estate the Al Ghurair Centre has become a prominent landmark in
Dubai. It was built at a cost of more than US $ 150 million and is now home to
most of the city’s top retailers.
The Al Ghurair Group comprises the following concerns :
·
Al Ghurair
Holdings (Private) Ltd
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Gulf
Extrusions Ltd
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Arabian
Aluminium Company
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Al Ghurair
Publishing & Printing House
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Union Mosaic
& Marble Company
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Al Ghurair
Centre
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Arabian Mix
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National
Cement Company Ltd
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Arabian
Packing Company
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Gulf Utensils
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Gulf Import
& Export Co
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House of
Perfume
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Computer
Intelligence and Communications Ltd
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Gulf
Confectionery & Biscuit Company
·
Oman Insurance
Co Limited
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Mashreq Bank
·
Al Ghurair
Enterprises
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Al Ghurair
Exchange
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National Flour
Mills Company Ltd
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National
Concrete Company Ltd
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Masafi Mineral
Water Co LLC
·
Associated
Construction & Investment Co LLC (ASCON)
·
Al Ghurair
Fieness Perry & Partners
·
Pak Arab
Traders
·
Al Ghurair
Real Estate
·
Al Khaleej
Sugar Co WLL
·
Central
Electric Equipment Co LLC (CEEC)
·
National Oman
Marble Company
·
Rawda Quarries
Ltd
·
Ghurair Tarmac
·
Oman Finance
Company
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Ghurair Crown
(Engineering) Ltd
·
Al Ghurair
Industries (Pvt) Ltd
LINE OF BUSINESS
Operations : Subject’s activities are performed through
the following divisions :
Shipping Division
Under this division, subject is engaged in many aspects of the shipping industry. Its operations are performed by the following 5 departments :
Brokering : The company is a leading broker for dry cargo chartering and Sale and Purchase (S&P) of dry bulk carrier vessels, with 1,500 chartering fixtures and S&P deals to its credit. This department has its own ship brokerage office, Western Shipping & Trading Limited in London as well as a branch in Bangkok. It is an active member of the Baltic Exchange as well as being a member of BIMCO (Baltic and International Maritime Council). Western Shipping also undertakes shipping consultancy and post-fixture management on behalf of ETA and select clients.
Chartering : The chartering department commenced operations in the mid-1970s with a 3,000 ton affreightment contract. The department today oversees the movement of over 8 million tons of cargo, of which 5 million tons are moved in vessels under its own charter.
Operations & Agency : The operations department handles all loading, discharging and coordination with ports and customs transport and delivery. The department also undertakes ships agency in Dubai and provides ship owners and charterers with comprehensive services such as bunkering, protecting agency, crew changes, emergency repairs and surveys.
Projects & Development : The projects department specialise in the development of new business concepts. It is currently engaged in the deployment of floating cranes in Indian ports. Recently in collaboration with Shipping & Trading Associates LLC, the department acquired the floating crane Diamond of Vizag. The crane will be deployed in a variety of situations, such as the lightening of the panamax, discharging to feeder vessels at anchorage directly from the mother vessel, as well as fast loading and discharging at berths without shore handling facilities.
This department also handles asset finance matters and feasibility studies on various projects for the shipping division.
Ship Management : The Ship Management department currently operates 6 dry bulk cargo vessels ranging from 7,000 dwt to 67,000 dwt and a floating crane. This department provides ship owners with a comprehensive vessel management programme including, pre-acquisition vessel inspection, surveys, technical advise, crewing and total vessel management.
In October 1998, ANZ Investment Bank arranged a $ 5.4 million, five year Murabaha Islamic financing facility for ETA. The funds were used for the purchase of a 64,286 dwt dry bulk carrier, named Pearl of Kuwait.
Automotive Division
This division is also known as the “Computerised Auto Repair & Services Division (C.A.R.S)” and provides car servicing and computerised engine tuning, as well as car body components and car accessories, such as batteries, tyres and headlights.
Contracting Division
Under this division, subject provides contracting services for electro-mechanical projects as well as power and control systems. Its operations are performed by the following :
Electro Mechanical
Dept. : The Electro-mechanical
department specialises in building projects requiring advanced engineering
skills and technical expertise. Its activities
cover the supply and installation of air-conditioning units, electrical,
sanitary, plumbing, fire alarm and security systems. The department’s past
contracts include residential, commercial and industrial buildings, hospitals,
universities, airports, as well as electrical power, communication and defence
projects. It has also contributed to major landmarks in the cities of Dubai and
Abu Dhabi such as Ruler’s Diwan, Etisalat Building, Citi Bank Regional Head
Office in Dubai, Municipality head office in Abu Dhabi, the Dubai International
Airport, the Forte Grant Hotel in Abu Dhabi and Jumeirah Beach Hotel.
Power & Control Systems : The power & Control Systems department is engaged in the manufacture, testing and commissioning of low voltage switchgear and control panels.
Current
Contracts : Subject was
awarded two contracts from the Dubai Electricity & Water Authority (DEWA)
for the construction of three 132/33-KV substations and the supply and
installation of cabling on the Qusais project. The larger of the contracts
(valued at UAE Dh 256 million) calls for the construction of 132-KV at Qusais,
Burj Nahar and Nasr Club. It also includes the supply and installation of 80
kilometres of 132-KV cabling. The company’s other contract is for the cabling
package associated with the Qusais north substation. Valued at over UAE Dh 90
million the order involves the supply and installation of 132-KV cabling.
In August 1999, ETA announced the award of a turnkey contract to supply and install two 13.8 MW fuel oil generators for Fujairah Cement Industries. The two units are to be supplied by US-based Caterpillar International Power Systems.
ETA has been awarded the mechanical and electrical packages for the retail and apartment areas in the existing Al Ghurair Centre.
General Trading Division
This division is
engaged in the import and distribution of a wide range of general merchandise,
specialising in fire fighting equipment, filters and strainers, building
materials, clinker and cement, limestone, ores and minerals, fertilisers and
chemicals.
Manufacturing Division
Subject operates a
number of production plants that come under the umbrella of the Manufacturing
Division, including the following:
New Materials Division: Launched in 1993, New Materials Division introduces new building
materials to the Construction Industry in UAE through extensive foreign
collaborations.
A tie-up with the world leader in composite panel manufacturing M/s Mitsubishi Chemical Functional Products, Inc., Japan consolidates the strong technical base of the division in carrying-out the cladding works with Alpolic, Alook-Ex, Stainless Steel and Titanium composite cladding material for both internal and exterior of the buildings.
This department has executed so far cladding works exceeding 450,000 square metres in and around the UAE.
Ascon Marble and Granite: ASCON Marble and Granite imports quality marble and granite from Italy, Spain, India, and Brazil. It was founded in 1993 and specialises in the field of supply and fixing of marble and granite catering to the needs of builders and contractors. It employs more than 200 craftsmen and 20 staff.
It has recently won a prestigious project in Abu Dhabi, The Conference Palace Hotel, which was worth more than UAE Dh 200,000,000.
Import Countries
: The United States of
America, India, the Far East and Europe.
International
Suppliers :
·
Philips TDS
for Computers The
Netherlands
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Vassa Controls OY Finland
·
Waagner-Biro AG Austria
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Alusuisse Singen GmbH Germany
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Hoppecke
Batteries Germany
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Koba Batteries Korea
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Diax (Poppy)
Chemicals Ltd Japan
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Mitsubishi Japan
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Gaira Bevel
Gears Ltd India
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Titan Watch Company India
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Composite
(Superlite) Ltd United
States of America
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President
Chemicals & Solvent Co United
States of America
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Promask Maskin
Tape United
States of America
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Westinghouse
Electric United
States of America
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Dover
Elevators United
States of America
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Trane Co United
States of America
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Oracle Corp United
States of America
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Dainichi
Nippon Cables United
States of America
Export Countries
: Oman, Bahrain, Saudi
Arabia, Iran, Pakistan, CIS, Ghana, and African countries.
Subject has a
workforce of approximately 1,000 employees with a further 1,000 casual workers
depending on the volume of work being carried out.
FINANCIAL HIGHLIGHTS
Companies
registered in Dubai, United Arab Emirates are not legally required to make
their accounts public and no financial information was released by the company.
Local sources have reported that the Group's consolidated sales were in excess of
UAE Dh 3.5 billion.
BANKERS
·
HSBC Middle
East
Deira Souk Branch
PO Box : 66
Dubai
Tel : (971-4) 3535000
·
National Bank
of Dubai
Baniyas Street Branch
PO Box : 777
Dubai
Tel : (971-4) 2222241
PAYMENT HISTORY
Subject’s payment
record is reported to be met in a generally prompt manner.
No complaints
regarding subject’s payments have been reported.
Date of transaction April 1997 July 2005
Credit amount 25,000 66,000
Amount overdue 0 0
Payment terms 30
days 30
days
Payment Method Letters
of Credit Letters
of Credit
Paying record Prompt Prompt
Currency Pounds
Sterling Pounds
Sterling
GENERAL COMMENTS
This is a well
established company, part of the Al Ghurair Group which is deemed trustworthy
for respecting its financial trade commitments. Payment obligations are
reportedly met in a prompt and timely manner and local sources advise that
subject is a sound trade risk.
Maximum suggested
credit figure: US$ 2,600,000
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 |
|
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/normal. |
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%)